- Revenue Growth in Q2 Driven by Significant
Growth in the U.S and Self-Service Business -
TORONTO, Aug. 19, 2015 /CNW/ - AcuityAds Holdings Inc.
(TSXV:AT) ("AcuityAds" or "Company"), a leading provider of
targeted digital media solutions, enabling advertisers to connect
intelligently with audiences across online display, video, social
and mobile campaigns, today announced second quarter (Q2) financial
results for the three and six-month period ended June 30, 2015.
"We had a record breaking quarter that exceeded our
expectations," said Tal Hayek, CEO
of AcuityAds. "We began to experience greater operational
leverage as evidenced with our overall top line growth of 43% year
over year, while reducing SG&A expenses by 18% over the same
period. This is a clear indication of the effectiveness of our
business model, which should allow us to achieve positive EBITDA
without sacrificing aggressive growth. In particular, we continue
to see high market demand for our programmatic advertising platform
in the U.S. marketplace, as exhibited by the Company's 370%
quarterly revenue growth year over year. The U.S. performance
highlights our continued focus on expanding in this high growth
market that remains fragmented with significant upside potential.
In addition, investments made in our SaaS-based self-service
offering are paying off, as we saw another year over year growth of
256%. Our SaaS-based solution is highly scalable as a business,
where we benefit from recurring revenues, while our licensees do
the selling to their broad network of clients in a variety of
verticals, and managing their advertising campaigns."
"With the first half of the year off to a strong start, and our
operational leverage improved, as adjusted EBITDA was reduced from
$1,419,164 in Q2 2014 to $488,873 in the current quarter, we remain
confident of achieving positive EBITDA over the next few quarters,"
continued Mr. Hayek.
Financial Highlights
- Total revenue for Q2 2015 increased by 43% to $4,575,993, compared to $3,190,037 in Q2 2014, and increased by 31% to
$7,824,726 in the first half ("HY")
2015, compared to $5,966,854 in HY
2014.
- SaaS-based self-service revenue for Q2 2015 increased by 256%
to $1,072,528, compared to
$300,996 in Q2 2014, and increased by
262% to $1,660,832 in HY 2015,
compared to $458,705 in HY 2014.
- US Revenue for Q2 2015 increased by 370% to $1,749,817 compared to $371,979 in Q2 2014, and increased by 183% to
$2,429,273 in HY 2015, compared to
$857,486 in HY 2014.
- Gross margins remain strong at 51% for Q2 2015 and 53% in HY
2015.
- While total revenue grew by 43%, the SG&A expenses for the
quarter were $3,027,590 compared to
$3,695,359 in Q2 2014, an 18%
decrease.
- Adjusted EBITDA loss decreased by 66% to $488,873 in Q2 2015, compared to an adjusted
EBITDA loss of $1,419,164 in Q2 2014,
and decreased by 29% to adjusted EBITDA loss of $1,349,567 for HY 2015, compared to adjusted
EBITDA loss of $1,902,740 for HY
2014.
- Net loss and comprehensive loss for Q2 2015 decreased by 58% to
$1,003,573, compared to a net loss of
$2,392,125 in Q2 2014.
- During the quarter the Company raised net proceeds of
$2,530,054 via a brokered Short Form
Prospectus Offering.
- As at June 30, 2015, the
Company's cash balance was $1,916,262
compared to $981,158 as at
March 31, 2015.
Operational Highlights
- During the quarter the Company increased its active licensees
of its SaaS-based self-service offering to 30 from 22 in previous
quarter.
- During the quarter, AcuityAds entered into a partnership with
SlimCut Media to deliver in-stream video ad units across SlimCut
Media's video platform.
- During the quarter, the Company was awarded a total amount of
over $1,000,000 in commitments from a
North American advertising agency, which will be delivered over a
one year term, and a major global appliance company for a campaign
period of three months.
- Subsequent to the quarter, AcuityAds received follow-on orders
from a leading North American automotive dealer and a global
appliance company for a total amount of over $690,000, to deliver strategic advertising
campaigns over a period of two to four months.
- Subsequent to the quarter, the Company announced the hiring of
Renzo Dipasquale as Vice President,
Self-Serve and Enterprise, to lead the Company's high growth
SaaS-based Self-service business.
About AcuityAds:
AcuityAds 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 sales operations in Toronto, Montreal, New
York, Boston and
Los Angeles, AcuityAds customers
include both large Fortune 500 enterprises and small to mid-sized
businesses. For more information, visit www.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.