Q: Hi 5i, surprised no one has inquired about their quarterly results last week, so here goes. Pls provide comments and any information gleaned from their forward guidance. Also, do you feel this Dutch auction is providing a temporary floor to price, and once gone the downward action will resume? Thx.
5i Research Answer:
The auction is providing a floor, but we would not expect a decline when it is completed just because it is done. Price will still depend on fundamentals and the market and sentiment. Q2 EPS of a loss of 10c missed estimates of +2c; revenue of $33.2M beat estimates of $31.96M. Sales rose 17%, with 'self serve' revenue up 145%. Margins did slip to 47.8% from 51.9% as self-serve revenue is lower margin. The outlook calls for decent revenue growth, but analysts still expect a loss again in 2024. We would consider the results so-so, and are still looking for better bottom-line results. Recent ad companies have reported decent outlooks, but much still depends on the economy here.