AcuityAds Holdings Inc. (“Acuity”) (TSXV:AT), a leading provider of targeted digital media solutions enabling advertisers to connect intelligently with their audiences across online display, video, social and mobile campaigns, today reported financial results for the third quarter ended September 30, 2014.
Q3 Financial highlights
- Record revenue for the quarter of $3,289,830 increased 54% year-over-year;
- Self-service technology revenue of $483,651 increased from $17,651 in Q3 2013;
- US revenue of $892,046 increased 237% from $264,280 in Q3 2013; and,
- Adjusted EBITDA(1) of $(1,309,488) compared to $(39,957) in Q3 2013. The change was due to key hires in senior management and investment in sales and marketing to augment US growth strategy.
- Acuity began trading on the TSX Venture Exchange (“TSXV”) during the quarter;
- Received net proceeds of $5.1 million from a private placement of equity priced at $1.59 per common share;
- 18 active licensees of our self-service technology;
- Established US west coast sales office during the quarter; and,
- Recognized as one of fastest growing companies in Canada and North America, ranking 8th on the Deloitte Technology Fast 50TMand 26th on the Deloitte Technology Fast 500TM. These rankings are largely attributable to our five year revenue growth rate of 6,589%.
- Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. See reconciliation of adjusted EBITDA to net income at the end of this press release.
Revenue for the three months ended September 30, 2014 increased $1,146,820 or 54% to $3,289,830 from $2,143,010 in Q3 2013. Year-over-year revenue growth was attributable to growth in Canada and the US, as well as sales of self-service technology and managed services. Historically the third quarter has been a seasonally slower period, with reduced advertising activity during the summer months. Sales of our programmatic marketing platform on a self-service technology basis contributed revenue of $483,651 during the current quarter compared to $17,651 in Q3 2013. Revenue generated in the US was $892,045 for the three months ended September 30, 2014, an increase of $627,766 from Q3 2013. Adjusted EBITDA of ($1,309,488) for the three months ended September 30, 2014 decreased from ($39,957) in Q3 2013. The increase in Adjusted EBITDA loss is attributable to increased headcount, including key additions to our senior management team, and increased activity in sales and marketing. Loss and comprehensive loss for the three months ended September 30, 2014 increased $2,054,725 due to the larger Adjusted EBITDA loss together with listing expenses of $352,253, which includes $228,871 in respect of the excess fair value of consideration paid to obtain the listing over the net assets acquired, as well as increased interest costs.
“Our record revenue this quarter demonstrates the tremendous value of our new hires and investments, which are driving positive momentum for us,” commented Tal Hayek, CEO of Acuity. “I am very pleased to report that revenues this quarter grew by 54% over last year, and that US revenues now comprise 27% of our total sales in less than two years since our US launch, posting 237% growth over the third quarter of 2013. Furthermore our self service technology (SaaS) platform saw revenues grow to $483,651 in the quarter. We are also delighted to have completed our public market listing which has provided us with financing to grow our US footprint and develop an industry leading self-service platform. Our priorities continue to be maintaining our leadership position in Canada, continuing to drive strong growth in self-service technology and the US, and cash management. We are pleased to see strong sales have continued into the fourth quarter.”
About AcuityAds Holdings Inc.
AcuityAds Holdings is a technology company that has developed a programmatic marketing platform powered by proprietary machine learning technology that allows advertisers to target and connect intelligently with their audiences across online display, video, social and mobile campaigns. With operations in New York, Toronto, Los Angeles, Montreal, Chicago and Dallas, AcuityAds Holdings’ customers include both large Fortune 500 enterprises and small to mid-sized businesses. For more information, visit www.acuityads.com.
Cautionary statement regarding forward-looking statements
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding AcuityAds Holdings’s financial position and results of operations as at and for the periods ended on certain dates and to present information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to AcuityAds Holdings’s future outlook and anticipated events, including the anticipated growth in self-service and the US, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving AcuityAds Holdings. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for AcuityAds Holdings or the industry in which it operates are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “forecast”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond AcuityAds Holdings’s control, affect the operations, performance and results of AcuityAds Holdings and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in AcuityAds Holdings’s materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, AcuityAds Holdings undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
AcuityAds Holdings Inc.
Chief Financial Officer
AcuityAds Holdings Inc.