Investment Q&A

EPS of ($0.16) missed estimates of ($0.158) and revenues of $19.52M beat estimates of $19.09M. The market was not pleased with these results, as it has declined significantly over the past few months. Sales declined 8% in the past year, mostly due to weaker performance in programmatic video ads, and its margins weakened significantly due to higher compensation and consulting costs. Operationally, things seemed like they were beginning to improve over the past couple of years, however, this quarter marks a big setback and it trades at less than book value now. We do not find these results to be encouraging, but it does generate positive free cash flow, and if management can pivot its strategy, it could position itself better coming out of this. We would be comfortable selling for a stronger name, like RDDT, BRAG, WILD.