Nexxen Share Discussion Threads

[barkbooo] 06/3/2024 09:39

Will be very interesting to see what GW makes of these figures - our resident accountant normally takes his time to digest things completely…always well balanced.

[gadgie2] 06/3/2024 09:32

where are we getting cash from Alphonso in full year results that ended 31st of Dec ? it was only settled last week ? 12 Million was paid to us for the loan that we gave Alphonso

[barkbooo] 06/3/2024 09:22

We believe the pendulum may have swung - is that me being confident again?? lol

[takeiteasy] 06/3/2024 09:20

Genuine question, if we struggle so much with our marketing strategy here i.e. persuading clients to buy the valuable software rather than cheaper options should we not sell out to a firm who has a better distribution channel with a range of perhaps larger clients with sophistication and wallets to pay for premium products.
If we have won the battle now to have class leading software - who has the competency to sell the vision?

[tapa7] 06/3/2024 09:20

Poor results and poor guidance.

On the results side, our recurrent net revenue has dropped to 73% (it is the first time I see this metric being reported), this is really bad as it means a large number of customers have stopped doing business with us.

We had a Q4 that was even worse than last years Q4 whereas all our peers had like for like or better, this is very concerning too as it shows our tech stack is far from the best.

We ended the year with $234m in cash and according to the net cash reported as of 4th of March we had made $12m extra between December and March. Given that some of this increase is from our own cash from operations then it means that Alphonso has only paid us in the single digits.

Does this suggest we settle for pennies or that they're paying us with installments?

Top line Rev Guidance means 3% growth lol at bottom line it means 2% growth.. in a year where ad budgets will significantly increase this is just poor.

I will hold on until Q2/Q3 to see if the fed rate rate cuts give us some multiple expansion and also to see if there's an uplift of guidance once they have more visibility of how brands will advertise in H2 just before elections.. but if there's no change, I am out.

With these results the only thing that makes me stick with Nexxen is their extreme low valuation but if they continue to drop ebitda and rev at double digit as they did over the last 2 yeras, the valuation will only go lower not higher.

How does one pay $220m for Amobee when you're doing $160m+ EBITDA and 2 years after the huge investment you're doing $80m...

[barkbooo] 06/3/2024 09:17

Gadgie - I am also happy….and the bonus is, I was fearing the worst.

[midasx] 06/3/2024 08:25

Yes! Thanks, need to put the glasses on!

[tsmith2] 06/3/2024 08:17

I guess you mean "no more excuses.."

[midasx] 06/3/2024 08:16

The very poor results were in line with very poor guidance, hence the share price is £2 no £8 as it was a short while ago!

No more excuses from Ofer going forward or he should be persuaded into early retirement.

[loafofbread] 06/3/2024 08:10

First time we haven't had a 20% death plunge on results since about 1870?

MCap $350M, Cash $146M, EPITDA £100M?

Crazy cheap?

[tsmith2] 06/3/2024 08:04

very little trying interest either way

[midasx] 06/3/2024 07:49

The Company's net cash balance as of March 4, 2024, increased to approximately $146.0 million. The Company intends to prioritize near-term cash resources on strategic internal growth investments and initiatives and its ongoing Ordinary share repurchase program, as well as future potential share repurchase programs. The Company does not anticipate any major near-term acquisitions as it believes its technology and data stack now offers the necessary components to enable market share gains within the digital advertising ecosystem.

[seekthetech] 06/3/2024 07:44

Digi year end cash, reconciled to current cash less buyback cash spent. I.e 146-134-15

[seekthetech] 06/3/2024 07:42

Yes… he is ahead of consensus….

That’s not to say that 2023 hasn’t been a horror show and our underperformance vs peers is troubling.

Don’t underestimate the impact of the Mithaq guys on the board and that the focus driven by shareholders will be on a sale in 2024

[digitalis] 06/3/2024 07:42

Seek how do you get 25m donation from lg?…….I would say less than half that so immaterial?

[gadgie2] 06/3/2024 07:40

I'm Happy :)

[ragos] 06/3/2024 07:37

Seriously Seek?

R

[scepticalinvestor] 06/3/2024 07:36

Dips on -20% on open?

[seekthetech] 06/3/2024 07:30

At least he met his own expectations this time… 83 compared with ebitda range of 80-85 forecast at at q3.

Cash has had a huge hike. Inventory reduction plus lg settlement. 146m net cash post buy backs suggests 25m lg settlement and much more than I expected.

Guidance looks like has been set to be beaten for once. Forecast is on 2xebitda.

This should rerate to 6x if he gets a few more quarters of hitting his numbers and now there are no impediments to a takeover I reckon £6 will finally put us out of our misery by the end of the year.

Canvedish forecasting 240m cash by then end of next year and 1000p share price target.

I am adding serious cash to this now

[takeiteasy] 06/3/2024 07:30

Can anyone explain please why we appear to be the only outfit with supposedly the most technologically advanced software stack that has so many clients opting for our "lower priced offerings" - does this mean that the advanced stack features do not add the value that customers want or are happy to pay for. If so, why did we spend so much on this recent software build.

I find it all baffling...

[scepticalinvestor] 06/3/2024 07:27

Blood on the streets on open. Condolences punters

[amt] 06/3/2024 07:27

Slightly better than guidance so should be positive today

[takeiteasy] 06/3/2024 07:17

CTV revenue was impacted by a combination of factors including the SAG-AFTRA strike, and reduced CTV spending from some of the Company's largest small- and mid-sized agency customers. Importantly, these customers continued to spend within Nexxen's broader platform offerings during Q4 2023 but largely selected the Company's lower-cost, performance-based programmatic solutions, such as mobile video and display

Year-over-year decreases were attributable to the integration of Amobee, whose business lines operate at a lower profitability profile than Nexxen's pre-acquisition standalone business, and reduced spending from some of the Company's largest customers throughout 2023 compared to 2022.

Management believes ongoing macroeconomic headwinds and uncertainty may continue to limit near-term budgets and spending for some of the Company's largest small- and mid-sized agency customers, drive continued managed service softness, and cause customers to continue to focus spending on lower-cost solutions within Nexxen's broad suite of offerings, but is cautiously optimistic these customers will revert to the Company's premium solutions amidst anticipated improvement in macroeconomic and advertising demand conditions.

pretty much what i expected him to say so no surprises here at all....