Generated $30.3
million in Revenue and $5.4
million in Adjusted EBITDA
Self-Serve Advertising Automation Platform,
illumin, Generated $5.2 million in
Revenue
Completed a US$57.5
million Cross-Border Offering and Successful Listing on the
Nasdaq Capital Market
TORONTO and NEW YORK, Aug. 10,
2021 /CNW/ - AcuityAds Holdings Inc. (TSX: AT) (Nasdaq:
ATY) ("AcuityAds" or "Company"), the technology leader in consumer
journey based advertising automation, today reported financial
results for the three and six months ended June 30, 2021. Unless otherwise specified, all
amounts are in Canadian dollars.
Second Quarter 2021 Highlights
- Total revenue for the three months ended June 30, 2021 was $30.3
million, a 54.9% increase year-over-year, and a 74.9%
increase on a constant currency basis. Revenue growth was largely
driven by our new advertising automation platform, illumin, and
newer emerging verticals such as pharmaceutical, technology,
automotive and direct-to-consumer brands.
- Gross margin for the three months ended June 30, 2021 was 52.2% compared to 51.7% for the
same period in 2020, an increase of 50 basis points.
- Net revenue or gross profit (revenue less media costs) for the
three months ended June 30, 2021 was
$15.8 million, compared to
$10.1 million for the same period in
2020, an increase of 56.4%.
- Adjusted EBITDA increased over 154% to $5.4 million for the three months ended
June 30, 2021, compared to
$2.1 million during the comparable
prior year period. Adjusted EBITDA margin as a percentage of total
revenue was 18% and as a percentage of net revenue was 34.4%.
Adjusted EBITDA for the trailing 12-month period totaled
$21.8 million, an increase of 88.7%
from the comparable period last year.
- Total Connected TV segment revenue for the first quarter of
2021 grew over 400%, compared to the second quarter of 2020.
- illumin second quarter 2021 revenue was $5.2 million, up over 60% compared to the first
quarter of 2021, as previously announced on July 15, 2021.
- Net Income was $3.4 million for
the three months ended June 30, 2021
compared to a net loss of $1.6
million for the same period in 2020.
- Operating cash flow for the three months ended June 30, 2021 was $3.5
million, compared to operating cash flow of $5.3 million for the same period in 2020.
- At June 30, 2021, the Company had
cash and cash equivalents of $93.4
million, compared to $22.6
million as of December 31,
2020.
- In the quarter, the Company completed a US$57.5 million cross-border public offering in
the United States and Canada, and is now trading on The Nasdaq
Capital Market ("Nasdaq") under the ticker symbol "ATY".
"We are very pleased to report 55% revenue growth and 154%
Adjusted EBITDA growth on a year-over-year basis for our second
quarter. We saw strength throughout our business including some
initial signs of recovery in COVID-affected industries such as
travel, leisure and entertainment. This outstanding performance
would not have been possible without the hard work of all our team
members and I want to thank them for their efforts," said
Tal Hayek, Co-Founder and Chief
Executive Officer of AcuityAds. "As we look to the third quarter,
based on our current momentum, we expect to generate solid
year-over-year revenue and EBITDA growth despite any normal
seasonality."
Mr. Hayek continued, "The biggest second quarter growth driver
was illumin, which continues to surpass our expectations with
sequential sales growth in excess of 60% and new clients growing
over 135%. We continue to see rapidly increasing interest for
illumin as evidenced by very significant pipeline growth in the
quarter. Given this very strong pipeline growth, we expect
illumin to experience strong sequential revenue growth in the
second half of 2021 and continue to believe it is fundamentally
changing the programmatic advertising landscape. With our latest
illumin release, which further enhances the platform's features and
functionality, and the ongoing expansion of our consumer journey
expertise, we are continuing to extend our leadership position in
the marketplace."
Jonathan Pollack, AcuityAds'
Chief Financial Officer, commented, "We are proud to report
increasing year-over-year revenue and bottom-line growth for the
quarter. Our revenues grew nearly 75% on a constant currency basis,
while Adjusted EBITDA grew over 154% compared to the prior
year. As a result of the strong cash flow generation and the
proceeds from our recent cross-border public offering, our cash
position grew to a record $93
million, providing significant financial strength to execute
on our growth strategy. Finally, we successfully listed on
Nasdaq, a significant milestone for the Company. We believe
this listing will allow us to broaden our U.S. investor base."
The following table presents a reconciliation of
Net income (loss) to Adjusted EBITDA for the
periods ended:
|
Three months
ended
|
Six months
ended
|
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|
2021
|
2020
|
2021
|
2020
|
Net income (loss) for
the period
|
$3,361,572
|
$(1,600,405)
|
$4,725,453
|
$(1,395,630)
|
Adjustments:
|
|
|
|
|
Finance costs
|
258,974
|
450,644
|
533,854
|
1,053,036
|
Foreign exchange (gain) loss
|
(1,303,044)
|
632,594
|
(734,561)
|
(881,702)
|
Depreciation and amortization
|
1,261,634
|
2,256,647
|
2,644,660
|
4,422,991
|
Income taxes
|
201,357
|
38,743
|
231,600
|
142,608
|
Share-based compensation
|
1,624,119
|
89,692
|
2,488,511
|
232,816
|
Severance expenses
|
34,209
|
74,127
|
90,758
|
170,492
|
Non recurring expenses
|
-
|
199,136
|
-
|
199,136
|
Total
adjustments
|
2,077,249
|
3,741,583
|
5,254,822
|
5,339,377
|
Adjusted
EBITDA
|
$5,438,821
|
$2,141,178
|
$9,980,275
|
$3,943,747
|
Conference Call Details:
Date: Tuesday, August 10, 2021
Time: 8:30 AM Eastern Time
To register for the conference call webcast and presentation,
please visit
https://www.acuityads.com/q2
Participant Dial-in Numbers:
Canada – (+1) 778 907 2071
US – (+1) 646 558 8656
Webinar ID: 981 7548 3355
Please connect at 15 minutes prior to the conference call to
ensure time for any software download that may be needed to hear
the webcast.
A recording of the conference call webcast will be available
after the call by visiting the Company's website
at https://www.acuityads.com/q2.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS, and are therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of our financial
information reported under IFRS. We use non-IFRS measures including
"net revenue", "revenue less media costs" and "Adjusted EBITDA" (as
well as other measures discussed elsewhere in this press
release).
The term "revenue less media costs margin" refers to the amount
that "revenue less media costs" represents as a percentage of total
revenue for a given period, while the term "revenue less media
costs" refers to the net amount of revenue after deducting direct
media costs. Revenue less media costs and net revenue is used
for internal management purposes as an indicator of the performance
of the Company's solution in balancing the goals of delivering
excellent results to advertisers while meeting the Company's margin
objectives and, accordingly the Company believes it is useful
supplemental information.
"Adjusted EBITDA" refers to net income (loss) after adjusting
for finance costs, impairment loss, fair value gain, income taxes,
foreign exchange gain (loss), depreciation and amortization,
share-based compensation, acquisition and related integration
costs, severance expenses and adjustments to the carrying value of
investment tax credits receivable. The Company believes that
Adjusted EBITDA is useful supplemental information as it provides
an indication of the results generated by the Company's main
business activities before taking into consideration how those
activities are financed and taxed and also prior to taking into
consideration depreciation of property and equipment and certain
other items listed above. It is a key measure used by the Company's
management and board of directors to understand and evaluate the
Company's operating performance, to prepare annual budgets and to
help develop operating plans.
These non-IFRS measures are used to provide investors with
supplemental measures of our operating performance and thus
highlight trends in our business that may not otherwise be apparent
when relying solely on IFRS measures. We believe that securities
analysts, investors and other interested parties frequently use
non-IFRS measures in the evaluation of issuers, and that these
non-IFRS measures in particular are relevant to their analysis of
the Company.
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. These
statements may relate to the Company's future financial outlook,
financial position, anticipated events, results, success of its
work from home policies, the Company's strategy with respect to the
illumin platform, results of the Company's application to list its
shares on NASDAQ or the effect of the COVID-19 pandemic on the
Company's business and operations. 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. Also, given the
evolving circumstances surrounding the COVID-19 pandemic, it is
difficult to predict how significant the adverse impact of the
pandemic will be on the global and domestic economy, the business,
operations and financial position of the Company's clients and the
business, operations and financial position of the Company.
Investors are cautioned not to put undue reliance on
forward-looking statements. Many factors could cause the Company's
actual results, level of activity, performance or achievements or
future events or developments to differ materially from those
expressed or implied by the forward-looking statements, including,
without limitation, the factors discussed in the "Risk Factors"
section of the Company's Annual Information Form dated March 1, 2021 for the fiscal year ended
December 31, 2020 (the "AIF") and the
Company's Management Discussion and Analysis for the three and six
months ended June 30, 2021 dated
August [10], 2021 (the "MD&A"). A copy of the AIF, MD&A and
the Company's other publicly filed documents can be accessed under
the Company's profile on the System for Electronic Document
Analysis and Retrieval ("SEDAR") at www.sedar.com. In addition, the
effects of COVID-19, including the duration, spread and severity of
the pandemic, create additional risks and uncertainties for the
Company. In particular, the impact of the virus and government
authorities' and public health officials' responses thereto may
affect: the Company's actual results, performance, prospects or
opportunities; domestic and global credit and capital markets and
its ability to access capital on favourable terms, or at all; and
the health and safety of its employees. The Company cautions that
the list of risk factors and uncertainties described in the AIF and
the MD&A are not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such information.
Except as required by law, AcuityAds does not intend, and
undertakes no obligation, to update any forward-looking statement
to reflect, in particular, new information or future events.
AcuityAds Holdings Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited)
(expressed in Canadian dollars)
|
|
June
30, 2021 $
|
|
December
31, 2020 $
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
93,399,362
|
|
22,638,300
|
Accounts
receivable
|
|
31,029,926
|
|
31,859,306
|
Prepaid expenses and
other
|
|
2,472,199
|
|
1,901,067
|
Investment tax
credits receivable
|
|
-
|
|
21,922
|
|
|
|
|
|
|
|
126,901,487
|
|
56,420,595
|
Non-current
assets
|
|
|
|
|
Property and
equipment (note 3)
|
|
6,128,780
|
|
7,945,110
|
Intangible assets
(note 4)
|
|
2,499,193
|
|
3,197,953
|
Goodwill
|
|
4,869,841
|
|
4,869,841
|
|
|
|
|
|
|
|
140,399,301
|
|
72,433,499
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
22,045,671
|
|
23,232,661
|
Term loans (note
16)
|
|
2,401,338
|
|
2,481,550
|
International loans
(note 17)
|
|
472,509
|
|
1,092,297
|
Lease obligations
(notes 5)
|
|
1,891,533
|
|
2,850,497
|
|
|
|
|
|
|
|
26,811,051
|
|
29,657,005
|
Non-current
liabilities
|
|
|
|
|
Term loans (note
16)
|
|
4,455,310
|
|
5,796,454
|
International loans
(note 17)
|
|
671,947
|
|
887,932
|
Lease obligations
(notes 5)
|
|
3,261,765
|
|
4,041,520
|
|
|
|
|
|
|
|
35,200,073
|
|
40,382,911
|
|
|
|
|
|
Shareholders'
Equity (notes 7)
|
|
105,199,228
|
|
32,050,588
|
|
|
|
|
|
|
|
140,399,301
|
|
72,433,499
|
AcuityAds Holdings Inc.
Condensed Interim Consolidated
Statements of Income (Loss)
(Unaudited)
(expressed in Canadian dollars)
|
Three months
ended June
30, 2021 $
|
Three months
ended June 30,
2020
$
|
Six months
ended June 30,
2021 $
|
Six
months ended June 30, 2020 $
|
|
|
|
|
|
Revenue
|
|
|
|
|
Managed
services
|
23,260,786
|
14,639,657
|
45,877,003
|
33,957,933
|
Self-service
|
6,664,436
|
4,917,153
|
11,862,811
|
9,814,477
|
|
|
|
|
|
|
30,285,222
|
19,556,810
|
57,739,814
|
43,772,410
|
|
|
|
|
|
Media
costs
|
14,476,192
|
9,448,182
|
27,566,692
|
21,475,395
|
|
|
|
|
|
Gross
profit
|
15,809,030
|
10,108,628
|
30,173,122
|
22,297,015
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Sales and
marketing
|
5,167,203
|
3,751,002
|
9,721,227
|
8,579,928
|
Technology (note
11)
|
3,342,054
|
2,823,182
|
7,135,424
|
6,876,204
|
General and
administrative
|
1,895,161
|
1,666,528
|
3,426,954
|
3,266,764
|
Share-based
compensation (note 7)
|
1,624,119
|
89,692
|
2,488,511
|
232,816
|
Depreciation and
amortization
|
1,261,634
|
2,256,647
|
2,644,660
|
4,422,991
|
|
|
|
|
|
|
13,290,171
|
10,587,051
|
25,416,776
|
23,378,703
|
|
|
|
|
|
Income (loss) from
operations
|
2,518,859
|
(478,423)
|
4,756,346
|
(1,081,688)
|
|
|
|
|
|
Finance costs
(note 8)
|
258,974
|
450,644
|
533,854
|
1,053,036
|
|
|
|
|
|
Foreign exchange
(gain) loss
|
(1,303,044)
|
632,595
|
(734,561)
|
(881,702)
|
|
|
|
|
|
|
(1,044,070)
|
1,083,239
|
(200,707)
|
171,334
|
|
|
|
|
|
Net income before
income taxes
|
3,562,929
|
(1,561,662)
|
4,957,053
|
(1,253,022)
|
|
|
|
|
|
Income taxes
(note 18)
|
201,357
|
38,743
|
231,600
|
142,608
|
|
|
|
|
|
Net income for the
year
|
3,361,572
|
(1,600,405)
|
4,725,453
|
(1,395,630)
|
|
|
|
|
|
Net income per
share (note 9)
|
|
|
|
|
Basic and
diluted
|
0.06
|
(0.03)
|
0.08
|
(0.03)
|
AcuityAds Holdings Inc.
Condensed Interim Consolidated
Statements of Cash Flows
(Unaudited)
For the six-month periods ended June 30,
2021 and 2020
(expressed in Canadian dollars)
|
|
2021
$
|
|
2020
$
|
|
|
|
|
|
Cash provided by
(used in)
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
Income for the
year
|
|
4,725,453
|
|
(1,395,630)
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
Depreciation and
amortization
|
|
2,644,660
|
|
4,422,991
|
Finance costs (note
8)
|
|
533,854
|
|
1,053,036
|
Share-based
compensation (note 7(c))
|
|
2,488,511
|
|
232,816
|
Change in non-cash
operating working capital
|
|
|
|
|
Accounts
receivable
|
|
829,380
|
|
14,679,253
|
Prepaid expenses and
other
|
|
(549,210)
|
|
(167,596)
|
Investment tax credits
receivable
|
|
-
|
|
328,541
|
Accounts payable and
accrued liabilities
|
|
(1,008,800)
|
|
(8,953,621)
|
Interest paid –
net
|
|
(466,497)
|
|
(904,364)
|
|
|
|
|
|
|
|
9,197,351
|
|
9,295,426
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Additions to property
and equipment (note 3)
|
|
(129,570)
|
|
(2,925,120)
|
Additions to
intangible assets (note 4)
|
|
-
|
|
(306,285)
|
|
|
|
|
|
|
|
(129,570)
|
|
(3,228,026)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Amount drawn from
revolving line of credit (note 15)
|
|
-
|
|
43,519,550
|
Repayment of
revolving line of credit (note 15)
|
|
-
|
|
(52,657,365)
|
Net proceeds from
term loans (note 16)
|
|
-
|
|
9,205,581)
|
Repayment of term
loans principal (note 16)
|
|
(1,213,020)
|
|
(6,106,331)
|
Additions to
international loans
|
|
159,168
|
|
848,493
|
Repayment of
international loans
|
|
(994,941)
|
|
(1,078,320)
|
Additions to
leases
|
|
57,020
|
|
2,424,378
|
Repayment of
leases
|
|
(1,661,907)
|
|
(1,743,947)
|
Net proceeds from
equity financing (note 7)
|
|
64,293,097
|
|
-
|
Proceeds from the
exercise of warrants
|
|
61,723
|
|
1,112,460
|
Proceeds from the
exercise of stock options
|
|
992,141
|
|
70,200
|
|
|
|
|
|
|
|
61,693,281
|
|
(4,405,301)
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
70,761,062
|
|
1,658,720
|
|
|
|
|
|
Cash and cash
equivalents – Beginning of year
|
|
22,638,300
|
|
7,407,122
|
|
|
|
|
|
Cash and cash
equivalents – End of year
|
|
93,399,362
|
|
9,065,842
|
|
|
|
|
|
Supplemental
disclosure of non-cash transactions
|
|
|
|
|
Additions to property
and equipment under leases
|
|
71,556
|
|
2,752,932
|
View original
content:https://www.prnewswire.com/news-releases/acuityads-reports-second-quarter-2021-financial-results-301351719.html
SOURCE AcuityAds Holdings Inc.