Israeli advertising software developer Adgorithms Ltd (LON:ADGO), which had its public listing on AIM in June this year, today provided a trading update for the fourth quarter of 2015.
In tune with a previous downbeat forecast for full-year earnings, the company today said that EBITDA margin in the final quarter of the year will be below expectations and this will be reflected in the EBITDA outcome for the full year.
Adgorithms’ management report a slight improvement in the online advertising market with the return of inventory volumes for online advertising exchanges and demand from media buyers recovering. However, this improvement is below anticipated volumes expected within the company’s indirect revenue channels.
The company forecasts year-end cash balance to be in line with expectations of approximately $29 million.
The Board has recently conducted a detailed strategy review in light of market conditions. In accordance with its long term plan, the company still focuses on:
- accelerating deployment of its primary SaaS business (‘direct’ revenue);
- strengthening and de-risking ‘indirect’ revenue by broadening its customer base and supply partners.
The Board of Directors struck a confident note regarding the overall long term growth prospects of the company.
You can view the regulatory filing by Adgorithms by clicking here.