Virtus Newsletter AT MentionAcuityAds (TSXV:AT) Acuity reported the strongest performance in company history yet the stock has trended downward. In our view, this is the result of erroneous reporting by Bloomberg that mistakenly listed the company as missing its revenue target by ~95% on their terminal as we do not believe there is anything fundamentally negative about the quarter. To our dismay, this triggered massive selling on the stock based on the inaccurate information published by Bloomberg. As per companys request, the mistake was corrected. However, the company is now in its strongest financial position in company history and the record-breaking quarter combined with inaccurate reporting has created a massive opportunity for investors, evident by the insiders of the company purchasing shares in the open market during the past few trading days. Results from the quarter are overwhelmingly positive and include: o Revenue of $27.9 million in Q1 2019 compared to $8.0 million in Q1 2018, an increase of 247% o Self-Serve revenue of $6.3 million in Q1 2019 compared to $2.6 million in Q1 2018, an increase of 145% o Adjusted EBITDA of $1.0 million in Q1 2019 compared to an Adjusted EBITDA loss of $2.0 million in Q1 2018 On the companys quarterly conference call, management reiterated the momentum that they are seeing as larger brands and agencies are taking advantage of Acuitys industry-leading programmatic technology to manage campaign. This is clearly reflected in their performance this quarter. Several examples were provided on the call of clients that started trial campaigns with Acuity and quickly proceeded to increase their spend with the company due to impressive ROI. From a valuation perspective, this growth stock is ironically trading at value levels. At a share price of $1.41 at time of writing, the stock is valued at 0.95x 2018 EV/Sales compared to industry average of 6.1x. On a forward basis the stock is trading at 0.61x 2019 EV/Sales compared to industry average of 5.7x and 2019 EV/EBITDA of 6.9x compared to peers at 51.5x. All of this in mind, we believe there is a monumental opportunity for investors that understand the nature of the downtrend and want to be opportunistic to take advantage of a short-term deviation from intrinsic value. Investors across the board have increased their targets after the quarter to an average price of $3.50 from $3.37. Potential catalysts for Acuity include: o Additional contracts with large brands o Continued momentum in financial performance o Additional acquisitions