Member Info for stt1

I think it would have been better to wait a few weeks, get to grips with rthm's operations and then have an Investor Roadshow...

Pointless having a roadshow this early on after the merger, especially as only last week they stated that they've only now just started looking at rthm's full books and operational details..

Any number of issues could arise after they have had a proper look at the books and the operations...

Finncap stated that fy2019 March 2019 trading for rthm was below market expectations.

Read the Finncap research note...registration is free..

Tricky,

"measures that improve transparency have to be welcomed."

Agree. But what are the consequences of it?

Rubicon Project abandoned Buy side fees. Their revenues crashed by over 50%...
Do you think there could be any read across to rthm, if they too helped improved fee transparency and abandoned opaque fees?

Don't forget last year, rthm went to court against DataXu over fees...
https://www.pacermonitor.com/public/case/22028832/RhythmOne_LLC_v_DataXu,_Inc

Rubicon lost a huge chunk of revenue whilst making their fees more transparent...

"In November 2017, Rubicon Project announced that it is to drop its buy-side fees as part of its ongoing transparency drive with the impact of this move demonstrated in its previous quarterly results when revenue dropped 57%.

http://www.thedrum.com/news/2018/05/04/rubicon-project-tops-q1-expectations-despite-low-cost-model-declines

Anyone heard anything more from rthm regarding fees???

"RHYTHMONE (INCLUDING YUME)

Does it charge buy-side fees or other nontransparent fees: No response. "

https://adexchanger.com/platforms/rubicon-got-rid-buy-side-fees-else-charging/

Not only do Telaria & TTD not run a full stack but they have been at the forefront of move fee transparency...
It backs up what I've been saying that 2018 onwards should see the consequences of the Industry Challenges hit the ad tech ecosystem..

Telaria's move to fee transparency...

Telaria Is First Technology Platform to Confirm 100% Fee Transparency

- No arbitrage or hidden fees in any deal transaction
- Revenue sharing is calculated correctly for publishers
- Final sale price to bidders is calculated correctly

"For publishers, this means the publisher fee is based on a fixed contract and is not dependent in any way on the demand partner or demand activity level. The publisher sees the exact bid from the DSP, the clearing price, and Telaria’s publisher fee.

For buyers, it means 100% confidence in the way that Telaria runs auctions and determines bid prices— with no "adjustments." Telaria does not charge buyers any fees on top of the clearing price."

"While many advertising companies claim transparency, Telaria is the first and only to open its system to such scrutiny and achieve verification of its practices from a neutral, third-party firm."

https://www.businesswire.com/news/home/20180516005148/en/Telaria-Technology-Platform-Confirm-100-Fee-Transparency

2oco,

Thanks.. the article shows that the companies who suffered from the Industry Challenges, fewer DSPs/SSPs, fee transparency, Apple's ITP did worse...

Also interesting that the article refers to Telaria & TTD doing well, especially as Rthm, now merged with TAP run a full stack:

"The sector grew 54%, according to LUMA’s most recent market report for the first quarter, and companies such as Telaria and The Trade Desk saw their stocks grow 115% and 79% respectively."

Tremor, now Telaria, reasons for selling their TremorDSP to Taptica.. perceived conflict of interest

"Clients were also uneasy with Tremor servicing both the buy- and sell-sides."
"There's always been a little bit of friction because we were selling agencies and advertisers different products while we were representing publishers," Zagorski said. "And the people who plug into that sell-side platform would always be somewhat hesitant to commit to it in a huge way because we had that perceived conflict."

https://adexchanger.com/digital-tv/tremor-video-sells-demand-side-business-taptica-50m/

The Trade Desk (TTD) previously quoted as saying that their one sided approach was the key to its success...other companies have also ditched both sides...

"Many companies that tried to run ad tech businesses on both sides later have sold one side off: Rubicon shut down buy-side platform Chango, with then-CEO Frank Addante admitting the acquisition was a failure. Tremor Video just sold off its buy-side business to focus on the supply side. Amobee sold its sell-side business to focus only on the buy side. The Trade Desk, which has seen its stock skyrocket post-IPO, consistently cites its single-side, agency-focused approach as a key to its success."

https://adexchanger.com/platforms/appnexus-buy-side-falls-wayside/

Ragnar,
"some attempting to take advantage by stealing their customers rather than by acquiring them"

Yes because Sizmek includes the agency side, which was failing because of the Industry Challenge 'moving programmatic buying in-house', a move which started a couple of years ago. Therefore, it's pointless buying the entire business only to close down the failing part.
The article shows that other companies are speed hiring and looking to ramp up their ad serving capabilities because it was the most lucrative part of the business, so it's not surprising. Sizmek were the biggest 3rd Party Ad Server provider.
The point here is how this affects the ad tech ecosystem and the loss of business because of the collapse and during the time it takes to setup replacements.

So Sizmek's Net revenue fell from $399m in 2016 to $289m, before it filed for Chapter 11 Bankruptcy..

Looks like the Industry Challenge 'move to in-house' hit them hard....

How Sizmek Fell, And How It Could Be Sold

"In 2016, Rocket Fuel and Sizmek’s combined net revenue stood at $399 million – net revenue is the money accrued to Sizmek and Rocket Fuel, not the overall media spend."

"But the market had shifted under Sizmek and Rocket Fuel, and in 2017 brands and agencies aggressively moved their businesses from managed service to self-serve platforms."

"As Rocket Fuel increased Sizmek’s working capital demands, revenue was disintegrating. In its second year as a combined company, net revenue dropped from $399 million to $289 million."

https://adexchanger.com/online-advertising/how-sizmek-fell-and-how-it-could-be-sold/

Kent & Sussex, IUC contract up for tender.. worth £91m...one of the biggest new IUC contracts...

Would be nice if TLY manage to get that one...

https://bbf.uk.com/contract/nhs111-clinical-assessment-service-for-kent-medway-sussex-ccgs

1gw,

"FWIW what I think has happened is that Taptica have leant on finnCap to get that note out. At the EGM it was clear that finnCap and Taptica had different timescales in mind to get an update out to investors. It appears the customer prevailed and so the note was put out basically immediately after completion, presumably without much time to analyse the data from RhythmOne."

Are you seriously suggesting that Finncap published an inaccurate note, especially the figures, because their client insisted that they to rush it out, despite showing reluctance to do so at the EGM?

Further are you are claiming that however, the investment case for the merger 'looks good' even though it's in the SAME NOTE AND they clearly state that they had not seen the full books AND OPERATION BUSINESS DETAILS...

Can you please clarify?

MrEmc2,

Good post... Blnx/rthm have a history of making bullish comments and failing to back them up when it comes to results.. The expectations get downgraded time after time...

I think the consequences of the Industry Challenges, which came about after the Methbot fraud and P&G demands for the ad tech ecosystem to clean up over 2 yrs ago, have yet to be fully felt by the ad tech ecosystem..
It's still early days...

But I'm sure posters will say again that it's this year or never.... and when results disappoint that it was expected or there's nothing new...

Tardis,
"Tosca were acquiring in late 2016. By April 2017 the SP had risen to 48p."

Well you obviously know Tosca were acquiring late 2016 and that the sp had risen to around 500p (new money, post consolidation), but why don't you say why? you're clueless about rthm newsflow/events...

So here goes...
Late 2016 was when rthm announced the Perk acquisition, wasn't it, together with the usual bullish comments. They also announced that H1 2017, in which they announced profitable (on adjusted basis) 2 months..Very Bullish, wasn't it?

So I'd say Tosca acquired some more believing that the company has turned the corner..

Yet, come Apr 2017, when the sp was around 50p(old money, 500p), they failed to backup those bullish comments, yet again.

Despite the Yume takeover,brokers target of 720p the sp hasn't been as high as 500p (new money) since, has it?

And soon after the disappointing fy2017 results, BM, the CEO 'resigned' and within weeks the rthm/Yume takeover announced...followed by:

02/18 - rthm/Yume takeover completed, Yume execs take over rthm, rthm execs resign..so 'New' Management for rthm...

https://investor.rhythmone.com/newsroom/2018/02/02/rhythmone-plc-successfully-completes-exchange-offer-to-acquire-yume

May - CEO, from pre-yume takeover leaves
https://uk.advfn.com/stock-market/london/rhythmone-RTHM/share-news/RhythmOne-PLC-Directorate-and-Management-Changes/77533926

June - rthm director, from pre-Yume takeover leaves
https://uk.advfn.com/stock-market/london/rhythmone-RTHM/share-news/RhythmOne-PLC-Directorate-Change/77691075

July - rthm directors, from pre-Yume takeover leave
https://uk.advfn.com/stock-market/london/rhythmone-RTHM/share-news/RhythmOne-PLC-Q1-trading-update-and-directorate-ch/77856930

Aug 2018 - NDA signed with TAP...

Sept 2018 - CFO, Ed resigns, Mark Zorko appointed as CFO
https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518

Feb 2019 - CFO Mark Zorko resigns after just 5 months...
https://investor.rhythmone.com/newsroom/2019/02/04/directorate-and-management-changes_02041


And yes I do remember it as it was also after the 2016 Methbot and 2017 P&G demands for transparency within the Ad Tech ecosystem - building up of those Industry Challenges, so I sold some at around 50p (500p new money)...

"RhythmOne said its purchase of Perk accelerates its strategy to build a unified programmatic platform, and gives it access to a number of premium consumer mobile apps and web properties, adding exclusive inventory to its supply-side portfolio."

"The acquisition is expected to result in an "upgrade" to RhythmOne's financial year 2017 revenue"

http://www.morningstar.co.uk/uk/news/AN_1480928803061514200/rhythmone-buys-advertising-firm-perk-for-around-usd425-million.aspx

https://finance.yahoo.com/quote/RTHM.L

should read 'since Apr 2017' when it was around 500p (new money)

Tardis,

So you're saying that the sp rose purely because Tosca were buying in late 2016?
Has it been as high as around 500p since?

Tardis,
"Tosca were acquiring in late 2016. By April 2017 the SP had risen to 48p."

(48p, old money, 480p post consolidation, new money)

Not denying it.. So, why do you think the sp rose late 2016 until around Apr 2017 before falling back?
Has it been as high as around 500p since?

"Large Institutions are in control"

Weren't Blackrock a substantial holder in Blinkx (previous name of rthm) and also lending out shares for shorting...before they were forced to stop lending out shares after rthm issued a profit warning in 2014....

BlackRock restricts share lending after short selling attack on Blinkx
World's largest asset manager changes policy after losing £30m in a day over controversial blog by Harvard professor

https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10947330/BlackRock-restricts-share-lending-after-short-selling-attack-on-Blinkx.html

Tosca had 29% of rthm in January 2017...
The sp went as high as, against the merger sp of around 170p..

The sp when rthm/Yume takeover was announced, around 370p
The sp when rthm/Yume takeover was completed - Feb 2018, around 270p
The sp when rthm/Tap merger completed - Apr 2019, around 170p.

Shows their holding doesn't mean the company or sp will do well...

https://finance.yahoo.com/quote/RTHM.L/history/

Brassneck,

" Seems they should have had a strategy to operate a full stack rather than depend only on buy side!"

Not really.
You clearly don't understand how the ad tech ecosystem works...

Apart from the fact Sizmek owe rthm over $1m..

But of more significance is that Sizmek are the biggest third party ad server.....

The Sizmek Saga Underscores Ad Tech’s Flaws And Market Weaknesses

"Sizmek, however, is of greater significance in the ad tech universe because it is not just another failing demand-side platform (DSP): Sadly, Sizmek is one of the biggest third-party ad-server alternatives to Google. And ad serving is the lifeblood of ad tech."

"To understand the dimension of Sizmek’s importance, consider Sizmek’s java script, which piggybacks many critical tags of other data and media companies. In other words, lots of other businesses rely on Sizmek’s functionality."

"Now when clients report that Sizmek campaigns aren’t serving, probably because suppliers and partners are afraid to lose more money, this could possibly lead to severe consequences and send a shock through the wider system"

"Here we can see the dangerous parallels to ad tech and the case of Sizmek, which is also a systematically important pipe in ad tech – and maybe the largest bankruptcy in the industry to date."

"While certainly true, Sizmek’s bankruptcy is most likely the consequence of much broader issues in ad tech. This means that Sizmek may not be the last big name we will see struggle or disappear."

https://adexchanger.com/data-driven-thinking/the-sizmek-saga-u

Shares On Loan, March...pre-merger completed..

TAP SoL increased, Rthm decreased, as expected...

Dec 1.78m 2.41% TAP 2.3m 3.42%
2019
Jan 1.58m 2.14% TAP 2.5m 3.71%
Feb 1.41m 1.89% TAP 3.07m 4.51%
Mar 1.35m 1.78% TAP 3.13m 4.61%


https://www.euroclear.com/en.html

according to this article...

Sizmek files for Chapter 11 bankruptcy amid programmatic challenges

"The news of the bankruptcy filing underscores a growing sense of uncertainty surrounding the ad-tech ecosystem — and the challenges facing independent operators trying to compete against the tech giants.
Growing concerns around brand safety and transparency have introduced an air of caution around programmatic, while recent reports that Google is mulling decisions that could shift how online content is monetized has raised additional questions for the ad-tech sector."

sound familiar..

"later acquired Rocket Fuel with the goal of integrating the two businesses and creating a powerful buy-side tech side.

The strategy succeeded to some extent, with Sizmek's share of the online ad server market second only to Google, according to Adexchanger. However, the bankruptcy filing suggests that the integration may not have moved as quickly as needed to compete in this space. "

"More marketers purchasing digital ads programmatically are also increasingly moving those functions in-house, according to the Interactive Advertising Bureau."

https://www.marketingdive.com/news/sizmek-files-for-chapter-11-bankruptcy-amid-programmatic-challenges/551701/

Mogbear,

Any change in govn tends to lead to changes in the NHS, although they tend to start small and local, ie local Health Authorities, CCGs..

Labour created the NHS, with many GPs working as self-employed, lots of agency workers..
Labour created the NHS Direct, which was continued by the Tories and renamed as the current NHS 111. Will they stop a service which was originally their idea???

Labour's big idea was NPfit, outsourced to private companies.. This project was to bring NHS Patient records to a central system...NPfit was a huge disaster and a complete waste of money. The central spine is run by BT. Imagine how much compensation BT will seek if their contract is terminated.

NHS Scotland GP systems were run by the Scottish Government. About a decade ago, the Scottish Government decided to outsource this to private companies..

So would a Labour govn ban outsourcing. I very much doubt it.
Will they make changes to NHS. Yes, most likely.. as govn like to stamp their own mark on any initiatives...

If the current outsourcing is a success then any govn, whether will, imo, continue it with some tweaks...
Given Parliament is currently struggling with Brexit, I very much doubt there will be any major changes to the core NHS for a long time.

The risk is there but I don't think it's a high as some people think...

NHS Direct:
https://en.wikipedia.org/wiki/NHS_Direct

NHS NPfit:
https://en.wikipedia.org/wiki/NHS_Connecting_for_Health