TORONTO and NEW YORK, May 8, 2018 /CNW/ – AcuityAds Holdings Inc. (TSXV:AT) (“AcuityAds” or the “Company”), a technology leader that provides targeted digital media solutions by leveraging its proprietary AI technology to enable advertisers to connect intelligently with audiences across video, mobile, social and online display advertising campaigns, today announced its financial results for the first quarter ended March 31, 2018.
“We are disappointed with our first quarter results as we generated lower revenues than expected, due in part to a slower start to the year by our advertising clients, the final effect from the previously disclosed removed partners, and the restructuring of our US sales leadership team. The latter was an important initiative that is already bearing significant success and has allowed the Company to focus on much larger customer deals, which consequently require a longer sales cycle,” stated Tal Hayek, CEO of AcuityAds.
“I am very optimistic that these changes should result in significantly improved revenues in Q2 versus Q1. In addition, the completed technical integration of Visible Measures has resulted in the annualized reduction of approximately $4.0M in non-sales operating expenses.
In March, we launched our next-generation AI programmatic marketing platform. Our Q1 gross margins have been positively affected from this new technology and we expect this improvement in gross margins to continue throughout 2018,” added Mr. Hayek.
Key Items in the Quarter:
- Average signed deal size grew over 50% in Q1 2018 from Q1 2017.
- Key wins in the quarter included: $1.0 million from a large pharmaceutical client, $750,000 from a major automotive client and $400,000 from an existing insurance client.
- Core North America Self-Serve revenue increased 35% year over year.
- The Company announced its intent to acquire ADman Media, the largest video SSP for Spanish-speaking markets.
Key Items Subsequent to the Quarter:
- The Company announced the closing of a $4.6 million bought-deal private placement which included the full over-allotment option. Certain senior management and directors of the Company invested $1.025 million in the offering.
- The Company announced the upcoming departure of its CFO, Dave Andrews, and announced that Jonathan Pollack will be assuming the CFO role for the Company starting on May 9th, 2018.
- The Company completed the final step in its integration of Visual Measures and realized an additional $4.0 million of annual cost savings from reduced infrastructure and resource costs.
- After a significant sales investment, the Company signed its first agreement with a global Top 5 advertising holding company that gives their respective agencies access to Acuity’s Self-Serve Programmatic Marketing Platform.
Q1 2018 Financial Highlights:
- Total revenue for the three months ended March 31, 2018 was $8,036,573 compared to $11,526,767 for the same period in 2017. However, when normalized for the partners that were removed from our Self-Serve platform, total revenue in Q1 2018 grew 11% compared to the comparable period in 2017.
- Revenue less media costs (gross margin) was 52% for Q1 2018 compared to 49% for Q1 2017.
- Total Self-Serve revenue for the three months ended March 31, 2018 decreased to $2,565,784, compared to $6,307,752 for the same period in 2017 and represented 32% of overall revenue compared to 55% in the same period last year. Total Self-Serve revenue for Q1 2018 reflects the removal of certain partners from our Self-Serve platform in Q3 FY17.
- Total North America Self-Serve revenue grew 35% to $1,951,251 in Q1 2018 compared to $1,444,278 in the same period last year.
- The Company posted Adjusted EBITDA of ($1,985,407) for the three months ended March 31, 2018 compared to an Adjusted EBITDA of $187,049 in the same period last year. The Company expects to have a meaningful improvement to Adjusted EBITDA for Q2 2018 and for the remainder of the year.
- Net and comprehensive loss for the three months ended March 31, 2018 was ($2,806,221) compared to a net and comprehensive loss of ($1,245,636) for the same period in 2017.
- As at March 31, 2018, the Company’s cash and restricted cash balance was $2,617,083.
The Company will be holding a conference call to discuss the Q1 2018 financial results on Wednesday May 9th, 2018.
Conference Call Details:
Date: Wednesday, May 9th, 2018
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 888 390 0605
Conference ID: 68177892
Recording Playback Numbers:
Local – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 177892 #
Expiry Date: Wednesday, May 16th, 2018 11:59 PM
AcuityAds is a leading technology company that provides marketers a more powerful and holistic solution for digital advertising across all ad formats and devices 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 machine learning 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, Canada with offices across North America including New York City, Boston, Chicago, Las Vegas, Los Angeles, San Francisco, Vancouver, Calgary and Montreal. For more information, visit www.AcuityAds.com.