17 Dec 2015 07:00
| 17 December 2015 |
ADGORITHMS LTD
("Adgorithms" or the "Company")
Trading and Business Review
Current Trading
The Company announces the following update for the fourth quarter of 2015.
The Board has recently completed a detailed review of the Company's strategy in light of market conditions. In accordance with its long term plan, the Company continues to be focused on: - accelerating deployment of its primary SaaS business ('direct' revenue) which provides brands with greater control and higher ROI from their online advertising campaigns; and - strengthening and de-risking 'indirect' revenue which flows from activity on online advertising exchanges, by broadening its customer base and supply partners.
Management report a marginal improvement in the online advertising market with the return of inventory volumes for online advertising exchanges and demand from media buyers returning.
This improvement however is still below anticipated volumes expected within the Company's indirect revenue channels. Despite this, the Company is pleased to report that revenue for FY2015 is currently tracking broadly in line with expectations however, the EBITDA margin in Q4 will be below expectations and this will be reflected in the EBITDA outcome for the full year. The year-end cash balance is expected to be in line with expectations of approximately $29 million.
Business Review
Increasing demand from brands for better visibility, control and ROI of their online advertising budgets, has reinforced the Board's belief that Albert™ as a SaaS platform, is the right solution to create significant long term value for brands.
The Company continued to make good progress in the last three months on business development fronts and is pleased to announce the addition this week of Harley Davidson of NY to its growing list of major brands who are now using its SaaS solution. With regards to the Company's indirect business, management has been successful in significantly diversifying the indirect revenue base in Q4.
The Company's Board of Directors remains confident in the overall long term growth prospects of the business.
Adgorithms | Tel: +972 3537 7137 |
Or Shani, Chief Executive Officer |
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Ron Stern, Chief Financial Officer |
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www.adgorithms.com |
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Liberum (NOMAD and Broker) | Tel: +44 20 3100 2000 |
Neil Patel / Chris Clarke / Tom Fyson |
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Vigo Communications | Tel: +44 20 7016 9570 |
Jeremy Garcia / Ben Simons / Fiona Henson | adgorithms@vigocomms.com |