Rhythmone Share Discussion Threads

[kendonagasaki] 16/1/2017 23:42

Is that a long then Gupta?

[sikhthetech] 16/1/2017 23:40

"Online advertising outfit RhythmOne rocketed as third-quarter results met its upgraded expectations.
The firm hit record highs for revenue and profitability, and also moved into five new EU markets. N+1 Singer said the results showed good momentum and suggest that the firm is on track to achieve its increased revenue and earnings targets for the full year.
The broker, which has a 'buy' rating on the stock, said an increase in capacity at the business boded well for potential revenue.
Numis said the results and the acquisition of Perk – set to complete this month – showed the firm was 'back on the front foot'. Shares soared 9 per cent, or 3.5p, to 42.5p.

[sikhthetech] 16/1/2017 23:18

1gw/gl, interesting analysis.. thanks...

[loafofbread] 16/1/2017 23:03

Decent write up in the Daily Mail market comment section.

(First time for 2 years)

[sikhthetech] 16/1/2017 22:51

AudienceScience confirms job cuts

"The revelation follows several similar such moves by other adtech outfits including some of the sub-sector of the online advertising industry’s biggest names including: AppNexus; Rubicon Project; and most recently Rocket Fuel, as the initial boom period in the programmatic buying sector cools."

[geheimnis2] 16/1/2017 21:38

Hahaha great post barky!

Onwards and upwards!

[barkboo] 16/1/2017 21:24

Great to see the boys are back in town - Digi, Jarvis. Nick, PC......all the goodun's....

If I don't laugh at least 40 times a day - it hasn't been a good day....today has been another good day..and those guys above, always make it better.

[gowlane] 16/1/2017 20:58

interesting 1gw, a good rational answer, fairly similar assumptions maybe, a bottle half full outlook versus my bottle half empty perspective, I have revenue and GP margins lower, but who knows

if you have got in lower you are absolutely right to let it run and see where it goes, I guess I have been in this share too long

anyway big travel day tomorrow must pack, best of luck, maybe there will be a bid!

[1gw] 16/1/2017 20:44

gowlane - FY17 financials

I think you're in the right ballpark in post 2803 for the numbers.

My "model" shows about $20m loss before tax for the year, excluding Perk.
For adjusted EBITDA I have:

$171m revenue (as per my post 2758)
-$108m cost of revenue (37% gross profit vs 37.3% 1H)
-$ 63m opex excl d,a & share-based comp (a bit less than double the 1H numbers)
$0m Adjusted EBITDA

So that gets them to breakeven on an adjusted EBITDA basis, or positive if they include the Perk contribution. Now given they said they were significantly ahead of expectations on adjusted EBITDA in 1H, I have to assume that they're actually expecting a bit more revenue than the $171m or there are some further cost savings to build in.

Again - it serves to highlight the difference between adjusted EBITDA and actual profit.

But for now I'll take a small positive adjusted EBITDA (and a relatively big actual loss) for FY17 so long as the growth trajectory is maintained, which should take them much closer to actual profit in FY18.

[gowlane] 16/1/2017 20:43

I have often wondered who Stocky actually was, ever since he wandered in here almost by accident a couple of years ago, like a stray dog with nowhere to go

putting on this simpleton act, not just that he wasn't at the front of the queue when the man above was handing out the grey matter, poor Stocky wasn't standing in line at all, just wandering around looking lost as usual

he could have us all fooled though

[sikhthetech] 16/1/2017 20:37

so on or about 19th Jan, it is... Thurs..

[geheimnis2] 16/1/2017 20:01

Wow! A real treat for us all with the fantastic digi dropping by!

Well done on scooping those cheep shares up at 15p

Me too!

Lovely stuff!

[football] 16/1/2017 19:25

Should you buy Rhythmone plc as it closes in on a return to profitability?

Fool.co.uk
Peter Stephens
Fool.co.uk16 January 2017

Shares in online advertising specialist Rhythmone (LSE: RTHM) have risen by over 7% today following the release of an upbeat third quarter update. It shows that the business is continuing its march towards profitability, which it's aiming to achieve in financial year 2017. In the last year its shares have more than doubled. Does this mean that the opportunity for a capital gain has passed, or is now the right time to buy the stock ahead of potential profitability?

An improving business

The third quarter performance of Rhythmone was in line with previous guidance. It produced sequential monthly growth in sales and EBITDA (earnings before interest, tax, depreciation and amortisation), with core products now accounting for 84% of total sales. This performance was led by strong growth in programmatic platform revenues, which achieved benchmark highs across multiple time frames.

During the period, the company moved into five new EU markets, bringing the total to 14 in the current year. It also expanded its platform infrastructure and doubled its data capacity in Amsterdam to help scale new supply and demand activity in the year. Furthermore, the acquisition of Perk provides the opportunity for synergies between the two businesses as well as growth potential. It's on track to close by the end of the current month.

Growth outlook

As mentioned, Rhythmone is on the way to returning to profitability. Consensus forecasts suggest that this will take place in the next financial year, before it posts a rise in earnings of 70% in the following year. If it is able to achieve this level of financial performance then further share price gains seem likely. After all, Rhythmone trades on a relatively lowly valuation. It has a price-to-earnings growth (PEG) ratio of just 0.2, which indicates that there's significant upside potential.

Its valuation is far lower than that of sector peer Sage Group (LSE: SGE). Sage is expected to post a rise in its bottom line of 15% this year, followed by growth of 9% next year. This puts it on a PEG ratio of 2.1, which indicates that it lacks value for money at the present time.

Certainly, Sage is a lower-risk buy than Rhythmone, given their current level of financial performance. Sage has delivered four consecutive years of profit growth and its strategy has been tried and tested. Furthermore, the chances of a downgrade to the company's guidance is relatively slim since it has a consistent and robust business model. By contrast, Rhythmone remains lossmaking and at the start of a period of integration with Perk.

Therefore, while profitability is on the horizon, there's still a long way to go - especially as it nears its seasonally slowest quarter of the year. However, given its wide margin of safety, it appears to be worth buying and could even outperform its more expensive, but better quality, sector peer.




or

[football] 16/1/2017 19:22

Perk Inc. Receives Court Approval in Connection with Proposed Plan of Arrangement with RhythmOne plc




or here


Perk Inc. Receives Court Approval in Connection with Proposed Plan of Arrangement with RhythmOne plc
T.PER | 1 hour ago

[1gw] 16/1/2017 19:20

Perk Inc. Receives Court Approval in Connection with Proposed Plan of Arrangement with RhythmOne plc

"Subject to the satisfaction or waiver of all closing conditions, it is anticipated that the Arrangement will be completed on or about January 19, 2017. "

[football] 16/1/2017 19:13

sikhthetech well pi55 0ff if it's all so bad and short something else now

[sikhthetech] 16/1/2017 18:17

filtered AGAIN...I'm flattered...LOL...

why would some who claimed to have retired rich bother coming back on here... because you still have your holding pre-blog... what is it down 200p a share, 2-3m shares was it???

how is your mate gadgie/shroder...

[digitalis] 16/1/2017 18:09

sikhers...let me just remind you what it looks like from my end since 2012












FILTERED........

[sikhthetech] 16/1/2017 18:07

lol.. as previously predicted, the share price goes up a little and the right little proper charlie clown appears twice .. how goes it gus...15p shares...lol
good luck, my friend, how's the re-mortgaging going...

[digitalis] 16/1/2017 17:59

might even be able to sell a few of those 15p shares I picked up cheep this may.....

[sikhthetech] 16/1/2017 17:58

gl, the Perk acquisition and the comment about entering the 'slowest' qtr do give BM an excuse for not producing great fy figures...

[digitalis] 16/1/2017 17:58

good evening all....that's a very handsome TU...Bm knows his stuff

[nickb] 16/1/2017 17:47

Good to see BARKBOO is totally in control of this thread.

Good work.