System1 Share Discussion Threads

[eezymunny] 21/7/2021 10:33

Amazing what the teaser of a billion pound market cap can do for you ;)

[p1nkfish] 16/7/2021 07:07

Some work needed on brand strength and trust for sys1 vs kantar but all else looks good.
Demonstrable results will deliver both that trust and strength, a win for all stakeholders Inc customers.

[simon gordon] 16/7/2021 07:00

Kantar is a big beast:

Kantar Group is a data analytics and brand consulting company, based in London, England. It was founded in 1992, and has approximately 30,000 employees in 100 countries working in various research disciplines, including social media monitoring, advertising effectiveness, consumer and shopper behavior, and public opinion. It has been majority owned by Bain Capital Private Equity since 2019, and was previously part of WPP. Major competitors include GfK, Nielsen, Ipsos and Accenture.

[longshanks] 15/7/2021 12:44

Agreed that the monthly revenues on p7 appear to be "going vertical"!! It could be though that recent performance is linked to one-off events (like the Euros partnership with ITV), so we may need confirmation later in the year. With new product offerings coming in the autumn, there is a strong pipeline of innovation to fuel further acceleration in growth. Very exciting time to be a shareholder.

[p1nkfish] 15/7/2021 11:26

Page 7, Data Revenue growth by month - lovely looking path so far.

[cockerhoop] 15/7/2021 11:00

FY Presentation now available

Investment up to £4m from £2.5m last year

Test My Brand rolling out in H2, Test My Idea in H1 FY23

Interesting comparison to Kantor

[lancasterbomber] 15/7/2021 10:20

Can't even buy a £1000 at the moment

[cockerhoop] 15/7/2021 09:24

No expert in these things but yesterday's 405k trade appears to have cleared the overhang that was apparent over the last 2-3 weeks.

Saints98,

Do you access to the Canaccord note or just the numbers? I'd be very interested in having a read if you (or anyone else) has access to the narrative.

[saints98] 14/7/2021 22:29

Along with those Canaccord upgrades I see they moved their price target from 300p to 370p

[simon gordon] 14/7/2021 14:23

p1nk,

Yes, Rene Girard. I think Thiel was taught by him at university.

[p1nkfish] 14/7/2021 14:11

SG, Peter Thiel is a big proponent of Mimetic. I forget who he quotes but it is an under current in his thinking.

[lomax99] 14/7/2021 13:53

He's certainly fairly keen, with 17% of his portfolio in this tiddler.

[apad] 14/7/2021 12:45

Added a few more. Price goes up on relatively small amounts.
apad

[homebrewruss] 14/7/2021 10:34

Not sure if this was posted previously but here's an interview with Maynard Paton where he talks about SYS1 back on 24th June, from about 7 minutes onwards.

[boonkoh] 14/7/2021 10:27

Headcount increasing modestly last few months, good amount of open roles being advertised.You don't hire to grow in an agency unless you're already at breaking point or have new client wins needing to staff up. The best leading indicator of near term upcoming revenues.

[cockerhoop] 14/7/2021 10:25

Upgrades from Canaccord this morning

revenue: 2021A 22.8m, 2022E 27.1m (up from 26.1m), 2023E 31.1m

ebit: 2021A 3.3m, 2022 1.9m(up from 1.3m), 2023 2.2m

eps: 2021A 20.8p, 2022 10.1p(up from 6.5p), 2023 12p


2023 numbers introduced suggest good revenue growth but increased investment. 2022 upgrades suggest current trading going well and good marginal conversion of revenue to ebit.

[simon gordon] 14/7/2021 10:12

p1nk,

Mimetic Theory is fascinating, I've just been plugging into that scene:

Gary Tan - 1/6/21

What is Mimetic Theory? Philosophies of René Girard with Luke Burgis

Ever wondered why humans often act like sheep? Learn why in this video where we explore the philosophies of René Girard with Luke Burgis - one of my favorite experts in the space.

[apad] 14/7/2021 10:10

System1 Research 21,237 followers 41m •
41 minutes ago
England came, saw but unfortunately didn’t conquer and for England fans the long wait continues from the historic win in 1966. But wait, it’s the result you’ve been waiting for. OK, the other result you’ve been waiting for.

For the last few months, we’ve been running a competition with ITV for a free slot in the Euro 2021 final broadcast. The slot got a lot more precious with the Three Lions in the final. So who was the winning ad that got aired during the final? Find out in this write-up. We’ll tell you who won, who came close, and the lessons to be learned from how our high performers have handled the tricky task of navigating a historic Euros.

[simon gordon] 14/7/2021 10:03

Eezy,

Yes, the downside is probably 100p or just share price stagnation and watching paint dry.

It's the CEO that makes me a little more confident. You need high octane characters who are pushing and training the front line staff. Getting the best out of everyone and letting go those who don't meet the exacting standards. He looks to have it. The Founder can get on with developing and networking, you need someone who totally actualises the operational team. The CMO guy looks good as well and the new non-exec is top quality.

[eezymunny] 14/7/2021 09:55

That sums it up well simon IMO.

For an EV of a little over 20m you get maybe 25m revenue this year and a product set that has had a lot of investment, and is starting to gain traction. It would hardly be surprising if they were bought out at a significant premium.

But there is downside too of course...

[hydrus] 14/7/2021 09:54

I'm a big fan of founder led businesses where the founder has a decent stake. The market in which SYS1 operates wouldn't normally interest me but there is a decent chance that the scars of previous failures have healed and management now have a clear understanding of what they need to do to take this business to another level in their market. Happy to leave it a year or two and see how they get on.

[hydrus] 14/7/2021 09:51

Yep Simon this is a quite exciting prospect. As you suggest there is a valid ad agency consultancy business here whatever happens with their data products so would limit downside. Hopefully a trading update in October will provide the market with more evidence of the success of their test your ad rollout.

[simon gordon] 14/7/2021 09:46

As a bet (investment) it looks excellent.

BoD are indicating it could be a 37x bagger and that share buy backs are returning which will help manage a floor.

Top team have been installed and integrated, partnerships are flourishing and some top brands are biting.

They've got a long flight path ahead and will be super cash generative if they pull it off.

If they achieve a tenth of their ambition it still won't be a loser.

So if you put a £1,000 in, you could possibly lose c.£500 and win £37,000.

Horse and gift.