[odysee]

Excellent depth and breadth in the questions compiled by @hw_tw and @Logan for the conference call.
My compliments.
The rest of us are spared from exercising our brain cells now.

[admin]

Thanks @hw_tw and @Logan for preparing the questions. I will be sending to IR before Wednesday EOD.

[admin]

I have sent the below set of questions to IR. Thanks again to @hw_tw and Logan.

On Financials and the market
– Any change in the guidance numbers for the next two quarters.

– For the current quarter since we are half way through, what is the run rate you are seeing and if there is any revision

– There is a mention of 250cr CF in Q1FY22. Could you provide revenue and PAT guidance for this quarter too

– Can we get a breakup of growth figures from Brightcom, Compass, Protector and BLocal business

– What were the key drivers of revenue growth, can we attribute this to increased number of impressions or increased cost per impression or Google MCM partnership or something else

– It’s mentioned that we are clocking around 60 billion impressions per month. What’s the growth rate of this number compared to last year. If possible, could you please publish this number along with publishers, agencies count on quarterly basis

– We have seen a dip in AdAuth figures from around 52K publishers to around 47K, thought this has not impacted revenues. Any specific reason for this drop, can we see this increasing in future and most importantly how much we attribute this to BCG’s revenue

– Are we planning to launch BLocal in any other countries

On partnerships
– How much percentage of revenue we are clocking from Google MCM partnership. Do we see more players becoming MCM partners in future and if there is any impact, how are we planning to mitigate this

– Like in the past are we targeting any country specific exclusive partnerships with players like FB, Microsoft or in Audio ad space like with Spotify or other players

On Acquisitions
– Any update on Indian DM company due diligence. What’s the outcome, are we going ahead if so, will it be possible to reveal the name of the company and tentative timeline.

– Any update on growth of this company in terms of employee count

– In general the IT Industry is facing challenges like Attrition (the Great Resignation), increased Salaries, Travel restrictions etc. Are we seeing any similar challenges within BCG or with the target DM company

– Given that audio Adtech is an evolving industry both in terms of technology and market, what kind of acquisition we are targeting at. Will this be a pure product company with smaller team or a service provider or a combination of both

– What would be the size of Audio Adtech companies we are in discussion with both in terms of team size and revenues

– What kind of valuations we are looking at. Given that BCG’s valuations are still low compared to other Adtech companies and given that there will definitely be a difference with the target DM or the Audio Adtech company. Any valuation higher than BCG’s current valuation might have an impact from the market. How do we plan to address this as the growth rates of the target company and the value addition which it brings on table for BCG can’t be quantified.

– Are we looking at multiple acquisitions in Audio Adtech space

– Will Mr. Satish Cheeti be operating this division from India or he will be sitting in the US close to customers.

– What will be the target revenues we can expect from this segment in this FY and for the next FY.

– What will be source of funding for this acquisition and will there be any equity dilution at the subsidiary level or will it be from the cash flows generated internally

– Do you have plans to acquire a CTV ad company?

LOC

– Now that there’s growth in the business without additional funds, do you see the necessity of an LOC?

Nasdaq listing
– Last time you had mentioned that we need to get the right valuations in the Indian market before we look at Nasdaq listing. I understand from fellow knowledgeable investors that we match all the criteria for Nasdaq listing. Do you feel that this is the right time both in terms of timing and given the bucket list of to-dos on our side or we have to wait for it. Any updates on this front.

MSCI Smallcap Index Inclusion
– What will be the effect of this inclusion in terms of fund inflows. Do we expect any MFs entering.

ESOP
– Are there any shares accumulated as of date, is this planned for this or next FY

Other queries

– Given that there are other forms of asset / content monetization models … like subscriptions, NFTs etc; do we have any plans to enter this space or go deep in Adtech space itself

– We are seeing from other listed Adtech company like Affle that there is also a good market scope for Cost Per Customer Acquisition model at least in India. Do we see similar scope in US or any other country and any plans to get into this space either with in-house technology or a new acquisition

– Given that we are strong on SSP side, does it make sense to also enter into DSP side too with in-house product and provide end to end capabilities to customers across

– Do you expect Android to make similar changes to its privacy policy like Apple/iOS did?

– What’s the impact of global supply chain issues on BCG (and it’s subsidiaries)? Does it lead to a cut in ad-budget by advertisers?

– What headwinds do you see for ad-tech companies in the future?

– Annual Report and AGM updates

[hw_tw]

Thanks @admin and @Logan

Hope SKR is going to cover most of these questions and most importantly hoping SKR is going to give some positive news on the acquisition front or other things like he did last time with the guidance numbers.

[admin]

The CEO reiterated that the focus is on growth – ROE and FCF which is what matters most to the shareholders. I remember in one of the conference call, one caller casted doubt that enough is not being done to improve the share performance and suggested few things (like inviting MFs) which did not go down well with CEO and that was the only time I felt CEO to be little annoyed. In hindsight, the evidence of meticulous planning of years is visibly clear, paving the way to improve the shareholders wealth in the most rewarding manner and those who kept faith and patience are reaping all the gains.

Requesting Logan, HW_TW, Odysee and all others to share your thoughts on today’s call.

[odysee]

You’ve nailed it @ Admin.
The focus is clearly Return on Equity and Free Cash Flow.
By re-emphasising on these a couple times, enhancement of shareholder value is very much a priority for Mr Reddy and his core team.
I was particularly impressed by Mr Reddy’s clear minded and precise articulation on queries and matters relating to the proposed acquisition where due diligence is now complete but the next stage is in play, as well as the active search and pursuit of an Audio Ad-tech company/companies in the U.S.
The understanding that the existing and new business opportunities are providing such exciting opportunities for BCG, are a clear indication of phenomenal growth and performance in the foreseeable future.
The strategy developed by the management team and the precise execution thereof in recent quarters, is remarkable and the results are there for all to see, cherish and applaud.
We should never lose sight of the fact the the heavy lifting and incredibly hard work is done by the visionary and indefatigable Mr Reddy , ably supported by his very talented colleagues at all levels of the Organization.
We retail investors are along for the ride-and what a ride it has been.
But then this ride may not have possible for many of us if not for this forum and your bringing on board incredible motivators like @Logan and @hw_tw and others.
The path ahead for BCG has been pretty much laid out by Nr Reddy, and today’s reaffirmation of the revenue and profit guidance provided in August as well as articulation of business plans provide a tremendous sense of confidence to the existing and prospective stakeholders in the company.

[JackSparrow13]

Happy post listening to the Concall. The investor questions were pretty pointed and hard hitting (from Daum resolution, importance of lycos, low dividends, promoter shareholding “falling” over 2 quarters, status on both India & US acquisition, why they were taking “so long” Auditor qualifications over overseas revenue, why no concall notes from 2016, even why preference shares were raised at low price, priority between organic & inorganic growth, further dilution, attrition, impact if Android applies privacy rules like Apple, impact of Googles rules,as well as suggestions like splitting the total sales by different businesses). The management response were pretty realistic, I felt. Corporate world does not run as fast as an investor’s imagination, unfortunately. Need to give management at least 3 years, to achieve the ambitions they are currently articulating. But, atleast Suresh Reddy has clear ambitions of growth, improvement of ROE & FCF. Patience is needed here, in spite of prices wildly rising.

[hw_tw]

Thanks SKR garu for covering most of our questions.

Thanks @Jay69 for sharing the updates.

Sorry @admin, @odysee for delayed response. It generally takes time for me to collect these thoughts. Anyway, I am sharing these thoughts below

– Overall the Organic growth is intact and there are no headwinds or risks coming from MCM partnership, Privacy policy changes or the general attrition in the tech industry.

– With high focus on ROE and FCF, SKR seems to be targeting FIIs / DIIs analyst community. I guess SS factor seems to be working behind the scenes, who else will know better than SS on what markets wants.

– Some tough talk on the dividend. Totally agree that the cash is best utilized for the growth of the company and thus increasing share value. Investors who understand the math will be happy that eventually they are getting multiple times return per share compared to partly dividend. Happy that our thoughts are matching, he took a similar metaphor of what I had shared in TG channel. Will post this separately

– The FCF generated is going to help sustain growth next year too without any external funds. This is unlike previous years where the company had to let go off some opportunities and was desperately in want of cash

– Growth is going to be fuelled further with inorganic portion. Excited about the higher margins of Audio ad space.

– Operational efficiencies, adding new agencies and reducing tax should add to the growth.

– Would be happy to hear the announcements related to the technology additions they are doing to the their product stack

– One caller has asked for a detailed breakdown of the numbers and SKR has agreed to share this from next to next quarter onwards. This is also my request and I would request SKR if possible to please share it as a seperate investor presentation for the current quarter itself. I feel this is very important information from the FII/DII investment point of view especially given that BCG is included in MSCI Smallcap Index and there are high chances of these investors wanting to enter BCG. To my understanding, before they take a Buy call the Analysts of these organisations would need to prepare a detailed report by slicing and dicing these numbers and this detailed breakdown would be helpful for them.

– Some time is spent on questions related to promoter’s stake, pledge percentage, con call recordings etc;. This might look like basic questions for some old investors in stock market or old BCG investors, anyway it is good that people have heard it from SKR himself and would feel confident and build conviction.

Coming on to some of the important questions he has addressed and my view points about these answers

Guidance Figures
Numbers intact. As we have seen in the current quarter they were able to match both topline and bottom line. This indicates that the company is into long term contracts and there is a high percentage of certainity in their CPM model unlike the performance driven business models like CPCA where there is lot of uncertainty both on no.of ads to run to acquire a customer and no. of customers they will be acquiring eventually and given that the overall campaign budgets are fixed and bit the other way round.

Also the new filtering technology seems to giving more clarity on their final real traffic excluding bot generated spurious traffic and thus more clarity and confidence on guidance numbers

AdAuth
Agree that this is not the right metric to look at (as @Logan keeps stressing on this point) though it gives some what high picture. The real metric is no. of ads which each of these publisher is showing.

Happy about around 100% growth in ad impressions to 60 to 70 billion compared to 30-40 billion range. Request SKR to continue publishing these metrics on quarterly basis.

One more point, I am not sure how much percentage of this 70 billion traffic passes through BCG’s products (Brightcom, Compass etc;). Handling this much of traffic is not a small feat and shows the strength of BCG’s product Architecture / tech stack. We all know an ad is served within few milliseconds when a web page is loaded. This only shows how strong their tech team is behind the scenes and how hard they are working. I am sure this info would give confidence to both the tech investors as well as to the analysts. Request SKR to please include this info in whatever way possible in future presentations.

Google MCM partnership
– Nice to know that these numbers are not yet come in. This also indicates that they are not heavily dependent on this partnership. Looks like they are migrating existing customers to this model and new business arriving from this partnership might not be that significant as popularly believed by most of us and and market participants. I felt this partnership though good at this stage might turn risky if tomorrow Google changes their business model or if new players become MCM partners. Happy to know that this doesn’t seem to be the case.

Leadership team
It is getting expanded with more people joining the foreign team.

As discussed before, with increasing size BCG would be in need of more hands to run the show effectively. Nice to see this happening with more people getting added in other geographies to along with PA and SC.

FCF
He has mentioned in many calls before that we will be able to generate FCF once we cross certain numbers. I was little bit concerned that this goal post is getting shifted and was sceptical that this might still not happen when we actually cross the threshold figure or thought this number might not be significant enough. With 250cr. Minimum CF each quarter all my concerns were put to rest permanently. The should help the company to focus on both organic and inorganic growth without worrying about the funds

Acquisition of DM company
– Good to know that DD is complete and it is moving forward.

SPA stage also means most likely there is a broad agreement on the final purchase price and it is the nuances of payment terms and conditions and other things, which needs to be finalized. Hoping that the SPA is finalized soon and agreed by both the parties.

Having gone through SPA process myself, I can tell you that this step is very important and sometimes takes time. SPA has two parts to it in terms of acceptance. The terms and conditions has to be agreed by the stakeholders (Founders, Promoters, Other Shareholders) in parallel to the Legal team. Generally the SPA doc goes into multiple versions as the discussions progress.

It is not clear at this stage whether it is in the hands of Stakeholders or Legal team though SKR kind of mentioned that it is in the hands of legal team. In case of later we can assume that the the deal is through and it is just a matter of time for the legal team to agree upon. In case of former, there are still chances of deal falling apart or getting further delayed.

SKR was not as excited as he was last time talking about the growth of this DM company, but this is totally understandable given the current stage of the deal. Also given the high emphasis on ROE, there could be chances that this factor might be playing on back of SKRs mind. Hoping the deal get through soon and excited to see these two companies and the team work together for a larger goal.

We also need to understand that the deal can happen only in the best interest of both the parties. If something has to be negotiated they better do it now and not after acquisition. Post acquisition nobody would be happy sitting across table discussing SPA clauses instead of business. As an investor we should support whichever way it goes through and doesn’t get emotionally attached to it.

Audio Ad tech acquisition
With SC focusing totally on this, expecting to hear an LoI news probably this quarter or max by next quarter. SKR is clear to get an early mover advantage, but with evolving technology and business landscape they would be extra careful in shortlisting a potential company. They don’t want to end up acquiring some company whose technology can’t be adopted to new challenges in the market. The tech due diligence will also be a critical factor in this. Both SC and PA will be looking at it closely so that they don’t put a wrong step in an hurry.

Lycos / Daum
The priority of this item depends on how much Lycos is going to generate now, it’s profit percentage vs how much they have to pay. The equation still seems to be tilted towards paying higher price for Lycos. I feel going slow is a better decision, but at some point they will definitely close it some way or the other and stay clean on legal matters.

Overall, BCG has just started its journey of explosive business growth, the growth is going to be continued in coming quarters and years with the drivers coming in the form of FCF, inorganic growth, technology additions and operational efficiencies.

Overall, if guidance was a big take away in last call, the assurance of reaching those high guidance targets and the assurance of a large FCF generation is a big take away in this call. The extra emphasis on ROE is a icing on the cake for the long term investors.

[hw_tw]

My views on dividend policy posted in BCG TG channel…the example of ITC or any company saturated in terms of technology and to certain extent consumption too is in similar line of cement company as mentioned by SKR…sharing it over here if someone is still not in that group

In my view it is fine when a company’s business is kind of saturated and the company has no means to utilise their profits and expand their business. They can distribute dividends and keep investors hooked on to their company shares.

For example, can ITC generate more business by setting up another Cigarette or an Atta factory…the number of people consuming their products are going to remain same and it is not going to go up just because they have set up a new factory … In this case what will ITC do with their profits … They give dividends to investors so that investors are happy holding the shares even though there is not much growth in the business

Please note ITC is just a hypothetical example here, I have never tracked this stock and don’t know the growth drivers for this business

BCG is in Adtech industry with operations across the world. As you can see this industry is huge and is growing at a rapid pace with increased digitisation across the world. There is lot of business out there up for grabs and and every rupee is important for BCG to invest it back in the business which is ultimately going to generate 10x or 20x returns for the investors
——–

Let’s do a rough math on dividend with some assumptions and rounded numbers for simplicity sake

Let’s say BCG is going to make 1000cr Annual profits and let’s assume it is going to distribute 20% of the profits which is 200cr … With around 100cr shares this will come to 2 rupees per share … At CMP of 94 this is around 2% of your investment

Instead investing back the same 200cr in the growth they will be able to generate more business.

Let’s assume they are going to invest back this 200cr in the current business itself …with around 120 days of receivables cycle, in an year they will be rotate this amount 4 times generating 800cr of business in total.

With net profit margin of 18%, they will be able to get 144cr profit…this is 1.44 EPS and with a conservative PE of 20 this would translate to 29rs addition to per share price

Decide now whether we want 2rs dividend or a 29rs growth in share price

[odysee]

Very well summarised @hw_tw, and your viewpoint on multiple important issues are much appreciated.
I did note, though, that the acquisition of the DM company cannot be considered a done deal even if the due diligence has been completed. You have rightly pointed out the potential sticking points that may arise, and I would add that the consideration to be paid ( possibly cash plus equity as indicated by SKR in the earlier conference call) could be tricky with the stock price having moved up so significantly from the time the LOI was signed. With the added emphasis on ROE by the management as stressed upon yesterday, I just hope a mutually satisfactory deal can be structured.
Which leads me to a question I was unable to ask yesterday as I didn’t get the opportunity ( luck of the draw or the * and 1 not being punched smartly enough)- does BCG currently have the resources in manpower and otherwise to sustain very high growth rates, quarter on quarter, without an additional back-end resource being acquired expeditiously? I would imagine that the proposed acquisition presently in very advanced stages was to play an important role in buttressing the back-end as well as the expanded marketing thrust that will play a significant role in the plans as articulated by Mr Reddy.
Would appreciate your views as well as those of @Logans and other esteemed fellow forum members.

[hw_tw]

@odysee – Regarding your question

Does BCG currently have the resources in manpower and otherwise to sustain very high growth rates, quarter on quarter, without an additional back-end resource being acquired expeditiously

We can infer this from the following statements from SKR
1/ Growth projections are without considering any acquisitions

2/ We are on target as per the projected numbers

3/ Company is very strong on the SSP (Sell Side Platform) & the company’s core strength globally is on the demand side where it works with Ad agencies & direct advertisers the company tries to grow both together as it aspires to be a full solutions company.

4/ Regarding Indian acquisition the due diligence is complete (both legal & financial) the acquired company is doing extremely well, now all the legal papers, share purchase agreement (SPA) will be done as its a 2 stage process first is signing & then closing the deal in about 2 months in order to ensure a smooth transition.

My thoughts basis statements 1 and 2

– The current quarter will be the biggest one in the history of BCG and it’s going to be the most hectic one. In case of any need of additional bandwidth they would have already added resources to handle it considering that they are well aware of these numbers upfront and the corresponding workload during this period.

– The acquisition even if it had happened by now, it would have still taken time for the financial closure and movement of resources. Plus, it would take some time for the team to settle down and work in coordination with BCG’s team. So in all probability, they wouldn’t have considered these resources for their current business

– The higher numbers they are generating now is because of the increased no. of ads. I don’t think this would require any additional bandwidth as these are programmatic ads which are set up once for each campaign.

Having said this, this again leads to the question. What kind of business which BCG is looking to expand and why they need this additional workforce?

BCG’s DM related work as well as the team behind it seems to be small. If we look at DM related activities like SEO, SEM, Email marketing etc; (checkout https://www.uplers.com/ as a reference for a typical DM related work), all these activities are coming from Brands (Demand side business) and not from Publishers side (Supply side business). Out of these the Programmatic ads section is the one where the DM agencies would work with companies like BCG to target their ads.

SKR seems to be looking to expand this portion of the business. This is a bit low margin business and would require lot of people and an established process + tools to scale this and that’s where he would have seen synergy with the target DM company.

Basis the above statements 3 and 4 from SKR, I feel there is no change in strategy and this seems to be progressing as per the plan.

Hoping it is just a operational delay and hoping the negotiations go smooth and they quickly sort out things and we get to hear good news as soon as possible.

[odysee]

Thank you very much @hw_tw. Makes logical sense.
My reference to the ‘quarter on quarter’ expected phenomenal growth was in relation to a longer term perspective, bearing in mind the comments made by Mr Reddy on the expectation of a Multi fold increase in the eps by March 2023, despite a substantial increase in the paid up capital of the company.
I understand that the immediate next 2 quarters are pretty much factored in with the existing resources , and no acquisition related positives have been considered in the projections for March 2022 as well as possibly Quarter 1 of 22-23.
Nevertheless, the observations made by you are very valid and I’m grateful for your considered response.

[hw_tw]

@admin, @Logan – my questions for this quarter … please feel free to remove the ones which we already know answers for or the ones which are not relevant and wasting everyones time

@all – please feel free to add your questions to this list

Congratulations and Thanks SKR gaaru and the team for a spectacular results exceeding guidance for the second time in a row and also rewarding investors with bonus

The growth from 60 to 70 billion ad impressions to 90 billion impressions per month really shows how scalable is our product, its technology and team working behind the scenes are … Kudos to everyone

Congratulations on getting included in S&P BSE 500, S&P BSE 250 Smallcap and S&P BSE 400 Mid-Smallcap Indexes in this quarter … expecting that BCG will be included in more BSE, NSE Indexes in coming quarters

Here is the list of my questions

Customers
– What’s the total number of CTV publishers we have and are there any new additions in this quarter

– What is the typical contract period we have with Publishers in general. How many or how much percentage of these publishers have contracts signed up for next year or two

43 new publishers added in this quarter
– What’s the size of these publishers in terms of potential Impressions or page views per month …. do they fall under Top 10 or 20 or 50% of your existing publishers

– The percentage addition seems to be small in comparison to 47k publishers we have … Is this a strategic thing or a cyclical one and can we expect higher percentage in coming quarters supported by MediaMint backend team

Brightcom Player
– Could you please share some details on the number of publishers using the interactive ads feature and the volume it is handling as of now

– In terms of revenue margins, how much percentage it costs higher in comparison to normal video ads

– Are there any competitors as of now … any new features planned which would be advantageous to us from competition

– I guess there is no dedicated page for this similar to BLocal in Brightcom website … request the team to please add this

Cash flows
– The FCF is projected equal at 250 and 250 crores for next two quarters, whereas in last two quarters our revenues and PAT has increased … What will be the percentage of Profit to FCF ratio we can expect in coming quarters

Financials
– You were planning to try out some new accounting / reporting policies inline with global large companies … Could you provide updates on this front

– The EBITDA margin of BCG is historically healthy and high … around 31 % in general and around 28% in Dec quarter … In future too can we expect these margins remain at same levels or improving further

Acquisitions
– Will MediaMint continue to operate as a separate subsidiary entity of BCG or will it be merged with BCG India unit

– Are we planning for acquisition of single or multiple Audio AdTech companies … In case of multiple ones what is the strategy behind it … any updates on the talks, can we expect LOI to be signed in next two weeks or so

Future
– AdTech industry is projected to grow at > 20% CAGR for next 5 years … can we expect BCG growing above these numbers. Any ballpark figures for next year, say above 20, 30 or 50% of topline growth excluding acquisitions

– Do we see any impacts post pandemic or from fed rate hikes and spending … how are we planning to mitigate this and keep our growth intact

Strategy
– Any updates on partnerships with Amazon, Meta and LinkedIn

– In terms of Metaverse, I guess MediaMint is already working on AR/VR related projects for its clients … could you share more details on this on the amount of work being done currently … and future plans in terms of gearing up resources, building tech PoCs, partnerships etc;

– Gaming companies like Nazara has entered Adtech space, do we see any possibility of BCG entering into gaming space either as an AdTech player or as a gaming publisher under Lycos brand

– Given that we will be expecting a good FCF in next quarters too … any plans to utilise these funds beyond the planned Audio AdTech acquisitions … like setting up a Start-up fund say 100 to 200 Cr for Series A, B, C rounds of Investment in early stage startups either AdTech or DM or any other platform based companies … Similar to Naukri’s investments in Zomato, Policy Bazaar etc;

[NIRAJ1]

NEW QUESTATION
1) Are you hiring E&Y for BCG with all subsidies as per norms of large cap?
2) when are are you planning for 150 million loan?

[Logan]

I think @hw_tw has covered all the topics very well so I’ll skip similar queries.

To the CEO

Congratulations on a great quarter. This was the company’s best quarter ever and we look forward to seeing this record broken in the coming quarters. Thank you for taking decisions and initiatives that have benefited all the stakeholders. Please convey our thanks to the management team, directors, employees of the company.

Queries

1) How important is first party cookies now that third party cookies are being phased out? Is this development good for BCG? Do you expect SSP business of BCG to benefit from this change?

2) Do you have plans to revive the company’s IoT business?
As you predicted many years ago, augmented reality and recently metaverse are gaining more popularity which should benefit IoT companies.

3) Do you expect streaming giants like Netflix, Disney+ and Amazon Prime to start advertisements on their platforms? Since they can’t expect their subscriptions to keep increasing forever, they’ll either have to increase the prices or start putting ads on their platform to make more revenue.

4) Can you appoint one auditor to audit most of your businesses. The comments from the current auditor saying they haven’t audited the subsidiaries individually causes some confusion to less informed people. We understand the process and we don’t have any complaints but it’s just a suggestion.

5) When do you expect the acquisition process of MediaMint to be completed? Will it be done before this financial year (March end) or will it take more time?

6) How is Indian ad-tech market different from Western markets.

7) If time permits can you explain the benefits of augmented reality and metaverse for ad-tech companies like BCG.

8) Update on AI&ML business. Has there been an increase in this business like the ad-tech business?

To the CFO,

1) There are some old tax disputes mentioned in the annual report. Can you please provide some information on that.

[vsk]

NEW QUESTION:
1. In one of the previous calls Mr. SKR sir mentioned about a stake in edgecase.ai(https://www.edgecase.ai/) and at the right time also plan to increase the stake. How are the things progressing in edgecase.ai.

Also medcase.health(https://www.medcase.health/about) is a transformed or application version of edgecase as we see KyleGiddens the CEO of edgecase also our Brad Cohen(President and Chief Strategic Officer of Brightcom) is the Chairman of Medcasehealth(https://www.linkedin.com/in/bradcohen/)

Is there any stake or relation of BCG with these two companies edgecase and medcase health.
If yes, can you please elaborate a bit with whatever you can ?

2. What is the progress on initiatives from Mr. Prasad Pisipati initiatives? There was some mention of IoT related initiatives happening any updates that you can share on that if you can sir?

[admin]

Thank you everyone for sharing your queries, I have sent to IR. Special thanks to @hw_tw and as always to @Logan sir.

Congratulations on a great quarter, exceeding guidance for the second time in a row and also rewarding investors with bonus. This was the company’s best quarter ever and we look forward to seeing this record broken in the coming quarters. Thank you for taking decisions and initiatives that have benefited all the stakeholders. Please convey our thanks to the management team, directors, and employees of the company.

Customers

– What’s the total number of CTV publishers we have and are there any new additions in this quarter

– What is the typical contract period we have with Publishers in general? How many or how much percentage of these publishers have contracts signed up for next year or two?

43 new publishers added in this quarter
– What’s the size of these publishers in terms of potential Impressions or page views per month. Do they fall under Top 10 or 20 or 50% of your existing publishers?

– The percentage addition seems to be small in comparison to the 47k publishers we have. Is this a strategic thing or a cyclical one and can we expect a higher percentage in coming quarters supported by the MediaMint backend team.

Brightcom Player
– Could you please share some details on the number of publishers using the interactive ads feature and the volume it is handling as of now

– In terms of revenue margins, how much percentage it costs higher in comparison to normal video ads

– Are there any competitors as of now … any new features planned which would be advantageous to us from competition?

– I guess there is no dedicated page for this similar to BLocal in Brightcom website … request the team to please add this

Cash flows
– The FCF is projected equal at 250 and 250 crores for the next two quarters, whereas in the last two quarters our revenues and PAT have increased … What will be the percentage of Profit to FCF ratio we can expect in coming quarters

Financials
– You were planning to try out some new accounting / reporting policies inline with large global companies … Could you provide updates on this front

– Can you appoint one auditor to audit most of your businesses? The comments from the current auditor saying they haven’t audited the subsidiaries individually causes some confusion to less informed people. We understand the process and we don’t have any complaints but it’s just a suggestion.

– The EBITDA margin of BCG is historically healthy and high … around 31 % in general and around 28% in the Dec quarter … In future too can we expect these margins remain at same levels or improving further

Acquisitions
– When do you expect the acquisition process of MediaMint to be completed? Will it be done before this financial year (March end) or will it take more time?

– Will MediaMint continue to operate as a separate subsidiary entity of BCG or will it be merged with BCG India unit

– Are we planning for acquisition of single or multiple Audio AdTech companies … In case of multiple ones what is the strategy behind it … any updates on the talks, can we expect LOI to be signed in next two weeks or so

Future
– AdTech industry is projected to grow at > 20% CAGR for next 5 years … Can we expect BCG to grow above these numbers. Any ballpark figures for next year, say above 20, 30 or 50% of topline growth excluding acquisitions

– Do we see any impacts post pandemic or from fed rate hikes and spending … How are we planning to mitigate this and keep our growth intact?

Strategy

– Update on AI&ML business. Has there been an increase in this business like the ad-tech business?

– Do you have plans to revive the company’s IoT business?
As you predicted many years ago, augmented reality and recently metaverse are gaining more popularity which should benefit IoT companies

– Any updates on partnerships with Amazon, Meta and LinkedIn

– In terms of Metaverse, I guess MediaMint is already working on AR/VR related projects for its clients … could you share more details on this on the amount of work being done currently … and future plans in terms of gearing up resources, building tech PoCs, partnerships etc;

– If time permits, can you explain the benefits of augmented reality and metaverse for ad-tech companies like BCG.

– Gaming companies like Nazara has entered Adtech space, do we see any possibility of BCG entering into gaming space either as an AdTech player or as a gaming publisher under Lycos brand

– Given that we will be expecting a good FCF in next quarters too … any plans to utilize these funds beyond the planned Audio AdTech acquisitions … like setting up a Start-up fund say 100 to 200 Cr for Series A, B, C rounds of Investment in early stage startups either AdTech or DM or any other platform based companies … Similar to Naukri’s investments in Zomato, Policy Bazaar etc;

Others queries

1) How important is first party cookies now that third party cookies are being phased out? Is this development good for BCG? Do you expect the SSP business of BCG to benefit from this change?

2) Do you expect streaming giants like Netflix, Disney+ and Amazon Prime to start advertisements on their platforms? Since they can’t expect their subscriptions to keep increasing forever, they’ll either have to increase the prices or start putting ads on their platform to make more revenue.

3) How is the Indian ad-tech market different from Western markets?

4) To the CFO – There are some old tax disputes mentioned in the annual report. Can you please provide some information on that.

5. In one of the previous calls Mr. SKR garu mentioned a stake in edgecase.ai and at the right time also planned to increase the stake. How are things progressing in edgecase.ai.
Also medcase.health(https://www.medcase.health/about) is a transformed or application version of edgecase as we see KyleGiddens the CEO of edgecase also our Brad Cohen(President and Chief Strategic Officer of Brightcom) is the Chairman of Medcasehealth. Is there any stake or relation of BCG with these two companies edgecase and medcase health. If yes, can you please elaborate a bit with whatever you can?

[m4max1979]

Could someone please summarize all the points discussed at the conference call. I missed it this time. Specially the details about acquisition of Mediamint.

[hw_tw]

BCG’s Q3 concall recording

[m4max1979]

Thanks a lot mate.

[Author]

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