(Sharecast News) - Shares in Bidstack dived on Wednesday after it cautioned that annual revenue will fall short of targets but added that it is on track to achieve material growth next year.
The native in-game advertising group said that turnover for the year had been driven by programmatic advertising spend, which is growing month on month but is "not expected to be significant".
However, the AIM traded company insisted that it had enjoyed positive momentum, adding that it anticipated that its industry relationships will deliver a material uplift in revenues in 2020.
Bidstack expects to have access to a number of well-known games is expected in the first and second quarters of the new year and said it had made "considerable progress" in making its platform available in cloud gaming services.
Chief executive James Draper said: "We are building out a new advertising category and the conversations we are having are extremely detailed and have therefore taken longer than we would ideally have anticipated.
"Although I am disappointed that we have not met our revenue targets for 2019, I firmly believe the company is taking the right approach to fulfil its strategy to become the biggest ad network for the video games industry."
Bidstack shares were down by 41.67% at 7.00p at 1139 GMT.
13 Feb 2023 12:04
IN BRIEF: Bidstack shares up as eyes yearly revenue to increase
Bidstack Group PLC - London-based advertising agency - Expects revenue of GBP5.3 million for 2022, up from GBP2.6 million in 2021. Gross margin is expected at 70%, compared to 36% a year earlier. Cash at December 31 amounts to GBP8.7 million, up 21% from GBP7.1 million on the same date a year ago. Looking ahead, says about GBP1.2 million of revenue is already booked for the first quarter of 2023, driven by the recently hired US in-house sales team. Expects 2023 revenue to increase more than previously anticipated.
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