Israeli advertising software developer Adgorithms Ltd (LON:ADGO), which listed on AIM in June last year, has earlier today published its financial metrics for the 12 months to December 31, 2015, with earnings failing to meet expectations.
Due to what the company called “ an unforeseen shift in the market”, it delivered revenues of $22.1 million in 2015, 9.8% higher than a year earlier (2014: $20.2m). The revenues, however, were significantly below Adgorithms initial expectations.
Gross profit declined to $6.7 million (2014: $9.5m) reflecting downward margin pressure due to disruption to both supply and demand on the online marketing exchanges in the second half of 2015.
Group adjusted EBITDA declined in 2015 to $2.16 million (2014: $6.8m), reflecting the pressure on margins, as well as higher operating expenses registered in the period, attributable to the Company’s OPEX expansion to support deployment of the Company’s SaaS solution.
The Board has determined that it would be prudent not to distribute a dividend this year. The Board will keep the Company’s dividend policy under review.
Regarding performance after the closure of the reporting period, Adgorithms had the following to say,
The first quarter of 2016 saw a continued challenging trading environment in the indirect revenue business. The Company continues to diversify the indirect business and has seen some success of this strategy in the first three months of 2016, albeit at significantly lower levels than last year.
You can view the full announcement by the company by clicking here.