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Thanks @hw_tw and @Logan. Have mailed the queries to IR.
Congrats on a great year. We hope to see similar growth rates in the coming quarters.
1) Update on forensic audit initiated by SEBI.
2) In one of the articles in The Morning Context, it is mentioned that the audit was initiated because of lack of disclosure by the company on impairment of assets. You did disclose about it to the shareholders through the exchanges but the same details were not reported in the annual report. Was this the reason for SEBI to initiate the audit?
3) Did the promoter group (which includes the CEO) sell their stakes in the company? If so then why didn’t they (you) disclose it to the shareholders? SEBI can take further actions against the company/promoters because of this and will have a negative consequence later. This will impact all the stakeholders (management, shareholders, promoters etc).
4) Why was there a delay in crediting bonus shares? This time crediting of bonus shares took more than 2 months but last time there was no delay and you credited the shares within time. Was the delay because of the absence of company secretary who’d have handled these tasks properly?
5) Why is the company secretary position vacant since many months? Why didn’t you appoint anyone till now?
6) The same with the position of CFO, you knew that Mr.YSR would retire in March but still you haven’t appointed anyone to that position yet. You said that you have shortlisted a few candidates for the position and also said that the position would be filled in April, now it is June and still the position is vacant. What is the reason for this delay?
7) All the good work done by the company/management all these years will be forgotten because of a few actions like promoters selling their stakes without informing the market and also if the communication with shareholders/market is not transparent.
Regarding communication, we feel that the company does not take shareholders seriously and you provide details only when you feel like doing so. One example is delay in crediting bonus shares and not updating the shareholders about it even after many days. You decided to update only when there was pressure from the media. We have to wait till the conference call to get clarity and all our mails and calls will not be answered by your IR department.
8) We request you to take the initiative to talk to more analysts and the media. Since the company is not covered by many analysts and since it also doesn’t have a proper peer trading in our markets, people assume many things wrongly. For example, in a recent article in the Economic Times (ET Prime) they have written about receivables, loans and advances and that the revenues seem inflated etc without talking to you and getting any clarification from you. They have compared BCG with random companies which is very inaccurate. These can be solved to an extent if you give more interviews and talk to more analysts and institutions.
9) We have requested you many times to provide complete details of a few items on the balance sheet in the annual report but you haven’t taken our request seriously. You have explained in conference calls about those items but still people will have doubts because most of them will read annual reports and only a few will attend conference calls. How will analysts and new investors know what those items are if they’re not mentioned in the annual report? Giving information on those items in investor presentation also won’t matter much because people will always prefer to have those details in the annual reports (items like loans and advances, other current assets, other receivables, other liabilities etc)
10) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?
11) In the last conference call you said that there’ll be a change in the accounting policy of the company and that we’d get an update in the month of March about it but we still haven’t got any update yet.
12) Can you share annual reports of the company’s subsidiaries? Since BCG is a mid/large cap now, people will expect more from you and uploading annual reports of subsidiaries will bring more transparency.
13) When will the acquisition of MediaMint be completed?
14) We see reports of other ad-tech companies saying that inflation, supply chain issues, Ukraine War are affecting their businesses. How do these impact BCG’s business? Will it lead to a cut in ad spend by most of the advertisers?
15) Since Netflix has announced that it would start an ad based plan in the near future, what is the impact of that on BCG and MediaMint?
16) Can you appoint Mr.Arjun Malhotra (who is on an advisory role) as a board member?
17) Update on Lycos-Daum issue. When do you plan to close this? It would be better for all the stakeholders if this long pending issue is cleared. It’ll bring more credibility to the company.
18) The money raised from issuing preferential shares for the acquisition of MediaMint is with a subsidiary of BCG. What is the reason for this? Shouldn’t it be with the parent company?
19) Regarding acquisition of Audio Ad company, what payment options are you considering? Will you again do a preferential offer or do you have plans to raise any debt?
20) Given the valuation of AdTech companies across the world has come down by 40 to 60%, will there be any change in the target Audio AdTech valuation
Receivables were 2095Cr in Q3 which is reduced to 1881Cr in Q4 … Considering most of the receivables were from Q3 and were expected to be collected in Q4 this reduction is small … do we expect this figure to remain same or further reduce in this quarter and if so to what percentage
21) Could you share Receivables Ageing sheet across your subsidiaries similar to the one shared post last year’s Q2 numbers
In case guidance numbers for this year is kept on hold request SKR to please answer the following questions so that the investors get some idea
22) Given that we had already completed 2 months in this quarter could you share a ball park estimate for this quarter
23) You had mentioned that “Agencies are projecting 68% average growth in 2022 vs 54% growth in 2021” … Can we expect BCG to do better than this growth rate or somewhere around that rate
24) What’s the growth rate we are targeting for the ROE and FCF numbers
Hi @anbuviji – Welcome to the forum. I too noticed that a forum member has removed some of his posts for some reason. Subsequently there was a glitch to access this thread directly from homepage which is resolved now. Everyone can now start posting. Please feel to discuss freely, there is absolutely no restrain.
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.
– 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.
– 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
– 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
– 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
– 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
– 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?
– 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;
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?
@Logan – I have thanked you many times, but want to thank you once again. We all are lucky to celebrate each of these milestones only because of your knowledge sharing which reinforced the shape of things to come.
I have been reading lots of articles about personal finance since more than 15 years, stories of people who invested in Infy, Wipro early. I always had this feeling that if I could get a chance to come across such a scrip in my life. Glad that we all have discovered BCG at an early stage and this Indian company is simply admirable.
Thanks @hw_tw for a neat summary.
@explorer – that was brilliant exploration.
Congratulations to all the investors. Feels really great to see all the events unfolding as envisaged. Thanks to management for walking the talk. Will bring lot of credibility. With the combined workforce (co-founder, their management and employees) we will have more brilliant brains working on a mission to aim bigger goals in the Ad-Tech space.
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.
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
– 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
– 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?
– Now that there’s growth in the business without additional funds, do you see the necessity of an LOC?
– 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.
– Are there any shares accumulated as of date, is this planned for this or next FY
– 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
– 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
@Brightspot – Sure, you may start a new topic for Suzlon in the Hidden Gems section of this website – https://brightcominvestors.com/hidden-gems/3+
Thanks @Logan – Your research and thesis have been 100% immaculate. We have been so lucky to get a mentor like you disseminating valuable information at an early stage. Some of your writings in this subject will continue to help as a reference of study for all the new investors/analysts wanting to understand the Ad-Tech space.
Some interesting facts: Brightcom Group ranks 13th in the list of highest PAT (TTM) among 208 IT-Software companies as per https://t.co/GP6M7WjTaa. Had there been an index for Ad-Tech sector, it would rule the charts.#AdTech #NewAgeCompany pic.twitter.com/JjqDKjpons
— Brightcom Investors Forum (@BrightcomInvest) September 24, 2021
@Logan – The third point which you stated “3) Company has changed its name few times so it must be a fake company”, was the reason given by the moderator of Valuepickr forum to lock the BCG thread.
I was the reason why they locked the BCG thread as last year I was posting about important events in Valuepickr BCG thread as well so that more investors benefit out of it. They summoned me saying I am biased with positive side only, and asked for my identity proofs and the reason why I should not be banned. I provided all necessary evidences, and they left me saying I should not be posting biased posts. The same day they blocked the thread as well with the same reason. That incident/moment was my lowest point in my investing journey with BCG as it questioned my abilities. That the founders of Valuepickr forum are not thinking well about the company, but I stood my ground and continued here.
I am waiting for the day when they are forced to reopen the thread again.
If the projections work out as conceived, we will be heading to have a bright time. Management would have considered whether they want to hold greater stake in a smaller company or do they want to grow the company bigger (especially at a time when growth opportunities in this industry is knocking) though at the cost of little dilution. The later option is always sensible and I am sure the maths is done right.
@conservative_indian sir has started telegram channel from today. Please see his below message.
Moneycontrol is not allowing my ID to publish any post. Even simple one line post without any weblink is getting removed immediately after posting. Any one can search Value2Wealth or conservativeindian as key words in telegram to search. We can share to reconnect. Thank you.
Welcome @Brightspot to this forum. You are doing a good job in the mmb towards investor awareness and I like your energy.
You may use the technical discussions thread to share your thoughts on price projections. Here mostly the discussion is about business/ industry developments so that new investors can understand the value and not take it as buy/sell call.