ATY - AcuityAds tumbles to 21-month low on weak Q1 results
AcuityAds (NASDAQ:ATY) stock fell to its lowest in nearly 21 months on Thursday after the digital advertising firm reported weak Q1 results. Q1 GAAP EPS of -C$0.07 vs. C$0.03 mainly due to increase in operating expenses and lower managed revenue. Revenue fell 13% Y/Y to C$23.8M as Q1 2021 had an unusually large client campaign, which was not repeated in Q1 2022. ATY also said revenue was impacted by lower spend due to seasonality exacerbated by macro headwinds like supply chain issues. Gross margin was 50% vs. 52.3% in Q1 2021 due to mix as self-serve revenues increased as a percentage of total revenue. Self-service revenue grew ~55% to C$8.1M while managed services revenue fell 29% to C$15.8M. As at Mar. 31, 2022, ATY had cash and cash equivalents of C$99.5M vs. C$102.2M as at Dec. 31. ATY said it currently has sufficient operating capital to meet day-to-day operating expenses. ATY
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AcuityAds tumbles to 21-month low on weak Q1 results