illumin Holdings Inc T.ILLM

Alternate Symbol(s): ILLMF

illumin Holdings Inc. provides a journey advertising platform, which enables marketers to reach consumers at every stage of their journey by leveraging advanced machine learning algorithms and real-time data analytics. It enables advertisers to connect intelligently with audiences across online display, video, social and mobile campaigns. Its Programmatic Marketing Platform, powered by machine learning technology, is at the core of its business, accompanied by patented solutions for analytics-led video and mobile targeting that leverages data. It enables marketers by offering near real-time reporting and analytics, bringing accountability to programmatic advertising to deliver business results and help solve the challenges that digital advertisers face. Its illumin software offers advertising automation technology that offers planning, media buying and omnichannel intelligence from a single platform.

TSX:ILLM - Post by User

illumin Holdings Inc > TD

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Oct 18, 2021 8:23am

349 Views

Post# 34017059

TD

Thanks Arbustus. TD maintain their $18.50 target. GLTA

AcuityAds Holdings Inc.

(AT-T) C$8.49

We Expect a Surge in Q4/21 Event

Q3/21 results are to be released on November 3, with a call at 8:30 a.m. (Dial-in Number: (+1) 778 907 2071).

Impact: NEUTRAL

Our unchanged Q3/21 estimates are not an event that we can call positive for AT shares, but we believe that the stock could gain meaningful positive momentum between now and year-end, as investors get more visibility into revenue growth in Q4/21. Our estimates for Q4/21 also remain unchanged, but we do not believe that the market is pricing-in our prediction of a surge in revenue to $46.5 million in Q4/21 (up 33% y/y) versus only $30.9 million in Q3/21 (so sequential growth of 50% in Q4/21 versus Q3/21). We see good odds that the Q3/21 call on November 3 will be a catalyst for improved visibility into this illumin-driven revenue growth in Q4/21.

TD Investment Conclusion

We strongly reiterate our BUY rating due to three key factors:

Material revenue growth in Q4/21 is expected to be driven primarily by the differentiated illumin platform. Management has consistently stated since mid-2020 (even before the illumin launch in October 2020) that it would probably take a year for meaningful illumin revenue to materialize, due to a long education and sales cycle. A lot of large advertisers have been signing up and trialling illumin in the past few quarters (Exhibit 2), which gives us confidence that Acuity will deliver on this revenue promise as we lap one year since launch.
AT has been very weak for the past few months (down 70% since the beginning of March), so that it is now trading at a bigger discount than normal to key comparable TTD on EV/revenue (Exhibit 3). The stock is also arguably inexpensive on an absolute basis at only 12.8x 2022E EV/EBITDA (in other words, approximately half of what the peak EV/revenue multiple was in the past year).
Based on the performance of AT shares in 2020, we appear to be entering the strongest seasonal period of the year for the stock (Exhibit 4).