AcuityAds Reports Third Quarter 2018 Financial Results
TORONTO, ON; NEW YORK, NY, NOVEMBER 14, 2018
Achieved year-over-year and sequential quarterly revenue growth
Generated $17.3 million in Revenue and EBITDA of $1.1 million
AcuityAds Holdings Inc. (TSXV:AT) (“AcuityAds” or the “Company”), a technology leader that provides targeted digital media solutions by leveraging its proprietary AI technology to enable advertisers to connect intelligently with audiences across digital advertising campaigns, today announced its financial results for the third quarter ended September 30, 2018.
“We are very pleased with the results we generated in the quarter, as well as the overall progress we have achieved this year,” said Tal Hayek, CEO of AcuityAds. “The investments we made earlier this year in our AI technology platform and the reorganization of our US sales leadership team, together with our recently completed acquisitions, has resulted in Acuity delivering this strong financial performance for the quarter. Our continued growth in the third quarter, combined with the results we are already seeing in the fourth quarter, clearly demonstrates that we have regained our sales momentum. Specifically, we generated more revenues in October 2018 than we did for the entire first quarter of 2018.”
Mr. Hayek continued, “Furthermore, our industry leading technology continues to deliver very impressive ROI to our clients, resulting in larger and longer orders, a stronger position in the marketplace and better margins for Acuity. Moving forward, we intend to continue our growth plan through further investments in our technology and sales team, and the continued execution of our successful acquisition strategy.”
Q3 2018 Financial Highlights
- Total revenue for the three months ended September 30, 2018 was $17,298,073 compared to $14,523,649 for the same period in 2017, an increase of 19%. As compared to Q2 2018, total revenue increased sequentially by 45%.
- Revenue less media costs (gross margin) was 54% for Q3 2018 compared to 49% for Q3 2017.
- Total Self-Serve revenue for the three months ended September 30, 2018 was $4,410,881, which is in line with Q3 2017 and increased 21% sequentially from Q2 2018.
- The Company’s Adjusted EBITDA increased to $1,097,708 for Q3 2018 as compared to an Adjusted EBITDA loss of $1,240,078 in the same period of 2017 (Q3 2017 excludes one-time gain of $3,316,080 related to the reversal of an earn-out liability). As compared to Q2 2018, Adjusted EBITDA increased 167% sequentially.
- Net and comprehensive loss for the three months ended September 30, 2018 was $1,954,663 compared to a loss of $1,602,439 in the 2017 quarter. The 2017 quarter included non-recurring net gains of $1,421,231 related to both the earn-out reversal noted above and an impairment loss.
- As at September 30, 2018, the Company’s cash and restricted cash balance was $4,650,735.
Key Items in the Quarter:
- The Company completed the acquisition of substantially all the sales related assets of Magnetic Media, a U.S. based artificial intelligence adtech company, enhancing Acuity’s sales trajectory by adding a sizeable selling team with extensive industry and AI experience, while minimizing the necessity for incremental technology and infrastructure.
- The Company integrated with Triton a2x to offer media buyers programmatic access to premium digital audio inventory.
Key Items Subsequent to the Quarter End:
- AcuityAds increased and extended its revolving line of credit with Silicon Valley Bank, resulting in access to additional capital for the Company at a lower cost.
The Company will be holding a conference call to discuss the Q3 2018 financial results on Wednesday November 15th, 2018.
Conference Call Details:
Date: Thursday, November 15th, 2018
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 59890165
Recording Playback Numbers:
Local – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 890165 #
Expiry Date: Thursday, November 22nd, 2018 11:59 PM
About AcuityAds:
AcuityAds is a leading technology company that provides marketers a powerful and holistic solution for digital advertising across all ad formats and screens to amplify reach and Share of Attention® throughout the customer journey. Via its unique, data-driven insights, real-time analytics and industry-leading activation platform based on proprietary machine learning technology, AcuityAds leverages an integrated ecosystem of partners for data, inventory, brand safety and fraud prevention, offering unparalleled, trusted solutions that the most demanding marketers require to be successful in the digital era.
AcuityAds is headquartered in Toronto with offices throughout the U.S., Europe and Latin America. For more information, visit AcuityAds.com.
The following table presents a reconciliation of Adjusted EBITDA to Income (Loss) for the periods ended:
| Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||
| Net Income (loss) for the period | $(1,860,469) | $(1,602,439) | |
| Adjustments: | |||
| Finance costs | 586,735 | 463,854 | |
| Impairment loss | – | 1,894,849 | |
| Earn-out liability | – | (3,316,080) [1] | |
| Foreign exchange (gain) loss | 421,161 | 121,774 | |
| Exchange differences on
translating foreign operations |
(390,948) | (745,583) | |
| Depreciation and amortization | 1,470,995 | 1,230,892 | |
| Income taxes | – | 21,665 | |
| Share-based compensation | 221,949 | 541,697 | |
| Acquisition costs | 748,252 | – | |
| Severance expenses | (99,968) | 147,334 | |
|
Adjusted EBITDA |
$1,097,707 | $(1,240,078) |
[1] For the three months ended September 30, 2017, the Adjusted EBITDA has been adjusted to exclude the $3,316,080 fair value gain related to the reduction in the earn-out liability
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. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE AcuityAds Inc.
For further information: Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, bpedram@virtusadvisory.com; Jonathan Pollack, Chief Financial Officer, AcuityAds Holdings Inc., 416-218-9888, jp@acuityads.com; Tal Hayek, Chief Executive Officer, AcuityAds Holdings Inc., 416-218-9888, tal.hayek@acuityads.com