AdTheorent Holding Company, Inc. Reports Second Quarter 2023 Results and Reaffirms Full-Year 2023 Outlook

NEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) -- AdTheorent Holding Company, Inc. ( ADTH) (“AdTheorent” or “the Company”), a machine learning pioneer and industry leader using privacy-forward solutions to deliver measurable value for programmatic advertisers, today announced its second quarter 2023 financial results.

“As we exit the second quarter, we look confidently towards a second half return to meaningful revenue growth, reflected in strong quarter-to-date bookings, growing late-stage pipeline, and impressive results across each of our strategic investments including self-service (or Direct Access), CTV, AdTheorent predictive (ID-free) audience products, and AdTheorent Health,” said James Lawson, CEO of AdTheorent. “This confidence is underpinned by our decade-plus leadership in AI/ML and the near-term launch of our first-of-its-kind self-service Health DSP, an innovation that's already eliciting an overwhelmingly positive response in customer previews.”

Second Quarter 2023 Financial Overview:

• Revenue was $37.6 million, a 11.5% decrease compared to $42.5 million in the second quarter of 2022.
• Gross profit was $16.9 million, down 22.1%, from $21.6 million in the second quarter of 2022. Gross Profit Margin was 44.8%, compared to 50.9% in the second quarter of 2022.
• Adjusted Gross Profit* decreased $4.3 million, or 15.2%, to $24.0 million compared to the second quarter of 2022. Adjusted Gross Profit Margin was 64.0% compared to 66.7% in the second quarter of 2022.
• Net income decreased $49.7 million, to $8.1 million, from $57.8 million in the second quarter of 2022. In the second quarter of 2022, the Company recognized a total of $55.9 million of mark to market gains related to fair value of the Seller's Earn-Out and Warrants liabilities compared to gains of $0.7 million in the second quarter of 2023.
• Adjusted EBITDA* decreased $4.0 million to $3.3 million compared to second quarter 2022. Adjusted EBITDA as a percentage of Adjusted Gross Profit of 13.8% represented a decrease from 25.8% in the second quarter of 2022.

Second Quarter and Recent Business and Operating Highlights:

• AdTheorent’s self-service platform revenue increased 75% sequentially in the second quarter, an acceleration of the 19% sequential revenue growth in the first quarter.
• AdTheorent Health experienced continued momentum with a 36% year-over-year increase in advertiser count in the second quarter, and sustained adoption of our algorithm-based and ID-independent AdTheorent Health Audiences, built by HABi™, with 19 active campaigns in the second quarter and 25 campaigns booked for the third quarter to date.
• AdTheorent’s algorithm-based and ID-independent predictive audiences for non-health advertisers, built by ABi™, continued to yield strong customer adoption with 50 active campaigns in the second quarter and 37 campaigns booked for the third quarter to date.
• AdTheorent's algorithm-based predictive audience products earned Neutronian's NQI Certification for Data Quality, Privacy and Transparency, and AdTheorent earned the top ranking among pure play DSPs in Neutronian's Q2 Data Privacy Scores report, further strengthening the Company’s position as a machine-learning focused industry leader.
• In July, AdTheorent was awarded Frost & Sullivan’s 2023 North American Product Leadership Award for its groundbreaking algorithm-based and ID-independent audience targeting solutions.
• The launch of AdTheorent’s highly-specialized AdTheorent Health self-service DSP remains on track for the third quarter of 2023.

*We prepare our consolidated financial statements in accordance with the U.S. generally accepted accounting principles (“GAAP”). Adjusted Gross Profit and Adjusted EBITDA are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures.

Third Quarter and Full-Year 2023 Financial Outlook:

The Company's growth may continue to be impacted in 2023 by macroeconomic factors beyond its control, such as inflationary pressures and recessionary fears. Based on the current business environment, recent performance and the current trends in the marketplace and subject to the risks and uncertainties inherent in forward-looking statements, the Company's outlook for the third quarter and full-year 2023 includes the following:

Third quarter 2023:

• Revenue in the range of $39.0 million to $42.0 million.
• Adjusted Gross Profit* of approximately 64% of revenue.
• Adjusted EBITDA* in the range of $3.0 million to $4.5 million.

Full-year ending December 31, 2023:

• Revenue growth compared to 2022.
• Adjusted Gross Profit* between 64% to 65% of revenue.
• Adjusted EBITDA* margin of between 16% and 19%.

Although the Company provides guidance for Adjusted EBITDA, it is not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of net income, including equity-based compensation, are not predictable, making it impractical for the Company to provide guidance on net income or to reconcile its Adjusted EBITDA guidance to net income without unreasonable efforts. Similarly, although the Company provides guidance for Adjusted Gross Profit, it is not able to provide guidance for Gross Profit, the most directly comparable GAAP measure. Certain elements of the composition of Gross Profit, including equity-based compensation, are not predictable, making it impractical for the Company to provide guidance on Gross Profit or to reconcile its Adjusted Gross Profit guidance to Gross Profit without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information regarding net income and Gross Profit, which could be material to future results.

About AdTheorent:

AdTheorent uses advanced machine learning technology and privacy-forward solutions to deliver impactful advertising campaigns for marketers. AdTheorent's advanced machine learning-powered media buying platform powers its predictive targeting, predictive audiences, geo-intelligence, audience extension solutions and in-house creative capability, Studio A\T. Leveraging only non-sensitive data and focused on the predictive value of machine learning models, AdTheorent's product suite and flexible transaction models allow advertisers to identify the most qualified potential consumers coupled with the optimal creative experience to deliver superior results, measured by each advertiser's real-world business goals. AdTheorent is headquartered in New York, with fourteen locations across the United States and Canada.

AdTheorent is consistently recognized with numerous technology, product, growth and workplace awards. AdTheorent was named an AdExchanger 2022 Top 50 Programmatic Power Player and was honored with an AI Breakthrough Award and “Most Innovative Product” (B.I.G. Innovation Awards) for six consecutive years. Additionally, AdTheorent is the only seven-time recipient of Frost & Sullivan's “Digital Advertising Leadership Award.” In September 2022, evidencing its continued prioritization of its team, AdTheorent was named a Crain’s Top 100 Best Place to Work in NYC for the ninth consecutive year. AdTheorent ranked fifth in the Large Employer Category and 17th Overall in 2022. For more information, visit adtheorent.com.

Conference Call and Webcast Details:

AdTheorent will host a conference call and webcast at 4:30 p.m. ET today, August 3, 2023, to discuss its second quarter 2023 financial results and business highlights. The conference call can be accessed by dialing (800) 715-9871 from the United States and Canada or (646) 307-1963 International with Conference ID 1908045. The live webcast of the conference call and other materials related to AdTheorent’s financial performance can be accessed from AdTheorent’s investor relations website at investors.adtheorent.com.

Following the completion of the call until 11:59 p.m. ET on Thursday, August 10, 2023, a telephone replay will be available by dialing (800) 770-2030 from the United States and Canada, or (609) 800-9909 International with Conference ID 1908045. A webcast replay will also be available at investors.adtheorent.com for 12 months.

Forward-Looking Statements:

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements contained in this press release relate to, among other things, the Company’s projected financial performance and operating results, including projected revenue, Adjusted Gross Profit and Adjusted EBITDA, as well as statements regarding inflationary pressures and recessionary fears.

Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the market for programmatic advertising developing slower or differently than the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients and other economic, competitive, governmental and technological factors outside of the Company's control, that may cause the Company's business, strategy or actual results to differ materially from the forward-looking statements. The Company does not intend and undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to AdTheorent's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and any subsequent filings on Forms 10-Q or 8-K, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

Investor Contact:
April Scee, ICR
[email protected]
(646) 277-1219

Press Contact:
Melanie Berger, AdTheorent
[email protected]
(850) 567-0082

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