AcuityAds Reports Record Third Quarter 2019 Results

-  Generated $26.9 million in Revenue, $1.6 million in Adjusted EBITDA and $0.7 million in Adjusted Net Income

TORONTO and NEW YORK, Nov. 4, 2019 /PRNewswire/ - AcuityAds Holdings Inc. (TSX:AT) ("AcuityAds" or "Company"), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across digital advertising campaigns, today announced its financial results for the three and nine months ended September 30, 2019.

"We are very pleased with our results for the third quarter of 2019 as we continued to see significant growth in both revenue and EBITDA.  Furthermore, I am pleased to report that the Company has achieved our stated objective of generating positive adjusted net income in the quarter," said Tal Hayek, Chief Executive Officer. "Looking forward, we continue to see positive momentum going into Q4 and anticipate improving campaign performance, gross margins and overall profitability."

Mr. Hayek continued, "The recently announced enhancements to our AI algorithm continue to show very positive results on customer ROI and campaign performance.  In addition, the recent alpha launch of our new Self-Serve platform is generating significant interest and excitement and we expect this to be an important driver for growth in 2020."

Third Quarter 2019 Highlights

• Total revenue for the three months ended September 30, 2019 was $26.9 million compared to $17.3 million for the same period in 2018, an increase of 55%. Total revenue for the nine months ended September 30, 2019 was $80.6 million compared to $37.3 million for the same period in 2018, an increase of 116%. Total trailing twelve-month revenues are $113.5 million for the period ending September 30, 2019.
• Total Self-Serve revenue for the three months ended September 30, 2019 increased 52% to $6.7 million, compared to $4.4 million for the same period in 2018. Total Self-Serve revenue for the nine months ended September 30, 2019 increased 89% to $20.1 million compared to $10.6 million for the same period in 2018.
• Total Connected TV revenue grew approximately 300% sequentially from Q2 2019.
• Revenue less media costs margin was 48.5% for Q3 2019 compared to 54% for Q3 2018 and up sequentially from 48.0% in Q2 2019
• Adjusted EBITDA was $1.6 million for the three months ended September 30, 2019 compared to an Adjusted EBITDA of $1.1 million for the same period in 2018. Adjusted EBITDA for the nine months ended September 30, 2019 was $3.7 million compared to an Adjusted EBITDA loss of $0.5 million for the same period in 2018.
• Adjusted Net Income was $0.7 million for the three months ended September 30, 2019 compared to an Adjusted Net Loss of $0.1 million for the same period in 2018. Adjusted Net Loss for the nine months ended September 30, 2019 was $0.4 million compared to an Adjusted Net Loss of $3.4 million for the same period in 2018. Adjusted Net Income (Loss) excludes non-cash items such as depreciation, amortization, foreign exchange gain/loss and share-based compensation (see table below).
• Net loss for the three months ended September 30, 2019 was $1.4 million compared to a net loss of $2.3 million for the same period in 2018. Net loss for the nine months ended September 30, 2019 was $7.6 million compared to $7.7 million for the same period in 2018.
• As at September 30, 2019 the Company's cash and restricted cash balance was $5.9 million.

The following table presents a reconciliation of Net (Loss) to Adjusted EBITDA for the periods ended:

The following table presents a reconciliation of Net (Loss) to Adjusted Net Income for the periods ended:

Conference Call Details:
The Company will be holding a conference call to discuss the third quarter 2019 financial results on Monday, November 4, 2019 at 9:00 am Eastern.
Date: Monday, November 4^th, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 70031853

Recording Playback Numbers:
Local – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: - 031853 #
Expiry Date: Monday, November 11^th, 2019 at 11:59pm EST

Non-IFRS Measures
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including "revenue less media costs margin", "Adjusted EBITDA" and "Adjusted Net Income" (as well as other measures discussed elsewhere in this press release). 

The term "revenue less media costs margin" refers to the amount that "revenue less media costs" represents as a percentage of total revenue for a given period, while the term "revenue less media costs" refers to the net amount of revenue after deducting direct media costs.  Revenue less media costs is used for internal management purposes as an indicator of the performance of the Company's solution in balancing the goals of delivering excellent results to advertisers while meeting the Company's margin objectives and, accordingly the Company believes it is useful supplemental information to include in this MD&A.

"Adjusted EBITDA" refers to net income (loss) after adjusting for finance costs, income taxes, foreign exchange gain (loss), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses and adjustments to the carrying value of investment tax credits receivable and earnout liabilities. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities before taking into consideration how those activities are financed and taxed and also prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company's management and board of directors to understand and evaluate the Company's operating performance, to prepare annual budgets and to help develop operating plans.

"Adjusted Net Income (Loss)" refers to net income (loss) after adjusting for non-cash items such as depreciation and amortization, share-based compensation and foreign exchange (gain)/loss. The Company believes that Adjusted Net Income (Loss) is useful supplemental information as it provides an indication of the results generated by the Company's main business activities on a cash basis. It is another key measure used by the Company's management and board of directors to understand and evaluate the Company's operating performance, to prepare annual budgets and to help develop operating plans.

These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers, and that these non-IFRS measures in particular are relevant to their analysis of the Company.

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 Artificial Intelligence 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.

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.

SOURCE AcuityAds Holdings Inc.

Related Links

https://www.acuityads.com/

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