BBTV Holdings 7 Unsecured Convertible Debentures T.BBTV.DB

Lots to be encouraged about - notes from the conference call

[TakeHighRoad]

I noticed a couple more typos so I cleaned up the notes again and added a couple more notes I had taken before.  I know CanadianKia didn't like the results but he has been pretty consistently negative and shorting so I guess thats not surprising.  I thought management discussed a lot on the call to be encouraged about.  In any event, I hope these notes are helpful.

BBTV is a Creator monetization company with ~5000 content creators on the platform.  They help content creators become more successful. 
Reach: 600M unique monthly viewers (generating ~35B monthly views) reaching over 50% of US adults (ages 18-34)

Full year results:
- Total Revenue for the full year was $476M, Adjusted gross profit for the year was $38.1 or roughly 8% (slightly higher than last year which was more of a locked down year and would have had artificially higher views)
- Plus Solutions revenue increased by 21% to $38.3M for the year

Q4 related:
- Views declined on a YoY basis by 6% (comparison was against the pandemic fuelled high of last year)
21% of views came from YouTube shorts which is currently not monetized, once monetized this could represent ~$90M in incremental base annual revenue alone.
- RPM for monetized views increased 17% (if you don’t count the views from shorts which will get monetized in a few quarters)
- Plus revenue for the quarter increased 11% YoY, sounded like this would have been higher but some of the revenue got pushed into Q1 2022, so we’ll likely see a strong start to 2022.  They said that Q1 Plus Solutions Revenue is on its way to be 60% higher YoY.

Other tidbits and highlights:
- Big partnership announcement today with ConsenSys (world leading developers of Etherum software solutions) to develop NFT solutions for BBTV’s thousands of creators (seems like a key new Plus solution).  They believe they can transition viewers from web2 to web3 given their strong creator network.
Seems the demise of tracking cookies in the adtech industry is a big opportunity for BBTV because of first party data they have and they see this as an opportunity to capture more brands’ budgets as those brands look for better targeting opportunities.
- Talked about renewals deals with the NBA, Viacom and even a deal with Shopify
- They have the scale and are now focused achieving more premium monetization especially given the big recent talent acquisitions they have made.  For example, an analyst asked about Eric Lochner who was recently appointed to the BBTV management team as SVP Creator Partnerships (previously with Softbank backed Jellysmack which has achieved a recent valuation of $1.7B with a fraction of BBTV’s views).  It sounded like he would be looking to expand monetization activities beyond YouTube amongst other things.
- CEO and CFO sounded pretty upbeat about the future and remarked about share price being low

Personally speaking, I was encouraged by how much they have going on and I like the trend on Plus revenues which seem to be trending well.

[TakeaBreath]

Thank you, HighRoad. These notes are very helpful. 

[CanadianKia]

I have a simple question for you. when do you think they will be profitable?  Q1? Q4? Next year? I actually havent shorted the stock (I am smacking my head in the wall for that). I should have shorted when it was 14. i would have made very good money.  I have actually been sitting on the sidelines trying to understand their business model and how it can or can't be replicated