- Achieved year-over-year and sequential
quarterly revenue growth
- Generated $17.3 million in Revenue
and EBITDA of $1.1 million
TORONTO and NEW YORK, Nov. 14,
2018 /CNW/ - 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)
|
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.
1For 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
SOURCE AcuityAds Inc.