AdTheorent Holding Company, Inc. (Nasdaq: ADTH) (“AdTheorent” or
“the Company”), a machine learning pioneer and industry leader
using privacy-forward solutions to deliver measurable value for
programmatic advertisers, today announced its second quarter 2023
financial results.
“As we exit the second quarter, we look
confidently towards a second half return to meaningful revenue
growth, reflected in strong quarter-to-date bookings, growing
late-stage pipeline, and impressive results across each of our
strategic investments including self-service (or Direct Access),
CTV, AdTheorent predictive (ID-free) audience products, and
AdTheorent Health,” said James Lawson, CEO of AdTheorent. “This
confidence is underpinned by our decade-plus leadership in AI/ML
and the near-term launch of our first-of-its-kind self-service
Health DSP, an innovation that's already eliciting an
overwhelmingly positive response in customer previews.”
Second Quarter 2023 Financial
Overview:
- Revenue was $37.6 million, a 11.5% decrease compared to $42.5
million in the second quarter of 2022.
- Gross profit was $16.9 million, down 22.1%, from $21.6 million
in the second quarter of 2022. Gross Profit Margin was 44.8%,
compared to 50.9% in the second quarter of 2022.
- Adjusted Gross Profit* decreased $4.3 million, or 15.2%, to
$24.0 million compared to the second quarter of 2022. Adjusted
Gross Profit Margin was 64.0% compared to 66.7% in the second
quarter of 2022.
- Net income decreased $49.7 million, to $8.1 million, from $57.8
million in the second quarter of 2022. In the second quarter of
2022, the Company recognized a total of $55.9 million of mark to
market gains related to fair value of the Seller's Earn-Out and
Warrants liabilities compared to gains of $0.7 million in the
second quarter of 2023.
- Adjusted EBITDA* decreased $4.0 million to $3.3 million
compared to second quarter 2022. Adjusted EBITDA as a percentage of
Adjusted Gross Profit of 13.8% represented a decrease from 25.8% in
the second quarter of 2022.
Second Quarter and Recent Business and
Operating Highlights:
- AdTheorent’s self-service platform revenue increased 75%
sequentially in the second quarter, an acceleration of the 19%
sequential revenue growth in the first quarter.
- AdTheorent Health experienced continued momentum with a 36%
year-over-year increase in advertiser count in the second quarter,
and sustained adoption of our algorithm-based and ID-independent
AdTheorent Health Audiences, built by HABi™, with 19 active
campaigns in the second quarter and 25 campaigns booked for the
third quarter to date.
- AdTheorent’s algorithm-based and ID-independent predictive
audiences for non-health advertisers, built by ABi™, continued to
yield strong customer adoption with 50 active campaigns in the
second quarter and 37 campaigns booked for the third quarter
to date.
- AdTheorent's algorithm-based predictive audience products
earned Neutronian's NQI Certification for Data Quality, Privacy and
Transparency, and AdTheorent earned the top ranking among pure play
DSPs in Neutronian's Q2 Data Privacy Scores report, further
strengthening the Company’s position as a machine-learning focused
industry leader.
- In July, AdTheorent was awarded Frost & Sullivan’s 2023
North American Product Leadership Award for its groundbreaking
algorithm-based and ID-independent audience targeting
solutions.
- The launch of AdTheorent’s highly-specialized AdTheorent Health
self-service DSP remains on track for the third quarter of
2023.
*We prepare our consolidated financial statements
in accordance with the U.S. generally accepted accounting
principles (“GAAP”). Adjusted Gross Profit and Adjusted EBITDA are
non-GAAP financial measures. See the supplementary schedules in
this press release for a discussion of how we define and calculate
these measures and a reconciliation thereof to the most directly
comparable GAAP measures.
Third Quarter and Full-Year 2023 Financial
Outlook:
The Company's growth may continue to be impacted
in 2023 by macroeconomic factors beyond its control, such as
inflationary pressures and recessionary fears. Based on the current
business environment, recent performance and the current trends in
the marketplace and subject to the risks and uncertainties inherent
in forward-looking statements, the Company's outlook for the third
quarter and full-year 2023 includes the following:
Third quarter 2023:
- Revenue in the range of $39.0 million to $42.0 million.
- Adjusted Gross Profit* of approximately 64% of revenue.
- Adjusted EBITDA* in the range of $3.0 million to $4.5
million.
Full-year ending December 31, 2023:
- Revenue growth compared to 2022.
- Adjusted Gross Profit* between 64% to 65% of revenue.
- Adjusted EBITDA* margin of between 16% and 19%.
Although the Company provides guidance for
Adjusted EBITDA, it is not able to provide guidance for net income,
the most directly comparable GAAP measure. Certain elements of the
composition of net income, including equity-based compensation, are
not predictable, making it impractical for the Company to provide
guidance on net income or to reconcile its Adjusted EBITDA guidance
to net income without unreasonable efforts. Similarly, although the
Company provides guidance for Adjusted Gross Profit, it is not able
to provide guidance for Gross Profit, the most directly comparable
GAAP measure. Certain elements of the composition of Gross Profit,
including equity-based compensation, are not predictable, making it
impractical for the Company to provide guidance on Gross Profit or
to reconcile its Adjusted Gross Profit guidance to Gross Profit
without unreasonable efforts. For the same reasons, the Company is
unable to address the probable significance of the unavailable
information regarding net income and Gross Profit, which could be
material to future results.
About AdTheorent:
AdTheorent uses advanced machine learning
technology and privacy-forward solutions to deliver impactful
advertising campaigns for marketers. AdTheorent's advanced machine
learning-powered media buying platform powers its predictive
targeting, predictive audiences, geo-intelligence, audience
extension solutions and in-house creative capability, Studio AT.
Leveraging only non-sensitive data and focused on the predictive
value of machine learning models, AdTheorent's product suite and
flexible transaction models allow advertisers to identify the most
qualified potential consumers coupled with the optimal creative
experience to deliver superior results, measured by each
advertiser's real-world business goals. AdTheorent is headquartered
in New York, with fourteen locations across the United States and
Canada.
AdTheorent is consistently recognized with
numerous technology, product, growth and workplace awards.
AdTheorent was named an AdExchanger 2022 Top 50 Programmatic Power
Player and was honored with an AI Breakthrough Award and “Most
Innovative Product” (B.I.G. Innovation Awards) for six consecutive
years. Additionally, AdTheorent is the only seven-time recipient of
Frost & Sullivan's “Digital Advertising Leadership Award.” In
September 2022, evidencing its continued prioritization of its
team, AdTheorent was named a Crain’s Top 100 Best Place to Work in
NYC for the ninth consecutive year. AdTheorent ranked fifth in the
Large Employer Category and 17th Overall in 2022. For more
information, visit adtheorent.com.
Conference Call and Webcast
Details:
AdTheorent will host a conference call and webcast
at 4:30 p.m. ET today, August 3, 2023, to discuss its second
quarter 2023 financial results and business highlights. The
conference call can be accessed by dialing (800) 715-9871 from the
United States and Canada or (646) 307-1963 International with
Conference ID 1908045. The live webcast of the conference call and
other materials related to AdTheorent’s financial performance can
be accessed from AdTheorent’s investor relations website at
investors.adtheorent.com.
Following the completion of the call until 11:59
p.m. ET on Thursday, August 10, 2023, a telephone replay will be
available by dialing (800) 770-2030 from the United States and
Canada, or (609) 800-9909 International with Conference ID 1908045.
A webcast replay will also be available at investors.adtheorent.com
for 12 months.
Forward-Looking Statements:
This communication contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future
results, performance or achievements, and may contain words such as
“believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,”
“plan,” or words or phrases with similar meaning. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by, which such performance or results will be
achieved. Forward-looking statements contained in this press
release relate to, among other things, the Company’s projected
financial performance and operating results, including projected
revenue, Adjusted Gross Profit and Adjusted EBITDA, as well as
statements regarding inflationary pressures and recessionary
fears.
Forward-looking statements are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties, including, but not limited to, the market for
programmatic advertising developing slower or differently than the
Company’s expectations, the demands and expectations of clients and
the ability to attract and retain clients and other economic,
competitive, governmental and technological factors outside of the
Company's control, that may cause the Company's business, strategy
or actual results to differ materially from the forward-looking
statements. The Company does not intend and undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required by applicable law. Investors are referred to
AdTheorent's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K and any subsequent filings
on Forms 10-Q or 8-K, for additional information regarding the
risks and uncertainties that may cause actual results to differ
materially from those expressed in any forward-looking
statement.
Investor Contact: April Scee, ICR
AdTheorentIR@icrinc.com (646) 277-1219
Press Contact: Melanie Berger,
AdTheorent Press@adtheorent.com (850) 567-0082
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited; in thousands)
|
June 30, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
73,061 |
|
|
$ |
72,579 |
|
Accounts receivable, net |
|
42,362 |
|
|
|
56,027 |
|
Income tax recoverable |
|
177 |
|
|
|
145 |
|
Prepaid expenses |
|
10,026 |
|
|
|
1,466 |
|
Total current assets |
|
125,626 |
|
|
|
130,217 |
|
Property and equipment, net |
|
494 |
|
|
|
520 |
|
Operating lease right of use assets |
|
5,234 |
|
|
|
5,732 |
|
Investment in SymetryML Holdings |
|
631 |
|
|
|
789 |
|
Customer relationships, net |
|
2,237 |
|
|
|
4,475 |
|
Other intangible assets, net |
|
7,412 |
|
|
|
6,708 |
|
Goodwill |
|
34,842 |
|
|
|
34,842 |
|
Deferred income taxes, net |
|
10,037 |
|
|
|
6,962 |
|
Other assets |
|
345 |
|
|
|
359 |
|
Total
assets |
$ |
186,858 |
|
|
$ |
190,604 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable |
$ |
8,759 |
|
|
$ |
9,479 |
|
Accrued compensation |
|
3,117 |
|
|
|
8,939 |
|
Accrued expenses |
|
4,097 |
|
|
|
6,224 |
|
Operating lease liabilities, current |
|
1,268 |
|
|
|
1,265 |
|
Total current liabilities |
|
17,241 |
|
|
|
25,907 |
|
Warrants |
|
2,152 |
|
|
|
2,298 |
|
Seller's Earn-Out |
|
248 |
|
|
|
773 |
|
Operating lease liabilities, non-current |
|
5,564 |
|
|
|
6,201 |
|
Total
liabilities |
|
25,205 |
|
|
|
35,179 |
|
Stockholders’ equity |
|
|
|
|
|
Preferred Stock |
|
— |
|
|
|
— |
|
Common Stock |
|
9 |
|
|
|
9 |
|
Additional paid-in capital |
|
86,935 |
|
|
|
83,566 |
|
Retained earnings |
|
74,709 |
|
|
|
71,850 |
|
Total stockholders' equity |
|
161,653 |
|
|
|
155,425 |
|
Total
liabilities and stockholders’ equity |
$ |
186,858 |
|
|
$ |
190,604 |
|
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited; in thousands, except share
and per share data)
|
Three Months EndedJune 30, |
|
|
Six Months
EndedJune 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
$ |
37,587 |
|
|
$ |
42,476 |
|
|
$ |
70,261 |
|
|
$ |
76,717 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Platform operations |
|
20,735 |
|
|
|
20,854 |
|
|
|
39,122 |
|
|
|
38,626 |
|
Sales and marketing |
|
10,624 |
|
|
|
11,083 |
|
|
|
20,931 |
|
|
|
21,413 |
|
Technology and development |
|
3,368 |
|
|
|
4,153 |
|
|
|
6,659 |
|
|
|
8,438 |
|
General and administrative |
|
3,589 |
|
|
|
5,103 |
|
|
|
7,525 |
|
|
|
10,704 |
|
Total
operating expenses |
|
38,316 |
|
|
|
41,193 |
|
|
|
74,237 |
|
|
|
79,181 |
|
(Loss)
income from operations |
|
(729 |
) |
|
|
1,283 |
|
|
|
(3,976 |
) |
|
|
(2,464 |
) |
Interest income (expense), net |
|
424 |
|
|
|
(47 |
) |
|
|
1,043 |
|
|
|
(156 |
) |
Gain on change in fair value of Seller's Earn-Out |
|
292 |
|
|
|
37,419 |
|
|
|
525 |
|
|
|
12,763 |
|
Gain on change in fair value of warrants |
|
415 |
|
|
|
18,523 |
|
|
|
146 |
|
|
|
2,587 |
|
Gain on deconsolidation of SymetryML |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,939 |
|
Loss on change in fair value of SAFE Notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(788 |
) |
Gain (loss) on fair value of investment in SymetryML Holdings |
|
10 |
|
|
|
(10 |
) |
|
|
(158 |
) |
|
|
(10 |
) |
Other income (expense), net |
|
4 |
|
|
|
(1 |
) |
|
|
(37 |
) |
|
|
(19 |
) |
Total other
income, net |
|
1,145 |
|
|
|
55,884 |
|
|
|
1,519 |
|
|
|
16,316 |
|
Net income
(loss) before income taxes |
|
416 |
|
|
|
57,167 |
|
|
|
(2,457 |
) |
|
|
13,852 |
|
Benefit for
income taxes |
|
7,666 |
|
|
|
610 |
|
|
|
5,316 |
|
|
|
1,635 |
|
Net
income |
$ |
8,082 |
|
|
$ |
57,777 |
|
|
$ |
2,859 |
|
|
$ |
15,487 |
|
Less: Net loss attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
550 |
|
Net income
attributable to AdTheorent Holding Company, Inc. |
$ |
8,082 |
|
|
$ |
57,777 |
|
|
$ |
2,859 |
|
|
$ |
16,037 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
0.67 |
|
|
$ |
0.03 |
|
|
$ |
0.19 |
|
Diluted |
$ |
0.09 |
|
|
$ |
0.62 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
87,874,081 |
|
|
|
85,766,302 |
|
|
|
87,713,571 |
|
|
|
85,775,210 |
|
Diluted |
|
92,787,955 |
|
|
|
93,402,650 |
|
|
|
92,407,260 |
|
|
|
93,283,519 |
|
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited; in thousands)
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
Cash
flows from operating activities |
|
|
|
|
|
Net income |
$ |
2,859 |
|
|
$ |
15,487 |
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
Provision for credit losses |
|
— |
|
|
|
172 |
|
Amortization expense |
|
4,204 |
|
|
|
3,950 |
|
Depreciation expense |
|
98 |
|
|
|
92 |
|
Amortization of debt issuance costs |
|
28 |
|
|
|
28 |
|
Gain on change in fair value of Seller's Earn-Out |
|
(525 |
) |
|
|
(12,763 |
) |
Gain on change in fair value of warrants |
|
(146 |
) |
|
|
(2,587 |
) |
Gain on deconsolidation of SymetryML |
|
— |
|
|
|
(1,939 |
) |
Loss on change in fair value of SAFE Notes |
|
— |
|
|
|
788 |
|
Loss on fair value of investment in SymetryML Holdings |
|
158 |
|
|
|
10 |
|
Deferred tax benefit |
|
(3,075 |
) |
|
|
(3,236 |
) |
Equity-based compensation |
|
3,340 |
|
|
|
5,844 |
|
Seller's Earn-Out equity-based compensation |
|
— |
|
|
|
991 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
13,665 |
|
|
|
11,675 |
|
Income taxes recoverable |
|
(32 |
) |
|
|
(4 |
) |
Prepaid expenses and other assets |
|
(8,076 |
) |
|
|
(3,626 |
) |
Accounts payable |
|
(779 |
) |
|
|
(2,440 |
) |
Accrued compensation, accrued expenses, and other liabilities |
|
(8,583 |
) |
|
|
(9,153 |
) |
Net cash
provided by operating activities |
|
3,136 |
|
|
|
3,289 |
|
Cash
flows from investing activities |
|
|
|
|
|
Capitalized software development costs |
|
(2,470 |
) |
|
|
(1,240 |
) |
Purchase of property and equipment |
|
(69 |
) |
|
|
(211 |
) |
Decrease in cash from deconsolidation of SymetryML |
|
— |
|
|
|
(69 |
) |
Net cash
used in investing activities |
|
(2,539 |
) |
|
|
(1,520 |
) |
Cash
flows from financing activities |
|
|
|
|
|
Cash received for exercised options |
|
150 |
|
|
|
183 |
|
Payment of revolver borrowings |
|
— |
|
|
|
(39,017 |
) |
Proceeds from SAFE Notes |
|
— |
|
|
|
200 |
|
Proceeds from SymetryML preferred stock issuance |
|
— |
|
|
|
400 |
|
Taxes paid related to net settlement of restricted stock
awards |
|
(437 |
) |
|
|
— |
|
Proceeds from employee stock purchase plan |
|
172 |
|
|
|
— |
|
Net cash
used in financing activities |
|
(115 |
) |
|
|
(38,234 |
) |
Net
increase (decrease) in cash and cash equivalents |
|
482 |
|
|
|
(36,465 |
) |
Cash
and cash equivalents at beginning of period |
|
72,579 |
|
|
|
100,093 |
|
Cash
and cash equivalents at end of period |
$ |
73,061 |
|
|
$ |
63,628 |
|
|
|
|
Non-GAAP Financial Measures
The Company uses financial measures that are not
calculated in accordance with GAAP including Adjusted EBITDA and
Adjusted Gross Profit. The Company's management believes that this
information can assist investors in evaluating the Company's
operational trends, financial performance, and cash generating
capacity and make strategic decisions. Management believes these
non-GAAP measures allow investors to evaluate the Company’s
financial performance using some of the same measures as
management.
Because of the limitations associated with these
non-GAAP financial measures, “Adjusted Gross Profit,” “EBITDA,”
“Adjusted EBITDA,” “Adjusted Gross Profit as a percentage of
Revenue” and “Adjusted EBITDA as a percent of Adjusted Gross
Profit” should not be considered in isolation or as a substitute
for performance measures calculated in accordance with GAAP. The
Company compensates for these limitations by relying primarily on
its GAAP results and using non-GAAP measures on a supplemental
basis. You should review the reconciliation of the non-GAAP
financial measures below and not rely on any single financial
measure to evaluate AdTheorent's business.
The tables below show the Company’s non-GAAP
financial metrics reconciled to the comparable GAAP financial
metrics included in this release.
Adjusted Gross Profit
Adjusted Gross Profit is a non-GAAP profitability
measure. Adjusted Gross Profit is a non-GAAP financial measure of
campaign profitability, monitored by management and the board, used
to evaluate the Company's operating performance and trends, develop
short- and long-term operational plans, and make strategic
decisions regarding the allocation of capital. The Company believes
this measure provides a useful period-to-period comparison of
campaign profitability and is useful information to investors and
the market in understanding and evaluating its operating results in
the same manner as its management and board. Gross profit is the
most comparable GAAP measurement, which is calculated as revenue
less platform operations costs. In calculating Adjusted Gross
Profit, the Company adds back other platform operations costs,
which consist of amortization expense related to capitalized
software, depreciation expense, allocated costs of personnel which
set up and monitor campaign performance, and platform hosting,
license, and maintenance costs, to gross profit.
The following table sets forth a reconciliation of
revenue to Adjusted Gross Profit for the periods presented:
|
Three Months EndedJune 30, |
|
Six Months Ended
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In
thousands) |
Revenue |
$ |
37,587 |
|
$ |
42,476 |
|
$ |
70,261 |
|
$ |
76,717 |
Less:
Platform operations |
|
20,735 |
|
|
20,854 |
|
|
39,122 |
|
|
38,626 |
Gross
Profit |
|
16,852 |
|
|
21,622 |
|
|
31,139 |
|
|
38,091 |
Add back:
Other platform operations |
|
7,190 |
|
|
6,724 |
|
|
13,800 |
|
|
13,240 |
Adjusted
Gross Profit |
$ |
24,042 |
|
$ |
28,346 |
|
$ |
44,939 |
|
$ |
51,331 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP financial measure defined by
us as net income, before interest (income) expense, net;
depreciation, amortization; and income tax benefit. Adjusted EBITDA
is defined as EBITDA before equity-based compensation expense,
transaction costs, non-core operations and other non-recurring
items. Net income is the most comparable GAAP measurement.
Collectively these non-GAAP financial measures are
key profitability measures used by the Company's management and
board to understand and evaluate its operating performance and
trends, develop short-and long-term operational plans and make
strategic decisions regarding the allocation of capital. The
Company believes that these measures can provide useful
period-to-period comparisons of campaign profitability.
Accordingly, the Company believes that these measures provide
useful information to investors and the market in understanding and
evaluating its operating results in the same manner as its
management and board.
The following table sets forth a reconciliation of
net income to Adjusted EBITDA for the periods presented:
|
Three Months EndedJune 30, |
|
|
Six Months Ended
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(In
thousands) |
|
Net income |
$ |
8,082 |
|
|
$ |
57,777 |
|
|
$ |
2,859 |
|
|
$ |
15,487 |
|
Interest (income) expense, net |
|
(424 |
) |
|
|
47 |
|
|
|
(1,043 |
) |
|
|
156 |
|
Tax benefit |
|
(7,666 |
) |
|
|
(610 |
) |
|
|
(5,316 |
) |
|
|
(1,635 |
) |
Depreciation and amortization |
|
2,194 |
|
|
|
1,954 |
|
|
|
4,302 |
|
|
|
4,042 |
|
EBITDA |
$ |
2,186 |
|
|
$ |
59,168 |
|
|
$ |
802 |
|
|
$ |
18,050 |
|
Equity-based compensation |
|
1,860 |
|
|
|
3,856 |
|
|
|
3,340 |
|
|
|
5,844 |
|
Seller's Earn-Out equity-based compensation |
|
— |
|
|
|
499 |
|
|
|
— |
|
|
|
991 |
|
Transaction costs (1) |
|
— |
|
|
|
(271 |
) |
|
|
166 |
|
|
|
(131 |
) |
Gain on change in fair value of Seller's Earn-Out (2) |
|
(292 |
) |
|
|
(37,419 |
) |
|
|
(525 |
) |
|
|
(12,763 |
) |
Gain on change in fair value of warrants (3) |
|
(415 |
) |
|
|
(18,523 |
) |
|
|
(146 |
) |
|
|
(2,587 |
) |
Gain on deconsolidation of SymetryML (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,939 |
) |
Loss on change in fair value of SAFE Notes (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
788 |
|
(Gain) loss on fair value of investment in SymetryML Holdings |
|
(10 |
) |
|
|
10 |
|
|
|
158 |
|
|
|
10 |
|
Non-core operations (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
351 |
|
Adjusted
EBITDA |
$ |
3,329 |
|
|
$ |
7,320 |
|
|
$ |
3,795 |
|
|
$ |
8,614 |
|
(1) |
Includes professional fees directly related to the SPAC merger with
MCAP Acquisition Corporation (the “Business Combination”) on
December 22, 2021. |
(2) |
In connection with the Business
Combination, a Seller's Earn-Out liability was recorded. The gain
represents the decrease in fair value of the Seller's Earn-Out in
the three and six months ended June 30, 2023 and 2022. |
(3) |
In connection with the Business
Combination, a liability for warrants was recorded. The gain
represents the decrease in fair value of the warrants in the three
and six months ended June 30, 2023 and 2022. |
(4) |
On March 31, 2022, the Company
deconsolidated SymetryML which resulted in a gain. Refer to Note 16
— SymetryML and SymetryML Holdings of the Company's Condensed
Consolidated Financial Statements, included in its Form 10-Q as of
June 30, 2023, filed today, for more information. |
(5) |
On March 31, 2022, the SAFE Notes
(defined below) were valued which resulted in a loss. Refer to Note
16 — SymetryML and SymetryML Holdings of the Company's Condensed
Consolidated Financial Statements, included in its Form 10-Q as of
June 30, 2023, filed today, for more information. |
(6) |
Effective as of March 1, 2020,
the Company effectuated a contribution of its SymetryML department
into a new subsidiary, SymetryML, Inc. The Company periodically
raised capital to fund Symetry operations, by entering into Simple
Agreement for Future Equity Notes (“SAFE Notes”) with several
parties. The Company viewed SymetryML operations as non-core, and
did not fund future operational expenses incurred in excess of SAFE
Note funding secured. Effective March 31, 2022, the Company
deconsolidated SymetryML. Refer to Note 16 — SymetryML and
SymetryML Holdings of the Company's Condensed Consolidated
Financial Statements, included in its Form 10-Q as of June 30,
2023, filed today, for more information. |
The following table presents Adjusted EBITDA as
a Percentage of Adjusted Gross Profit and Adjusted Gross
Profit as a Percentage of Revenue:
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(In
thousands, except percentages) |
|
Gross Profit |
$ |
16,852 |
|
|
$ |
21,622 |
|
|
$ |
31,139 |
|
|
$ |
38,091 |
|
Net
income |
$ |
8,082 |
|
|
$ |
57,777 |
|
|
$ |
2,859 |
|
|
$ |
15,487 |
|
Net income
as a percentage of Gross Profit |
|
48.0 |
% |
|
|
267.2 |
% |
|
|
9.2 |
% |
|
|
40.7 |
% |
Adjusted
Gross Profit |
$ |
24,042 |
|
|
$ |
28,346 |
|
|
$ |
44,939 |
|
|
$ |
51,331 |
|
Adjusted
EBITDA |
$ |
3,329 |
|
|
$ |
7,320 |
|
|
$ |
3,795 |
|
|
$ |
8,614 |
|
Adjusted
EBITDA as a percentage of Adjusted Gross Profit |
|
13.8 |
% |
|
|
25.8 |
% |
|
|
8.4 |
% |
|
|
16.8 |
% |
Gross
Profit |
$ |
16,852 |
|
|
$ |
21,622 |
|
|
$ |
31,139 |
|
|
$ |
38,091 |
|
Revenue |
$ |
37,587 |
|
|
$ |
42,476 |
|
|
$ |
70,261 |
|
|
$ |
76,717 |
|
Gross Profit
as a percentage of Revenue |
|
44.8 |
% |
|
|
50.9 |
% |
|
|
44.3 |
% |
|
|
49.7 |
% |
Revenue |
$ |
37,587 |
|
|
$ |
42,476 |
|
|
$ |
70,261 |
|
|
$ |
76,717 |
|
Adjusted
Gross Profit |
$ |
24,042 |
|
|
$ |
28,346 |
|
|
$ |
44,939 |
|
|
$ |
51,331 |
|
Adjusted
Gross Profit as a percentage of Revenue |
|
64.0 |
% |
|
|
66.7 |
% |
|
|
64.0 |
% |
|
|
66.9 |
% |
AdTheorent (NASDAQ:ADTH)
Historical Stock Chart
From Apr 2024 to May 2024
AdTheorent (NASDAQ:ADTH)
Historical Stock Chart
From May 2023 to May 2024