Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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Something amiss or stirring
Very red day across the markets & Miri fairly illiquid, 1 Million sell dropped us a fair bit.
Now back to pre-Triplelift price, which is irritating.
Could all bounce back tomorrow, such are the vagaries of the market.
Best to switch off and come back another day, our business is expanding very rapidly, that’s all we need to know really.
I’m sure most know money is needed here before end of H1 (for auditors to sign off on accounts without ‘going concern’). I hold here and will buy more once funding clear. If they raise at a premium I’ll have to pay more but given the dire conditions and how hard raises are it might not happen. Potential here clearly massive but the market unforgiving and it’s been said potential massive for years. Now with programmatic they can scale and most of the heavy lifting done but they need one more cash injection before they’ll hopefully be able to self fund.
Although a very different co a co I have a holding in was 100p for 12 months and just raised at 50p. MIRI different as should accelerate revenue growth in H2 and beyond but who knows. Ideally they get a few strategic investors who are able to pay a premium knowing it’ll go from strength to strength. What you don’t want is a discounted raise and open to retail as it’ll drop to that level.
Spot on I think LL - the potential has been increasing for some time, with lots of positive activity, but until that manifests itself in a monetisation of the technology then the jury will remain out and the share price will be vulnerable.
As I've said before about Mirriad converting its technology into financial performance and shareholder rewards, given all the activity then "if not in 2024, when will the monetisation happen ?" And to me the monetisation means a turnover in the tens of millions and growing, a gross margin of 75%, and increasing profits replacing losses.
The absence of a cash call so far this year may be a good sign - that turnover is rising, that the cost control put in place in 2023 continues, and the time when cash is needed recedes a bit further into the future - but we need the board to tell us where we are and to clearly forecast where we're going.
Yep, sure cash burn is down but remember H1 is always a lot slower than H2 so it’s likely revenues will really accelerate H2 and Q4. Highly likely a raise coming before end of June. It might be strategic investors at a premium or not dilution at all and some other mechanism. Hopefully not a retail raise as it’ll be at a discount but if it is I’ll take part.
All of the campaigns they’re doing are fairly small beans but they seem to be doing many which is great. As I said i expect this will be the final cash call.
Mms dropping price for a buyer or panic station due to Israel, or as other said, cash burn...
Hi LoveableLumax & Merciaman,
I have thought from very early on since my arrival (actually knowing about Mirriad) that another round of funding was going to be needed at some point this year.
This is what the figures & information they've said point to .......
On 30th June 2023, they had £9.8M in the bank & they've stated the 31st December figure is roughly £6.1M, that's a decrease of £3.7M. There new business plan initially runs until 31st Aug 2024 & during that time they have budgeted for month expenditure to be £0.7M per month or £4.2M every 6 month's.
The figures therefore show that the cash balance at 31st Dec was £0.5M higher than budget (ie £3.7M drop instead of £4.2M).
Revenue during the 1st half of 2023 was £0.574M & they have said it was roughly £1.8M for the whole year ie so £1.226M in the 2nd half.
Now there will be delays in turning that gross revenue into actual cash in the company's bank account, I've modelled it with a 2 month delay. One research report expected the net margin to be 85%, I've used a 75% figure until the year end accounts come out & we may have a better understanding of what the figure is in reality.
For now the sums are small & it doesn't make that much of a difference, going forward it will be much more important for knowing when the company will first of all be break-even on an EBITDA basis, then a EBIT basis, then breakeven financially on a month by month basis & finally making a meaningful profit.
I'm hoping we get Q1 numbers along with the annual results, to re-affirm where the cash balance is & what Q1 gross sales were. I've projected Q1 sales to be only £0.945M against £0.845M in Q4.
I got to that figure by looking at when new contracts were signed datewise etc & deciding that revenue wouldn't really ramp-up until late Nov/Dec 23. So my Jan figure is significantly less than the Dec one & roughly the same as the Nov one, then increases slowly through Feb & Mar & in actual fact it won't top the Dec number until Apr (and only just that month)to factor in the ad cycle which has much lower ad spending in Q1 each year.
The company has said it was doing slightly better than it expected in the 2nd half of 2023, however I suspect due to the number of new agreements signed & the implementation of them, that spending will be speeded up to get them to market & earning us money faster to.
So I suspect we'll have ended Q1 with a cash balance of perhaps £3.5M instead of the £4.0M the business plan would point to.
I'd say its pretty clear that adverts are appearing a lot more often in the past month than previously & therefore we should be starting to see a lot more revenue being generated for the company. This will help to slow the monthly cash burn.
There is also the Olympic & Para-Olympic games coming up in Q3, that should cause a significant increase in ad spending.
Given all of the above I can see them raising the required cash to see us to break-even & beyond
Good post LOTM from an optimistic point of view the 4 fold increase in product placement if Mirriad has benefited and the trend continues should see a revenue improvement that sees the cash runway extended into 2025. Graph showing this trend
https://www.linkedin.com/posts/product-placement-blog_productplacement-research-analytics-activity-7177096474294435840-tTXA?utm_source=share&utm_medium=member_android
Tipalti executive liked recent post from Stephan Tipalti automate global large scale invoice management. Tipalti platform... Pubmatic use them (80% share SSP). case study and feedback...Mirriad 4 fold scaling and Triplelift programmatic anticipation???
https://tipalti.com/en-uk/case-studies/pubmatic/
How do you benefit quickly from this potential increase.... this chap liked Stephans post yesterday (1st time I've seen him) ex Goldman Sachs
https://www.linkedin.com/in/charles-ofori-8301b8130?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app
CLG Capital services include invoice financing
https://clgcap.com/#:~:text=Welcome%20to%20CLG%20Capital%2C%20your,to%20reach%20their%20full%20potential.
Sorry been out all day & didn't get home in enough time to buy that next 100,000 :( oh well at least I'll be around all day tomorrow :)
My post from last night got cut short :( as I obviously over filled the messages limit.
It was meant to say at the end ........
Given all of the above I can see them raising the required cash to see us to break-even & beyond in early June& at the moment I don't see the raise being any more than £5M.
Hopefully in a way that doesn't cause any dilution or allow's existing share holders to maintain there current % ownership of the company if they so wish.
LOTM
Going back to the Toyota news & thinking about it financially etc.
So the ad campaign results are compelling from Toyota's point of view & with that in mind there is no way that they haven't sat down since they got them & adjusted there ad budgets going forward.
I have no idea as to exactly how much they spend internationally on advertising per year but I'm sure it will be north of £10M. I also don't see a scenario now, where they are allocating anything less than 20%+ of there ad budget to virtual product placement, it might even get 40% of the annual budget in time.
So going on £10M & 20% through virtual product placement gives it £2M effectively going through Mirriad & Mirriad will get 25% of that according to what we've been told, so that works out at £0.5M minimum from Toyota alone & if I then say the net profit margin on it is 50% to be conservative, that would give us £0.25M net.
If we say the company's annual costs are £10M, then that sum would equate to 1/40th of the amount Mirriad needs to break-even or 2.5%.
What I am surprised about is Toyota making public how well this form of advertisement has done for the business. I think they've made a big mistake in doing so. Although it should be fabulous from Mirriad's point of view, because all of those competing directly with Toyota or are just below them or above them price point wise, will be worried as heck about losing market share to them.
They will virtually become compelled to get onboard with Mirriad's offering to negate the advantage Toyota now has over them.
A lot for people to think about especially when you take in all the other car company's out there & the size of all there annual ad budgets ........ £££££
GLA
LOTM
Https://www.statista.com/statistics/286518/toyota-advertising-spending-worldwide/#:~:text=In%202021%2C%20Toyota%20Motor%20Corporation%20invested%201.7%20billion,U.S.%20dollars%20in%20advertising%20activities%20across%20the%20globe.
"In 2021, Toyota Motor Corporation invested 1.7 billion U.S. dollars in advertising activities across the globe. Roughly a quarter of the figure was invested in digital advertising"
"In 2022, Japanese car manufacturer Toyota allocated a whopping 1.55 billion U.S. dollars for advertising in the United States, securing the third position among leading auto manufacturers in terms of advertising expenditure1. This substantial investment underscores Toyota’s commitment to promoting its brand and vehicles.
Moreover, in 2021, Toyota Motor Corporation’s global advertising spending reached 1.7 billion U.S. dollars2. Clearly, Toyota doesn’t hold back when it comes to spreading the word about their cars and innovations."
LOTM great posts
Your last post worked Toyota at 10£ million 1/40th
Then 1.7£ billion now 1/?th
Some patience required here as it appears we have a chunky seller driving the price down, this has happened before here, but gives us an opportunity to add further, at attractive prices.
Hi Stampee1,
Its not actually $1.7 Billion.
If you go deeper they are saying 25% goes into digital advertising so lets call it $400M or £320M to be safe. There was another article putting the sum in the segment that Mirraid is interested in at $100M so lets call that £80M.
If Mirriad through the "Diverse Supplies Marketplace" & Virtual Product Placement combined got even 10% of the £80M that's £8M of which we'd get £2M or £1M net which would be 10% of what the company needs Annually to break-even!
LOTM
1/10th better than 1/40th
I'm sure as we advance, the annual costs will drop, unless, more workforce, more computer power, more office space...
Have mirriad given a date , time line, when break even or profit...
1 million shares £20k
It doesn't warrant a large drop
Hi Stampee1,
No timeline as yet.
I will be pressing them for the release of monthly key indicators so that share holders have a good idea of how things are progressing.
Just bought that other 100,000 at 1.74p I had put a limit order in earlier for them at 1.76p but it never got filled for some reason :( maybe because the offer didn't fall below it.
LOTM
Good to be able to add decent chunks at these prices.
2.4p paid for hefty chunks 10 days ago.