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Edison Investment Research is terminating coverage on Fyber (FBEN). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Companies: RNTS Media
Edison
Reflecting the closer integration of its assets, RNTS will rename to Fyber. Revenue growth of 17% in Q1 falls short of full-year targets but is expected to accelerate as the year progresses and management has reiterated its full year targets of revenues over €280m and EBITDA over €3m. Putting in place additional financing would lift a significant overhang on the shares.
Exponential growth of programmatic and video ad formats enabled RNTS to grow revenues by 69% in FY16, at the top of its peer set. Management has reiterated its expectation of ongoing strong growth in 2017 and EBITDA profitability. The recent restructuring of the €150m convertible bonds frees the group’s hand to put in place additional financing, required to satisfy earnouts. This would remove an overhang on the shares, which trade in line with peers on FY17e EV/sales multiples.
RNTS Media’s FY16 preliminary update points to pro forma (PF) FY16 revenue growth of at least 65%, in line with its recently raised guidance and our forecasts. RNTS reached EBITDA break-even during Q4, as expected. Contingent on planned financing, FY17 guidance for revenue growth of 30% and EBITDA profitability of over €3m has been introduced, a clear signal of ongoing strong momentum; we leave forecasts unchanged.
Premium
Exceptional revenue growth from RNTS Media’s programmatic technology and video ad formats continued into Q3 with revenues for the nine months up 83%. The company’s recently raised guidance seems comfortably achievable and we upgrade our revenue forecasts by 7% in FY16 and 9% in FY17. We now forecast adjusted EBITDA profitability from Q4 this year and in FY17. The 1.3x FY17 EV/sales rating, while a premium to peers, is looking increasingly justified.
RNTS Media has increased pro-forma revenue guidance for FY16 by c 10% to over €205m. The strong trading means the company will reach adjusted EBITDA breakeven in Q416 rather than during 2017 as previously targeted. The company’s guidance for 2017, currently for pro-forma revenues of over €240m, will be updated once it has finalised its budgeting. We will review our forecasts following the Q3 update on 18 November.
RNTS Media’s investment in programmatic trading, video and the recent acquisition of Inneractive drove a near doubling of pro forma revenues in H116. The recently raised revenue guidance, which has been reiterated, looks eminently achievable and the EV/Sales premium to peers increasingly justified.
The proposed acquisition of Inneractive, a rapidly growing mobile SSP, will put RNTS firmly on the map among the larger listed ad tech groups. By connecting with the Fyber platform, it can offer a significantly wider audience reach to advertisers and deeper demand to publishers. With the first €100m of last year’s €150m convertible bond issue fully deployed, the EV/Sales valuation is becoming easier to digest.
RNTS Media’s acquisition of Heyzap adds scale, as well the potential to accelerate the launch of new products on Fyber’s ad exchange. This is key to driving conversion to the exchange, which is already responding positively to the launch of video last year, but still has some way to go to bring the group to break-even.
Fyber recently enhanced its mobile video product and added other products on the Fyber ad exchange. Initial results are promising and with a widening network of developers using its mediation solution, it should be able to rapidly build share in these new products and reaccelerate growth, which has slowed over the first half of the year.
FY14 revenue growth of 55% for RNTS Media softened in Q1 to 23% as the market moved towards rewarded video. Having built out the leading mediation platform for RV during FY14, the relaunch of this format on its ad exchange over the summer and the integration of the recent Falk Realtime acquisition should re-ignite growth from H215. RNTS plan a €150m convertible bond issue to finance acquisitions and scale its platform, which should prove a support to the current EV/Sales rating.
Research Tree provides access to ongoing research coverage, media content and regulatory news on RNTS Media. We currently have 11 research reports from 1 professional analysts.
Journeo has confirmed record results for FY23A, in-line with recent upgraded expectations across the board. FY23A revenue increased significantly by 118% to £46.1m (including 20% organic growth) and Adj PBT increased 270% to £4m, representing a near doubling of the Adj PBT margin. Journeo has positioned itself for a period of sustained growth following the transformational Infotec acquisition, the bolt-on MultiQ acquisition and ongoing R&D in the existing business. Journeo looks compelling on an
Companies: Journeo plc
Cavendish
Craneware is the market leader in value cycle SaaS provision in the US with a 40% market penetration and the ambition to become ubiquitous in US hospitals. The shackles of Covid disruption, digestion of the Sentry acquisition, and the transitioning of its customers to the fully cloud based Trisus platform, have fallen away and opened up new sales opportunities for the group. While the shares have out-performed strongly, multiples look reasonable compared with peers. We calculate a DCF based fair
Companies: Craneware plc
Capital Access Group
In 2023, the company delivered strong 13% organic constant currency revenue growth and Adjusted EBITDA in line with expectations, even after including one-off inventory provisions.
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Zeus Capital
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Companies: CML Microsystems Plc
Shore Capital
The trading update confirms revenues in line with our expectations. Excess inventory flow through and market softness in China have impacted CML’s core business, but Microwave Technologies Inc (MwT) is performing ahead of expectations. The net effect, along with MwT acquisition related costs, is that Reported PBT and EBITDA are to be lower than expectations, but not substantially so. The long-term investment case is founded upon the opportunity in next-generation wireless and, with £18m cash and
Progressive Equity Research
GetBusy’s FY23 results show organic revenue growth of +10% to £21.1m, FY23 adjusted EBITDA +£0.1m ahead of our +£0.3m upgrade at the January trading update, and a promising outlook that leads us to reiterate our FY24E forecasts. At constant currency, ARR grew +10% yoy to £20.5m, recurring revenue grew +12% to £20.3m, and net revenue retention of 100.0% per month reflects upselling and price increases, with gross monthly churn of 0.8% per month vs 0.9% in FY22. Within SmartVault, the July 2023 la
Companies: GetBusy Plc
Nanoco, the world-leading provider of cadmium-free Quantum Dot technology, has reported positive 1H24 results, and stated that FY24 performance is expected to be in-line with market expectations. We reiterate our FY24E forecasts. Operationally, the company has achieved strong progress over the past six months, and the interims statement includes further progress on the company’s next-generation revenue programmes being implemented post period end. We maintain our 60.2p price target.
Companies: Nanoco Group PLC
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Broadcast playout automation solutions provider Pebble Beach has reported confident FY23 results to Dec 2023 in line with updated January trading update expectations, and has announced the much-anticipated Project Oceans will launch as PRIMA (Platform for Real-time Integrated Media Applications) in April 2024. This underpins a mid-term 80% recurring revenue ambition and expansion in addressable market. FY23 delivered +11% revenue growth to £12.4m, which benefitted from the unwind of defensive in
Companies: Pebble Beach Systems Group PLC
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Companies: Windward Ltd.
Canaccord Genuity
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Turner Pope Investments
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