Page 1

acuity AcuityAds Reports First Quarter 2021 Financial Results Generated $ 27.5 million in Revenue and $ 4.5 million in Adjusted EBITDA Self - Serve Advertising Automation Platform , illumin , Generated $ 3.2 million in Revenue , Exceeding Expectations Application to List on NASDAQ in Progress TORONTO and NEW YORK - May 11 , 2021 - AcuityAds Holdings Inc. ( TSX : AT ) ( OTCQX : ACUIF ) ( “ AcuityAds " or " Company " ) , the technology leader in consumer journey based advertising automation , today reported financial results for the three months ended March 31 , 2021 . First Quarter 2021 Highlights • Total revenue for the three months ended March 31 , 2021 was $ 27.5 million , a 13.4 % increase year - over - year . This growth was driven by our new advertising automation platform , illumin , and newer emerging verticals such as pharmaceutical , technology and direct - to - consumer brands , despite continued impact from COVID - 19 on certain industries historically important to the Company , including travel , leisure and entertainment . • Gross margin for the three months ended March 31 , 2021 was 52.3 % , compared to 50.3 % in the prior year period , a 200 - basis point improvement . • Net revenue or gross profit ( revenue less media costs ) for the three months ended March 31 , 2021 was $ 14.4 million , compared to $ 12.2 million for the same period in 2020 , an increase of 17.9 % . • Adjusted EBITDA increased over 151 % to $ 4.5 million for the three months ended March 31 , 2021 , compared to $ 1.8 million during the comparable prior year period . Adjusted EBITDA margin as a percentage of total revenue was 17 % and as a percentage of net revenue was 32 % . Adjusted EBITDA for the trailing 12 - month period totaled $ 18.5 million , an increase of 76 % from the comparable period last year . • Total Connected TV segment revenue for the first quarter of 2021 grew approximately 987 % , compared to the first quarter of 2020 . • Illumin first quarter 2021 revenue was $ 3.2 million , up over 100 % sequentially and well ahead of initial expectations . • Net income was $ 1.4 million for the three months ended March 31 , 2021 , an increase of 566 % compared to net income of $ 0.2 million for the same period in 2020 . • Adjusted Net Income for the three months ended March 31 , 2021 increased over 318 % to $ 4.2 million , compared to Adjusted Net Income of $ 1.0 million in the prior year period . • Operating cash flow for the three months ended March 31 , 2021 was $ 5.7 million , compared to operating cash flow of $ 4.0 million for the same period in 2020 . • • At March 31 , 2021 , the Company had cash and cash equivalents of $ 27.0 million , compared to $ 22.6 million as at December 31 , 2020 . The Company's application to list its common shares on the Nasdaq Capital Market ( " NASDAQ " ) continues to progress . " We were very pleased to resume year - over - year revenue growth during the first quarter , following a challenging period due to the impact of the global pandemic . I would like to thank all our team members for their hard work in making this achievement possible , " said Tal Hayek , Co - Founder and Chief Executive