illumin Holdings Inc T.ILLM

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AcuityAds (TSXV:AT)

 

• Acuity reported their Q1 2017 results in May, with a 122% YoY increase in revenue. Much of this growth is organic with the Self-Serve segment of the business continuing to grow rapidly at 137% year over year and now accounting for a majority of the revenue stream.
• As we’ve been stating for quite some time now, Self-Serve is the future of the digital and programmatic advertising business and Acuity’s sustained success continues to prove this to be the case. With another 32 Self-Serve partners added in Q1 alone (totalled now at 193 as compared to 78 in Q1 2016), it is clear that advertisers are shifting towards leveraging new technology for advertising campaigns.
• One critical point we’d like to make is that Q1 does not contain any revenue from the recent Visible Measures acquisition. This furthers the case that growth has been primarily organic. Expect to see the results of March’s acquisition in Q2, of which the company has made abundantly clear that they expect to remain Adjusted EBITDA positive going forward.
• Towards the end of May, the stock has seen a significant appreciation, boasting as much as a 20% increase. We released a note back in April, discussing how 2 million shares became free trading, ultimately depressing the stock price closer to its pre-acquisition levels as those who received shares at $2.12 took some money off the table. Over this time, demand for the stock has remained strong as shares ultimately changed hands. With no news out and the stock now beginning to climb significantly, we believe we are visibly seeing demand finally outpace supply. This bodes well for Acuity going forward as there is now an established shareholder base that have entered into the story between $4.00-$4.60.