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I find the comment about successful record of rthm acquisitions laughable..
No mention of the years of failed acquisitions by rthm (blinkx)... years of write offs....
What successful record? rthm's expectations for fy2019 drastically reduced from $470m to $250m.. Is that successful???
revenue cash(cash + equ) profit(loss)
fy2008 $6.5m, $39.4m, ($16m)
Jan 2009 - Blinkx buys 'certain' Zango assets after it's foreclosure
fy2009 $13.9m, $21.3m, ($8.8m)
2010: start sp: 175p
fy2010 $33.6m, $14.5m, ($8.5m)
2011: start sp: 832p
fy2011 $66.1m $52.8m $7.6m
2012: start sp: 777p
fy2012 $114.4m $38.4m $3.9m
2013: start sp: 657p
fy2013 $198m $55.9m $17.4m
2014: start s: 2065p
fy2014 $247.2m $126.9m $12.2m
Jan 2014 Blog
July 2014 profit warning - following which revenues and cash fell significantly and profit turned to losses
2015: start sp: 260p
fy2015 $214.9m $95.7m ($20.8m)
2016: start sp: 165p
fy2016 $166.7m $78.4m ($92.3m)
2017: start sp: 385p
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
Nov 2017 - $100m secured credit facility arranged. SVB have first charge
2018: start sp: 280p
fy2018 $255m $27m ($13.8m) (inc Rad1 & Yume acquisitions)
"At least the financial reporting standards of TAP seem to be of higher order."
What does that say about rthm financial reporting standards over the past 12yrs?
"Demand and confidence held the line today. It will be interesting to see how much of that was buyback. "
And what is likely to happen once the buy back finishes?
42 Trader,
"i find it incredulous that tap bought RH1 without knowing the bookd inside out."
Seems to look that way... More like please buy us but don't check us out...
There's some dodgy used car dealers around who would sell you a car with verbal guarantees.. It's got 5yrs MOT.. honest guv... ;-)
Seems rthm and TAP needed each other..
Thanks Ragnar...
I notice in the Finncap report it mentions about TAP management is only just now getting full sight of RhythmOne books and operational business details.
I would have thought TAP management looked at the rthm books as part of DD before buying rthm...
The Finncap report is free, you have to register for it.
Thanks 42Trader..
So a substantial drop in fy2019 revenue.
There's been a massive drop in the fy19 rthm forecast... $470m to $250m...
(TAP fy2019 is Dec 2019, rthm is March 2019)
Shows that there are significant issues at rthm and the model will be integrating with TAP...
No wonder certain posters were desperate for others to ignore me and those red flags...
Read the thread/posts...
42Trader,
"They note the drop in forecast sales by R1 from $470m to $250m for fy19 and this is something they intend to work on."
Is that fy19 for TAP or fy19 for rthm?
As TAP's fy2019 ends Dec 2019 and rthm's was 2 days ago... If it's the former, I'd wonder what the current fy2019 was and it's a huge miss going forward...
"It's a result for R1 as their management has always failed to deliver the goods, despite buying various outfits.
Little wonder Ofer Druker, CEO, did not want any of the old R1 'board' hanging around then."
The previous rthm management pre-Yume, always failed to deliver the goods...
Singer and co moved from Yume to rthm just over a year ago and then within MONTHS wanted out of rthm...
Sounds more like rthm BoD didn't want anything to do with rthm and so got shot of it in a hurry...2 CFOs resigning within 5 months suggests rthm have some serious issues....
Do you think rthm management found any skeletons and thought (as in your post from yesterday)...
"if you can't stand the heat then keep out of the kitchen"
If Ofer Druker was instrumental in negotiating the merger and he was chairman of TremorDSP, which Telaria (was Tremor) sold to TAP.. then I think he should have known that rthm runs a full stack.. and rthm have been making losses for years...
I wonder whether there has been downturn in TremorDSP business and Druker needed rthm to help...
"Druker, who had been "instrumental" in the successful integration of Taptica's somewhat recently acquired Tremor Video division, will join the group's board and take over as CEO immediately.
Non-executive chairman Tim Weller said: "Ofer is ideally placed to lead our business, having been instrumental in negotiating the merger with RhythmOne and, since joining the company, identifying and driving significant cost savings, synergistic benefits and revenue opportunities following Taptica's acquisition of Tremor.""
https://www.sharecast.com/news/aim-bulletin/taptica-switches-out-ceo-as-rhythmone-underperforms--3820007.html
Tremor reasons for selling their DSP.. 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/
Malbright,
"Until this latest statement from Taptica about their performance being below expectations all the previous R1 statements were very bullish. "
Good post. Isn't surprising that rthm's BoD didn't join the TAP after the Merger..
Look at the rthm timeline of events... I find it difficult to believe that TAP BoD were unaware of these...
26/06/17 BM CEO for 5 yrs suddenly resigns, Ted Hastings appointed..
https://investor.rhythmone.com/newsroom/2017/06/26/directorate-and-management-changes-june-2017
BEFORE 'new management' moved from Yume to rthm.
2017 Annual Report - subsidiaries Verti Tech, AdOn Network
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf
4/09/17 - Rthm/Yume takeover announced
09/17 - article on Redboot, mentions Blinkx.com
http://malwareremoval-tips.blogspot.com/2017/09/easy-guide-to-uninstall-redboot.html
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
AFTER 'new management' took over - from Yume to rthm...
fy2018 - Annual Report, pg 69 - Verti Tech/AdOn Networks NO longer exist..
http://investor.rhythmone.com/assets/pdf/R1_Annual_Report_FY18.pdf
May - CEO, from pre-yume takeover leaves
June - rthm director, from pre-Yume takeover leaves
July - rthm directors, from pre-Yume takeover leave
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
Nov 2018 - New Broker, Nomad appointed
Feb 2019 - CFO Mark Zorko resigns after just 5 months...
https://investor.rhythmone.com/newsroom/2019/02/04/directorate-and-management-changes_020419
Did the 'new' management, moving from Yume to rthm, find any skeletons and so decided it's better to get rid of rthm???
1gw/Brassneck,
"Should be an interesting test of market dynamics this morning. Profit warning on R1 historic business,"
"At least it was only "below" and not "Materially below"."
" If it was a large miss and cash was materially less then that would be a bigger issue. "
rthm making bullish comments and not backing them up, as I've been saying for months....Whatever happened to the really positive results and outlook in Dec?
rthm run a full stack. They have been making losses for years..
You're clueless if you think it's only a small miss and shouldn't matter...
Brokers had a target of 720p on rthm, didn't they?
well, there you go, as expected then...
History of bullish comments followed by disappointing results...
Rthm run a full stack.. they have been making losses for years....
Telaria sold TremorDSP to TAP because the full stack wasn't working... I would have thought Ofer Drucker already knew this...
"RhythmOne's trading in the year to March was below market expectations Taptica said today, though it still believes the acquisition was in its best interests."
https://www.proactiveinvestors.co.uk/companies/news/217736/taptica-ownership-of-rhythm-one-makes-low-key-start-217736.html
well, there you go, as expected then...
History of bullish comments followed by disappointing results...
Rthm run a full stack..
"RhythmOne's trading in the year to March was below market expectations Taptica said today, though it still believes the acquisition was in its best interests."
https://www.proactiveinvestors.co.uk/companies/news/217736/taptica-ownership-of-rhythm-one-makes-low-key-start-217736.html
abstrade,
They are trading as TAP now..
Brassneck/1gw
"No business likes to cut or suspend the dividend as no one remembers the reasons no matter how valid, just that you cut or stopped it. "
Yume had a buy back, paying dividends and had a special dividend before the rthm/Yume takeover...
After that takeover, there weren't any buy backs/dividends, were there?
So it's entirely possible that the same might happen here with dividends.
Rthm have been loss making for years, haven't they?
Tricky,
"it's a dynamic ecosystem - if you can't stand the heat then keep out of the kitchen."
It seems like the rthm BoD couldn't stand the heat and decided they wanted out...
How many rthm BoD are joining the new 'hot', dynamic TAP?
;-)
I've warned about Industry Challenges for ages...since Methbot fraud over 2 yrs ago and P&G comments for a more transparent ad tech ecosystem...
Following Methbot over 2 yrs ago and P&G demands for transparency, there have been various changes...
2017 & 2018 was about the NEED for those and as previous posted, 2018 onwards is/was about the consequences of those industry challenges...
See my posting history...
More recently, the consequences seem to be filtering through... and many companies affected:
Criteo with Apple's ITP & the new Google's version of ITP.
https://adexchanger.com/online-advertising/what-would-google-chromes-version-of-itp-look-like/
Google with their exec claiming that affect of Apple's ITP has been severe..
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
TAP claiming 'Industry Headwinds' have affected them..
and many more...
and over the weekend..
Sizmek filed for Chapter 11 Bankruptcy..
http://videoadnews.com/2019/03/30/sizmek-files-for-chapter-11-bankruptcy/
Sizmek Files for Chapter 11
Private equity-owned programmatic outfit is the latest casualty in an industry dominated by big tech
"As speculation rises over the future of the entire ad-tech ecosystem, independent ad tech outfit Sizmek has filed voluntary Chapter 11 bankruptcy petitions."
"All this comes as major questions loom over the ad-tech sector as Google is said to be considering decisions that could result in a fundamental shift in how online content is monetized."
https://www.adweek.com/programmatic/sizmek-files-for-chapter-11/
Rthm (ex Blinkx) results over past 12yrs... revenue, cash and profit (loss) together with the sp at start of year...and their declining revenue, cash post the 2014 Blog and profit warning...
revenue cash(cash + equ) profit(loss)
fy2008 $6.5m, $39.4m, ($16m)
Jan 2009 - Blinkx buys 'certain' Zango assets after it's foreclosure
fy2009 $13.9m, $21.3m, ($8.8m)
2010: start sp: 175p
fy2010 $33.6m, $14.5m, ($8.5m)
2011: start sp: 832p
fy2011 $66.1m $52.8m $7.6m
2012: start sp: 777p
fy2012 $114.4m $38.4m $3.9m
2013: start sp: 657p
fy2013 $198m $55.9m $17.4m
2014: start s: 2065p
fy2014 $247.2m $126.9m $12.2m
Jan 2014 Blog
July 2014 profit warning - following which revenues and cash fell significantly and profit turned to losses
2015: start sp: 260p
fy2015 $214.9m $95.7m ($20.8m)
2016: start sp: 165p
fy2016 $166.7m $78.4m ($92.3m)
2017: start sp: 385p
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
Nov 2017 - $100m secured credit facility arranged. SVB have first charge
2018: start sp: 280p
fy2018 $255m $27m ($13.8m) (inc Rad1 & Yume acquisitions)