Rhythmone Share Discussion Threads

[lance corporal winstanley ash] 30/9/2016 15:18

Big bear - more connections than Vodafone

[barkboo] 30/9/2016 14:26

Some of you seem rather surprised we are doing so well - I thought it was common knowledge?

[geheimnis2] 30/9/2016 13:42

could we see a TU next week?

[dyardley] 30/9/2016 13:39

I'm loving the W on the graph

[dyardley] 30/9/2016 13:37

It would be very encouraging to see a late flurry in the share price this afternoon

[dyardley] 30/9/2016 13:36

Fully agree loaf. I'd be amazed if they produce a disappointing half year trading statement.

[geheimnis2] 30/9/2016 13:34

just a thought, loafofbread?

[loafofbread] 30/9/2016 13:32

Rhythmone have booked themselves in for four major adtec conventions in the next month. (Oct 16)

Three they are sponsoring in some shape or form.

This is more than they attended in the whole of last year.

Not the actions of a company that is going to announce anything disapointing, rather a confident statement that ROne has/is finally hit it's stride.

(Hope so anyway)

[gowlane] 30/9/2016 13:22

well spotted 1gw, it looks good, still more cuts to show up then

although opex was definitely reported as $86m in FY16, yet they are showing $77m for 'actual'

that is the what the 'adj' prefix is supposed to cover I suppose

[1gw] 30/9/2016 12:52

gowlane - from slide 13 of the full year presentation they were estimating a further $13m of adjusted opex savings to come in FY17. i.e. out of the $40m annual savings they talked about having achieved on a go-forward basis, $27m were in the FY16 numbers but $13m weren't. So that would pretty much give you the $7m you need per half.

[geheimnis2] 30/9/2016 12:51

waiting for the next BIG BEAR post, you mean LCWA?

[lance corporal winstanley ash] 30/9/2016 12:50

It's all jolly nerve wracking.

[midasx] 30/9/2016 12:45

"No Depth of Market"

Cannot increase my sb positions again today!


Last day of what should have been a very good first half!

Last years trading update came on the 9th October:-

Based on unaudited, pre-close estimates, performance for H12016 is anticipated to be in line with expectations, as follows:

-- Revenues of approximately $90 million; with over 65% from Core products
-- Adjusted* EBITDA loss of approximately ($7 million)
-- Cash and cash equivalents of at least $82 million at the end of the Period

The 3rd Quarter Update on the 14th January 16

Based on preliminary, unaudited results, Q3 2016 revenue performance was in line with management expectations, during the seasonally strongest quarter of the financial year. Core products continued to ramp and offset declines in Non-Core products, while management continued to rationalize the Company's cost structure during the Period. As a result of the progress made on revenues and cost reduction actions, profitability in Q3 2016 was ahead of management expectations, achieving break-even on an adjusted* EBITDA basis during the Period.

Year end update came 05/04/16:-

Performance for FY2016 is expected to be as follows:

-- FY2016 revenues of $165-170M
-- FY2016 Adj. EBITDA loss of ($10-11M)
-- Cash and cash equivalents of $76M
During the Period, the Company generated over $75M in new revenue, and achieved profitability in the third Quarter, followed by anticipated fourth Quarter seasonality. Simultaneously, the Company accelerated its planned drawdown of Non-Core product lines, which now constitute approximately 30% of total revenues - compared with over 50% in FY2015. Programmatic revenues grew 66%, with programmatic and video now constituting over 50% of total revenues, across desktop and mobile devices.

First Quarter on the 12th July

Based on preliminary, unaudited results, Q1 2017 performance is expected to exceed management expectations. Core products continued to ramp during the Period, led by strong growth in programmatic platform revenues. Programmatic platform volumes more than tripled year over year, with over one trillion requests processed per month in Q1 2017, with notable improvements in both fill rate and pricing, as mobile now constitutes a majority of the volume processed.

So the trading update could arrive as soon as next week!

[gowlane] 30/9/2016 12:26

Just looking at the H2 figures in a little more detail

they had an operating loss of about $7m in H2 to add to the $13m loss in H1

So $75m revenues, $45m cost of sales, regular cash overheads of about $37m, leaving us with a $7m operating loss in H2

2 figures not in there, to bear in mind
non cash amortization of purchased intangibles, still a fairly hefty $4m in H2
capitalised R&D expenditure, a $2m cash outgoing in H2

But if they repeat the $75m revenue figures in H1 2017 they will need to bring the regular overheads down by another $7m to reach breakeven on operations

Not sure if anyone knows how to reconcile their ebitda figures, a more closely guarded secret than the coca cola recipe

[barkboo] 30/9/2016 10:27

Gordon - "12mins36secs in if you want to check" Priceless!

[barkboo] 30/9/2016 10:17

Stocky - "if the fanny too big" stay away - she will have a gauge!

[1gw] 30/9/2016 10:13

OK, but even if you said nothing was shut down in 2H, then given "normal" seasonality you would expect that the 1H pro-forma level would be significantly lower than $75m wouldn't you?

So maybe $70m H1, $75m H2 would have been the scale of the business at the end of FY16 in the scenario where nothing was shut down during 2H. And if you go back to FY14 (i.e. largely before the blog), the revenue was split 45%:55% between 1H and 2H, so on that basis $75m in 2H would correspond to about $62m in 1H. If management expectations were for modest growth on a $62m base, then even $70m for 1HFY17 could have been "materially ahead of management expectations" couldn't it?

[sikhthetech] 30/9/2016 10:03

NBCSN Delivers Best Quarter in Network History, Highlighted by 2016 Rio Olympics

[sikhthetech] 30/9/2016 09:54

1gw, wasn't the majority of the shutting down of legacy business reported in H1 2016???

The huge write downs were in H1 2016...so majority of legacy was shut down in H1 2016, wasn't it???

Non-core only fell from 30% to 25% (loaf's comments)...

Core grew 37% during H12016..

H1 2016, Non-Core was down to 30%




The Q1 TU stated that they were 'materially ahead of management expectations' .. you're right the 'core revenues rising faster than non-core' was in the 17th May call but Q1 TU 'materially ahead' came after...


Add in growth & Olympics/Presidential Election...

[rocket fuel] 30/9/2016 09:33

another old Chinese saying -

"Man go to bed with hard problem..wake up with solution in hand"

[1gw] 30/9/2016 09:29

STT - those comments on core rising faster than non-core declining were made for the first time I think in the 17th May 2016 results call (12mins36secs in if you want to check). "importantly we have now crossed the inflection point where core revenue growth is expected to exceed non-core decline going forward" according to my notes.

So the obvious interpretation I would have thought is that compared to the run-rate of the business at 31st March 2016 (i.e. end of the financial year which was being reported upon), they are expecting net growth going forward.

What we don't know is what the run-rate was at 31/3/16. But since they shut a whole load of stuff down during FY16 it seems to me highly likely it was lower than the $75m half-year number reported for 2H16. Which means the equivalent baseline 1H number would have been even lower. So I don't know, but to illustrate the point maybe "pro-forma" numbers for the business that was active at the end of FY16 might have been $65m 1H, $70m 2H.

This isn't a difficult concept is it? If during a year you down-size the business by shutting down offices and closing product lines then the "pro-forma" annual revenue number at the end of the period is a lot lower than the actual revenue for the year.

[sikhthetech] 30/9/2016 08:47

1gw, not just on the H1 2016 $63m revenues...


There have been comments that Core revenues are rising faster than non-core... comments made at agm?
Given BoD statement re: ahead of management expectations...Q1 TU, after agm...I take that as Core has picked up since the agm... ie Core revenues have improved from the 'rising faster than non-core'...
If Core is rising faster than Non-Core then overall revenue should be higher...

Olympics & Presidential Election.. 2012 they received an extra 10% due to these 'one off' events..

Majority of Kitchen sinking was in H1 2016...


Unless of course the comments made about 'Core rising faster than non-Core' and being 'materially ahead of management expectations' are not true...

and as previously discussed, it depends on the interpretation of 'Core'/Non Core...

We don't have figures so we don't know...

[barkboo] 30/9/2016 08:40

No I didn't!

[alex1621] 30/9/2016 08:27

You forgot the "Another" at the beginning Barky! :-)