Member Info for stt1

He bought and floated Blinkx, now rthm...$250m!! After 11 years, the current Mcap is less than that...

The story behind the Suffolk man who built up one of the UK’s biggest ever tech companies, and why he’s been charged with fraud over its sale

"Among a string of acquisitions, in 2007, Autonomy bought the video search engine Blinkx, and floated it on the stock exchange for a value of $250m."

https://www.eadt.co.uk/business/invoke-capital-investments-by-suffolk-tech-entrepreneur-1-5802333

1gw,

" I do think that Vocare required more time and investment than they originally hoped "

The DD took a long time. I think to iron out majority of the issues. I think the 'time and investment required' was factored into the price they paid...hence why I believe they paid less than they were originally expecting.

If you understand and have followed TLY's strategy and the way the NHS works then you would understand what TLY are doing... I haven't seen any comment from BoD or any broker stating that they think TLY balance sheet is 'horrific' - Has anyone else?

BH used similar strategy at Mears Plc and it worked well..

and the revenue, cash and profit (loss) for 2015, 2016 & 2017.. so in May 2016, looked like rthm had turned the corner... rebranded, Tosca so sp was responding...


revenue, cash, profit (loss)...
fy2014 $247.2m $126.9m $12.2m
fy2015 $214.9m $95.7m ($20.8m)
fy2016 $166.7m $78.4m ($92.3m)
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)

Nov 2017 - $100m secured credit facility arranged. SVB have first charge

fy2018 $255m $27m ($13.8m) (inc Rad1 & Yume acquisitions)

Instadeth,

"Anyway the point is it tripled in value in 12 months,"

Between May 2016 and May 2017...

Yes, look at their fy 2016 results - all looks impressive, moving in the right direction but then what happened after May 2017???

Fy 2016:
Rebranded from Blinkx to 1R
New partners, inc The Trade Desk and DataXu
Achieved profitability in Q3

"Launched the “RhythmOne” (“1R”) brand and built a massively scalable and highly competitive
programmatic trading platform that drove over 68% growth in programmatic revenues year-onyear,
well ahead of Industry growth rates;"

"Achieved profitability in third quarter of FY2016, ahead of expectations, which was followed by
the usual fourth quarter seasonality;"

"Added 27 programmatic demand side partners, including marquee platforms such as DataXu,
MediaMath, BidSwitch, Criteo and The Trade Desk;"

https://investor.rhythmone.com/assets/pdf/blinkx_FY16_results.pdf

At end of 2016, they bought Perk...
https://investor.rhythmone.com/newsroom/2016/12/04/rhythmone-plc-to-acquire-perk-inc

https://investor.rhythmone.com/newsroom/2016

and Tosca were upping their holding... all looked like rthm had turned the corner...
https://investor.rhythmone.com/assets/pdf/TR1_Tosca_Fund_18_11_16.pdf

2017:
Fy 2017 results

Then June 2017:
They bought RadiumOne.

Agm:
BM, CEO leaves

https://investor.rhythmone.com/newsroom/2017/06/26/directorate-and-management-changes-june-2017

Between May 2017 til now, there have been 3 CEOs and 2 CFOs...
.

Malbright,

"Who would ever have thought that from a 244p high post trading update in September we would have retraced almost 100p back to the 140's. "

It wasn't unexpected though... After previous TU/Results the sp has fallen back ...

However, I think this time it's different, hence the big fall in sp.. Keep an eye on Shares On Loan...
New management, 3 CEOs and 2 CFOs within a period of about a year.

in the Sept TU:

NO mention of Cash balance.
CFO resigned immediately.
Changed Market to Management expectations
Warnings of significant costs ahead...

Therefore, I think this time there's a lot more uncertainty compared to previous updates.. I think rthm is still a show me the money share.

I haven't seen any update from the HOUSE BROKER, Numis, following the TU - Previously they had commented after TU/results.

Numis:
http://www.numiscorp.com/x/MainResearchDownload.html?id=17740&stype=stock

Q1 TU:

Outlook

"We are pleased to provide this update on our first quarter trading in FY2019, with revenue and adjusted EBITDA1 performance in line with current MARKET expectations," said Mark Bonney, CEO of RhythmOne."

https://investor.rhythmone.com/newsroom/2018/07/13/first-quarter-trading-update-and-directorate-changes

TU Sept:

" Performance for H1 2019 is expected to be in line with MANAGEMENT expectations"

"These and other risk factors are discussed in "Risk Factors" of RhythmOne's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on July 31, 2018, a copy of which can be found at www.sec.gov."

https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518"

The warnings referred to above referencing the sec.gov site:

"D. Changes in Internal Control Over Financial Reporting

As a result of material weaknesses related to the ......."

https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm

Page 43..

"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."

"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "

https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm

Instadeth,

They did mention that they had a boost from the 2012 Olympics and Presidential Election. I don't recall seeing any comments on those events or the World Cup since... Has anyone else?

"And as over 95 per cent of the company’s sales are generated by online advertising, the Olympics and Presidential election season in the US provided an important fillip."

https://investor.rhythmone.com/newsroom/2013/05/13/blinkx-gets-ads-boost-1951

1R's Reseller Market Share drops by 50% between May & August qtrs..

https://trends.builtwith.com/ads/RhythmOne-Reseller/Market-Share

GDPR
French data regulator’s mobile ad action rattles ad tech

"The announcement, which was posted earlier this month, has triggered alarms among some publishing and ad tech executives as to what the ruling signals for the ad tech model. Several executives took to Twitter over the weekend to highlight some of the more wide-ranging consequences the ruling could potentially have for Google, the Interactive Advertising Bureau’s Transparency and Consent framework, and ad tech in general.

“It is a significant decision, with the potential to disrupt the ad tech model,” said a publishing executive who is still assessing the ramifications of the announcement."

https://digiday.com/media/ad-tech-french-data-regulator/

More GDPR uncertainty..
GDPR protection authority (CNIL) issuing warnings..
The IAB framework was used by ad tech companies for GDPR compliance..



Is The IAB’s Consent Framework In Trouble?

"Downstream partners in a supply chain – DSPs, SSPs and DMPs, for example – aren’t in a great position to collect user consent on their own, so if they want to comply with GDPR, they generally depend on consumer-facing publishers to get consent on their behalf and pass it along within a secure CMP.

That’s fine, if the controller – which is Vectaury, in this case – can prove that users have given consent to have their personal data processed. But this can’t, in the CNIL’s view, “be fulfilled by the mere presence of a contractual clause guaranteeing an initial consent validly collected.”"

https://adexchanger.com/ad-exchange-news/is-the-iabs-consent-framework-in-trouble/

should read "were NOT expecting a profit warning"

"So who do the shorters borrow the stock from?"

The IIs but which one...

In 2013/14, Blackrock were the largest II but were lending out shares.... They got caught out because they were expecting a profit warning from the company...

Looking at shares on Loan.. they have decreased recently but the sp still falling...

Oct 3.05m
Nov 3.68m
Dec 3.17m
Jan 2018 3.3m
Feb 3.49m
Mar 2.93m
Apr 2.76m 3.79%
May 3.29m 4.47%
June 3.17m 4.29%
July 3.62m 4.89%
Aug 3.53m 4.76%
Sept 3.22m 4.33%
Oct 2.13m 2.87%

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

Previously, 1R & Yume were listed The Trade Desk's (TTD) inventory partners list as RhythmOne and Yume. TTD also listed 60 other partners...

Now they list 77 Inventory partners but NO 1R.. so TTD have clearly updated their inventory partner list... On the list of Inventory Partners, they have 19 ROWS of 4 partners followed by 1 single partner on the 20th row..

https://www.thetradedesk.com/partners

Wagas,

The 'notice of results' rns is similar to last year.. dates changed...

Last Year's 'notice of results' rns:
https://investor.rhythmone.com/newsroom/2017/10/31/notice-results-oct-2017

There was no mention of cash in the Sept TU and the CFO resigned immediately.
They also changed from Market to Management expectations.

https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518

The house broker, Numis, didn't publish any upgrade notes this time. They have done so previously.
http://www.numiscorp.com/x/MainResearchDownload.html?id=17740&stype=stock

Earlier in the week, I posted what happened to the sp pre and post last year's H1 results.

I think we need some clarity, solid figures and believable outlook - I think they are still a 'show me the money' share.

Have a look at The Trade Desk's list of Partners...

1R/Yume are NO longer listed as a partner. They were there when I last checked.

Index Exchange & Rubicon are still listed - they showed transparency after 'bid caching'/fees..

https://www.thetradedesk.com/partners

Question is...
Is it a mistake by TTD in that their web page is wrong?.
IF TTD did ditch 1R, was it because of the DataXu court case or move to fee transparency?

IF 1R have lost TTD as a partner, that could have a huge affect on 1R's revenues going forward.

You have to register
Canaccord initiates coverage on TLY with a buy rating and 50p target.

https://www.streetinsider.com/Intl+Ratings/Canaccord+Genuity+Starts+Totally+Plc.+%28TLY%3ALN%29+at+Buy/14833543.html

"This is how institutions have been making money off this share IMHO"

absolutely... I've mentioned it many times before...
They lend out the shares for a FEE...

Hence why it's worth checking the Shares On Loan...

In 2013/14 Blackrock - were the largest shareholder... got caught in July 2014 after the company issued a profit warning...

BlackRock restricts share lending after short selling attack on Blinkx

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

"The bottom line is that the SP rose in the weeks after the results,and again the sp then was materially higher than the current.."

The point is the sp didn't rise BECAUSE of the results, which is what you were claiming ...the sp rose because of F4 and anticipation of Yume/1R deal completing....
The sp fell back after the fy results. The expectations were reduced.

In the H1 TU. they didn't mention any cash and the CFO resigned immediately..
They also changed from Market to Management expectations.

https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518


Let's see what they have to say in the results.
IMHO, the company is still a 'show me the money company'...

Max,
"what you forgot to mention is the fact that the SP moved up after that results from circa 220p to circa 295p...."

Did it? Is it a fact?

Results last year - 4th Dec..

4th Dec
The opening sp 238p, high 240p, low 225p, close 226p.
5th Dec Opening sp 225p
6th 230p
7th 225p
8th 225p

So, according to Yahoo! share prices... the rthm sp FELL after the results.

and only started to rise at end of December - after rthm filed their F4...
So the rise was not to do with the results but the filing of the F4, wasn't it?

Dec 27th Opening 235p
28th 255p
29th 280p

Fact - look at the historical share prices...

Historical share prices..
https://finance.yahoo.com/quote/RTHM.L/history/

27th Dec - rthm files F4
https://investor.rhythmone.com/newsroom/2017/12/27/rhythmone-files-f4

So similar announcement to last year's.. Just changed the dates.

https://investor.rhythmone.com/newsroom/2017/10/31/notice-results-oct-2017

graham,

"if they paid the price based on how underachieving Vocare was its now worth more."

Yes, agree.
I believe they did pay a lot less than they were expecting to because they knew Vocare had issues to resolve... They have turned around Royal Stoke by 2 CQC ratings within 6 months, which is a significant move within a short space of time.