IRVINE, Calif., May 12, 2017 (GLOBE NEWSWIRE) — Propel Media, Inc. (OTC:PROM), a performance focused digital media and advertising company, today announced its 2017 first quarter results. The Company achieved revenue of $18.6 million, operating income of $6.7 million and adjusted EBITDA of $7.4 million in its 2017 first quarter.
First Quarter Business Highlights:
- Revenue of $18.6 million as compared to $15.3 million for Q1 2016
- Operating income of $6.7 million as compared to $2.2 million for Q1 2016
- Adjusted EBITDA of $7.4 million as compared to $3.2 million for Q1 2016
- Gross margin of 63% as compared to 56% for Q1 2016
Revenues, adjusted EBITDA and operating income grew by 21.6%, 130.0% and 213.8%, respectively, for Q1 2017 as compared to Q1 2016. Additionally, adjusted EBITDA in Q1 2017 increased sequentially over Q4 2016 by 6.2%. These 2017 improvements were due to an increase in the size of the user audience, improved monetization of that user audience and reductions in operating costs.
Gross Margin improved in Q1 2017 to 63% as compared to 37% for Q1 2016. The improvement in gross margin was due to more effective media buying performance, which in turn generated greater demand and higher pricing from advertisers during the quarter. Operating expenses declined by $1.4 million, or 22.2%, to $5.0 million for Q1 2017 as compared to $6.4 million for Q1 2016.
“I’m very pleased to report that the first quarter of 2017 exceeded the results of the first quarter of 2016, as well as the fourth quarter of 2016. This strong first quarter of 2017 has demonstrated our ability to counter the seasonally challenging first quarter with exceptional performance by all members of our team,” says Marv Tseu, Chief Executive Officer of Propel Media. “The executive team and I are excited for the rest of 2017, and we look forward to the Company’s continued growth.”
Further details concerning the results of operations for the three months ended March 31, 2017 are set forth in the Company’s Quarterly Report on Form 10-Q filed today with the Securities and Exchange Commission. Further details concerning the results of operations for the three months ended December 31, 2016 are set forth in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2017.
About Propel Media
Propel Media connects digital marketers with unique audiences through intent-based technology that delivers superior performance with measurable results. We ‘Do Digital Differently™’ with a distinctive approach to digital powered by proprietary contextualization technology and a unique supply of ad inventory. Headquartered in Irvine, California, Propel Media is distinguished by its ability to deliver consistent results and its commitment to providing the highest level of client services to its partners.
For more information, visit: www.propelmedia.com
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those statements regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and future financial performance and any other statements that are not statements of historical fact. These statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,” “will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media’s reports filed with the SEC. Among the factors that could cause Propel Media’s actual results to differ materially are: loss of key advertising customers; inability to acquire new advertising customers; limitations on its ability to acquire new users profitably or at all; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions. Further, investors should keep in mind that Propel Media’s financial results in any particular period may not be indicative of future results. Propel Media is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law.
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, we present Adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA, which is based upon the adjusted EBITDA which we report to our lenders, is a key measurement monitored by management, and is determined by taking net (loss) income (the nearest GAAP measure) and adding interest, taxes, depreciation, amortization, impairment charges, stock based compensation, bank fees, losses from extraordinary, unusual or nonrecurring items, noncash items, merger and other onetime expenses and severance. We believe that this non-GAAP measure, viewed in addition to and not in lieu of our reported GAAP results, provides useful information to investors by providing a more focused measure of operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA has been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.