Member Info for stt1

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..

Having watched these for a while, I think the recent newsflow is looking positive..

Looking to buy in soon..

Merry Christmas all..

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

Pottery,

"But the healthy cash accumulation"

That's the point, it's not a healthy cash accumulation.

The Trade Desk and MediaMath, both huge companies within the AdTech Ecosystem had to raise money because of the way inventory payments work.

"DSPs shoulder this burden directly because they constantly owe money to inventory suppliers. The Trade Desk took out a $200 million loan in 2017 to preserve liquidity while it bridges inventory payments. MediaMath has raised more than $600 million, including $225 million last year."

https://adexchanger.com/online-advertising/sizmeks-bankruptcy-is-changing-how-the-supply-side-manages-dsp-debts/

Likewise rthm, now merged with Trmr, showed cash of around $126m just 5 yrs ago. They had a fraction of that balance when they merged with Trmr earlier this year.
Rthm still show as having 2 charges outstanding - these, totaling $100m, were setup 2 yrs ago by Ted Hasting.

https://beta.companieshouse.gov.uk/company/06223359/charges

Mithaq holding is registered in Saudi.
Mithaq Capital is registered in Cayman Islands.

Mithaq holding increases to 15%

Note their registered office has changed from Saudi Arabia, 3 months ago, to Cayman Islands now..

Aug Saudi Arabia:
https://www.investegate.co.uk/tremor-international--trmr-/rns/holding-s--in-company/201908061053590924I/

Cayman Islands:
https://www.investegate.co.uk/tremor-international--trmr-/rns/holding-s--in-company/201911251316295668U/

There's still not much info in the public domain regarding Mithaq..
Where were the companies behind the short selling in Blinkx(now rthm), merged with Trmr based? Cayman Islands...

https://www.ft.com/content/39a324bc-70aa-11e4-9129-00144feabdc0

Companies within Ad Tech ecosystem need to carry extremely high cash balances because of the way the ecosystem work...

"More broadly, Sizmek’s crisis highlights a deeper issue: the cost pressures of ad tech vendor pricing structures. For instance, due to the cashflow set up and lengthy payment terms between advertiser clients and their agencies, SSPs at the other end of the chain can end up acting as the float for the agency holding groups and the advertisers, according to a former SSP executive.

Typically, clients pay agencies on average, 90 days after a project’s delivery. Agencies then pay the trading desks, which pay the DSPs. Usually, the SSP has invoiced the DSP with much shorter payment terms — typically 30 days, according to sources. Those SSPs that can offer publishers the shortest payment terms will likely end up with their business.

But this means an SSP can carry in the high tens of millions of dollars in working capital requirements every month. Not cheap. A go-to way to shoulder that additional cost is to take out short-term loans with banks to cover the cost. Those loans wouldn’t extend to when a DSP defaults, however."

https://digiday.com/media/tip-ice-berg-sizmek-saga-spells-trouble-ad-tech/