Virtus Advisory Group November NewsletterAcuityAds (TSX:AT, NASDAQ:ATY) Average Analyst Target: ~$10 AcuityAds reported their Q3’21 financial results earlier this month and continue to highlight why illumin is winning business throughout North America. illumin revenue was up 42% sequentially to $7.4m, with twelve trailing month revenue for the platform exceeding $17m. On the company’s quarterly earnings call, management reiterated that the platform continues to catch the eye of brands and advertising agencies in the US, as advertisers seek innovative ways to increase ROI from their budgets. With over $100m in cash on the balance sheet, we believe Acuity is well positioned to continue their push of the platform into the US with a true land and expand strategy.
In addition, management remains bullish on the opportunity that exists in Connected TV (CTV) as that nascent segment of the market continues to evolve. With revenue from this segment growing 220% year over year, there seems to be consensus that CTV could be an incredible growth driver and catalyst for the stock going forward.
Despite the stock taking a major hit post earnings, we believe Acuity remains on track for a strong 2022 and suspect that the market is overreacting. Supply chain issues are impacting companies across industries – regardless of demand for product + services, disruptive supply chain problems limit the need for ad spending. As these issues resolve, we believe Acuity is well positioned to continue its growing ways.
Analysts continue to remain extremely bullish on the company with one-year price targets averaging CDN ~$10, signaling confidence in Acuity performing well into 2022.
Potential catalysts include:
- M&A
- Continued growth in illumin clients and revenue
- Continued growing cash flow
About AcuityAds 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.