- Revenue Growth in Q2 Driven by Significant Growth in the U.S and Self-Service Business -
TORONTO, Aug. 19, 2015 /CNW/ - 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 second quarter (Q2) financial results for the three and six-month period ended June 30, 2015.
"We had a record breaking quarter that exceeded our expectations," said Tal Hayek, CEO of AcuityAds. "We began to experience greater operational leverage as evidenced with our overall top line growth of 43% year over year, while reducing SG&A expenses by 18% over the same period. This is a clear indication of the effectiveness of our business model, which should allow us to achieve positive EBITDA without sacrificing aggressive growth. In particular, we continue to see high market demand for our programmatic advertising platform in the U.S. marketplace, as exhibited by the Company's 370% quarterly revenue growth year over year. The U.S. performance highlights our continued focus on expanding in this high growth market that remains fragmented with significant upside potential. In addition, investments made in our SaaS-based self-service offering are paying off, as we saw another year over year growth of 256%. Our SaaS-based solution is highly scalable as a business, where we benefit from recurring revenues, while our licensees do the selling to their broad network of clients in a variety of verticals, and managing their advertising campaigns."
"With the first half of the year off to a strong start, and our operational leverage improved, as adjusted EBITDA was reduced from $1,419,164 in Q2 2014 to $488,873 in the current quarter, we remain confident of achieving positive EBITDA over the next few quarters," continued Mr. Hayek.
- Total revenue for Q2 2015 increased by 43% to $4,575,993, compared to $3,190,037 in Q2 2014, and increased by 31% to $7,824,726 in the first half ("HY") 2015, compared to $5,966,854 in HY 2014.
- SaaS-based self-service revenue for Q2 2015 increased by 256% to $1,072,528, compared to $300,996 in Q2 2014, and increased by 262% to $1,660,832 in HY 2015, compared to $458,705 in HY 2014.
- US Revenue for Q2 2015 increased by 370% to $1,749,817 compared to $371,979 in Q2 2014, and increased by 183% to $2,429,273 in HY 2015, compared to $857,486 in HY 2014.
- Gross margins remain strong at 51% for Q2 2015 and 53% in HY 2015.
- While total revenue grew by 43%, the SG&A expenses for the quarter were $3,027,590 compared to $3,695,359 in Q2 2014, an 18% decrease.
- Adjusted EBITDA loss decreased by 66% to $488,873 in Q2 2015, compared to an adjusted EBITDA loss of $1,419,164 in Q2 2014, and decreased by 29% to adjusted EBITDA loss of $1,349,567 for HY 2015, compared to adjusted EBITDA loss of $1,902,740 for HY 2014.
- Net loss and comprehensive loss for Q2 2015 decreased by 58% to $1,003,573, compared to a net loss of $2,392,125 in Q2 2014.
- During the quarter the Company raised net proceeds of $2,530,054 via a brokered Short Form Prospectus Offering.
- As at June 30, 2015, the Company's cash balance was $1,916,262 compared to $981,158 as at March 31, 2015.
- During the quarter the Company increased its active licensees of its SaaS-based self-service offering to 30 from 22 in previous quarter.
- During the quarter, AcuityAds entered into a partnership with SlimCut Media to deliver in-stream video ad units across SlimCut Media's video platform.
- During the quarter, the Company was awarded a total amount of over $1,000,000 in commitments from a North American advertising agency, which will be delivered over a one year term, and a major global appliance company for a campaign period of three months.
- Subsequent to 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.
- Subsequent to 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.
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. With sales operations in Toronto, Montreal, New York, Boston and Los Angeles, AcuityAds customers include both large Fortune 500 enterprises and small to mid-sized businesses. For more information, visit www.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.
For further information: Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]; Tal Hayek, Chief Executive Officer, AcuityAds Holdings Inc., 416-218-9888, [email protected]