AcuityAds Reports Record Third Quarter 2014 Financial Results

TORONTO, ONTARIO--(Marketwired - Nov. 27, 2014) - AcuityAds Holdings Inc. ("Acuity") (TSX VENTURE:AT), a leading provider of targeted digital media solutions enabling advertisers to connect intelligently with their audiences across online display, video, social and mobile campaigns, today reported financial results for the third quarter ended September 30, 2014.

Q3 Financial highlights

• Record revenue for the quarter of $3,289,830 increased 54% year-over-year;
• Self-service technology revenue of $483,651 increased from $17,651 in Q3 2013;
• US revenue of $892,046 increased 237% from $264,280 in Q3 2013; and,
• Adjusted EBITDA⁽¹⁾ of $(1,309,488) compared to $(39,957) in Q3 2013. The change was due to key hires in senior management and investment in sales and marketing to augment US growth strategy.

Business highlights

• Acuity began trading on the TSX Venture Exchange ("TSXV") during the quarter;
• Received net proceeds of $5.1 million from a private placement of equity priced at $1.59 per common share;
• 18 active licensees of our self-service technology;
• Established US west coast sales office during the quarter; and,
• Recognized as one of fastest growing companies in Canada and North America, ranking 8^th on the Deloitte Technology Fast 50™ and 26^th on the Deloitte Technology Fast 500™. These rankings are largely attributable to our five year revenue growth rate of 6,589%.

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Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. See reconciliation of adjusted EBITDA to net income at the end of this press release.

Revenue for the three months ended September 30, 2014 increased $1,146,820 or 54% to $3,289,830 from $2,143,010 in Q3 2013. Year-over-year revenue growth was attributable to growth in Canada and the US, as well as sales of self-service technology and managed services. Historically the third quarter has been a seasonally slower period, with reduced advertising activity during the summer months. Sales of our programmatic marketing platform on a self-service technology basis contributed revenue of $483,651 during the current quarter compared to $17,651 in Q3 2013. Revenue generated in the US was $892,045 for the three months ended September 30, 2014, an increase of $627,766 from Q3 2013. Adjusted EBITDA of ($1,309,488) for the three months ended September 30, 2014 decreased from ($39,957) in Q3 2013. The increase in Adjusted EBITDA loss is attributable to increased headcount, including key additions to our senior management team, and increased activity in sales and marketing. Loss and comprehensive loss for the three months ended September 30, 2014 increased $2,054,725 due to the larger Adjusted EBITDA loss together with listing expenses of $352,253, which includes $228,871 in respect of the excess fair value of consideration paid to obtain the listing over the net assets acquired, as well as increased interest costs.