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PotteryExpert,
"Maybe Dataxu's 300mill exit was overvalued like a lot of companies are nowadays? And how relevant is Dataxu for comparison anyway? "
Yes, maybe Trmr's current valuation is overvalued, like a lot of companies are nowadays?
Another article about DataXu.
DataXu was considered as one of the few LARGE scale DSP but bought for ONLY $150M... so question is what is trmr, merged with rthm and their highly questionable history, currently worth - it's mcap is currently around $230m(£180m)...
"Although Dataxu is a significantly smaller player when compared to similar platforms such as The Trade Desk, Media Math and AppNexus — which all carry valuations that far exceed the $150 million price tag that Roku paid — it does allow the company to better compete with its rivals by having a similar offering. Dataxu was considered one of the few large-scale DSPs available for acquisition."
https://adage.com/article/digital/what-rokus-acquisition-dataxu-means-marketers/2208991?utm_medium=social&utm_source=twitter&utm_term=adage&utm_content=69f6f219-a6f2-4108-9f40-6e4c98e642b7
DataXu sold for 1/2 the price they were seeking last year...
Roku to Acquire Dataxu for $150 Million
"Last year, Dataxu was reportedly working with GCA Advisors to seek a $300 million exit, and it was later heavily rumored that it was in negotiations with Comcast, but the two were thought to be far apart on valuation.
Market observers maintain the most realistic exit strategies for ad-tech companies in the current climate is to sell to strategic buyers, or private equity. This compares to the early part of the decade when many ad tech companies opted to IPO, only to experience steep declines in their share price, and many of whom have since been taken private, with few remaining ad tech companies still listed on the public markets."
https://www.adweek.com/programmatic/streaming-service-roku-acquires-dataxu-150-million/
Tricky
"Tim Weller, non-Exec., chairman will have the most up-to-date information on the companies' prospects and be intimately acquainted with cyclical trends"
Posters said similar whenever Tosca, Richard Griffiths or other IIs increased their holdings.
Tim Weller increasing his holding shows he has confidence in the business...It doesn't prove anything else. Positive company/industry newsflow as well as results and believable, not 'jam tomorrow', outlook would.
Oiloviam
"RTHM (RythythmmnmOne!) were a serial 'jam tomorrow' company, always promising that the 'next' set of results would be profits...and absurdly talking about inflections points (when there wasn't one) and to use Quantcast figures as a bellweather for RTHM's performance. It all turned out to be hot air."
Good post.. and the point is trmr are following in rthm's footsteps... the same full stack model that Tremor (now called Telaria) said resulted in customer suspicion before they sold TremorDSP to TAP, the model that The Trade Desk/Rubicon don't use...
Trmr issuing similar rns' to Rthm rns' to do with Pixalate rankings, using rthm's Creative Studios...
Mostyn,
"Has anyone made any kind of profit on this share from holding it long term? Not day trading! The answer for thousands of small P.I's is no.
Sometimes it's worth doing some independent digging into the points raised."
Agree. Everyone should research into blnx, now rthm... rthm merged with TAP, now trmr... read the company/industry newsflow..
Rthm ran a full stack model and had reported losses for over 5yrs... Trmr are running a full stack now...
The model hasn't been proven to work.
Also agree that it's the traders, who pumped/dumped, who have made a profit over the last 5 yrs...
Yes, if they don't go through with it then confidence will be dented.
I'm not expecting much of a dividend at this stage but a final dividend and steady dividend growth will do.
Given the announcement was today and we're past H1 end (Sept end), I expect they will go ahead with it.
I hope they go through with the 'Intention' with interim and final dividends..
If anything, it'll prove that the BoD don't have cash flow concerns.
TLY have built up the business with their stated 'Add and Build' strategy..
The foundation is set and now time for growth...
I'm expecting a TU this or next week and then interims next month.
Tardis,
"So it would be better to be at the bottom of the rankings? No, I thought not..."
Simple Question:
The ranking hasn't made any difference in the past, so why should it now?
Rthm still made years of losses, 2 CFOs still resigned within a 5 month period, rthm still filed warnings etc etc..
Pixalate ranking..
rthm were at the top for years..
They rns'ed that they were no1 for whole of 2017... Yet they still made a huge loss for fy2018...
They still had questionable events...
Looks like Trmr following in rthm footsteps...
https://www.rhythmone.com/news/2018/04/11/rhythmone-ranked-number-one-pixalate-for-2017#lIHdj0yOjTzPeruH.97
Article on leasehold scandal..
https://www.bbc.co.uk/news/business-49935283
MrEMC2,
Thanks. Best to learn from it for your next investment and good luck with them.
Always best to read both bull and bear points and form your own opinion. There are posters who portray themselves as accountants, solicitors etc and suggest that they have inside information. Have you noticed a lot of the bullish blnx/rthm posters have disappeared and new ones appear.
The way trmr and rthm merged is highly questionable, especially with the statement that they hadn't looked at rthm's full books and operational details.
My posts are all there to see...
When the largest advertiser, P&G, warned the ad tech industry in 2017, to clean up then that was a warning the industry had to heed, do or die... That was when the Industry Challenges started to mount up...
Another privacy Industry Challenge, CCPA, will become effective from 1st January, 3 months time...
The following is from interims, last week, and backup the warnings about rthm, their operations and Industry Challenges:
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? -
"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. "
MrEMC2,
Good luck with all your other investments.
Tardis,
"Disagree".
Yes, I disagree.... The $50m contribution from rthm that you quote includes contribution from rthm operations that have subsequently been closed.
Rthm merged with trmr beginning of April, so rthm would have been making a full contribution.
In the interims, trmr mention that SEVERAL of rthm's products and their DSP have been closed.
How much revenue came from these SEVERAL discontinued operations and included in the $50m contribution towards the interims. A further qtr contribution would not include these discontinued operations....
From the interims:
"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."
Tardis,
"Finncap’s note suggests that Rhythmone contributed $50m revenue, which seems to be for the three month period only, so revenue would have been nearer $200m with a full 6 month contribution from RhythmOne."
If 1 qtr of rthm contributed $50m, why would 2 qtrs contibute 4x the qtr or $200m????
Especially as trmr announced today that they close SEVERAL rthm products, including rthm's DSP platform... so loss of revenue...
From today's interim results:
"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."
Morning Star: - profit warning.
Tremor Swings To Interim Loss; Warns On 2019 Profitability
http://www.morningstar.co.uk/uk/news/AN_1569325726303714900/tremor-swings-to-interim-loss;-warns-on-2019-profitability.aspx
From Investors Chronicle:
Tremor issues profit warning
https://www.investorschronicle.co.uk/shares/2019/09/24/tremor-issues-profit-warning/
On 11th Sept Tardis posted..
"The company have said publicly they will issue a profit warning if they are not on course to meet their broker’s (Finncap) forecasts. No such profit warning issued to date - so we should be on course."
He refused to post a link to the company statement.
and yet today the company have issued a profit warning.
The profit warning today shows that Tardis blatantly lied about what the company have stated. Otherwise why not post the link to prove he is not lying. Blatantly lying about company statements is market abuse and a criminal offence.
Tardis, can you please post the link otherwise you will be reported?
From today's company rns:
" 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. "
Read the rns, they issued a profit warning...
"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 rthm equivalent sp is 123p... down from 500p 18months ago.. as expected, Industry Challenges have hit the company and with new Industry Challenges, post these results, the outlook is crucial... and a believable outlook....
Always best to read company and crucially industry newsflow and form your own opinion...
Proof is in the company's own statement from their previous results:
The company THEMSELVES have ALREADY warned of Industry Headwinds for this year
Taptica's 2018 Meets Expectations But Headwinds May Harm 2019
http://www.morningstar.co.uk/uk/news/AN_1551093566601692100/tapticas-2018-meets-expectations-but-headwinds-may-harm-2019.aspx
Added to the fact that Rthm, who trmr merged with 6 months ago, have had years of losses..
fy2015 $214.9m $95.7m ($20.8m)
fy2016 $166.7m $78.4m ($92.3m)
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
fy2018 $255m $27m ($13.8m) (inc Rad1 & Yume acquisitions)