Rich’s newest profile is for an exciting ad tech company called AcuityAds Holdings Inc. (TSX:AT) (OTCQX:ACUIF). AcuityAds has been making a lot of waves lately and is positioned for some major growth.
From a 52-week low of $0.96 last December to a 52-week high of $1.91 in April, Acuity has made some big moves in the recent past. These days, it’s been jumping up the charts again and now sits at $1.33. And if Rich’s inclination is correct, it could go a lot higher.
“The shares issued and outstanding are only 47.75 million, so I think this is a very tight float,” he explains. “It leads me to believe there could be some very big upside for AcuityAds.”
What AcuityAds Does
Headquartered in Toronto, Acuity provides marketers with a powerful and holistic solution for digital advertising across all ad formats and screens.
The company uses newfound, data-driven insights as well as real-time analytics and an industry-leading activation platform that’s based on proprietary Artificial Intelligence technology. It also leverages an integrated ecosystem of partners for data, inventory, brand safety, and fraud prevention, to offer trusted and unparalleled digital marketing solutions.
“This is a company that is focused on new and exciting advertising strategies,” says Rich. “And they clearly see that cannabis is a growing sector and provide advertising solutions.”
AcuityAds styles its technology as “decision science.” Essentially, the company empowers marketers to make better decisions through scientific innovation in advertising technology. Through AcuityAds, marketers can not only value the cost of the digital media they employ, they can accurately measure the results as well.
Working with the company is the best way for marketers to achieve their goals with optimal efficiency.
The Programmatic Market and AcuityAds’ Growth
AcuityAds’ advertising solutions fall into the programmatic advertising market. According to eMarketer, this year, US advertisers will spend $60 billion on programmatic display. By 2021, that number will jump to $81 billion.
This signals a huge shift away from traditional advertising towards digital and programmatic marketing methods. It used to be a very Mad Men-esque industry, but now, technology-driven companies like AcuityAds are providing better, more efficient results—and it’s already paying off for the company.
“This company is growing exponentially,” says Rich.
AcuityAds’ Q3 Earnings
Earlier today, AcuityAds posted its Q3 earnings. For the three months ended September 30, the company generated $26.9 million in revenue, $1.6 million in adjusted EBITDA, and $0.7 million in adjusted net income.
Tal Hayek, the company’s Chief Executive Officer, said: “Looking forward, we continue to see positive momentum going into Q4 and anticipate improving campaign performance, gross margins and overall profitability.”
Much of that improved performance and profitability will likely be attributed to the company’s updated algorithm. The enhanced AI algorithm is already providing 15% better results than before, so the best ad tech company out there just keeps getting better.
“They’ve got a very intelligent algorithm that’s going to tell clients where to advertise, where to advertise, how to advertise, and how to get the best bang for your buck,” explains Rich.
What do you think? Is AcuityAds a smart investment for the future of advertising? If you think so, let us know your thoughts in the comments below.
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