AcuityAds Reports Third Quarter Financial Results
TORONTO, ON; NEW YORK, NY, NOVEMBER 8TH, 2016
AcuityAds Holdings Inc. (TSXV:AT) (“AcuityAds” or “Company”), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across video, mobile, social and online display campaigns, today announced financial results for the three-month period ended September 30, 2016.
“I am pleased to report that Acuity delivered another strong quarter as evidenced by our 62% revenue growth and improving Adjusted EBITDA. Our Adjusted EBITDA for the trailing 12 month period was $935K,” stated Tal Hayek, CEO of AcuityAds. “Contributing to our strong performance were our US and Self-Serve segments as well as our recent acquisition of 140 Proof, Inc., which we closed on September 1, 2016. The amazing team at 140 Proof, Inc. delivered $1.6M of revenue in the month of September.”
Third Quarter Financial Highlights
- Total revenue for Q3 2016 increased 62% to $8,871,289, compared to $5,476,982 in Q3 2015. Total revenue for the nine months ended September 30, 2016 was $21,080,474 compared to $13,101,707 for the same period in 2015, representing growth of 61% year over year. Total revenue includes one month of revenue associated with 140 Proof, Inc.
- AcuityAds grew its Self-Serve partner base by adding 22 new platform partners in Q3 2016. Total Partners of the Company’s SaaS-based Self-Service programmatic platform now stands at 125 compared to 60 at the end of Q3 2015.
- SaaS-based Self-Service revenue for Q3 2016 increased 88% to $3,536,431, compared to $1,880,884 in Q3 2015 and represented 40% of overall revenue compared to 34% in the same period last year. SaaS-based Self-Service revenue for the nine months ended September 30, 2016 was $9,392,117 compared to $3,541,716 for the same period in 2015, representing growth of 165%.
- US revenue for Q3 2016 increased by 131% to $3,857,976 compared to $1,669,428 in Q3 2015. For the nine months ended September 30, 2016, US revenue totalled $7,536,969 compared to $4,098,701 for the same period in 2015, representing growth of 84%.
- Revenue less media costs (gross margin) remained strong at 50% for Q3 2016 compared to 47% for the three months ended September 30, 2015.
- A key milestone in the quarter was revenue of $226,128 from the Company’s European data center which went live at the end of Q2 2016.
- Operating expenses for the quarter were $4,628,522 compared to $2,974,752 in Q3 2015. Total operating expenses for the nine months ended September 30, 2016 were $11,707,285 compared to $9,010,599 for the same period in 2015. Operating expenses include one month of costs associated with 140 Proof, Inc. which totalled $532,587.
- The Company posted Adjusted EBITDA of $559,164 in Q3 2016 compared to an Adjusted EBITDA loss of $254,609 in Q3 2015. Adjusted EBITDA for the nine months ended September 30, 2016 was $673,534 compared to an Adjusted EBITDA loss of $1,704,176 for the same period in 2015.
- Net loss for Q3 2016 was $479,172 compared to a net loss of $586,377 in Q3 2015. Net loss for the nine months ended September 30, 2016 was $1,435,014 compared to $3,127,909 for the same period in 2015. Included in the Q3 2016 net loss was a charge of $374,004 relating to acquisition costs associated with the purchase of 140 Proof, Inc.
- As at September 30, 2016, the Company’s cash and restricted cash balance was $2,478,067 compared to $3,049,172 at the end of Q2 2016. In the quarter, the Company paid cash consideration and acquisition costs of $1,709,052 relating to the acquisition of 140 Proof, Inc. and also increased its term loan by $1,000,000.
AcuityAds is a technology company that enables marketers to connect intelligently with their most meaningful audiences through digital media. A Self-Serve programmatic marketing platform, powered by proprietary machine learning technology, is at the core of its business, accompanied by a patented solution for mobile targeting that leverages social data. AcuityAds empowers marketers by offering transparency on costs and brand safety, and real-time reporting and analytics, bringing accountability to programmatic advertising to deliver business results.
AcuityAds is headquartered in Toronto, Canada with sales offices in New York City, Boston, Chicago, Los Angeles, San Francisco, San Diego, Vancouver, Calgary and Montreal. For more information, visit 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. 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.
Media contact: Alex Jafarzadeh, March Communications, 617-960-9900, email@example.com
For further information: Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, firstname.lastname@example.org; Tal Hayek, Chief Executive Officer, AcuityAds Holdings Inc., 416-218-9888, email@example.com