The stock reached an all-time high today after a positive update on the Group's 2017 performance.
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Taptica (LON: TAP) shareholders would be understandably pleased this morning after the Group released a short trading update outlining its 2017 performance.
The company is an American-founded, Israeli-based, UK-listed, demand-side Adtech platform. Its technology is based on artificial intelligence, machine learning, as well as big data. It has an impressive list of clients, working with more than 600 advertisers including Disney, Amazon, Facebook and Twitter, to name a few.
After acquiring Tremor Video for $50m in August 2017, Management has said today that consolidation of the group was ahead of schedule thanks to the "acceleration of the integration in Q4 17". As a result of this, the implementation of new management, and finalising its strategic plan...
"Tremor Video DSP performed better than anticipated, including achieving profitability during 2017 rather than in 2018 as initially expected."
It also noted "significant contribution" from its new offices in Asia, and in particular from Adinnovation in which Taptica acquired a majority stake in July 2017...
"As a consequence, the Company expects to report adjusted EBITDA for FY 2017 ahead of market expectations and revenue broadly in line with market expectations demonstrating a higher-than-expected EBITDA margin. The Company remains confident of delivering solid year-on-year EBITDA growth for 2018 in line with market expectations."
Shareholders revelled in TAP's healthy share price growth in 2017 as the stock grew over 165% in the 12 months to 31 December.
READ: 8 of the best-performing AIM-listed stock of 2017
finnCap chimed in on the Group's much-watched performance while upgrading its forecasts after today's announcement:
"Today's trading update flags much higher margins from the Tremor Video DSP acquisition, leaving adj. EBITDA ahead of market expectations. We therefore raise our FY 2017 forecast from $28.9m to $33.0m."
It also raised its Target Price from 500p to 550p.
The Group is forecast to report Revenues of c. £362m in FY18, almost three times the £126m reported in FY16, while Net Profit is forecast to grow to c. £28m from £16.5m in the same period.
