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Yes it certainly starts to answer the question at least... it could well by Disney seeing as they were already a decent sized customer but small vs Netflix. Paramount is another option and they've been scaling their offering of late. I'll wait for a bit of profit taking then may take a position...
Sorry missed hollywood clue in RNS
Paramount?
Any guesses
Amazon prime?
hi shearclass - think your question is answered today with the rns !
From their latest annual accounts;
"In FY22 we experienced greater customer concentration with the revenue contribution from our largest client increasing to 78% of sales as a consequence of their international expansion being ahead of their US competitors (FY21: 72%). The second largest customer accounted for 6%, up from 4% last year. These two contracts are expected to continue long-term due to the close relationship and technology integration achieved by ZOO."
As per the capital markets day presentation shared below, Zoo estimated their FY22 market share was ~4%, a market that they estimate is worth ~$1.6b ($70m turnover). This is derived from 9 studios, as per P76 of the CMD presentation, of which Netflix is the largest at $500m.
It seems obvious that 78% of Zoo's FY22 revenue came from Netflix, a total of ~$55m, so we can work out their share of Netflix spend was 11%. We can also work out that their share of the rest of market spend is ~1.5%. I suspect the 6% customer is Disney.
The key questions going forwards are;
- Is Zoo's 11% share of Netflix spend sustainable?
- Can they grow their share of non Netflix spend to anywhere close to 11%?
I think we have to assume their 'long term' revenue target of $400m relates to FY2030, as this is the timeframe given on the previous slide, showing their TAM growing to ~$2.8b by this point. 400/2800 = 14.2%. Not sure why they don't just quote this on slide 77 though...
Of note is that Netflix spend (Studio A), isn't forecast to grow at all between now and FY2030. So their future growth to a 14% industry market share appears to be dependent on generating $345m of revenue ($400m target - $55m netflix), from non Netflix market growth of $1.2b ($1.6b today, growing to $2.8b via internationalisation). That would mean taking 345/1200 = 28.8% of the incremental spend between now and 2030.
To me that looks highly ambitious...
Interested to hear existing shareholder thoughts on the above. On a PE of 25x this looks to have priced in a lot of future growth, if they struggle to gain success with non Netflix customers then I'm not sure how they can attain their near term targets.
On the flipside, if they can replicate their success with Netflix then this is actually very cheap!
Here's a CEO Video for yesterdays results
https://youtu.be/b3wWv1i8CAI
https://marketing.zoodigital.com/hubfs/ZOO%20CMD%202022-10-06.pdf
p77 -they saved the only real new info til late on
well the big news from yesterday capital markets day was the target for $400m long term revenue at 20% operating margin....they expect revenue from Disney alone to double and to sign material new clients who are currently trialling the software
surprised the shares aren't given they were above these levels post the results on 20 September
this stock should be an accelerated proxy on the growth and internationalisation of streaming services-and the rising popularity of international content being translated INTO English not just out of English like in the past
Investor ? ....
house broker Singers put thru 27% and 39% upgrades for this March and March '24
big numbers
and they are assuming H2 falls back versus the $51m and only put in $95m for 3/2023
pretty conservative upgrade IMHO
plenty of cash to invest in new services and countries
Nearly 90% more sales. 17.5% higher than second half 21.
The tone of the update is refreshingly positive .
Up we go .......I hope...
Last time i dithered about investing it was just over £1, in today 1.37 AHHHH .... my fault GL
Zoo Digital’s management, Stuart Green, CEO and Phillip Blundell, CFO present the results for the year ended 31 March 2022.
Video: https://www.piworld.co.uk/company-videos/zoo-digital-zoo-full-year-2022-results-presentation-july-22/
Podcast: https://piworld.podbean.com/e/lpec-exploring-listed-private-capital-resilience-and-opportunity-part-2-of-2-july-2022/
Short video for their latest results:
https://youtu.be/MaDfg64YA-A
Zoo are doing very well indeed. The $100m in revenues is well achievable in the coming year . jmo
Here's a quarterly update from CEO Stuart Green:
https://youtu.be/XF-J50Zvhro
We should get and hopefully keep momentum after this further upgrade.
It's certainly a lot cheaper to update an old picture than to make a new one. Streaming services will be looking very closely at their film catalogues im sure...
Jmo
With the new HUBS opening, one hopes they can maintain the revenue growth.
Great update ...
Hi all,
Here's a short quarterly update video from CEO Stuart Green.
https://youtu.be/HvYfbeMriL4
Afternoon all,
Here's a recording of yesterdays investor webinar with Zoo Digital:
https://fmp-live.co.uk/events/zoo-digital-webinar
Afternoon. Webinar with CEO Stuart Green and CFO Stuart Blundell tomorrow (3rd Feb) at 12.30pm. Click the link below to register.
https://us02web.zoom.us/webinar/register/WN_R46jk-7yRdukjyus3jtMwg
Great update this morning.
Being the primary vendor for forthcoming European launch of a global streaming service, should give us more momentum for 22/23.
Afternoon. Short update with CEO Stuart Green following this morning's results announcement:
www.fmp-tv.co.uk/2021/11/10/zoo-digital-revenues-surge-64/