- Generated $25.8
million in Revenue and $1.1
million in Adjusted EBITDA; Achieves Major Milestone of
Surpassing $100 million in TTM
Revenue
TORONTO and NEW YORK, Aug. 14,
2019 /CNW/ - 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 second quarter ended
June 30, 2019.
"We are extremely pleased with our financial results for the
quarter and are excited for what we expect to be a very strong
second half of the year," said Tal
Hayek, Chief Executive Officer of AcuityAds. "I am also
proud to announce that the Company has achieved a major milestone
of surpassing $100 million in revenue
on a trailing twelve-month basis. I believe that achieving
this milestone places AcuityAds in a very select and elite group of
Canadian software companies. Furthermore, as we have now
achieved this scale, management is turning significant attention to
improving profitability as well continued growth going
forward."
Mr. Hayek continued, "The investments we continue to make in our
technology and new product innovation are realizing significant
returns for the company and our customers. As previously
reported, the newest version of our AI technology continues to
achieve better results, resulting in higher margins as it is
released into a greater number of our overall client
campaigns. In addition, we are very excited with the new
offerings that our Product Innovation Team has in the works that we
believe will significantly enhance Acuity's market position in the
growing digital advertising industry."
Second Quarter 2019 Highlights
- Total revenue for the three months ended June 30, 2019 was $25.8
million compared to $12.0
million for the same period in 2018, an increase of 116%.
Total revenue for the six months ended June
30, 2019 was $53.7m compared
to $20.0 million for the same period
in 2018, an increase of 169%. Total trailing twelve-month revenues
are $103.9 million for the period
ending June 30, 2019.
- Revenue less media costs margin was 48% for Q2 2019 compared to
53% for Q2 2018 and up sequentially from 45% in Q1 2019.
- Total Self-Serve revenue for the three months ended
June 30, 2019 increased 94% to
$7.1 million, compared to
$3.6 million for the same period in
2018. Total Self-Serve revenue for the six months ended
June 30, 2019 increased 115% to
$13.4 million compared to
$6.2 million for the same period in
2018.
- The Company's Adjusted EBITDA was $1.1
million for the three months ended June 30, 2019 compared to an Adjusted EBITDA of
$0.4 million for the same period in
2018. Adjusted EBITDA for the six months ended June 30, 2019 was $2.1
million compared to an Adjusted EBITDA loss of $1.6 million for the same period in 2018.
- Net loss for the three months ended June
30, 2019 was $3.5 million
compared to a net loss of $2.0
million for the same period in 2018. The 2019 and 2018 net
loss includes $2.8 million and
$1.2 million respectively in non-cash
items including depreciation and amortization, share-based
compensation and foreign exchange loss.
- Net loss for the six months ended June
30, 2019 was $6.2 million
compared to $5.4 million for the same
period in 2018. The 2019 and 2018 net loss includes $5.1 million and $2.2
million respectively in non-cash items as described
above.
- As at June 30, 2019 the Company's
cash and restricted cash balance was $5.2
million. In addition, the Company significantly improved its
overall working capital position since the end of Q1 2019.
- During the three months ended June 30,
2019, the Company paid its earn-out obligation associated
with the Magnetic Media acquisition of $3
million and reduced long-term and international debt by
approximately $1 million.
The following table presents a reconciliation of Net
(Loss) to Adjusted EBITDA for the periods ended:
|
Three months
ended
|
Three months
ended
|
Six months
ended
|
Six months
ended
|
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
Net income (loss) for
the period
|
$(3,461,394)
|
$(2,034,140)
|
$(6,242,245)
|
$(5,405,073)
|
Adjustments:
|
|
|
|
|
Finance
costs
|
766,564
|
516,308
|
1,375,573
|
844,252
|
Foreign exchange
(gain) loss
|
380,291
|
49,785
|
590,205
|
(257,412)
|
Depreciation and
amortization
|
1,840,345
|
916,346
|
3,648,143
|
1,767,220
|
Income
taxes
|
52,433
|
7,148
|
121,974
|
18,701
|
Share-based
compensation
|
578,386
|
256,163
|
836,783
|
675,790
|
Acquisition
integration costs
|
481,477
|
513,454
|
1,289,920
|
513,454
|
Other non-recurring
expenses
|
195,862
|
-
|
195,862
|
-
|
Severance
expenses
|
238,362
|
192,771
|
272,735
|
275,496
|
Total
adjustments
|
4,533,720
|
2,451,975
|
8,331,195
|
3,837,501
|
Adjusted
EBITDA
|
$
1,072,326
|
$
417,835
|
$
2,088,550
|
$(1,567,572)
|
Conference Call Details:
The Company will be holding a
conference call to discuss the second quarter 2019 financial
results on Thursday August 15, 2019
at 9 am Eastern.
Date: Thursday August 15, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 31773512
Recording Playback Numbers:
Local – (+1) 416 764
8677
Toll Free – (+1) 888 390 0541
Passcode: 773512
Expiry Date: Thursday, August 22,
2019
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"
and "Adjusted EBITDA" (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.
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 Inc.