• AcuityAds, an AdTech firm that provides customer data insights, reported its first-quarter financial performance (Q1 2022). The firm achieved revenue of USD 23.8 million (13.4% YoY dip) for Q1 2022, 7.6% below analyst estimates. The firm stated that the dip was primarily due to an unusually large campaign in Q1 2021, which was not repeated in Q1 2022. The firm's Illumin platform recorded revenue of USD 7.9 million (145% YoY growth), accounting for 33% of total revenue, driven by growth in tier-one customers (150% YoY growth). The firm, which also provides a specialized analytics platform for video advertising, continued to record strong demand from the connected tv (CTV) space and experienced 131% YoY growth during the quarter. 

• During the quarter, the firm recorded adjusted EBITDA of USD 0.2 million (compared with 4.5 million in Q1 2021) due to lower sales and higher R&D expenses relating to the further development of its Illumin platform. Hence, the net loss expanded to USD 4.5 million in Q1 2022 (compared with net income of USD 1.4 million), corresponding to a loss per share of USD 0,06 which was 500% below analyst expectations. Subsequent to the announcement of the firm's results, the stock price fell sharply by ~20% and has lost 38.3% of its value YTD, falling to a 21-month low.

• Management announced its intention of making a normal course issuer bid (NCIB) to purchase 5.5 million common shares of the company, citing its positive operating cash and balance sheet position.     

<ul><li> Analyst QuickTake: Having missed its targets for a third consecutive quarter (in Q4 2021 , it missed its earning target and in Q3 2021 , it missed its revenue target), analyst sentiment about the firm has continued to slide, with analysts revising down the firm’s target price. However, the shift to the firm’s new Illumin platform continues and accounts for an increasing share of the firm’s revenue, as the firm undergoes this transition away from its legacy systems. Management remains hopeful that the average spend per client, alongside its operating margins, is expected to rise, thus potentially leading to a turnaround in investor sentiment on the stock.</ul>