Q1: 247% Revenue Growth w Analysts Playing Catch Up...Lets keep it simple; this is early candidate for Q of the year. Feels a lot like 1H 2017 where analysts were behind the story and the stock went parabolic.
Keep it simple Here;
Revenue up 247% YoY but under the hood looks better.
Self Serve Revenue up 145% YoY more importantly up 21% QoQ (This number is HUGE seeing that Q4 is so seasonally strong for advertisers and they still put up 20% growth QoQ when I was looking for at least a 20% decline QoQ. That is a 40% DELTA!!!).
US Revenue Growth Going Parabolic up 350% YoY are you kidding me….
Europe/Asia/Latin America Revenue growth up 139% YoY, this is a big growth driver going forward as they rebuild their Europe business and expand in Latin America with their latest Adman acquisition.
Analysts to Play Catch up;
Analysts had an estimate of aprox. 19M for Q1 and they put up a 28M figure. underestimating revenue by over 100%.
Keep in mind they already had a target price of 3.27/share on average which is 106% upside from the current price and the company just blew past those estimates – they are way behind!!!
Looking at 2019;
I am at 122M for FY 19 now with analysts are at 95M or 25 -30% behind the story when they already have 100%+ upside to the current stock price.
Stock has to go higher.
That 122M estimate does not include any further acquired revenue and seeing that they close 1 -2 acquisitions a year and they have 10 -15M cash on the balance sheet now they are fully cashed up for another tuck in deal. No futher dilution. (See Adman Deal last year).
Putting it all Together;
On my 122M revenue estimate and a conservative 2.0x Sales figure gets me to a share price of 5.00/share or over 200% upside.
You are telling me I can buy a business in a secular growth industry growing more than 100%+ and pay 0.5x Sales are you kidding me!!!
I look at all these secular growers in the states growing 30 -50% trading at 3 – 5x Sales and then look at Acuity at 0.5x Sales with 4x the growth rate I think it’s a no brainer.
Have been LONG since they day after BREXIT in 2016 and its been a LONG journey Tal and team have got things figured out.
Arftifillcal intelligence is such a buzz word today and hard to quantify, well here it is right here folks. A digital algorithmic advertising service deliver superior ROI for customers that is hard to match.
Second largest holding behind ACES.V which is a story on its own not selling a share.
Watch those analysts upgrades flow in and the stock price follow...
2.00/share+ by week end?
LONG