AcuityAds Reports Fourth Quarter and Fiscal Year 2018 Financial Results

Generated $32.9 million in Revenue and $3.3 million in EBITDA in Q4 2018

TORONTO and NEW YORK, March 12, 2019 /CNW/ - AcuityAds Holdings Inc. (TSXV: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 fourth quarter and year ended December 31, 2018.

"We are incredibly pleased with the results Acuity achieved in Q4 and for the entire 2018 year.  The investments we made and continue to make in our technology, product and people, combined with our industry-leading AI platform and the continued growth of the digital advertising market, have provided significant momentum for our Company," said Tal Hayek, Chief Executive Officer of AcuityAds. "We are continuing to see substantial growth into the first quarter of 2019 with both larger and longer term contracts. We believe this renewed growth is a testament to the outstanding execution of the entire Acuity team whose dedicated focus and commitment is one of our most valuable assets."

Mr. Hayek continued, "We firmly believe that Acuity is stronger and in a better market position today than at any time in our history."

Fourth Quarter 2018 Financial Highlights

• Total revenue for the three months ended December 31, 2018 was $32.9 million compared to $15.1 million for the same period in 2017, an increase of 118%.
• Revenue less media costs (gross margin) was 50% for Q4 2018 compared to 51% for Q4 2017.
• Total Self-Serve revenue for the three months ended December 31, 2018 increased 75% to $5.2 million, compared to $3.0 million for the same period in 2017.
• The average campaign size increased 124% in the 2018 quarter as compared to the same period in 2017.
• The Company's Adjusted EBITDA increased by 405% to $3.3 million for the three months ended December 31, 2018 compared to an Adjusted EBITDA of $0.7 million for the same period in 2017.
• Net loss for the three months ended December 31, 2018 was $3.6 million compared to a net and loss of $1.3 million for the same period in 2017.
• Adjusted net income (loss) which excludes a non-cash goodwill write-off, non-cash amortization of intangibles related to acquisitions, non-recurring acquisition costs and other non-cash items, was $2.2 million for the three months ended December 31, 2018 compared to ($0.7 million) for the same period in 2017. The adjusted net income per share for the three months ended December 31, 2018 was $0.05 per share.
• As at December 31, 2018 the Company's cash and restricted cash balance was $8.1 million.

Full Year 2018 Financial Highlights

• Total revenue for the twelve months ended December 31, 2018 was $70.2 million compared to $58.5 million for the same period in 2017, an increase of 20%.
• Revenue less media costs (gross margin) was 52% for FY2018 compared to 50% for FY2017.
• Total Self-Serve revenue for the twelve months ended December 31, 2018 was $15.8 million compared to $19.7 million for the same period in 2017.
• The average campaign size increased 7% in 2018 as compared to the same period in 2017.
• The Company's Adjusted EBITDA increased 1407% to $2.8 million for the twelve months ended December 31, 2018 compared to Adjusted EBITDA of $0.2 million for the same period in 2017.
• Net loss for the twelve months ended December 31, 2018 was $11.3 million compared to a net of $6.6 million for the same period in 2017.
• Adjusted net loss which excludes a non-cash goodwill write-off, non-cash amortization of intangibles related to acquisitions, non-recurring acquisition costs and other non-cash items, was $2.3 million for the twelve months ended December 31, 2018 compared to $5.7 million for the same period in 2017.

The Company will be holding a conference call to discuss the fourth quarter and fiscal year 2018 financial results on Wednesday, March 13^th, 2019.

Conference Call Details:
Date: Wednesday, March 13^th, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – ([phone]
Toll Free – ([phone]
Conference ID: 25042254

Recording Playback Numbers:
Local – ([phone]
Toll Free – ([phone]
Passcode: 042254 #
Expiry Date: Wednesday March 20^th, 2019 11:59 PM

The following table presents a reconciliation of Net Income (Loss) to Adjusted EBITDA for the periods ended:

	Three months ended		Twelve months ended
	December 31,	December 31,	December 31,	December 31,
	2018	2017	2018	2017
Net income (loss) for the period	($3,621,702)	($1,332,054)	($11,278,192)	($6,560,271)
Adjustments:
Finance costs	663,968	398,491	2,094,955	1,630,890
Impairment loss	4,072,961	-	4,072,961	1,894,849
Fair value gain	(805,920)	-	(805,920)	(3,316,080)
Foreign exchange gain (loss)	(142,588)	22,533	21,161	348,793
Depreciation and amortization	2,796,174	818,867	6,034,389	3,133,605
Income taxes	(921,480)	25,614	(902,779)	163,394
Share-based compensation	239,018	470,040	1,136,757	1,604,612
Acquisition costs	1,002,874	-	2,264,580	547,106
Severance expenses	27,502	246,608	203,030	739,958
Total adjustments	6,932,509	1,982,153	14,119,134	6,747,127
Adjusted EBITDA	$3,310,807	$650,099	$2,840,942	$186,856

The following table presents a reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) for the periods ended:

	Three months ended		Twelve Months Ended
	December 31,	December 31,	December 31,	December 31,
	2018	2017	2018	2017
Net loss for the period	($3,621,702)	($1,332,054)	($11,278,192)	($6,560,271)
Adjustments:
Impairment loss	$4,072,961	$0	$4,072,961	$1,894,849
Fair Value Gain	($805,920)	$0	($805,920)	($3,316,080)
Amortization of Intangibles	$2,447,878	$630,697	$4,326,983	$1,705,053
Acquisition costs	$1,002,874	$0	$2,264,580	$547,106
Non-cash Income Tax	($921,480)	$0	($902,779)	$0
Total adjustments	$5,796,312	$630,697	$8,955,824	$830,928
Adjusted Net Income (Loss)	$2,174,610	($701,357)	($2,322,368)	($5,729,343)

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.

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.

Tal Hayek, Chief Executive Officer, AcuityAds Holdings Inc., 416-218-9888, [email protected]; Jonathan Pollack, Chief Financial Officer, AcuityAds Holdings Inc., 416-218-9888, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]

Related Links

https://www.acuityads.com/