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SNN,
I think News International were desperate for a deal...
$19m valuation, $57m revenue... Oh look, it's that 1/3 revenue again!! AS EXPECTED
Look at the more realistic valuation, following on from the lower than expected price paid for DataXu!!
Why didn't News Corp fully integrate Unruly??? Were there problems?
It seems like News Corp were desperate to get rid of UnRuly and along came Trmr. Remember, only a year ago, Singer was desperate to sell Rthm and along came Trmr.
The paltry price paid for Unruly rattles the consolidating ad tech market
"With the transaction valued at about £15 million ($19 million), News Corp will receive about 7% of Tremor’s stock. Tremor is also guaranteeing News Corp £30 million ($39 million) in revenue over the next three years as part of the deal"
"Loss-making Unruly was never fully integrated into its parent company and continued to work with other publishers, offering a marketplace that connects buyers and sellers to video ads. "
https://digiday.com/media/paltry-price-paid-unruly-rattles-consolidating-ad-tech-market/
Tricky,
"Some regulatory headwinds affecting the performance division"....
No it's not... the announced a huge 50% drop in revenues from the expected revenues when they merged..
Trmr closed several rthm operations during the year...
Trmr closed perk.com...
Hardly just some regulatory headwinds affecting 1 operation...
As to predictions... as I stated in my post of 18th March, that once things go wrong then you guys come back with it was expected... lol
Even your reply was AS EXPECTED... ;-)
It would help if you actually read the company/industry newsflow and posted your opinions before the event...
Extract below from post of 18th March:
Eddie,
Your post:
""back up your repeated claims that GDPR has and is damaging R1.. ""
which, if you read my post, I answered..
Not for the 1st time, you've twisted any reply I give to suit your agenda...
You guys can never have a proper discussion, can you? Why's that?
Over a long time, I've provided company/industry stats/newsflow, industry challenges and red flags... It's up to individuals whether they wish to discuss or ignore them...
When things go wrong, you guys come back with 'it was expected'..... IN HINDSIGHT!!!
The sp is at 140p and Singer is selling the company to TAP on unfavourable terms...
The 'brief' TU backs the prediction by myself that the merger with rthm would lead to poor results...
The TU shows revenues were massively down on the forecasts when the 2 merged, as predicted... No wonder there were 2 rthm CFOs who resigned within a space of 5 months before the merger complered..
No wonder both companies were desperate to complete the merger...
Huge miss on revenue, as expected..
When they announced the Rthm merger, there were suggestions of combined revenues of $700m for fy2019, Dec 2019..
Actuals = around 1/2 that..
Poor management decisions on the rthm merger...
RhythmOne and Taptica plot merger to compete with Google
https://www.thedrum.com/news/2019/01/30/rhythmone-and-taptica-plot-merger-compete-with-google
Bald-Eagle,
It is drival comparing Trmr with The Trade Desk..
DataXu a major DSP recently merged, valuing it at only $150m..And Trmr is not a partner...
Looks like rthm's legal battle with DataXu could end up being very costly to trmr in terms of lost opportunities... as expected then.
DataXu/Roku taking on The Trade Desk, OTT/CTV, with their new offerings...
DataXu still don't have rthm/Trmr listed as a partner, so trmr will miss out..
Rthm/DataXu legal battle - The consequences are ongoing, as expected.
https://adexchanger.com/online-advertising/rhythmone-dataxu-tussel-unpaid-bills-hidden-fees/
Roku/DataXu take on The Trade Desk:
https://articles2.marketrealist.com/2019/11/roku-takes-on-ttd-with-the-dataxu-acquisition/
Trmr(rthm) NOT listed as a DataXu partner - trmr still losing out, with Roku/DataXu huge OTT/CTV offering.
https://www.dataxu.com/about-us/partners/
JAdam
"then start to close the gap in terms of PE with the trade desk"
Why a read across from The Trade Desk? They operate a different model...
Why not go all the way and suggest a read across from Google??? ;-)
A more sensible read across would be from DataXu, which was recently sold for $150m, half the valuation they had just 12months ago..
Happy New Year...
Read all company/industry newsflow..
Some fundamental information is in my previous post on here...
Happy New Year to all geniune posters...
Read all company/industry newsflow..
Merry Christmas all..
Have a good Christmas.
Merry Christmas all genuine posters..
Do your own research and be careful of the pump and dump merchants..
Have a good Christmas..
Last fy TU was on 3rd Jan.. so probably get TU 1st week on Jan..
Best to wait until TU to see if there is any improvements since Interims, published Sept...
They have already warned re the fy results for fy 2019, Dec 2019...
The question is how much will the miss actually be????
Recent company/industry newsflow..
Profit warning,
closing several rthm operations,
Still being affected by Industry Challenges,
CFO selling 100k,
Large DSP DataXu being sold for only $150m,
Perk.com closing down - LOSS OF PREMIUM SUPPLY SIDE, DEDICATED USERS.
The profit warning from the company themselves, is there in black and white - AS EXPECTED.
" This coupled with the weakness in the Performance division year on year means that the Board believe the Company will be marginally behind full year expectations on profitability for 2019. "
The closing of rthm's operations - rthm operations not so good then? - AS EXPECTED
"Several of RhythmOne's products have been discontinued alongside its demand-side platform ("DSP"). The development of RhythmOne's data management platform ("DMP) has also been taken in-house. This initiative created an operational challenge for management, however they believe the decision will markedly benefit the company in the medium-term. The reduced development, maintenance and data centre costs form part of the wider initiative to streamline the Company's operations."
Industry Challenges continues to affect trmr - AS EXPECTED
"The performance-based division has continued to be impacted in 2019 by the well-documented headwinds which have affected both topline revenue and profitability. "
https://www.investegate.co.uk/tremor-international--trmr-/rns/interim-results/201909240700083776N/
Since interims, they closed perk.com -losing millions of Premium Dedicated Users... plus loss of cash and revenue, in fy2020 onwards...
"Perk.com closing:
"Due to changes in the company direction, all Perk applications will be shutting down on December 1, 2019. Users will need to redeem their Perk Points by November 20, 2019, or the points will expire. Thanks again for all your support these past several years!"
www.Perk.com
Safi,
" Tremor: HALF year revenues $189 million "
Problem is trmr/rthm were also reported to have combined revenues of circa $700m but they are significantly below that figure, aren't they?
" While the deal has yet to be formally approved it is expected that it will take the form of an all-share takeover of RhythmOne by Taptica, whose shareholders will command a majority stake in a combined entity with revenues of around $700m."
https://www.thedrum.com/news/2019/01/30/rhythmone-and-taptica-plot-merger-compete-with-google
"as well as all the other rthm operations only a few months ago."
should read
"as well as all the other SEVERAL rthm operations CLOSED only a few months ago."
as announced in the interims.
Tricky,
"Neither Act prevents advertising as long as permissions are sought, if relevant, and if other infringements don't occur then compliant adtech companies will be able to do good business."
It's easy to prove permission has been obtained from your own Premium user base- Facebook, Google and Amazon have a strong Premium user base. Users who have agreed to use their service.
Trmr decided to close down perk.com and have lost millions of Premium Dedicated users, didn't they?.
So from end of this month, post fy2019 results, they will lose revenue and cash from perk.com, as well as all the other rthm operations only a few months ago.
Has anyone seen an rns from Trmr confirming that they have closed down Perk.com?
TD may 'sound' like a sensible chap but his post on GDPR & CCPA is incorrect. I suggest you read up about CCPA and GDPR.
The IAB GDPR framework, which the ad tech companies rely on for GDPR was flawed and amendments had to be made.
Several companies pulled out of Europe because of GDPR.
Tremor have already stated that they have been affected and continue to be affected by Industry Challenges.
Read up about NHS SBS and you'll see the how big the "insourcing market" actually is...
https://www.sbs.nhs.uk/
The govn intends to reduce operation waiting times and 'insourcing' is the way forward.. Totally Healthcare operate in UK & Ireland...
Totally Healthcare is only 1 subsidiary, the others being:
Greenbrook/Vocare
Premier Physical Healthcare
About Health
Optimum Sports
Totally Health
Myclinical Coach
A company with huge growth potential... Foundation set..
Now present and growing in other UK countries and Ireland...
Dividends due, cash in bank....
Mcap £24m
Only a fortnight before the new Industry Challenge, CCPA becomes effective...
‘We’re not going to play around’: Ad industry grapples with California’s ambiguous privacy law
https://digiday.com/marketing/not-going-play-around-ad-industry-grapples-californias-ambiguous-privacy-law/
Just over a year after the Industry Challenge, GDPR, became effective, California Consumer Privacy Act (CCPA) becomes effective in a month's time.
https://en.m.wikipedia.org/wiki/California_Consumer_Privacy_Act
and following on from my last post on high levels of cash within Ad Tech companies...
RocketFuel announced $62m cash just before they were taken over by Sizmek for only $145m.. RocketFuel had previously been valued at over $1bln...
"Rocket Fuel claimed the negative cash flow happened because it took longer in Q1 to collect money owed, while facing higher media costs and a “one-time restructuring cost.”
But while Rocket Fuel CFO Stephen Snyder noted the benefits of being part of Vector Capital’s fund, he added that Rocket Fuel’s “cash balance was fine.” At the end of Q1 it had $62.8 million in cash."
https://adexchanger.com/investment/sizmek-buys-rocket-fuel-145m/
Pottery,
"If they need the cash for cash flow stt why buy 20M worth of stock"
You could also say the other way:
If they DON'T need such a huge cash pile for cash flow then why didn't they continue the buy backs or why not pay a special dividend?
"But in those 5 years Rhythm acquired and was in the middle of a transition towards mobile."
Blinkx/rthm have been moving to mobile and CTV for years.. In the case of Mobile a decade ago..
https://www.prnewswire.com/news-releases/blinkx-launches-mobile-video-search-site-94228069.html
The fact is Blnx/rthm, pre Trmr merger, raised over $165m in placings.
For fy2017, rthm reported cash of $75m, which isn't much different to Trmr's forecast for this year, yet 6 months later in Nov 2018 they still setup 2 charges totally $100m .
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf