At a time when many smaller ad tech firms are struggling to prove their value to clients and investors, Toronto-based programmatic advertising company AcuityAds is boasting significant business growth.
According to Acuity’s Q2 earnings release last week, its quarterly revenues were up 43% year-over-year to $4.6 million, and quarterly EBITDA loss was down by 66% to $490,000.
The report pointed to two major growth drivers: successful expansion into the U.S. and increased demand for software-as-a-service programmatic buying. In the U.S., revenue for the quarter was up 370% year-over-year to $1.7 million. Meanwhile sales of Acuity’s self-serve platform, which it launched early last year, were up 256% to $1.0 million in Q2 from $300,000 in 2014 .
The positive results stood in contrast to a mixed first quarter for Acuity, in which it saw modest revenue growth, but its net loss doubled.
By shifting more of its business into licensing its technology out to agencies and marketers, rather than executing programmatic campaigns on their behalf, Acuity was also able reduce selling, general and administrative expenses by 18% for the quarter to $3.0 million.
CEO Tal Hayek said in a release that the combined growth and reduced costs will help Acuity close the gap to profitability without sacrificing its aggressive growth in Canada and the U.S.
“We had a record breaking quarter that exceeded our expectations,” said Hayek.
“With the first half of the year off to a strong start, and our operational leverage improved… we remain confident of achieving positive EBITDA over the next few quarters.”
Total revenue for 2014 was $13.7 million.*
Correction: This story initially misreported AcuityAds’ 2014 revenue as $11.8 million.
