AcuityAds Holdings Inc.

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Good morning, everyone, and welcome to Acuity Yacht's second quarter 2021 financial results conference call for three and six month period and the June 30th, 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 reflect management's current beliefs and are based on information currently available to management and are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Please refer to the cautionary statements and the risk factors identified in our filings with CDAR for a more detailed explanation of the inherent risks and uncertainties that could affect such forward-looking statements. Following the presentation, we will conduct a question and answer session. I would now like to turn the conference call over to Tal Hayek, the co-founder and chief executive officer of Acuity Ads, to update you on the operations of the business.

Good morning, everyone, and welcome to our Q2 investor presentation. My name is Tal Hayek, and I'm the co-founder and CEO of Acuity Ads. This is the first presentation since we IPO'd on the NASDAQ recently, so I would like to send a warm welcome to all our new shareholders from all over the world. Over the past few quarters, we talked a lot about Illumin, and we talked a lot about how Illumin is changing the world. Well, Q2 was all about execution. Our team did a tremendous job in getting more and more brands to adopt Illumin and to benefit from being able to control the consumer journey and to send the right message at the right time to their consumer, depending where they are on that journey. I'd like to send a special thank you for the Acuity family for delivering such an amazing Q2. A quarter of overall growth of 55%. a quarter of 75% constant currency growth, and a quarter of 60% sequential growth on Illumin. And let's not forget, a quarter of 154% growth in EBITDA. Companies, great companies like New York Life, Sparkling Ice, Whataburger, and Dell, and many others, has already began taking advantage of Illumin and the consumer journey approach. And not only that they're getting a better success on their campaigns, They're also learning a lot because the kind of insight that they're seeing from it is absolutely second to none. We're so excited about Q2 results. Revenue was up by 55% year-over-year, which is tremendous growth for itself. But on a constant currency basis, we were up 75%. Now, constant currency basis are really the right indicators from a growth perspective. Why? Because most of our revenue is derived in US dollars and the strong Canadian dollar understates our real true growth rate. So we were able to deliver $30.3 million in Q2. LTM adjusted EBITDA. Let's talk about that for a second, because this is something that we have been focusing a lot as a management team in the last few quarters. We made a decision that it's time to bring more profit from the organization. And as you can see, we were able to execute over the last eight quarters, consistently moving it up into the right and delivering more LTM EBITDA. We are now reported $21.8 million LTM EBITDA for the quarter. CTV grew by 400% year over year basis. Tremendous excitement about the future of CTV, a great driver for the industry in general and for Acuity. And we're really, really excited to see that everything we talked about in the past regarding CTV is becoming reality and advertisers are moving more and more from traditional TV to connected TV. Let's talk about Illumina, which is my favorite subject. From a revenue perspective, we saw an over 60% growth from Q1 to Q2. That is tremendous growth and we delivered $5.2 million in revenue. Clients, at the end of Q2, we saw 40 clients and 17 of them are tier one. And just to compare it, at the end of Q1, we had 17 clients and nine of them were tier one. So we grew the clients by 135%. Again, tremendous growth as it shows that our team is getting more and more of the brands adopted into Illumin. And the majority of revenue in Illumin came from brand new business to Acuity. So we're very excited to see more and more logos coming, brand new logos coming into Acuity and look, they're coming in because of Illumin and we love it. I think most importantly, when you look at in the future and you look at what we predict to Illumine in the future, I can tell you we're very excited about it. Everybody in the company from the sales team, from the execution team to the tech team, marketing team, everyone is excited about Illumine. It gave really an amazing new life to the spirit of Acuity because we have something unique and differentiated and that really puts us aside and lets us excel in this world of programmatic advertising. So what we're seeing is amazing amount of RFPs, lots of demos, lots of demo requests, lots of great conversations with major brands out there. And I'm happy to say that the pipeline is an all-time high for the second part of the year. So we do believe the best is yet to come when it comes to Illumine. And now we have a few quarters under us, actually three quarters with Illumine. I'm happy to show this graph. So in Q4, when we launched Illumin, we did $1.5 million. In Q1, $3.2 million. And in Q2, $45.2 million. It's only three quarters in, and we're very excited about where this is going to take us. A lot of investors are always asking us, well, what makes you think that somebody else is not going to copy you? Well, I can tell you that I do feel that eventually somebody will copy the process because it just makes sense to do it. But we have such tremendous advantage over the marketplace that it's going to be very, very hard for them to catch up. And I do believe we have a lot of time ahead of us before we see anybody catch up. And don't forget that we're advancing all the time. In our latest release of Illumine, we've created a better journey. a better journey insights and new insight and access to more inventory. So this is just as been in the latest release and we have new releases coming in on regular basis. We're also running campaigns on regular basis. And every time we run a campaign, we learn from it. When we learn from it, product makes changes and improves the product as well. And this is to say also the types of integrations that we're doing out there is creating a better product as well. And I think above all is the, QD algorithm that we developed in us over the past 11 years is what makes all the decisions in the background of Illumin. And that cannot be duplicated. Well, we're excited to share with you some data from actually what's happening when you run a campaign on Illumin. As many of you know, Purple has been a great partner for many years with us. They are all about driving value. And they're all about ROI. And they were nice enough to do a test with us. And what did we do? We took a campaign and we ran part of it as a complete connected journey. And the other part is a conversion only, which conversion only what we call the bottom of the funnel. It's more like what other DSPs do, like the old DSP of Acuity used to do. And the fully connected journey is when you divide the campaign into awareness stage, engagement stage and conversion stage, and you send different messages along the way, which is what Illumin is all about. I'm very happy to report that after running both campaigns, we were able to deliver much better value on the fully connected journey. And Josh Park, the director of performance marketing at Purple, was nice enough to share his testimonial here. So as you can see, he's really excited about the result he's seeing. I will now ask Jonathan Pollock, our CFO, to share some financial updates.