Member Info for stt1

Eddie,
"Are you suggesting that Taptica had no idea about Perk business model and how this was or was not aligned to the future operations they had planned going forward, REALLY ?"

Are you saying that Trmr BoD already planned to close Perk before they completed the merger with rthm in April?
If so, why did they take 8 months to do so?

Eddie,
"You seem to suggest very strongly that as far as Perk and some other parts of R1 were concerned the Tremor BOD didn’t do an appropriate DD and basically did not know what they were buying, REALLY? HOW DO YOU KNOW THAT ?"
"More likely than not the BOD already had drawn up a hit list for closure of sections of R1"

You should read the company newsflow, it helps when you're researching.
Read Finncap's note when rthm/tap(now trmr) merged, 2nd April. It's free to register.

Trmr BoD now only getting full sight of rthm books and operational details. So, given they hadn't seen the full books and operational details, how does that sit in with your assertion that they would HAVE ALREADY drawn up a hit list of which rthm operations, including Perk, to close?
Why did they keep Perk going since April?
The Finncap note points to lack of DD before they bought rthm.
Those are the facts.

From Finncap 2nd April note:
"This is a very early stage of the integration, and Taptica’s management is only just now
getting full sight of RhythmOne books and operational business details. As Taptica’s
management familiarises itself with the acquired operations, there is clearly likely to be
some adjustment to expectations. "

https://www.finncap.com/our-services/research

It's worth reading the company newsflow.
TLY bought Vocare a couple of years ago and transformed the CQC ratings - this is important as the NHS changes to award contracts on merit rather than the amount tendered.

TLY then bought Greenbrook Healthcare (GBH) and in doing so have set the foundation.
GBH was recently awarded a NEW contract. The NEW contract shows that the political turmoil is not affecting the awarding of NEW contracts.

TLY recently announced that their intention to pay an interim dividend when the interims are announced. The court hearing to cancel the Share Premium Account is this week and the interims should be later this month. The results and outlook hopefully, should help to provide clarity as to whether they will have a progressive dividend policy, going foward. If so then it'll show that the BoD are confident on cash flow.

TLY recently setup a new business, Totally Healthcare in Ireland. This shows the BoD are confident of cash and cash flow. If cash was tight then why waste it on setting up a new subsidiary?

I was expecting a TU last week based on the fact that last year it was on the 24th Oct. Maybe they will announce one on the 5th, the same day as the court hearing???

SNN,

"Why is Stt1 now defending Rhythm One"

I'm not defending rthm. Try reading my post.

I stated in my previous "I've repeatedly questioned and posted about rthm's questionable model, as well as their questionable events. "
Did you?

Are you defending rthm and/or Trmr Bod?

Looking at recent events:
Profit Warning in Interims, Sept.
CFO sells 75k shares.
Then Perk.com closing down..

Plus DataXu, the one of ad tech ecosystem largest DSP sold for only $150m, HALF their expected valuation..

Going forward:
Loss of revenue and cash from closing Perk and 'several' other rthm operations.
CCPA industry challenge to hit in 2 months.
GDPR changes to hit.
Cookie changes to hit next year.

Tardis,

"I am pleased to see them focus on quality rather than low-grade rubbish like Perk - also agree it was not a good acquisition. "
"Personally, I think the management of Tremor are several cuts above the clowns that ran RythmOne, and that they will prevail."

Always easier to be wise in hindsight! Can you point me to a post where you previously suggested the Perk acquisition was bad or where you questioned the rthm BoD or their business model.

I've repeatedly questioned and posted about rthm's questionable model, as well as their questionable events. I don't see anything from you, Tricky, 1gw, brassneck, Pottery Expert, Eddie previously doing so.

In terms of Perk, the crucial point is that not only do they lose revenue and cash going forward but crucially they also lose the Premium Dedicated Users, the reason for buying Perk, allowing them to scale the 'full stack' model. Certainly looks like Trmr BoD didn't do DD when they bought Rthm and questions Ofer's judgment in buying rthm.

From rthm's 20-F filing:

"RhythmOne (the “Company”) completed its acquisition of Perk, Inc. (“Perk”) in fiscal year 2017 and completed the integration of Perk supply into the Company’s unified programmatic platform during fiscal year 2018, enhancing the quality and quantity of brand and performance-focused inventory. "

https://www.streetinsider.com/SEC+Filings/Form+20-F+RhythmOne+plc+For%3A+Mar+31/14454121.html

Oiloviam,

" has the Perk side of the business been closed down?"

Yes, read the message on their website... perk.com

Crucially Perk was bought for the millions of Premium, Dedicated User base. Those, so called premium, dedicated users will be lost.

According to the website (perk.com), they are closing on 1st December, so there will be revenue and cash contribution for this fy, Dec 2019. However, the revenue and cash contribution will also be lost from next year onwards.

Tricky,
"Ad tech is changing rapidly - anyone who fails to recognize that fact is a fool."

I've posted about the rapidly changing ad tech eco system, the industry challenges, which will hit, the questionable events.. The events and questionable model is being affected.

"the writing has been on the wall for Perk for at least the past 2 years, or longer"

I don't recall you ever expressing concern for Perk or their business model before. Can you point me to a post of yours where you have previously mentioned that Perk's business model is questionable?

Ragnar
"A common mistake of investors is to cling to the past when making decisions and letting emotion cloud their judgment."

"The Taptica team have proven their competence several times over by growing revenue organically and successfully buying and integrating businesses."

Have they been growing the business organically?
You're not clinging to the past and making that common mistake of letting emotion cloud your judgement, that you mentioned in your post, are you?
;-)

Muzmanoz,

"You'd prefer that they kept unprofitable or loss making divisions or subsidiaries going?"

Trmr did. They merged with rthm in Apr, 7 months ago, so why did they keep the operation going. Why didn't they close it when they closed the other rthm operations?

The fact is when they merged with rthm, they said they hadn't looked at rthm's full books or operations..
That suggests they hadn't done full DD prior to the merger, which is very poor from the current BoD.
How many other rthm operations will they close, resulting in more loss of revenue and cash?

Tricky,
"Tremor management would have know in advance of purchase that pruning of some R1 products would be on the cards. "

When they merged with rthm, they clearly stated that they had not looked at rthm's full books nor their operations - so they didn't know in advance.
And even if they did think about purging Perk, why not close it when they closed the other rthm operations?

Rthm bought Perk almost 3 yrs to the day it will close.

Perk's CEO eventually became rthm's CEO - he left rthm after Yume/rthm takeover in 2018.
Then trmr merged with rthm last Apr and Singer left rthm.

Rthm buys Perk from Dec 2016:
https://www.businesswire.com/news/home/20161204005092/en/Perk-Acquired-RhythmOne-PLC

Another rthm operation, closing down. This time Perk.com.

In the recent interims, Trmr announced they closed several rthm operations. Now Perk.com, another multi-million dollar acquisition by rthm nearly 3 yrs ago, is now closing in Dec...

The revenues, cash, profit/loss contribution from all these rthm operations, which have closed will be shown in this years, fy2019 trmr accounts but not for next year onwards.

See message on perk.com site.

Perk.com closing down.... oh dear... another failed acquisition..

Yet another rthm operation closing down... did trmr not do DD when they bought rthm????

They seem to closing a lot of rthm operations...

Revenue, cash, profit/loss contribution from all these closed rthm operations will show in fy2019 (Dec) accounts but not next year onwards.

See perk.com website for their closing down message.

In the same week that the non-exec Chairman, Tim Weller, bought around 69k shares, the CFO sells 75k shares at 150p.

https://www.investegate.co.uk/tremor-international--trmr-/rns/director-pdmr-shareholding/201910280700062889R/

PotteryExpert,
"The market does seem to be as big as Druker and others say it is. A decent portion of that market would translate into more than decent earnings for Tremor."

BM, the ex-CEO of rthm, also repeatedly commented on how big the market is... the inflection points, profitability around the corner, didn't he???

The point is 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

PotteryExpert,
"Do you not see Tremor being at least being decently positioned for CTV growth?"

Many companies are decently positioned for CTV growth and have been for a long time - trmr are late to the market...

And that's the point...Trmr are not unique or alone in the market

DataXu launched Total TV last year. Initially wanted a $300m but eventually sold for half that... Sizmek launched CTV and yet still filed for Chapter 11 Bankruptcy protection...

dataxu Announces TotalTV for Advertisers, Spanning Linear, Connected and Addressable TV
Industry-first unified planner and Sorenson Media partnership for programmatic linear execution enables advertisers to get the most efficient TV reach

"dataxu®, a leading provider of programmatic marketing software for marketing and media professionals, today announced TotalTV for Advertisers, a unified planning and buying solution for agencies and brands investing across linear, connected and addressable TV."

https://www.globenewswire.com/news-release/2018/09/20/1573890/0/en/dataxu-Announces-TotalTV-for-Advertisers-Spanning-Linear-Connected-and-Addressable-TV.html

1 day after 'Auditors resignation' filed at Companies House, today we have...

Full accounts for fy19 (March 2019) available in 5 days... rhtm fy 2019 would be the week before they merged with Trmr...

See if they provide any sort of clarity...

https://beta.companieshouse.gov.uk/company/06223359/filing-history

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...