ParrotStock's avatar
$243.1m follower assets
AcuityAds $ATY
Ugh, No home run...

I'll dig into earnings and post more detail later, first thoughts are...

First the headline numbers:

Net Loss: ($4.49M) vs $1.36M YoY
Adj EBITDA: $174,800 vs $4,541,454 YoY
Revenue: $24.8M vs $30.9M QoQ
Cash: $99.5M vs $102M QoQ

On the bright side, illumin revenue was up 145% YoY, and is now 33% of overall revenues.

They've also gotten approval to purchase up to 5.5 million commons shares of the company with their large cash position.

This is not the Q I wanted to see. There are a lot of details I need to dig into before making any decisions long term. At first read, they are probably doing enough for me to stick around, but I likely won't be adding more for a while.

If you follow the company... what's your take? 👇

The Stock Market is largely expectations and forecasting what people think in the future. I think this was an expected reaction.
Looking at Trade Desk’s transcript they outlined US mid-term season, streaming platforms running ads, and Europe’s ad spending recovering in April as tailwinds for growth. Now, will that trickle down for ATY growing again? Sure, but not 20%-25%. They also miscalculated on the Tourism and Hospitality verticals picking up again, at least for this time being.

I like the share buybacks but they should just take it private.
ParrotStock's avatar
@blublop Appreciate the feedback. So much promise, but something seems to be missing in execution. At current valuation it's basically a value stock. Hard for me to sell, but also hard for me to continue adding until management shows solid signs of progress.

I've still have to listen to earnings... that probably won't happen until tonight or tomorrow. Again, appreciate your thoughts. 🙏
@parrot if you want a summary on why rev declined, it’s due to the fact that they lost a $5M client that had switched agencies that acuity had no working relationship with. I guess that’s why they are investing/hiring sales/talent.

I do agree that is purely a value play, which makes it hard for me to not pay attention. They also did reiterate (from Q4 earnings call) that the bulk of rev is to be from the 2022 Q3 & Q4.

Overall, just a poor quarter that re-enforced the already poor sentiment.