Q3 Revenue Increased 64% to $14.5M
TORONTO and NEW YORK, Nov. 7
, 2017 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT, OTCQB:ACUIF)
("AcuityAds" or "Company"), a technology leader that enables
advertisers to connect intelligently with audiences across video,
mobile, social and online display advertising campaigns, today
announced its financial results for the three month period ended
September 30th, 2017.
"Acuity delivered another strong quarter as demonstrated by our
64% revenue growth," stated Tal
Hayek, CEO of AcuityAds. "As highlighted by our recent win
announcements, we have begun seeing meaningful traction from our
140 Proof and Visible Measures acquisitions, enabling us to gain
access to a much larger share of advertising spend from our
clients."
Third Quarter Financial Highlights
- Total revenue for Q3 2017 increased 64% to $14,523,649, compared to $8,871,289 in Q3 2016. Total revenue for the nine
months ended September 30, 2017 was
$43,316,219 as compared to
$21,080,474 for the same period in
2016, representing an increase of 105%.
- AcuityAds grew its Self-Serve partner base by adding 22 new
platform partners in Q3 2017. The number of platform partners that
spent greater than $5,000 in the
quarter totaled 54 compared to 34 in Q3 2016.
- Self-Serve revenue for Q3 2017 increased 26% to $4,473,550, compared to $3,536,431 in Q3 2016 and represented 31% of
overall revenue in the quarter. Self-Serve revenue for the nine
months ended September 30, 2017 was
$16,710,868 as compared to
$9,392,117 for the same period in
2016, representing an increase of 78%.
- US revenue for Q3 2017 increased by 127% to $8,756,502 compared to $3,857,976 in Q3 2016. US revenue for the nine
months ended September 30, 2017 was
$24,161,247 as compared to
$7,536,969 for the same period in
2016, representing an increase of 221%.
- Revenue less media costs (gross margin) was 49% for Q3 2017
compared to 50% for the three months ended September 30, 2016.
- As announced on September
11th, 2017, as the result of a loss of a major
client, the Company has re-evaluated its purchase accounting for
140 Proof and made the following adjustments.
Intangible assets have been written down by $1,894,849 and the earn out liability has been
reduced by $3,316,080. This latter
adjustment has a positive one-time impact on Adjusted EBITDA as it
reduces the cash consideration that would have otherwise been paid
for 140 Proof, Inc.
- The Company posted Adjusted EBITDA of $2,076,002 in Q3 2017 compared to an Adjusted
EBITDA of $559,164 in Q3 2016. As
noted above, Adjusted EBITDA includes the one-time gain on earn out
liability relating to the acquisition of 140 Proof. Adjusted EBITDA
for the nine months ended September 30,
2017 was $2,852,837 as
compared to $673,534 for the same
period in 2016.
- The comprehensive loss for Q3 2017 was $1,602,439 compared to a comprehensive loss of
$505,779 in Q3 2016. The
comprehensive loss includes the one-time gain on earn out liability
of $3,316,080, as well as a charge
for the write-down of intangibles of $1,894,849, relating to 140 Proof, Inc.
- As at September 30, 2017, the
Company's cash and restricted cash balance was $1,720,713 compared to $2,042,046 at June 30,
2017.
Additional Q3 Business Items
- The Company has agreed to extend the maturity date of its
Subordinated Term Loan (the "Loan") by an additional year to
November 12, 2018, as well as reduce
the interest rate from 15.25% to 9%, with all other material terms
remaining unchanged. The original loan balance of CDN$2.5 million (current balance of approximately
CDN$1.6 million) was from a group of
private arm's length lenders (the "Original Lenders") and a group
of non-arm's length lenders (the "NAL Lenders"), which included all
of the executive officers and a director of the Company. The NAL
Lenders will continue to be lenders under the Loan at the reduced
interest rate, however the Original Lenders are being paid out in
accordance with the terms of the Loan and a new private arm's
length lender (the "Private Lender") will become a lender under the
Loan. Closing of the extension and amendment of the Loan is
expected to occur on or about November 10,
2017. Subject to approval from the TSX Venture Exchange (the
"Exchange"), the Company proposes to issue one bonus warrant (a
"Warrant") to the Private Lender and the NAL Lenders for each
CDN$5.00 principal amount of debt
advanced to the Company so that an aggregate of approximately
321,426 Warrants are expected to be issued, each Warrant entitling
the holder to acquire one common share of Acuity (subject to
customary adjustments) for a period of two years at an exercise
price that will be the closing price on the business day before
issuance of the Warrants.
Industry Recognition
- In Q3, AcuityAds was recognized as the fifth fastest growing
Canadian software company in Canada and ranked #18 overall on the 2017
PROFIT 500 Ranking of Canada's
Fastest Growing Companies.
Q3 2017 Conference Call Details:
Date: Wednesday, November
8th, 2017
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – (+1) 416 764 8609
Toll Free – (+1) 1 888 390 0605
Conference ID: 91215822
About AcuityAds:
AcuityAds is a technology company that enables marketers to
connect intelligently with their most meaningful audiences through
digital media. A Self-Serve programmatic marketing platform,
powered by machine learning, is at the core of our business. This
is accompanied by strategic digital advertising solutions that
cater to social, mobile and video-specific needs. AcuityAds
empowers marketers by offering transparency on costs and brand
safety, and real-time reporting and analytics, bringing
accountability to programmatic advertising to deliver business
results.
AcuityAds is headquartered in Toronto,
Canada with sales offices in New
York City, Boston,
Chicago, Los Angeles, San
Francisco, San Diego,
Dallas, Vancouver, Calgary, Montreal and London,
England. 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. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE AcuityAds Inc.