Mr. Tal Hayek reports

ILLUMIN REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

AcuityAds Holdings Inc. (illumin) has released its financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Highlights

• Total company first quarter 2023 revenue was $26.5 million, an increase of 11.2 per cent year over year, reflecting the benefits of our strategic investments in sales, marketing, and product development.
• First quarter illumin revenue rose 113 per cent year over year to $16.7 million, or 63 per cent of total revenue.
• illumin self-serve revenue was $2.2 million, up from $0.1 million in Q1 2022, while down modestly on a sequential basis due to typical self-serve customer seasonality and spending trends following year-end. It also grew to 8.3 per cent of total revenue, up from 6 per cent in Q4 2022 and exited the first quarter at an annualized revenue run rate of over $12 million.
• illumin's self-serve client base grew 74 per cent in the quarter, which is expected to drive additional revenue growth in 2023.
• First quarter 2023 gross margin was 47.1 per cent, compared to 50.0 per cent for the same period in 2022, partially reflecting changes in geographic mix.
• Net revenue or gross profit (revenue less media costs) for the three months ended March 31, 2023 was $12.5 million, compared to $11.9 million for the same period in 2022.
• Adjusted EBITDA loss was $(1.3) million for the first quarter, compared to a gain of $0.2 million in the prior year period, reflecting continuing strategic investments in R&D, sales and marketing to support illumin's growth.
• Q1 2023 net loss was $(3.6) million, up $0.7 million compared to a net loss of $(4.3) million in Q1 2022.
• At March 31, 2023, the Company had cash and cash equivalents of $80.2 million, compared to $85.9 million at year-end. This decrease was largely attributable to net loan and lease payments, technology investments, capital expenditures, and to a lesser extent lower seasonal sales impacting cash from operations.

"We reported solid total revenue growth of over 11 per cent in the first quarter, driven by 113 per cent growth from illumin, our unique consumer journey platform," said Tal Hayek, Co-Founder and Chief Executive Officer of illumin. "illumin continues to be a substantial growth driver for us both in overall revenue and its contribution to total revenue, which was 63 per cent for the quarter. Our recent company rebrand to illumin and ticker symbol change reflects the anticipated importance of this revolutionary technology platform to our revenue growth and overall company mission of enabling brands and agencies to reach consumers at every stage of the marketing journey."

Mr. Hayek continued, "Despite self-serve sales seasonality, we saw a sharp increase in new self-serve customers of 74 per cent, adding 40 new logos in the quarter. This client growth, along with our large self-serve demo pipeline and strong rate of conversion are strong indicators of illumin's potential self-serve growth. Our recent focus has been on pursuing long-term self-serve contracts, with terms greater than one year and guaranteed revenue minimums. As a result, we are seeing an increasing number of illumin self-serve contracts with these terms. Over time, we anticipate this will provide us with increased revenue visibility."

Elliot Muchnik, illumin's Chief Financial Officer, commented, "Once again our strategic investments in illumin have had positive effects on our business, contributing to exceptional customer feedback and strong illumin first quarter sales growth. Our adjusted EBITDA results were in line with our expectations, reflecting our continued execution of this successful strategy to support illumin's future growth and brand awareness. We will, of course, continue to monitor the macroeconomic environment, but currently expect significant improvement in second quarter revenues and EBITDA."

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the periods ended:

Conference Call Details:

Date: Thursday, May 11th, 2023

Time: 8:30AM Eastern Time

To register for the conference call webcast and presentation, please visit

Please connect at 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

A recording of the conference call webcast will be available after the call by visiting the Company's website at https://illumin.com/investor-information/ .

About illumin

illumin is a journey advertising platform that enables marketers to reach consumers at every stage of their journey by leveraging advanced machine learning algorithms and real-time data analytics. The company's mission is to illuminate the path for brands to connect with their customers through the power of data-driven advertising. Headquartered in Toronto, Canada, illumin serves clients across North America, Latin America, and Europe. illumin is a business name of AcuityAds Holdings Inc., which the Company uses as an operating name for its business.

We seek Safe Harbor.