Q2 Revenue Increases 53% with positive Adjusted EBITDA
TORONTO and NEW YORK, Aug. 9, 2016 /CNW/ - 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 online display, video, social and mobile campaigns, today announced financial results for the three-month period ended June 30, 2016.
"I am delighted to report another strong quarter of revenue growth as well as positive adjusted EBITDA," said Tal Hayek, CEO of AcuityAds. "The Company grew revenue by 53% compared to Q2 last year primarily as a result of strong demand from both our Self-Serve segment and US growth strategy. The second quarter of this year also saw us go into production from our European data center and achieve our first revenue dollars from this important initiative."
Second Quarter Financial Highlights
- Total revenue for Q2 2016 increased 53% to $7,006,538, compared to $4,575,993 in Q2 2015. Total revenue for the six months ended June 30, 2016 was $12,209,185 compared to $7,624,726 for the same period in 2015, representing a growth of 60% year over year. This quarter marks our 18th consecutive quarter of year over year revenue growth.
- AcuityAds grew its Self-Serve programmatic partner base by adding 25 new platform partners in Q2 2016. Total Partners of the Company's SaaS-based Self-Service platform now stands at 103 compared to 37 at the end of Q2 2015.
- SaaS-based Self-Service revenue for Q2 2016 increased 198% to $3,195,204, compared to $1,072,528 in Q2 2015 and represented 46% of overall revenue compared to 23% in the same period last year. SaaS-based Self-Service revenue for the 6 months ended June 30, 2016 was $5,855,685 compared to $1,660,832 for the same period in 2015, representing a growth of 253%.
- US revenue for Q2 2016 increased by 38% to $2,414,167 compared to $1,749,817 in Q2 2015. For the six months ended June 30, 2016, US revenue totalled $3,678,993 compared to $2,429,273 for the same period in 2015, representing a growth of 51%.
- Europe achieved revenue of $50,000 in its initial 30 days of operation.
- Revenue less media costs (gross margin) remained strong at 52% for Q2 2016 compared to 52% for the three months ended June 30, 2015.
- Operating expenses for the quarter were $3,501,656 compared to $3,027,590 in Q2 2015, a 16% increase due mainly to higher selling expenses and start-up costs associated with our European launch.
- The Company posted non-GAAP Adjusted EBITDA of $195,549 in Q2 2016 compared to a non-GAAP Adjusted EBITDA loss of $488,873 in Q2 2015. Non-GAAP Adjusted EBITDA for the 6 months ended June 30, 2016 was $114,371 compared to non-GAAP Adjusted EBITDA loss of $1,449,567 for the same period in 2015. The Company provides a definition for its non-GAAP Adjusted EBITDA in its MD&A.
- Net loss and comprehensive loss for Q2 2016 was $420,791 compared to a net loss of $1,103,573 in Q2 2015. Net loss and comprehensive loss for the 6 months ended June 30, 2016 was $921,782 compared to $2,541,572 for the same period in 2015, representing a decrease in loss of 63%.
- As at June 30, 2016, the Company's cash and restricted cash balance was $3,049,172 compared to $3,461,780 at the end of Q1 2016. The change in cash position was due to changes in working capital during the quarter.
- Subsequent to the quarter, the Company issued an aggregate of 31,200 Deferred Share Units ("DSUs") pursuant to the Company's Deferred Share Unit Plan to the independent directors of the Company, in lieu of quarterly cash compensation. In addition, an aggregate of 184,800 DSUs were issued to officers and senior employees of the Company, in lieu of quarterly cash bonus compensation and for long term incentive compensation. Lastly, 15,600 DSU's were issued to consultants for services in lieu of cash payments.
AcuityAds is a technology company that enables marketers to connect intelligently with their most meaningful audiences through digital media. At the core of its offerings is a self-serve programmatic marketing platform, powered by proprietary machine learning technology. AcuityAds empowers marketers through its industry leading advertising campaign solutions with 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, 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.
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]