Rhythmone Share Discussion Threads

[barkboo] 06/2/2017 12:03

Polythene - "Dear Barky. So just to clarify, it is the management you have been investing in."

Do I detect you are trying to trip me a little?

So for clarity - I am not investing in old management, I am not investing in new management. I am investing in a hot moving business in a red hot sector....if you have some knowledge within the company, it tends to be a lot more informative than an outside blog, media spin, bb propaganda or analysts with motives!

scaffolders do have an understanding with a number of guys that were at BLNX, Au, Aurasma, they have also got a pretty good handle on up to date events. You would also be interested to know that there is a keenness by some to acquire more stock.

Shares on Loan up ah? lol

[1gw] 06/2/2017 11:06

Shares on Loan.

Big jump in average shares on loan in January according to Euroclear:

Nov'16 6.4m SOL average
Dec'16 10.6m
Jan'17 18.5m

We know 2.5m were on loan by Toscafund as of 30th Dec from their 5th Jan TR-1 and that these were (apparently) not on loan as of 19th January (24th Jan TR-1). But that only accounts for a fairly small proportion of the increase.

[1gw] 06/2/2017 10:12

Quantcast - something I've just posted on LSE in response to a suggestion that the recent rise in Quantcast stats may have something to do with Perk.

I'm not sure that the spectacular rise in Quantcast stats has much to do with Perk. It looks like R1 may have switched something significant on in Quantcast in the 2nd half of December, but maybe not Perk.

If you look at the detail of Quantcast, R1 now comprises 3 key segments: Campaign, AdKarma and RhythmMax.

RhythmMax has been relatively constant through the last 90 days.

Campaign and AdKarma appear extremely highly correlated recently (less than 2% difference on every day of the last 2 weeks for each sector's number of US uniques for example). So it looks like they may have virtually the same audience.

Both Campaign and AdKarma took off around 20th December with Campaign for example rising from 3.4m US uniques (3.1m US people) on 20th December to 24.5m US uniques (22.3m US people) on 4th February. This growth is due to growth in desktop, not growth in mobile or in-app.

Going back a bit further it appears R1 may have decided to simplify the segmentation in Quantcast by moving hundreds of segments previously appearing at the R1 level over to the "Campaign" segment. So a lot of the small segments at the R1 level appear to stop having data some time in June 2016.

On October 27th, the Campaign segment suddenly kicked into life, moving from 0.5m US uniques to 9.5m. After a few days it fell back to the 3-4m level before taking off around 20th December.

AdKarma on the other hand spiked from 4m US uniques to 16m in late August before falling back to the 3-4m level (as per Campaign) and taking off again around 20th December.

So moving on to interpretation, it looks to me like a lot of new data has started being measured from 20th December. I would guess at least some of this is due to the resegmentation as data related (presumably) to specific campaigns which were previously being recorded in individual segments at the R1 level started to be recorded in earnest within the AdKarma and Campaign segments. I would guess that for a while as they implemented the resegmentation, this campaign data went missing altogether from Quantcast. In addition there was the spike in AdKarma in late August - which could have been due to switching on this campaign measurement on a trial basis for a while or could have been something completely independent.

The upshot I think, is that it is very difficult to make conclusions around the trajectory of business at R1 from Quantcast data as it appears that they are still making significant changes in how they report the data in Quantcast. However, given we are now back above 200m US monthly people, then I think it is fair to say that Quantcast is now consistent with ComScore in showing that R1 has very good US reach.

[jarvis4] 06/2/2017 10:02

Loaf - agreed, but the Perk deal needs not only to work, but be seen to work. That would give more confidence to the market in respect of any similar deal. I would not like to see regular similar buys which obscure the true financial position.

[sikhthetech] 06/2/2017 10:00

HEADER BIDDING

PubMatic Announces Record Financial Results; Significant Rise in Revenue, Profit & Free Cash Flow in 2016

Header Bidding launced globally in 2012, 5 yrs ago.. backs up what Rubicon were saying about late adoption of the tech..


"HEADER BIDDING TECHNOLOGY AND AD MONETIZATION DRIVE PUBMATIC’S SUCCESS"

"PubMatic launched its header bidding technology globally in 2012, and it now represents over 75% of all of PubMatic’s available impressions."






Rubicon Project

"Despite Rubicon’s awareness in regards to the importance of implementing header bidding, the company failed to "keep up" with the technology on a broader scale, which likely shook investor confidence and ultimately hurt its market value."

[polythene] 06/2/2017 09:42

Dear Barky. So just to clarify, it is the management you have been investing in.

[stocky] 06/2/2017 07:35

Morning All. Great Insights, chaps! Everything is looking promising here.

[1gw] 05/2/2017 22:33

football - that's the same list as ComScore except for some reason they omit OpenX which was in 7th place in the November ranking.

[football] 05/2/2017 20:58

Largest Networks - Nov 2016

Google Ad Network
Yahoo! Audience Network
Conversant
RhythmOne
RadiumOne
Exponential
Gamut
Collective Display
Media.net Contextual Ads
Rocket Fuel
Amobee

[1gw] 05/2/2017 19:25

Quantcast.

Above 200m US monthly people for the first time since 7th march 2016 I think.

[loafofbread] 05/2/2017 16:42

My understanding of what RhythmOne has built is a 'media' platform that can place content in almost any country at any time.

I think Perk will be the first of many such deals.

[barkboo] 05/2/2017 16:30

Nerves is why you're mouthy!

[kendonagasaki] 05/2/2017 16:00

Nerves is why im wealthy.

[sikhthetech] 05/2/2017 14:19

Apart from the Perk apps, where they're losing 'engaged' customers, Perk's O&O sites traffic rankings also fell since their Q3 results - the only exception being esportsedition ...

The last results presented by Perk, pre-acquisition, were end Sept 2016..

[geheimnis2] 05/2/2017 14:03

Exactly barky

Big respect to digi

Was great when we had a properly policed thread

[barkboo] 05/2/2017 13:50

Cheers Digi - great to know you are about and still have the understanding and knowledge that made your thread one of the best ever on ADVFN.

Kendo - it is not "lick lick" it is a mutual respect and common ground that has built up over years between investors. We all appreciated the work and effort that went into producing a thread such as Digi's.

Kendo - respect is something that has passed you by my friend, you live on your nerves, that's not healthy!

[geheimnis2] 05/2/2017 12:58

Some great posts by yer man G2 recently....

Gotta love him - what a legend!

[1gw] 05/2/2017 12:51

Maybe in the longer term yes. But in the shorter term they seem to be struggling a bit to fill the opportunities they have so a big low-margin customer might help get the fill rate up.

[lance corporal winstanley ash] 05/2/2017 12:37

1gw. I would go with your second scenario. Keep the sales within the r1 exchange. R1 get a bigger slice of the pie then surely?

[alex1621] 05/2/2017 11:58

Let's hope so.

[1gw] 05/2/2017 11:56

Actually, I suppose 1 other way R1 could make it work financially is to progressively replace (presumably) low-margin sales to the big Perk customer with higher-margin sales to R1's broader customer base.

[1gw] 05/2/2017 11:42

Perk.

I think the success or failure of the Perk acquisition may well come down to whether R1 can leverage the relationship with Perk's big customer, which I believe is probably Yahoo!

Perk has been getting more and more concentrated towards a single customer:
2014 - 73% of revenue came from 5 customers;
2015 - 64% of revenue came from 3 customers;
1Q-3Q 2016 - 58% of revenue came from 1 customer;
3Q 2016 - 64% of revenue came from 1 customer.

The largest single customer accounted for:
23% in 2014;
38% in 2015;
58% in 1Q-3Q 2016;
64% in 3Q 2016.

So you have a relatively big company (R1) buying a relatively small company (Perk), whose revenue has become hugely dependent on a single customer. So almost irrespective of how attractive and sustainable the underlying Perk apps may be, this acquisition may succeed financially for R1 if it can cross-sell a material (additional) amount of legacy R1 product to the big Perk customer. Conversely, if the big customer doesn't like what Perk has become post-acquisition and withdraws business then it may be very difficult for R1 to make the acquisition work financially.

I have to hope that R1 did proper due diligence on the likely attractiveness of the enlarged company's product to the big Perk customer.

[geheimnis2] 05/2/2017 10:46

No need to lick the tables by the way, Quil

A damp cloth will do?

Just a thought?

Loser....

[geheimnis2] 05/2/2017 10:36

STT getting a verbal battering on his hoodwinker thread...

Some long term buffoons becoming turncoats

One of the signs of the end of days for the buffoons...

Buffoon on buffoon attacks!