Excerpt; Virtus Advisory Group Analysts: TD, Canaccord, Paradigm, VIII Capital, Cormark, Haywood, Echelon Average Target Price: $30.82 - Acuity announced on March 15th that it has been added to the S&P/TSX Composite Index.
- Acuity reported yet another strong quarter, rounding out a solid financial performance for the year. Compared to where many thought the ad-tech business would be this time last year, the Acuity team has shown resilience and the ability to be adaptable.
Highlights from the year include:
- Total Revenue of $104.9m in 2020, a decrease of 12% year over year
- Adjusted EBITDA of $15.8m in 2020, an increase of 63% year over year
- Net income of $3.7m in 2020 compared to a net loss of $5.6m in 2019
- On the company’s quarterly conference call, management expressed confidence in illumin’s ability to scale quickly based on the faster-than-expected adoption by customers. The company initially expected to revenue to be generated from illumin in Q2’21 – they are well ahead of that timeline and early indications show a strong performance from illumin in 2021.
- As we look ahead to 2021, the focus will be on continued revenue growth, particularly from illumin, and additional operating leverage to continue delivering strong bottom line earnings.
- Potential catalysts include
- Nasdaq listing
- Strong growth in illumin + large brands and agencies adopting the platform
- Continued profitability
- Potential M&A in 2021
About AcuityAds: AcuityAds is a leading technology company that provides marketers a one-stop solution for omnichannel digital advertising with best-of-category return on advertising spend. Its journey automation technology, illumin™, offers planning, buying and real-time intelligence from one platform. With proprietary Artificial Intelligence, illumin™ brings unique programmatic capabilities to close the gap between advertising planning and execution. The company brings an integrated ecosystem of privacy-protected data, inventory, brand safety and fraud prevention partners, offering trusted solutions with proven, above-benchmark outcomes for the most demanding marketers