AcuityAds Holdings Inc. (TSXV:AT), a technology leader that provides targeted digital media solutions by leveraging its proprietary AI technology to enable advertisers to connect intelligently with audiences across digital advertising campaigns, today announced its financial results for the third quarter ended September 30, 2018.

“We are very pleased with the results we generated in the quarter, as well as the overall progress we have achieved this year,” said Tal Hayek, CEO of AcuityAds. “The investments we made earlier this year in our AI technology platform and the reorganization of our US sales leadership team, together with our recently completed acquisitions, has resulted in Acuity delivering this strong financial performance for the quarter. Our continued growth in the third quarter, combined with the results we are already seeing in the fourth quarter, clearly demonstrates that we have regained our sales momentum. Specifically, we generated more revenues in October 2018 than we did for the entire first quarter of 2018.”

Mr. Hayek continued, “Furthermore, our industry leading technology continues to deliver very impressive ROI to our clients, resulting in larger and longer orders, a stronger position in the marketplace and better margins for Acuity. Moving forward, we intend to continue our growth plan through further investments in our technology and sales team, and the continued execution of our successful acquisition strategy.”

Q3 2018 Financial Highlights

• Total revenue for the three months ended September 30, 2018 was $17,298,073 compared to $14,523,649 for the same period in 2017, an increase of 19%. As compared to Q2 2018, total revenue increased sequentially by 45%.
• Revenue less media costs (gross margin) was 54% for Q3 2018 compared to 49% for Q3 2017.
• Total Self-Serve revenue for the three months ended September 30, 2018 was $4,410,881, which is in line with Q3 2017 and increased 21% sequentially from Q2 2018.
• The Company’s Adjusted EBITDA increased to $1,097,708 for Q3 2018 as compared to an Adjusted EBITDA loss of $1,240,078 in the same period of 2017 (Q3 2017 excludes one-time gain of $3,316,080 related to the reversal of an earn-out liability). As compared to Q2 2018, Adjusted EBITDA increased 167% sequentially.
• Net and comprehensive loss for the three months ended September 30, 2018 was $1,954,663 compared to a loss of $1,602,439 in the 2017 quarter. The 2017 quarter included non-recurring net gains of $1,421,231 related to both the earn-out reversal noted above and an impairment loss.
• As at September 30, 2018, the Company’s cash and restricted cash balance was $4,650,735.

Key Items in the Quarter:

• The Company completed the acquisition of substantially all the sales related assets of Magnetic Media, a U.S. based artificial intelligence adtech company, enhancing Acuity’s sales trajectory by adding a sizeable selling team with extensive industry and AI experience, while minimizing the necessity for incremental technology and infrastructure.
• The Company integrated with Triton a2x to offer media buyers programmatic access to premium digital audio inventory.

Key Items Subsequent to the Quarter End:

• AcuityAds increased and extended its revolving line of credit with Silicon Valley Bank, resulting in access to additional capital for the Company at a lower cost.

The Company will be holding a conference call to discuss the Q3 2018 financial results on Wednesday November 15th, 2018.

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.