AcuityAds Reports Third Quarter 2017 Financial Results
Nov 07, 2017, 17:00 ET
Q3 Revenue Increased 64% to $14.5M
TORONTO and NEW YORK, Nov. 7 , 2017 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT, OTCQB:ACUIF) ("AcuityAds" or "Company"), a technology leader that enables advertisers to connect intelligently with audiences across video, mobile, social and online display advertising campaigns, today announced its financial results for the three month period ended September 30th, 2017.
"Acuity delivered another strong quarter as demonstrated by our 64% revenue growth," stated Tal Hayek, CEO of AcuityAds. "As highlighted by our recent win announcements, we have begun seeing meaningful traction from our 140 Proof and Visible Measures acquisitions, enabling us to gain access to a much larger share of advertising spend from our clients."
Third Quarter Financial Highlights
- Total revenue for Q3 2017 increased 64% to $14,523,649, compared to $8,871,289 in Q3 2016. Total revenue for the nine months ended September 30, 2017 was $43,316,219 as compared to $21,080,474 for the same period in 2016, representing an increase of 105%.
- AcuityAds grew its Self-Serve partner base by adding 22 new platform partners in Q3 2017. The number of platform partners that spent greater than $5,000 in the quarter totaled 54 compared to 34 in Q3 2016.
- Self-Serve revenue for Q3 2017 increased 26% to $4,473,550, compared to $3,536,431 in Q3 2016 and represented 31% of overall revenue in the quarter. Self-Serve revenue for the nine months ended September 30, 2017 was $16,710,868 as compared to $9,392,117 for the same period in 2016, representing an increase of 78%.
- US revenue for Q3 2017 increased by 127% to $8,756,502 compared to $3,857,976 in Q3 2016. US revenue for the nine months ended September 30, 2017 was $24,161,247 as compared to $7,536,969 for the same period in 2016, representing an increase of 221%.
- Revenue less media costs (gross margin) was 49% for Q3 2017 compared to 50% for the three months ended September 30, 2016.
- As announced on September 11th, 2017, as the result of a loss of a major client, the Company has re-evaluated its purchase accounting for 140 Proof and made the following adjustments.
Intangible assets have been written down by $1,894,849 and the earn out liability has been reduced by $3,316,080. This latter adjustment has a positive one-time impact on Adjusted EBITDA as it reduces the cash consideration that would have otherwise been paid for 140 Proof, Inc.
- The Company posted Adjusted EBITDA of $2,076,002 in Q3 2017 compared to an Adjusted EBITDA of $559,164 in Q3 2016. As noted above, Adjusted EBITDA includes the one-time gain on earn out liability relating to the acquisition of 140 Proof. Adjusted EBITDA for the nine months ended September 30, 2017 was $2,852,837 as compared to $673,534 for the same period in 2016.
- The comprehensive loss for Q3 2017 was $1,602,439 compared to a comprehensive loss of $505,779 in Q3 2016. The comprehensive loss includes the one-time gain on earn out liability of $3,316,080, as well as a charge for the write-down of intangibles of $1,894,849, relating to 140 Proof, Inc.
- As at September 30, 2017, the Company's cash and restricted cash balance was $1,720,713 compared to $2,042,046 at June 30, 2017.
Additional Q3 Business Items
- The Company has agreed to extend the maturity date of its Subordinated Term Loan (the "Loan") by an additional year to November 12, 2018, as well as reduce the interest rate from 15.25% to 9%, with all other material terms remaining unchanged. The original loan balance of CDN$2.5 million (current balance of approximately CDN$1.6 million) was from a group of private arm's length lenders (the "Original Lenders") and a group of non-arm's length lenders (the "NAL Lenders"), which included all of the executive officers and a director of the Company. The NAL Lenders will continue to be lenders under the Loan at the reduced interest rate, however the Original Lenders are being paid out in accordance with the terms of the Loan and a new private arm's length lender (the "Private Lender") will become a lender under the Loan. Closing of the extension and amendment of the Loan is expected to occur on or about November 10, 2017. Subject to approval from the TSX Venture Exchange (the "Exchange"), the Company proposes to issue one bonus warrant (a "Warrant") to the Private Lender and the NAL Lenders for each CDN$5.00 principal amount of debt advanced to the Company so that an aggregate of approximately 321,426 Warrants are expected to be issued, each Warrant entitling the holder to acquire one common share of Acuity (subject to customary adjustments) for a period of two years at an exercise price that will be the closing price on the business day before issuance of the Warrants.
- In Q3, AcuityAds was recognized as the fifth fastest growing Canadian software company in Canada and ranked #18 overall on the 2017 PROFIT 500 Ranking of Canada's Fastest Growing Companies.
Q3 2017 Conference Call Details:
Date: Wednesday, November 8th, 2017
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 1 888 390 0605
Conference ID: 91215822
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 machine learning, is at the core of our business. This is accompanied by strategic digital advertising solutions that cater to social, mobile and video-specific needs. 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, Dallas, Vancouver, Calgary, Montreal and London, England. 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]
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