Gross Margins Continue to Improve and Adjusted EBITDA Expected to Increase in Excess of 50% Year-Over-Year
TORONTO and NEW YORK, June 25, 2020 /PRNewswire/ - AcuityAds Holdings Inc. (TSX: AT) (OTC: ACUIF) ("AcuityAds" or "Company"), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across digital advertising campaigns, today provided an updated outlook for the quarter ended June 30, 2020.
"Given the sudden and significant economic impact of the pandemic, the constantly evolving and dynamic situation that has ensued, and to ensure continued transparency for our investors, we are providing an update regarding our second quarter operating performance. As mentioned in our first quarter earnings release, and in line with trends seen across the digital advertising industry, April saw a significant drop in revenues as certain campaigns were paused or reduced by our customers. However, in May, we realized a strong rebound in campaign activity that has continued throughout June," said Tal Hayek, Co-Founder and Chief Executive Officer of AcuityAds.
"As a result of this continuing broad-based improvement in customer activity, and our on-going focus on gross margins and operating expense control, we believe our Q2 revenues will be approximately $18.5 million, gross margins will be in excess of 51% and our Adjusted EBITDA will be around $1.6 million, an increase of 50% versus the second quarter of last year. In addition, our balance sheet continues to improve and we are extremely pleased to be in a very strong financial position as we remain focused on protecting our team members and providing outstanding service to our customers to support a quick recovery as consumer and commercial activity returns toward normal, pre-pandemic levels," commented Mr. Hayek.
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 "Adjusted EBITDA" (as well as other measures discussed elsewhere in this press release).
"Adjusted EBITDA" refers to net income (loss) after adjusting for finance costs, 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 and earnout liabilities. 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.
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. 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.
SOURCE AcuityAds Holdings Inc.