Member Info for stt1

Eddie,

"R1 now needs to demonstrate that as a NEW larger unified and streamlined entity it can start to generate sustainable profits. And to quote YOU .. the SP will take care of itself."

absolutely, agree...that's what I've been saying for ages...
IF the company can back up their bullish comments with solid financials and believable outlook then the sp will take care of itself. Also as company/industry newsflow becomes more positive, I'm sure posters will adjust their opinions as well.

I think reducing revenue forecasts weeks after they stated that fy2019 forecast was 'in line' with CURRENT consensus doesn't boost confidence, does it?

"We believe we are well-positioned to deliver a further strong performance in FY2019 – fully in line with current consensus estimates in market – as we realize the full contribution of the YuMe acquisition."

"https://investor.rhythmone.com/newsroom/2018/04/19/trading-update-financial-year-2018"

"What relevance does that have today. It is a COMPLETELY new company"

with a completely NEW management...who took over only a few months ago... so I think it's relevant...

How long would it take for the completely new management to go through the various different subsidiaries, as well as keeping up with the industry changes?

Look at the 'Material weakness in control' post, 1gw posted yesterday...
Let's hope they don't find any black holes or skeletons in the cupboard, which need to be written off!!! like SupportFreeContent!!

Eddie,

"We are sitting at the opposite ends of the spectrum …. I as a long term holder like to see R1 do well and progress"

and having first bought in 2011, when they were Blinkx (blnx), I have seen many changes at 1R and the industry..
I have also seen how the revenues/cash/profit(loss) trend has been down over the years, especially after the blog and profit warning of 2014. As far as I'm concerned, the $100m secured credit facility is a worry.

You have your opinions and I respect that. Being a long term holder doesn't mean you are right or wrong, does it?

Revenues, cash, profit(loss), together with some significant events

revenue cash(cash + equ) profit(loss)
fy2008 $6.5m, $39.4m, ($16m)
fy2009 $13.9m, $21.3m, ($8.8m)
fy2010 $33.6m, $14.5m, ($8.5m)
fy2011 $66.1m $52.8m $7.6m
fy2012 $114.4m $38.4m $3.9m
fy2013 $198m $55.9m $17.4m
fy2014 $247.2m $126.9m $12.2m

Jan 2014 Blog

July 2014 profit warning

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 - secured $100m credit facility

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

What is the bull case here?
Can someone please present the bull case here, with in depth financial reasoning?

This was my post of 25th Feb 2018...
Everyone can form their own opinion and are entitled to express their own opinions...
I think my post summed up the industry challenges pretty well...

RTHM RE: Industry Challenges/opportunities 25 Feb '18
Brassneck,
Thank you for your opinion.
Before discussing some the individual changes...

Industry changes. ITP, GDPR, Google Ad blocker, ads.txt, Google's Exchange Bidding, Fee transparency etc...

Every industry goes through some change. Companies within the industry assess whether any changes have any impact or not and how much it would impact them.
Those changes can be challenges or opportunities for individual companies.
Any reason why anybody should not ask if any industry changes impact 1R or whether any changes are opportunities for them?
You seem to think that the industry changes have no or very minimal affect on 1R. That's your opinion and I respect that.

Last year was the NEED for change. Following on from Methbot fraud and ads appearing on inappropriate sites, there were calls for changes within the industry. Comments from major companies like P&G, JP Morgan, unilever etc...
The ad tech industry was put under the spotlight...

I think this year and next should see the IMPACT of those changes.
These changes started to appear late last year and some this year. The affects of these changes and how much they impact companies won't be known for sometime, perhaps a year after implementation.

Eddie,

"The WHOLE industry is going through these changes and none of these changes is particular to R1."

Yes, that's what I said - I don't think I have every suggested that they only apply to 1R - that's why I posted them under the subject header to do with "Industry Changes/challenges"...

The fact is 1R revenues have been revised downwards, as expected, haven't they?. I doubt 1R will be open and give a breakdown of where the revenues were revised downwards....

"These efforts to proactively eradicate traffic that may not meet compliance requirements from the Group's platforms, including the removal of suspected publishers and advertisers and their associated income, affected the H1 revenues. "

Those industry changes/challenges...
as previously stated.. Last year was about the NEED for change, this year onwards should be about the CONSEQUENCES of those changes... as we're seeing at 1R - revenue forecast reduction being one of them...

Brassneck,

"Ads.txt, GDPR and fee transparency do not carry any opportunity of competitive advantage"

They do if the industry and advertisers demand it.

article on 'Bid Caching' and opinions from other ad tech executives..

Behind the bid-caching debate, signs of ad tech commoditization

"Another challenge for vendors is that any new development that promises to offer decent benefits to either buyers or sellers of inventory, soon gets imitated. “Innovation in ad tech has the lifespan of a gnat before it gets copied or assimilated because everyone is chasing the same goal — which is a temporary advantage over rivals,” said Dan Wilson, CEO of London Media Exchange. “That means innovation gets warped into something that it arguably shouldn’t be — this [bid caching] is the equivalent of a sub-prime mortgage.”"

"Although plenty of independent rivals have been quick to deny they use bid caching, or anything similar, some industry experts remain cynical toward those who claim to be spotless. “This whole bid-caching issue is likely just playing into Google and Amazon’s hands,” added Wilson."

https://digiday.com/media/behind-bid-caching-debate-signs-ad-tech-commoditization/

Brassneck,

" just so long as TU doesn’t arrive first week in Oct as that would signal a profit warning. If no news in week 1 Oct then should be very positive."

Why WOULD a TU during the 1st week following the period end signal a profit warning?
Companies will issue a TU when they are able to.

Amazon is Breaking New Ground in AdTech with ‘Video in Search’

https://www.martechadvisor.com/news/ads/amazon-is-breaking-new-ground-in-adtech-with-video-in-search/

Mobile Ad Tech - GDPR...

Mobile Apps Are Stalling On The Way To GDPR Compliance

"Mobile apps that rely on advertising to monetize are particularly vulnerable. Developers integrate an average of 18 third-party software development kits into their apps, according to SDK management platform SafeDK, which means roughly 18 opportunities to improperly process data without consent."

https://adexchanger.com/privacy/mobile-apps-are-stalling-on-the-way-to-gdpr-compliance/

Good posts by Olivarium...

The BB exist to allow everyone to post an opinion ...

rthm have a history of bullish comments and then disappointing when it comes to results. If they back up their bullish comments with solid financials then the sp will take care of itself, won't it???

Everyone is entitled to post an opinion, so why would anyone be so desperate to want to suppress it...
If you don't like my posts then ignore me or filter me - if posts about the industry bother you then maybe you're not comfortable with your research and investment.

The ad tech industry has come under a lot of news over the past few years.

If you look at other industries and threads on this BB, there's no problems with posting about competitors, industry or even nothing connected with the industry:
Debenhams thread - mentions sector news, House of Fraser, M&S and John Lewis.
PFG - mentions other companies - Wonga and Carillion!!!

STTsBumbag's posts are just pure fantasy and lies. I don't bother replying to all his lies but this sentence of his from 11.32, Sunday, just proves it and I'm sure lse admin can confirm..

"No I wasn't STT1 somebody already had that before him or me.."

1) It is not possible to create an id if it's already used, so how could somebody have already created the id before me???
2) Why would STTsBumbag want to create an id which imitates me, given I'm referred to as 'stt' ?

Increasing number of 111 calls handled by clinicians, says NHS England

http://www.pulsetoday.co.uk/news/commissioning/commissioning-topics/urgent-care/increasing-number-of-111-calls-handled-by-clinicians-says-nhs-england/20037359.article

Rusty,

Not a sell... Adjustment following 1R issuing shares for Rad1.
Look at date...

The research was carried out across NINE exchanges ...

"The programmatic consultancy began looking into the practice in Q1 after inquiries from a marketer. In early August, it independently funded and conducted a test where it purchased 1.7 million impressions across comScore 1,000 websites and nine exchanges."

"Inventory purchased on AppNexus, BidSwitch, Google Ad Manager, Oath, OpenX, PubMatic, Rubicon Project and Sovrn did not raise red flags on more than 5% of their inventory, which Jounce Media considered a false positive."

No mention of 1R being part of the research...

Obviously if they were one of the nine researched then it would have been good.

https://adexchanger.com/online-advertising/index-exchange-halts-bid-caching-used-auction-game-for-50-of-all-impressions/

Looking at ads.txt Top 30...across 1000 sites:

Apart from bidswitch, the others are all top companies (rthm is 21st).. so maybe the research was conducted on only the top companies??

https://adstxt.firstimpression.io/

Pixalate ranking ..

rthm stated they were NUMBER 1 for whole of 2017..
https://investor.rhythmone.com/newsroom/2018/04/11/rhythmone-ranked-number-one-pixalate-for-2017

Yet they still made a huge loss for fy2018.

$13.8m loss..

https://investor.rhythmone.com/assets/pdf/RhythmOne_FY2018_Results_140618.pdf

Brassneck,

To further help you understand... your link is about resellers.. it shows similar information that the link I've posting for MONTHS, which you're now questioning in your post from 11.46..

If you look at your link...
https://trends.builtwith.com/ads/RhythmOne-Reseller/Market-Share

The chart shows a sharp uptrend because there was a sharp increase in ads.txt adoption from last autumn.. remember I posted that Google are insisting on it's adoption...(those industry changes!!)
well one of the consequences of those industry changes was that ads.txt adoption increased dramatically... which is what you are seeing..

From my ads.txt link..
1R are still 21st, hasn't changed... however the % share, which used to be around 27% is now 31%.. That's because ads.txt has been adopted by more publishers...

https://adstxt.firstimpression.io/

Your graph shows the same trend...

I hope that helps you understand it a bit more.

Brassneck,

"What's the latest on ads.txt?"

There you go, there's why I know what your link is about? Well done.
Do you see the link between my ads.txt link, posted for last few months and your builtwith link from today???

"Is it worthless as Index Exchange are ranked 6th and have just been caught out bid caching"

Have a look at "Index Exchange", 1R's competitor, using your link... it shows a sharp decline, after they were caught out with 'bid caching', doesn't it.. stange that, isn't it?

https://trends.builtwith.com/ads/Index-Exchange

Brassneck,

"Stt, no, I just thought I'd post a link. You do the research and post your analysis"

Ok, thanks. I already know what it means/shows, so I don't need to research it further. Thanks for your input...