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 fourth quarter and
full-year 2023 financial results.
“AdTheorent completed its second full year as a
public company with great momentum, recording more than 15% revenue
growth in Q4,” said James Lawson, CEO of AdTheorent. “Our advanced
ID-independent machine learning technology and algorithmic audience
solutions position us for revenue growth and industry leadership in
the post-cookie world, and our team is executing at a high level to
take advantage of this significant opportunity.”
Fourth Quarter 2023 Financial
Highlights:
- Revenue was $59.7 million, a 15.2% increase compared to $51.8
million in fourth quarter 2022.
- Gross profit was $31.7 million, up 19.3%, from $26.5 million in
fourth quarter 2022. Gross Profit Margin was 53.1%, compared to
51.3% in fourth quarter 2022.
- Adjusted Gross Profit* was $39.9 million, an increase of $6.2
million, or 18.2%, compared to fourth quarter 2022. Adjusted Gross
Profit Margin was 66.9%, compared to 65.2% in fourth quarter
2022.
- Net income was $1.3 million compared to $7.6 million in fourth
quarter 2022. In fourth quarter 2023, the Company recognized a
total of $0.1 million in mark to market losses related to the fair
value of the Seller’s Earn-Out and Warrants liabilities compared to
gains of $3.3 million in fourth quarter 2022.
- Adjusted EBITDA* was $13.6 million, an increase of $3.5
million, or 34.8%, from $10.1 million in fourth quarter 2022.
Adjusted EBITDA* as a percentage of Adjusted Gross Profit* of 34.2%
represented an increase from 30.0% in fourth quarter 2022.
Full-Year 2023 Financial
Highlights:
- Revenue was $170.8 million, a 2.8% increase compared to $166.1
million in full-year 2022.
- Gross Profit was $81.7 million, down 1.2%, from $82.6 million
in full-year 2022. Gross Profit Margin decreased to 47.8%, down
from 49.8% in full-year 2022.
- Adjusted Gross Profit* was $111.2 million, an increase of $1.4
million, or 1.3%, compared to full-year 2022. Adjusted Gross Profit
Margin was 65.1% compared to 66.1% in full-year 2022.
- Net results were break-even in full-year 2023 compared to net
income of $28.8 million in full-year 2022. In full-year 2023, the
Company recognized a total of $2.1 million in mark to market gains
related to the fair value of the Seller’s Earn-Out and Warrants
liabilities compared to $27.2 million in full-year 2022.
- Adjusted EBITDA* decreased to $22.2 million in full-year 2023,
a decrease of $0.1 million, or 0.7%, as compared to the full-year
2022. Adjusted EBITDA* as a percentage of Adjusted Gross Profit* of
19.9% represented a decrease from 20.3% in full-year 2022.
Business and Operating
Highlights:
- Average revenue per active customer increased 11.8%, consistent
with the Company’s strategic focus on growing accounts with larger
media budgets, including two global holding companies which
completed platform evaluations and signed post-evaluation platform
agreements in the first quarter, and a third holding company
evaluation in progress.
- AdTheorent’s self-service momentum accelerated, with 136%
year-over-year revenue growth.
- AdTheorent’s algorithm-based and ID-independent predictive
audiences continued to yield strong customer addition with 85
active campaigns running in the fourth quarter, a 29% sequential
increase from the 66 active campaigns in third quarter.
- Despite being the Company’s largest industry offering, in the
fourth quarter AdTheorent Health year-over-year revenue grew
89%.
- Business consulting and market research firm, Frost &
Sullivan named AdTheorent a leader in the Frost Radar™ for
Demand-Side Platforms. The Frost Radar evaluated the top 13 DSPs on
growth and innovation.
- The Company remains focused on its opportunity to lead the
post-cookie world, with tech, product and data science teams hard
at work configuring AdTheorent machine-learning systems to leverage
Google APIs and aggregate data exchanges as part of the post-cookie
privacy framework.
*The Company prepares its 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 the Company
defines and calculates these measures and a reconciliation thereof
to the most directly comparable GAAP measures.
Full-Year 2024 Financial
Outlook:
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 full-year 2024 includes
the following:
- Revenue in the range of $188.0 million to $195.0 million.
- Adjusted Gross Profit* between 64% to 65% of revenue.
- Adjusted EBITDA* margin of between 20% and 25% of Adjusted
Gross Profit*.
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 “Best Buy-Side Programmatic Platform” in the
2023 Digiday Technology Awards 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 2023, evidencing its
continued prioritization of its team, AdTheorent was named a
Crain’s Top 100 Best Place to Work in NYC for the tenth consecutive
year. AdTheorent ranked tenth in the Large Employer Category and
26th Overall in 2023. 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, March 12, 2024, to discuss its fourth
quarter and fiscal year 2023 financial results and business
highlights. The conference call can be accessed by (800) 715-9871
from the United States and Canada or (646) 307-1963 International
with Conference ID 8315528. 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 Tuesday, March 19, 2024, 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 8315528.
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: David
DeStefano, ICR AdTheorentIR@icrinc.com (203) 682-8383
Press Contact: Melanie Berger,
AdTheorent melanie@adtheorent.com (850) 567-0082
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except per share
data)
|
|
As of December 31, |
|
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
70,261 |
|
$ |
72,579 |
Accounts receivable, net |
|
|
71,288 |
|
|
56,027 |
Income tax recoverable |
|
|
177 |
|
|
145 |
Prepaid expenses |
|
|
4,515 |
|
|
1,466 |
Total current assets |
|
|
146,241 |
|
|
130,217 |
Property and equipment, net |
|
|
457 |
|
|
520 |
Operating lease right-of-use-assets |
|
|
5,085 |
|
|
5,732 |
Investment in SymetryML Holdings |
|
|
628 |
|
|
789 |
Customer relationships, net |
|
|
— |
|
|
4,475 |
Other intangible assets, net |
|
|
7,969 |
|
|
6,708 |
Goodwill |
|
|
34,842 |
|
|
34,842 |
Deferred income taxes, net |
|
|
10,575 |
|
|
6,962 |
Other assets |
|
|
299 |
|
|
359 |
Total
assets |
|
$ |
206,096 |
|
$ |
190,604 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable |
|
|
17,910 |
|
|
9,479 |
Accrued compensation |
|
|
10,483 |
|
|
8,939 |
Accrued expenses |
|
|
4,994 |
|
|
6,224 |
Operating lease liabilities, current |
|
|
1,421 |
|
|
1,265 |
Total current liabilities |
|
|
34,808 |
|
|
25,907 |
Warrants |
|
|
967 |
|
|
2,298 |
Seller's Earn-Out |
|
|
10 |
|
|
773 |
Operating lease liabilities, non-current |
|
|
5,141 |
|
|
6,201 |
Total
liabilities |
|
|
40,926 |
|
|
35,179 |
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
Preferred stock |
|
|
— |
|
|
— |
Common stock |
|
|
9 |
|
|
9 |
Additional paid-in capital |
|
|
93,304 |
|
|
83,566 |
Retained earnings |
|
|
71,857 |
|
|
71,850 |
Total stockholders' equity |
|
|
165,170 |
|
|
155,425 |
Total
liabilities and stockholders’ equity |
|
$ |
206,096 |
|
$ |
190,604 |
|
|
|
|
|
|
|
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited; in thousands, except share
and per share data)
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
59,658 |
|
|
$ |
51,781 |
|
|
$ |
170,809 |
|
|
$ |
166,082 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Platform operations |
|
|
28,004 |
|
|
|
25,237 |
|
|
|
89,145 |
|
|
|
83,444 |
|
Sales and marketing |
|
|
13,719 |
|
|
|
11,478 |
|
|
|
45,769 |
|
|
|
44,018 |
|
Technology and development |
|
|
10,371 |
|
|
|
4,251 |
|
|
|
20,824 |
|
|
|
16,644 |
|
General and administrative |
|
|
6,183 |
|
|
|
5,264 |
|
|
|
17,821 |
|
|
|
20,697 |
|
Total
operating expenses |
|
|
58,277 |
|
|
|
46,230 |
|
|
|
173,559 |
|
|
|
164,803 |
|
Income
(loss) from operations |
|
|
1,381 |
|
|
|
5,551 |
|
|
|
(2,750 |
) |
|
|
1,279 |
|
Interest income, net |
|
|
715 |
|
|
|
322 |
|
|
|
2,465 |
|
|
|
263 |
|
Gain on change in fair value of Seller's Earn-Out |
|
|
13 |
|
|
|
1,644 |
|
|
|
763 |
|
|
|
17,308 |
|
(Loss) gain on change in fair value of warrants |
|
|
(105 |
) |
|
|
1,607 |
|
|
|
1,331 |
|
|
|
9,868 |
|
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 |
|
|
(8 |
) |
|
|
(23 |
) |
|
|
(161 |
) |
|
|
(72 |
) |
Other income (expense), net |
|
|
— |
|
|
|
3 |
|
|
|
(49 |
) |
|
|
(21 |
) |
Total other
income, net |
|
|
615 |
|
|
|
3,553 |
|
|
|
4,349 |
|
|
|
28,497 |
|
Net income
before provision for income taxes |
|
|
1,996 |
|
|
|
9,104 |
|
|
|
1,599 |
|
|
|
29,776 |
|
Provision
for income taxes |
|
|
(654 |
) |
|
|
(1,528 |
) |
|
|
(1,592 |
) |
|
|
(988 |
) |
Net
income |
|
$ |
1,342 |
|
|
$ |
7,576 |
|
|
$ |
7 |
|
|
$ |
28,788 |
|
Less: Net loss attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
550 |
|
Net income
attributable to AdTheorent Holding Company, Inc. |
|
$ |
1,342 |
|
|
$ |
7,576 |
|
|
$ |
7 |
|
|
$ |
29,338 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
0.09 |
|
|
$ |
0.00 |
|
|
$ |
0.34 |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
0.08 |
|
|
$ |
0.00 |
|
|
$ |
0.32 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
88,327,865 |
|
|
|
86,874,191 |
|
|
|
87,984,917 |
|
|
|
86,222,972 |
|
Diluted |
|
|
92,620,835 |
|
|
|
91,822,577 |
|
|
|
92,465,503 |
|
|
|
92,621,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADTHEORENT HOLDING COMPANY, INC. AND
SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited; in
thousands)
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash
flows from operating activities |
|
|
|
|
|
|
Net income |
|
$ |
7 |
|
|
$ |
28,788 |
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
Provision for credit losses |
|
|
359 |
|
|
|
334 |
|
Amortization expense |
|
|
8,872 |
|
|
|
7,830 |
|
Depreciation expense |
|
|
193 |
|
|
|
193 |
|
Amortization of debt issuance costs |
|
|
55 |
|
|
|
55 |
|
Gain on change in fair value of Seller's Earn-Out |
|
|
(763 |
) |
|
|
(17,308 |
) |
Gain on change in fair value of warrants |
|
|
(1,331 |
) |
|
|
(9,868 |
) |
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 |
|
|
161 |
|
|
|
72 |
|
Deferred tax benefit |
|
|
(3,613 |
) |
|
|
(6,528 |
) |
Equity-based compensation |
|
|
9,223 |
|
|
|
11,188 |
|
Seller's Earn-Out equity-based compensation |
|
|
— |
|
|
|
1,364 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(15,620 |
) |
|
|
(425 |
) |
Income taxes recoverable |
|
|
(32 |
) |
|
|
(50 |
) |
Prepaid expenses and other assets |
|
|
(2,397 |
) |
|
|
3,307 |
|
Accounts payable |
|
|
8,376 |
|
|
|
(2,844 |
) |
Accrued compensation, accrued expenses, and other liabilities |
|
|
(590 |
) |
|
|
(1,039 |
) |
Net cash
provided by operating activities |
|
$ |
2,900 |
|
|
$ |
13,918 |
|
Cash
flows from investing activities |
|
|
|
|
|
|
Capitalized software development costs |
|
|
(5,265 |
) |
|
|
(2,797 |
) |
Purchase of property and equipment |
|
|
(108 |
) |
|
|
(330 |
) |
Decrease in cash from deconsolidation of SymetryML |
|
|
— |
|
|
|
(69 |
) |
Net cash
used in investing activities |
|
$ |
(5,373 |
) |
|
$ |
(3,196 |
) |
Cash
flows from financing activities |
|
|
|
|
|
|
Cash received for exercised options |
|
|
306 |
|
|
|
459 |
|
Payments from 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 |
|
|
(466 |
) |
|
|
(278 |
) |
Proceeds from employee stock purchase plan |
|
|
315 |
|
|
|
— |
|
Net cash
provided by (used in) financing activities |
|
$ |
155 |
|
|
$ |
(38,236 |
) |
Net
decrease in cash and cash equivalents |
|
|
(2,318 |
) |
|
|
(27,514 |
) |
Cash
and cash equivalents at beginning of period |
|
|
72,579 |
|
|
|
100,093 |
|
Cash
and cash equivalents at end of period |
|
$ |
70,261 |
|
|
$ |
72,579 |
|
|
|
|
|
|
|
|
|
|
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 Company 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 Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(In
thousands) |
|
Revenue |
|
$ |
59,658 |
|
|
$ |
51,781 |
|
|
$ |
170,809 |
|
|
$ |
166,082 |
|
Less:
Platform operations |
|
|
28,004 |
|
|
|
25,237 |
|
|
|
89,145 |
|
|
|
83,444 |
|
Gross
Profit |
|
|
31,654 |
|
|
|
26,544 |
|
|
|
81,664 |
|
|
|
82,638 |
|
Add back:
Other platform operations |
|
|
8,248 |
|
|
|
7,203 |
|
|
|
29,567 |
|
|
|
27,182 |
|
Adjusted
Gross Profit |
|
$ |
39,902 |
|
|
$ |
33,747 |
|
|
$ |
111,231 |
|
|
$ |
109,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP financial measure defined by
the Company as net income, before interest income, net,
depreciation, amortization and income tax provision. 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 Company management and the Board
to understand and evaluate its operating performance and trends,
develop short-and long-term operational plans, measure performance
goals in employee equity incentive awards, 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 Company management and the Board.
The following table sets forth a reconciliation of
net income to Adjusted EBITDA for the periods presented:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(in
thousands) |
|
Net income |
|
$ |
1,342 |
|
|
$ |
7,576 |
|
|
$ |
7 |
|
|
$ |
28,788 |
|
Interest income, net |
|
|
(715 |
) |
|
|
(322 |
) |
|
|
(2,465 |
) |
|
|
(263 |
) |
Tax provision |
|
|
654 |
|
|
|
1,528 |
|
|
|
1,592 |
|
|
|
988 |
|
Depreciation and amortization |
|
|
2,446 |
|
|
|
2,008 |
|
|
|
9,065 |
|
|
|
8,023 |
|
EBITDA |
|
$ |
3,727 |
|
|
$ |
10,790 |
|
|
$ |
8,199 |
|
|
$ |
37,536 |
|
Equity based compensation |
|
|
3,299 |
|
|
|
2,561 |
|
|
|
9,223 |
|
|
|
11,188 |
|
Seller's Earn-Out equity-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,364 |
|
Early termination fee (1) |
|
|
6,300 |
|
|
|
— |
|
|
|
6,300 |
|
|
|
— |
|
Non-recurring legal fees (2) |
|
|
222 |
|
|
|
— |
|
|
|
222 |
|
|
|
— |
|
Transaction costs (3) |
|
|
— |
|
|
|
— |
|
|
|
166 |
|
|
|
(131 |
) |
Gain on change in fair value of Seller's Earn-Out (4) |
|
|
(13 |
) |
|
|
(1,644 |
) |
|
|
(763 |
) |
|
|
(17,308 |
) |
Loss (gain) on change in fair value of warrants (5) |
|
|
105 |
|
|
|
(1,607 |
) |
|
|
(1,331 |
) |
|
|
(9,868 |
) |
Gain on deconsolidation of SymetryML (6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,939 |
) |
Loss on change in fair value of SAFE Notes (7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
788 |
|
Loss on fair value of investment in SymetryML Holdings |
|
|
8 |
|
|
|
23 |
|
|
|
161 |
|
|
|
72 |
|
Separation expense related to headcount reductions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
270 |
|
Non-core operations (8) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
351 |
|
Adjusted
EBITDA |
|
$ |
13,648 |
|
|
$ |
10,123 |
|
|
$ |
22,177 |
|
|
$ |
22,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Relates to a fee paid for the early termination of a vendor
agreement. |
|
(2) |
Primarily attributable to the
provision of evidentiary testimony requested by the Federal Trade
Commission. The required deposition did not directly relate to the
Company’s operations. |
|
(3) |
Includes professional fees
directly related to the SPAC merger with MCAP Acquisition
Corporation (the “Business Combination”) on December 22, 2021. |
|
(4) |
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 year ended December 31, 2023 and 2022. |
|
(5) |
In connection with the Business
Combination, a liability for warrants was recorded. The loss
represents the increase in fair value of the warrants for the three
months ended December 31, 2023 and the gain represents the
decrease in fair value of the warrants for the three months ended
December 31, 2022. The gain represents the decrease in fair value
of the warrants in the year ended December 31, 2023 and
2022. |
|
(6) |
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-K as of
December 31, 2023 filed today, for more information. |
|
(7) |
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-K as of
December 31, 2023 filed today, for more information. |
|
(8) |
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-K as of
December 31, 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 December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(In
thousands, except for percentages) |
|
Gross Profit |
|
$ |
31,654 |
|
|
$ |
26,544 |
|
|
$ |
81,664 |
|
|
$ |
82,638 |
|
Net
income |
|
$ |
1,342 |
|
|
$ |
7,576 |
|
|
$ |
7 |
|
|
$ |
28,788 |
|
Net income
as a percentage of Gross Profit |
|
|
4.2 |
% |
|
|
28.5 |
% |
|
|
0.0 |
% |
|
|
34.8 |
% |
Adjusted
Gross Profit |
|
$ |
39,902 |
|
|
$ |
33,747 |
|
|
$ |
111,231 |
|
|
$ |
109,820 |
|
Adjusted
EBITDA |
|
$ |
13,648 |
|
|
$ |
10,123 |
|
|
$ |
22,177 |
|
|
$ |
22,323 |
|
Adjusted
EBITDA as a percentage of Adjusted Gross Profit |
|
|
34.2 |
% |
|
|
30.0 |
% |
|
|
19.9 |
% |
|
|
20.3 |
% |
Gross
Profit |
|
$ |
31,654 |
|
|
$ |
26,544 |
|
|
$ |
81,664 |
|
|
$ |
82,638 |
|
Revenue |
|
$ |
59,658 |
|
|
$ |
51,781 |
|
|
$ |
170,809 |
|
|
$ |
166,082 |
|
Gross Profit
as a percentage of Revenue |
|
|
53.1 |
% |
|
|
51.3 |
% |
|
|
47.8 |
% |
|
|
49.8 |
% |
Revenue |
|
$ |
59,658 |
|
|
$ |
51,781 |
|
|
$ |
170,809 |
|
|
$ |
166,082 |
|
Adjusted
Gross Profit |
|
$ |
39,902 |
|
|
$ |
33,747 |
|
|
$ |
111,231 |
|
|
$ |
109,820 |
|
Adjusted
Gross Profit as a percentage of Revenue |
|
|
66.9 |
% |
|
|
65.2 |
% |
|
|
65.1 |
% |
|
|
66.1 |
% |
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