AcuityAds Holdings Inc.

Good morning, everyone, and welcome to Acuity's first quarter 2021 financial results conference call for a three-month period ended March 31st, 2021. Before we begin the official remarks, I will read the cautionary note regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements within the meaning of applicable security laws, including, among others, statements concerning the company's 2021 objectives, the company's strategy to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Such forward-looking statements reflects management's current beliefs and are based on information currently available to management and is subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Following the presentation, we will conduct a question and answer session. I would now like to turn the conference over to Tal Hayek, the co-founder and chief executive officer of Acuity Ads to update you on the operations of the business.

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I get so excited about Illumin. What a game changer this has been for our company. Good morning, everyone. My name is Tal Hayek, and I'm the co-founder and CEO of Acuity Ads. I'd like to welcome everyone to our Q1 investor video presentation. I have to start by thanking the Acuity family. Each and every one of you have contributed to the success of this great company that we built. Thank you for an amazing Q1. a quarter of overall growth and a quarter of massive growth when it comes to Ellumin. As many of you know, we launched Ellumin in Q4 of last year. Ellumin over exceeded our expectations many times over. Anywhere from the amount of revenue that we delivered on it, to the adoption that is happening faster than we expected, to just the fact that it's changing the world of advertising one brand at a time. Big brands, great brands like Purina, Purple Mattress, Weight Watchers and Mercedes-Benz have already began using this system. They've already begun to see the And the beauty of that is that this is the way they plan. This is the way they think. They always plan and think consumer journey. And Illumin now gives them the ability to execute on it, gives them the ability to plan and execute on it. So it's really a dream come true to many marketers out there. And the kind of results that they're getting from it and the kind of insights they're seeing and never get before. So needless to say we're so excited about where Illumina is taking us and how it's really changing the company as a whole. Towards the end of the call I'm going to share some very exciting news about the outlook of Q2 and about what's happening in the Nasdaq. So please stay tuned. What a great Q1. We delivered $27.5 million. We are now officially back in growth mode. On the Illumin side, we've seen 107% sequential growth to $3.2 million. And our LTM EBITDA keeps climbing, and it's now at $18.5 million. Illumin gave us a great competitive advantage, but it is so important to be able to maintain it. And a lot of times I get the question, is somebody going to copy Lumen? And look, my response is probably, probably eventually somebody will try to copy it. But we're so far advanced and we're advancing so fast all the time that it's going to be very difficult for anybody to be able to be successful in it. Lumen, like the idea came to us about four years ago and two years ago we started building it. And we're now in the sixth iteration of it, starting at alpha and then beta and then full release. And we get all the feedback from our clients and our product team is making changes. The engineering team is making changes. And we're just making it better and perfecting it all the time. Couple that with all the partnerships that we're adding to it along the way so far and plan for the future. And then the most important part is that in the background, of Illumin. The part that makes all the decision is the AI system that was built in house here and started 11 years ago and we've been perfecting it ever since and that is something that cannot be duplicated. I would love to share some Illumin numbers with you. We currently have 29 clients on the system. That is 29 clients. We only released the system in Q4 of last year and we already have 29 clients running on the system. Out of those, 15 of them are Tier 1 clients. And the majority of the revenue is coming from new business to us. Our closing rate from leads is substantially higher than our legacy business and we have a 100% renewal rate. All that is a great, great recipe for just great future growth. And in fact, I can share that we're seeing again into Q2 strong growth on the aluminum side. I'd like to share a little bit about the different categories. So aluminum is ready for any category out there. So far we've seen a lot in automotive, in food, electronics, pharma, retail, QSR. And we are working and welcoming any other types of industry that would like to take advantage of it. At the end of the day, all major brands think consumer journey, and now Illumin gave them the ability to plan and execute on it. It's a great, great time to be in the ad tech business. Programmatic started about 10 years ago and grew to over $100 billion. But that's not the end of it. the growth of the future is going to continue and continue very, very aggressively. In fact, the prediction is that it's going to go over $150 billion in the next few years. And that's not a wonder for me because at the end of the day, as an advertiser, I would like to really concentrate my budget on things that make sense and things that are proven to me. So programmatic gives you that. It allows you to measure your ROI all in real time, and generally speaking, get a superior ROI to what you're getting somewhere else. So it's no wonder why more and more people are moving into it. And another major driver that's contributing to the growth of programmatic is connected TV. It's not a secret anymore that people are cutting their cords and moving more and more into consuming TV in a digital means. And as we do that, we're seeing the ad tech revenue starting to grow exponentially. in the connected TV space. In fact, we had 987% growth in Q1 over Q1 of last year, just from TV. So we're very excited about what's happening in connected TV and do believe it's going to be a major contributor to the future growth. I will now ask Jonathan to share some financial updates with us.