AcuityAds Reports Second Quarter 2018 Financial Results

Sequential quarterly revenue growth of 50% and positive EBITDA

TORONTO and NEW YORK, Aug. 14, 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 second quarter ended June 30, 2018.

"We are very pleased with our second quarter results as we exceeded our expectations and the guidance that we provided earlier this year in terms of both revenue and EBITDA," said Tal Hayek, CEO of AcuityAds. "We grew our gross revenue by 50% and net revenue by 55%, saw an increase in Self-Serve revenue of 42%, and improved our Adjusted EBITDA by $2.4 million, all compared sequentially to the previous quarter. Furthermore, with the launch of our next-generation AI programmatic marketing platform, our gross margins continue to be positively impacted."

Mr. Hayek continued, "We continue to focus on increasing our revenues through our realigned US sales team, the addition of ADman Media and our commitment to technology enhancements. Going forward, we continue to focus on increasing our revenue while further improving our operational efficiency to enhance margins and overall profitability."

Key Items in the Quarter:

• Closed the acquisition of ADman Media and commenced their integration into our AI platform and pursuit of global cross-selling opportunities
• Closed the $4.6 million bought-deal financing as well as secured a new $7.3 million term loan
• SoCast, a newly signed Self-Serve partner, launched a new digital advertising solution for radio clients powered by AcuityAds

Q2 2018 Financial Highlights:

• Total revenue for the three months ended June 30, 2018 was $11,964,920 compared to $17,265,803 for the same period in 2017. The decrease in year over year revenue is primarily related to the removed partners previously disclosed. Compared to Q1 2018, total revenue grew 50%.
• Revenue less media costs (gross margin) was 53% for Q2 2018 compared to 50% for Q2 2017.
• Revenue less media costs (gross margin) increased 1% sequentially from Q1 2018.
• Total Self-Serve revenue for the three months ended June 30, 2018 increased 42% to $3,642,106 compared to $2,565,784 in the previous quarter.
• From an SG&A perspective, the Company is on track to meet its previously announced objective of $4 million in annualized cost savings from the Visible Measures integration completed in Q2 2018.
• The Company posted Adjusted EBITDA of $417,835 for the three months ended June 30, 2018 compared to Adjusted EBITDA of $589,786 in the same period last year.
• Net and comprehensive loss for the three months ended June 30, 2018 was $2,244,217 compared to a net and comprehensive loss of $1,063,628 for the same period in 2017.
• As at June 30, 2018, the Company's cash balance was $5,884,081.

The Company will be holding a conference call to discuss the Q2 2018 financial results on Wednesday August 15^th, 2018.

Conference Call Details:

Date: Wednesday, August 15^th, 2018
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – ([phone]
Toll Free – ([phone]
Conference ID: 89403139

Recording Playback Numbers:
Local – ([phone]
Toll Free – ([phone]
Passcode: 403139
Expiry Date: Wednesday, August 22^nd, 2018 11:59 PM

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 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 with offices throughout the U.S., Europe and Latin America. For more information, visit AcuityAds.com.

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

		Three months ended June 30, 2018		Three months ended June 30, 2017
Net income (loss) for the period		$	(2,034,140)	$	(1,478,455)
Adjustments:
	Finance costs	516,308		404,499
	Foreign exchange (gain) loss	49,785		206,674
	Depreciation and amortization	916,346		593,984
	Income taxes	7,148		31,198
	Share-based compensation	256,163		426,065
	Acquisition costs	513,454		89,805
	Severance expenses	192,771		316,016
Adjusted EBITDA		$	417,835	$	589,786

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.

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

Related Links

www.acuityads.com