ACUITYADS REPORTS RECORD Q3 2015 FINANCIAL RESULTS WITH OVER 66% REVENUE GROWTH
TORONTO, ON; NEW YORK, NY, NOVEMBER 18, 2015
– SaaS-based Self-Service Revenue Increased by 289% –
– Closed $7.0M of New Debt Financing Led by Silicon Valley Bank –
TORONTO, Ont.; New York, NY – November 18, 2015 – AcuityAds Holdings Inc. (TSXV:AT) (“AcuityAds” or “Company”), a leading provider of targeted digital media solutions, enabling advertisers to connect intelligently with audiences across online display, video, social and mobile campaigns, today announced third quarter (Q3) financial results for the three and nine-month period ended September 30, 2015.
“We had a record quarter that saw our previous investments into the U.S. and SaaS-based self-service businesses contribute significantly to our overall revenue growth,” said Tal Hayek, CEO of AcuityAds. “In the third quarter, the Acuity team continued to execute effectively on our plan to deliver significant revenue growth, while maintaining a clear path to near-term profitability. Revenues for the quarter increased by 66% while operating expenses decreased by 19% over the same period last year. This revenue growth, coupled with the decrease in our operating expenses, is also a strong indicator of the operational leverage afforded by our business model. We are seeing more and more marketers embracing programmatic as a key enabler of their digital marketing arsenal as they strive to grow their brand and market share and Acuity is benefiting from this growth.”
Financial Highlights
- Total revenue for Q3 2015 increased by 66% to $5,476,982, compared to $3,289,830 in Q3 2014, and increased by 42% to $13,101,707 for nine months ended September 30, 2015, compared to $9,256,684 for the comparable period in 2014.
- SaaS-based self-service revenue for Q3 2015 increased by 289% to $1,880,884, compared to $483,651 in Q3 2014, and increased by 276% to $3,541,716 for nine months ended September 30, 2015, compared to $942,356 for the comparable period in 2014.
- US Revenue for Q3 2015 increased by 87% to $1,669,428 compared to $892,046 in Q3 2014, and increased by 134% to $4,098,701 for nine months ended September 30, 2015, compared to $1,749,531 for the comparable period in 2014.
- Gross margins remain strong at 47% in Q3 2015 and 50% for nine months ended September 30, 2015.
- The operating expenses for the quarter decreased by 19% to $2,974,752 compared to $3,651,858 in Q3 2014 and decreased by 4% to $9,010,599 for nine months ended September 30, 2015, compared to $9,353,036 for the comparable period in 2014.
- Adjusted EBITDA loss decreased by 81% to $254,609 in Q3 2015, compared to an adjusted EBITDA loss of $1,309,488 in Q3 2014, and decreased by 43% to adjusted EBITDA loss of $1,704,176 for nine months ended September 30, 2015, compared to adjusted EBITDA loss of $3,004,846 for the comparable period in 2014.
- Net loss and comprehensive loss for Q3 2015 decreased by 73% to $586,337, compared to a net loss of $2,182,731 in Q3 2014.
- As at September 30, 2015, the Company’s cash balance was $1,003,626 compared to $1,916,262 as at June 30, 2015.
- Subsequent to the quarter, the Company closed a $7.0 million debt financing, led by Silicon Valley Bank as announced on November 13, 2015. As a result of this new debt financing, the Company was able to retire $4,000,000 of high interest secured debt with a significantly lower blended interest rate.
Operational Highlights
- During the quarter, the Company increased its SaaS-based self-service licensees to 60, an increase of 87.5% year over year.
- During the quarter, AcuityAds received follow-on orders from a leading North American automotive dealer and a global appliance company for a total amount of over $690,000, to deliver strategic advertising campaigns over a period of two to four months.
- During the quarter, the Company announced the hiring of Renzo Dipasquale as Vice President, Self-Serve and Enterprise, to lead the Company’s high growth SaaS-based Self-service business.
- Subsequent to the quarter, AcuityAds presented at the 2nd annual StableView Asset Management TECH15 Conference.
- Subsequent to the quarter, the Company was recognized as one of the fastest growing technology companies in Canada and North America, ranking 9th on the prestigious Deloitte Technology Fast 50TM and 76th on the Deloitte Technology Fast 500TM for 2015. Ranking was primarily due to the Company’s growth rate of 1,123% over the past four years.
About AcuityAds:
AcuityAds has developed a Programmatic Marketing Platform powered by proprietary machine learning technology that allows advertisers to target and connect intelligently with their audiences across online display, video, social and mobile campaigns. In 2015, for the second year in a row, AcuityAds was recognized as one of the fastest growing North American technology companies by finishing in the top 10 in Deloitte’s 2015 Technology Fast 50™ program and in the top 100 in Deloitte’s 2015 Technology Fast 500™ program. With sales operations in New York, Boston, Los Angeles, Toronto, and Montreal, AcuityAds customers include both large Fortune 500 enterprises and small to mid-sized businesses. For more information, visit www.acuityads.com.
For further information, please contact:
Babak Pedram
Investor Relations
Virtus Advisory Group Inc.
416-644-5081
bpedram@virtusadvisory.com
Tal Hayek
Chief Executive Officer
AcuityAds Holdings Inc.
416-218-9888
tal.hayek@acuityads.com
Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, AcuityAds does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.