On March 12, 2024, AdTheorent Holding Co Inc (ADTH, Financial) released its 8-K filing, detailing the financial outcomes for both the fourth quarter and the full year of 2023. The company, a digital media platform known for its performance-first, privacy-forward advertising campaigns, has shown resilience in a challenging market, posting revenue growth and strategic advancements.
Financial Performance and Strategic Highlights
AdTheorent's Q4 revenue saw a significant increase to $59.7 million, up 15.2% from the previous year, driven by its advanced ID-independent machine learning technology and algorithmic audience solutions. The company's gross profit also saw an uptick, with a gross profit margin of 53.1% compared to 51.3% in Q4 of the previous year. Adjusted Gross Profit for Q4 stood at $39.9 million, a notable 18.2% increase from the same quarter last year, reflecting the company's ability to maintain profitability amidst market fluctuations.
However, net income for Q4 decreased to $1.3 million from $7.6 million in the same period last year, primarily due to mark-to-market losses related to the fair value of the Seller’s Earn-Out and Warrants liabilities. For the full year, AdTheorent reported a slight revenue increase to $170.8 million, up 2.8% from 2022, with break-even net results compared to a net income of $28.8 million in the previous year.
Operational Successes and Industry Recognition
AdTheorent's operational highlights include an 11.8% increase in average revenue per active customer and a 136% year-over-year revenue growth in its self-service segment. The company's AdTheorent Health division experienced an impressive 89% year-over-year revenue growth, despite being the company's largest industry offering. Additionally, AdTheorent was recognized as a leader in the Frost Radar™ for Demand-Side Platforms by Frost & Sullivan, further cementing its position as an industry innovator.
The company remains focused on leading the post-cookie world, with its tech, product, and data science teams actively configuring machine-learning systems to leverage Google APIs and aggregate data exchanges as part of the post-cookie privacy framework.
Financial Outlook for 2024
Looking ahead, AdTheorent anticipates revenue in the range of $188.0 million to $195.0 million for the full-year 2024, with an Adjusted Gross Profit margin between 64% to 65% of revenue. The company also projects an Adjusted EBITDA margin of between 20% and 25% of Adjusted Gross Profit, indicating confidence in its continued growth and profitability.
AdTheorent's performance in the fourth quarter and full year of 2023 demonstrates its ability to navigate a complex market landscape while continuing to innovate and grow. The company's strategic focus on advanced machine learning technology and privacy-forward solutions positions it well for future success in the evolving digital advertising space.
"AdTheorent completed its second full year as a public company with great momentum, recording more than 15% revenue growth in Q4," said James Lawson, CEO of AdTheorent. "Our advanced ID-independent machine learning technology and algorithmic audience solutions position us for revenue growth and industry leadership in the post-cookie world, and our team is executing at a high level to take advantage of this significant opportunity."
Investors and stakeholders can access the full earnings report and join the conference call and webcast to discuss AdTheorent's financial results and business highlights. For more detailed financial information, including balance sheets and statements of operations, please refer to the provided 8-K filing link.
Explore the complete 8-K earnings release (here) from AdTheorent Holding Co Inc for further details.
