Propel Media Reports Record Adjusted EBITDA of $9.8 million for the Second Quarter of 2018 and Record Adjusted EBITDA of $19.0 million for the First Half of 2018
August 14, 2018
- Adjusted EBITDA increased 11 % for first six months of 2018 vs. 2017
- Gross margin increased to 78% for the second quarter
- Strengthened balance sheet with new $57 million term and revolver facility
- DeepIntent, the Company’s artificial intelligence platform, continued its strong growth trajectory
IRVINE, Calif., Aug. 14, 2018 (GLOBE NEWSWIRE) — Propel Media, Inc. (OTCPink:PROM), a performance focused digital media and advertising company, today announced its financial results for the second quarter and six months ended June 30, 2018. Adjusted EBITDA for the quarter was $9.8 million, bringing the total for the first six months of 2018 to a record $19.0 million from $17.1 million in the same period a year ago. The improvement occurred despite revenues in the first half of 2018 improving only 2.6% to $41.2 million from $40.2 million in the same period a year ago.
Marv Tseu, Chief Executive Officer of Propel Media, commented:
“The Company’s performance in the second quarter and first half of the year was outstanding. During the quarter, we focused on optimizing performance on our traditional direct response advertisers, and those efforts contributed to our improved Adjusted EBITDA on slightly lower revenues. As a result, we did not have to acquire as many new users to support our owned-and-operated network, thereby allowing us to grow gross margins significantly. Additionally, DeepIntent, our artificial intelligence and audience insights platform, is continuing to gain traction in the marketplace and showed meaningful month-over-month gains in the second quarter.”
Performance Highlights for the Second Quarter 2018:
- Revenue was $20.3 million in the second quarter of 2018 compared to $21.5 million in the second quarter of 2017
- Gross margin increased by 13% to 75% in the second quarter of 2018 from 65% in the second quarter of 2017
- Operating income was $8.7 million in the second quarter of 2018 compared to $8.9 million in the second quarter of 2017
- Adjusted EBITDA grew to $9.8 million in the second quarter of 2018 from $9.7 million in the second quarter of 2017
- Strengthened balance sheet with new $57 million, five-year credit facility, and eliminated $41.7 million in debt and other merger obligations since January 2015.
Mr. Tseu went on to say, “Yesterday, we announced our intention to deregister our common stock and suspend our reporting obligations with the SEC. We believe that there is great opportunity through DeepIntent and other diversification efforts to build shareholder value. We believe that being able to focus intently on these initiatives without the associated burdens of being an SEC reporting company will help us to maximize shareholder value in the future.”
Further details regarding the results of operations for the second quarter ended June 30, 2018 are included in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2018.
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