AcuityAds, an AdTech firm that provides customer data insights, reported a revenue growth of 8.7% YoY to CAD 40 million (USD 29.5 million) in Q4 2022, above analyst consensus estimates by 5.73%. The growth was mainly driven by existing clients of the illumin platform, resulting in organic growth. The management also stated that illumin’s self-serve revenue grew by 31% YoY. For FY2022, the company reported revenue growth of CAD 121 million (USD 87.7 million), broadly in line with last year. 

During the quarter, the firm recorded an adjusted EBITDA of CAD 2.4 million (USD 1.7 million) compared with CAD 5.9 million (USD 4.3 million) in Q4 2021, due to higher sales, marketing, and R&D expenses relating to the further development of its illumin' platform. Meanwhile, net loss per share was CAD 0.01 in Q4 2022 (compared to a net income per share of CAD 0.04 in Q4 2021), broadly in line with consensus estimates. The increase in operating expenses during the quarter was the main reason for the net loss during the quarter. For FY2022, adjusted EBITDA decreased to CAD 5.8 million (USD 4.2 million) from CAD 20.3 million (USD 14.7 million) in FY2021, due to investments made in infrastructure and sales and marketing capabilities to accelerate illumin's growth, resulting in a net loss per share of CAD 0.01 compared to a net income per share of CAD 0.20 in FY2021.

The firm’s share price rose by ~10%, subsequent to the release of its earnings report.   

Analyst QuickTake: AcuityAds has experienced revenue growth for the second quarter in a row (after two consecutive quarters of revenue dips), mainly due to the increase in illumin’s self-serve revenue. This growth is a result of the management's decision to invest in a sales team dedicated to self-serve activities. The company's stock price has also continued to rise, likely influenced by the positive sentiment surrounding these developments.