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.

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illumin Holdings Inc > OPEN TO CRITICISMS

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Post by Blitzkriegon Jan 23, 2022 12:52pm

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Post# 34349999

OPEN TO CRITICISMS

Acuity Ads Holdings (AT.TO)--3-month target=$5-7, 12-month target=$10-20

PROS

BAY STREET FINANCED 12% outstanding shares at average cost of US$9, currently trading at US$2.70, discount of 70%

Company is trading at 6.6x TTM EBITDA→ $200mm market cap less $100 million on balance sheet, average EBITDA of $15-18mm/year

CONS

Q3 has only 6% q/q growth in revenues, perhaps customers are scaling back marketing budgets and acuity can no longer grow revenues at historical CAGR of 30%
Market appears to be losing confidence in management’s ability to execute ILLUMIN growth

CATALYSTS

Company raised $100mm for acquisitions, what if they used it to announce share buyback→ can buy out half of all OUTSTANDING SHARES!
Perhaps Acuity deferred Q3 revenues to Q4 as a strategy to show growth returning after COVID. Q4/2020 revenues of $35mm, if Acuity does $40-50mm, Acuity will return to 30% annual CAGR.
Announcing a new acquisition. AD-TECH comps went up HUGE during spring/summer of 2021, now that they have returned to reality, a deal is more likely.
WORST CASE SCENARIO: let’s say a company that historically grew revenue at 30%, can no longer do that (i.e. recession in 2022), assuming the same free cash flows to equity of $15mm in 2021 for 2022 and beyond, that is a payback period of 6.6 years