[aindia]

Good Morning Logan:
I have no agenda to show you in a poor light. Stand excused if I left such a mark.

I am swayed by the following statements in your post.
———————————————————————————————
1.I don’t know much about the business aspects.
2.Regarding Adauth data, I don’t understand that properly and I don’t think that should be considered to compare companies.
———————————————————————————————
Bottomline is that you, me and all the boarders here be on the same page.
……..hence my post…. ….hence added
1.HIGH MARGIN ( DIRECT )vs LOW MARGIN ( RESELLER ) counts of clients.

2.Added relevance of READINESS for GDPR and CCPA through the proportion of BCG’s count of ADS.TXT COMPLIANT clients ( PUBLISHERS/ DIRECT & TOTAL)

Please don’t get bogged down by the musings of infrequent visitors like me. Please carry on with your contributions……Rest of us would want to benefit from your posts.
———————————————————————————————

[aindia]

Some inputs on clarifications sought by Logan:

a. ADAuth metrics
b. Some correction about perception on Israeli entity Brightcom.com, the Israeli sub of BCG
c. The sub’s progress from the year (2008)of acquisition vs. 2020
——————————————————————————————-——————————————————————————————-

a.ADAuth:Under watch is the count of The Publishers which crossed 50000 today-13 May 2021.Equally important is the count of “DIRECT” Clients of the TOTAL NUMBER. Let me try and address 2 clarifications Logan sought. The metrics should not be understood as growth in absolute number of clients.They indicate growth in counts under different headings ( PUBLISHERS/ TOTAL/ DIRECT) essentially of the companies(old & new) who have adopted ADS.TXT ( a MUST for GDPR and CCPA Compliance). When we try comparing two companies DIRECT count goes with VERY HIGH Margin engagements vs. the LOW Margin engagement mapped to RESELLER count.
——————————————————————————————-——————————————————————————————-
b.ABOUT BRIGHTCOM.COM:

ORIDIAN(pre-acquisition name),Israel is“ONLINE MEDIA SOLUTIONS” of 2008, currently dba(doing business as)BRIGHTCOM.COM, is the wholly owned subsidiary of India Listed parent-BCG.
——————————————————————————————-——————————————————————————————-
c.Progress of THE THEN OMS,now doing business as Brightcom.com

• Investment – Rs.51 crores ($16 mn in 2008)
• Revenue (2020) – Rs.1020 crores ($20mn in 2008)
• Profit-PAT(2020) – Rs.192.5 crores(Ebidta $3.2 mn in 2008)

——————————————————————————————-————————————————————————————————

[aindia]

BCG!Ducking
Hey BCG!
Line up the hitherto Ducking (behind the curtain for too long) Ducks & Ducklings Dance in tandem.
================================
D1:Dividend Announcement & Clean
Administration
• Duck -FY20-F ………done but not clean
• Duck -FY21- F
• Duck- FY22- Interim
3 year track record will be a trigger for HNIs, analysts n institutions

D2: Daum Duck, in 4-5 wks

D3: Debt-Free duck: free up all pledged shares

D4:Duck-PW: In- Principle Approval Done. Close next actions.

D5: Overseas Listing* Duck in NASDAQ- Long range.– CY 22?.

D6:Due Diligence Duck- Loc sanction.

D7:Clean Duck: Big 10 Global Auditor- Pending

D8: Dark Horse duck- QIP- H2-FY 22 an option to raise monies at a much better valuation in lieu of LoC should that get dragged.

D9: J curve Duck-triggered by Division of Future Technologies and /or Audio vertical

D10: Doubling Duck- EPS doubling by EoFY22 ( a 5 yr phenomenon in growth stage) on pre- pref equity increase.

D11: Spill the Ducklings – names, impact on top n bottom lines and details of Investments n acquisitions at sub level

D12: 12th(man)Duck: Reversals, if any, of write offs, write downs, impairements.

Is BCG ready to pitch into the IPL, with the above team of Ducks?

[aindia]

https://www.adauth.com/exchanges/brightcom.com

While DIRECT n TOTAL no’s are growing, looks like the Publisher count is not let loose….why?

[aindia]

https://www.blocal.news/
https://www.blocal.news/publishers

https://www.blocal.news/advertisers

[aindia]

https://www.adauth.com/exchanges/brightcom.com

[aindia]

Look into the attachments:

1.ADS.TXT ( ADAuth)COMPLIANCE METRICS growing by the day. If you look at the screenshot some metrics have crossed magical thresholds. Of course, the canvass a lot lot larger so BCG will continue to scale much larger milestones.

2. Brightcom.com website being updated.

[aindia]

AdTech Macro Trends: (*Extracted from a Published Sources)

a.Global growth of advertising spend in 2021, is forecast to 5.8% .
b. Positive growth is predicted for all regions in 2021-
Western Europe : 7.5%
Asia-Pacific : 5.9%
North America : 4.0%
c. On the back of steep declines in 2020, the fastest growing markets in 2021 are forecast to be:
India : 10.8%
UK. : 10.4%
France: 8.9%

d. Top 5 markets in 2021 will be: US, China, Japan, UK& Germany
e. For the first time, digital will reach half of total advertising expenditure in 2021, powering overall growth at a rate of 10.1%.
f. Social (18.3%),search (11.0%) and video (10.8%) are the leading sources of digital growth.
g. TV ad spend is forecast to reach US$169 billion—a 30% share of total ad spend.
h. Growth in 2021 is expected to lay the foundation for a return to pre-pandemic spending levels in 2022, when we expect expenditure
to reach US$619 billion (exceeding the US$600 billion recorded in 2019).
i.Video Advertising: CTV, 30 Second Ads, PC and Media Aggregators on the Rise ( oct 2020).
* Programmatic Display Advertising Goes High-Impact
* CTV leads in the share of impressions by device
* 30-second ads remain the preferred ad length for advertisers
* Desktop benefits as WFH continues due to COVID-19: In Q3, desktop accounted for 21% of ad impressions, a 40% YOY increase
* Media aggregators hit a new high: Similar to the growth seen in Q2 2020, media aggregators surged to 47% in Q3, an increase from 35% in Q2 and just 20% in Q3 2019.
* Video Advertising: Native DTC Brands Favor Mobile and Desktop.

[aindia]

Request a check on whether comparison in revenues is a an apple to apple comparison? Perhaps it could be. Just to re confirm.
Why doubt?
There is an Element called TAC = Traffic Acquisition Cost.
Please chk the revenue numbers shared and compared are incl / excluding or is a case that it is included in one n not the other

[aindia]

TTD,MGNI: Programmatic ads on connected TVs seen growing to $8.7B this year

[aindia]

TTD,MGNI: Programmatic ads on connected TVs seen growing to $8.7B this year

[aindia]

BCG clears the ACID TEST- Joins the league of Top 42 global SSPs

SSP platform that …

1.has an ad server and supports different protocols
(programmatic direct, open auctions, etc.)

2.has Header bidding options to offer.

3.has “advanced programmatic” solution that “increases yield “for “websites” and “apps”, by offering premium inventory to multiple ad exchanges (buyers) at the same time?

4…..manages multiple ad network partners under one roof.

5. offers a variety of ad formats, like video/banners/native/interstitial ads.

6. offers viewability metrics.
============================================
……..BCG has them (1 to 6) ALL, hence slotted in the global list of top 42 SSPs.
===========================================

[aindia]

Built-With counts:

23 April2020
Top 1 mn: 4447
Top 100K: 1884
Top 10K : 557

27 Oct 2020
Top 1 mn. : 6700
Top 100K . : 2436
Top 10K . : 689

Growth over “5 months” (%):

Top 1 mn. :6700-4447=2253 (51%)
Top 100K . : 2436-1884=552 (29%)
Top 10K . : 689-557=132 (24%)

[aindia]

Growth of counts on ADAuth platform
26 Oct 2020 vs 30 July 2019 ( 15 months)

Publishers: 38443 (12657)=25786 = grew by 204%
Direct Accounts: 70175 (11749)=58426= grew by 497%
Re-Seller Accounts: 9712 (4784)=4928= grew by 103%
Total Accounts: 79887(16533)= 63334 = grew by.383%

[aindia]

BCG Performance on ADAuth platform :

ADAuth: Ads.Txt Compliance: Grouping of BCG metrics within about 22 lakh entities sitting on ADAuth database. We should also factor for growth in participants in this database.
——————————————————————
%Growth in Count of DIRECT ACCOUNTS on over 13 months : 299%

17474 on 17Sep’19
to
69704 on 24th Oct 2020

Delta: 52230 ( up 299%)
——————————————————————
Ratio of Direct vs Reseller a/cs, changed in over 13 months

73:27 on 17Sep2019
to
88:12. on 24th Oct 2020

Ratio changed for the better heavily tilted in favour of DIRECT, which yields “very high” margins.
——————————————————————
%Growth in PUBLISHERS Count grew in over 13 months : 117%

17524 on 17 Sep 2019
to
38130 on 24 Oct 2020

Delta: 20606 ( up 117%)
——————————————————————————
% Growth in Count of TOTAL ACCOUNTS in over 13 months : 252%

22572 on 17 Sep’19
to
79406 on 24th Oct 2020

Delta: 56834 ( up 252%)
——————————————————————————
Fantastic all round upward trend.

So far , BCG has covered just 79406 as the total count of the whole of 22 lakh entities………Still to cover 21 lakh more of the prospective universe. This count of 79406 assigns about 70 th rank. We should expect BCG coming out with higher numbers once Daum n Axis issues are closed. A much healthier global rank.

[aindia]

You meant 2021…

Macro feed :

US Ecommerce Channel Ad Spending Will Jump Nearly 40% This Year to More than $17 Billion

[aindia]

Not so obvious game changing trends@BC:

I would urge you all to shift Focus on to the adauth.com stats of Brightcom, that were tearing away during August 2020.

Very early on(2015) , you may recall, management was harping on building DIRECT SELLERS relationships,for the reason that they yield huge margins.

Could not Paste screen shots of:
17 Sep’19, 23 Apr’20 and 29 th Aug’20

link to track in future:
https://www.adauth.com/exchanges/brightcom.com

Like I said, we should now be tracking :

The mkt share was at 1.8 % (17 Sep’19) an year ago,and now spiked up to 3.3% during this month(Today).
—————————————————————
Growth in Count of DIRECT ACCOUNTS grew (thrice) from:

17474 on 17Sep’19
to
31274 on 23 April’20
to
57174 on 29th August’20( Today)

The above is what separates men from the boys.YoY the growth is an enviable 230%

————————————————————-
Ratio of Direct vs Reseller a/cs- Ratio changed from

73:27 on 17Sep2019
to
78:22 (23 April’20)
to
84:16(28th August’20)

Ratio is changing for the better
——————————————————————–
Growth in PUBLISHERS Count grew by approximately 95% from year ago, as thus:

17524 on 17 Sep’19
to
21762 on 23 April’20
to
34223 on 29th August’20 (Today)

Trend is significantly positive.
——————————————————————–
Growth in Count of TOTAL ACCOUNTS
is over 200 % from year ago count.

22572 on 17 Sep’19
to
40329 on 23 April’20
to
67765 on 29th August’20 (Today)

Above metrics indicates a fantastic all round upward trend.
———————————

[aindia]

Not so obvious game changing trends@BC:

I would urge you all to shift Focus on to the adauth.com stats of Brightcom, that were tearing away during August 2020.

Very early on(2015) , you may recall, management was harping on building DIRECT SELLERS relationships, for the reason that they yield huge margins.

Source: Screen shots of 17 Sep’19, 23 Apr’20 and 29 th Aug’20 ( could not paste here)

link to track in future:
https://www.adauth.com/exchanges/brightcom.com

Like I said, we should now be tracking :

The mkt share was at 1.8 % (17 Sep’19) an year ago,and now spiked up to 3.3% during this month(Today).
——————————————————————
Growth in Count of DIRECT ACCOUNTS grew (thrice) from:

17474 on 17Sep’19
to
31274 on 23 April’20
to
57174 on 29th August’20( Today)

The above is what separates men from the boys.YoY the growth is an enviable 230%
——————————————————————
Ratio of Direct vs Reseller a/cs- Ratio changed from

73:27 on 17Sep2019
to
78:22 (23 April’20)
to
84:16(28th August’20)

Ratio is changing for the better
——————————————————————
Growth in PUBLISHERS Count grew by approximately 95% from year ago,as thus:

17524 on 17 Sep’19
to
21762 on 23 April’20
to
34223 on 29th August’20 (Today)

Trend is significantly positive.
——————————————————————

Growth in Count of TOTAL ACCOUNTS
is over 200 % from yearago count:

22572 on 17 Sep’19
to
40329 on 23 April’20
to
67765 on 29th August’20 (Today)

Above metrics indicates a fantastic all round upward trend.
——————————–

[aindia]

FY 2020(AR due before AGM)

A.Commentary on Audited Consolidated Balance Sheet Items

1.YoY -LT Borrowings unchanged @ zero
2.YoY-other LT liabilities unchanged @ zero
3.YoY, Loans-Current (Short Term Loans and Advances) from Rs.683 cr.to Rs.652 cr)………..POSITIVE
4 YoY-ST Borrowings down by 46 % (from Rs.67 cr to Rs.36 cr) and after March’20, should be trending to “zero”……POSITIVE
5.YoY-Other Current Liabilities up 7.7% from Rs.220 cr to Rs.236.7cr…………………….. NEUTRAL.
6.YoY-LT Loans n advances down 39% from Rs.165 cr to Rs. 100 cr by …..POSITIVE
7.YoY-Trade Receivables up 9.6 % from Rs.890 cr to Rs.975 cr…………….NEUTRAL
8.YoY-Non-Current Investments up 11.3 % from Rs.225.5 to Rs.251 cr…………..POSITIVE
9.YoY-Trade Payables up 20 % from Rs.84.4 cr to Rs.101.5 c r…………….NEUTRAL to POSITIVE.
10.YoY-(Non-Current) Tangible Assets up, big time, by nearly 37 times from Rs.24.5 cr to Rs.963 cr…………..BIG POSITIVE
11.YoY-(Non-Current)“Intangible Assets” significantly down from Rs.500 cr to NIL………….. To probe further
12.YoY-(Non-Current)“Capital Work in Progress ” significantly down from Rs.148 cr to NIL………….. To probe further.
13.YoY- Cash and cash equivalents grew 16 % from Rs.102.6 cr to Rs.119 cr…………………… POSITIVE
14.YoY-other CURRENT ASSETS dropped by a big 71% from Rs.541 cr to Rs.158 cr………………. To probe further.
15. Contingent Liabilities down from Rs 115 cr to NIL…. To probe into.
——————————————————————————
B. P&L -TRENDS

1.YoY-Total Cost of Revenue up 4.8% from Rs.1969 cr to Rs. 2064 cr whereas, Total Revenue was up 4.97% from Rs. 2578 cr to Rs.2706 cr. …………… POSITIVE
2.YoY-Direct Cost of Revenue up 4.1% from Rs.1649 cr to Rs.1717 cr whereas Total Revenue was up 4.97% from Rs. 2578cr to Rs.2706 cr. …………… POSITIVE
3.YoY-Finance/ Interest Cost down from Rs.13.18 cr to Rs.6.3 cr (on way to “ debt-free” status) …….POSITIVE
4.Employee Benefit Exp. up marginally from Rs.158.5 cr to Rs.160.9 cr. Relative to Total Revenue it is down from 8% to 7.8% …………… POSITIVE
5.Abs.EBIT, YoY, marginally up from Rs.621.7cr to Rs.623.4 cr.
6.PBT, YoY, up from Rs.617 cr to Rs.608 cr by 1.5%……….. ………….NEUTRAL
7.Depreciation /Amortization exp up by 33% from Rs.135 cr to Rs.180 cr……….Sounds PRUDENT.
8.YoY-PAT is down, marginally, from Rs.444 cr to Rs.440 cr Now in the zone of stabilization……………Neutral to POSITIVE
9.YoY,the EPS is flat @ Rs.9. EPS growth, expected to pick up……………NEUTRAL/POSITIVE.

[aindia]

BCG: Rapid Fire @ 20_AUG_20

History of Consistently Increasing Sales, Earnings & Cash Flow: Yes.
Competitive Advantage: Ahead of the curve and sustainable (ISRAEL CONNECT)
Future Growth Drivers: A Ton of them (some already playing out)
Conservative Debt: YES (soon to become Debt- Free)
Debt Equity Ratio: Near ZERO
Current Ratio: 4.42
Return on Equity: Above Average@15.7%
Low CAPEX required to maintain current operations: No (AdTech players have to keep on burning Capex to stay in the hunt)
Management is holding / buying the stock: Flat so far 39 %.( Grapevine has it that some reporting on creeping acquisition on the cards)
Price is Under Valued: Yes- grossly for about 3 yrs
Stock Price is consolidating: Yes- painfully for about 3 yrs
Stock Price is growing in past years along with EPS growth: Regretfully a big NO

OTHER CONSOLIDATED Parameters / Metrics:
Consolidated PE Ratio: 0.85
Consolidated PB Ratio: 0.13
Cash Flow: Positive and to shift gears for the better
Net Profit %: healthy @ 16.34%
Dividends: paltry and grossly irregular. Tide change, for the better, is to be expected
Tax: No-Stand Alone PBT has been negative so far. Tide change marginally felt recently. All the overseas subs are shown to be regularly paying taxes basis tax laws of the countries.
EPS Growth Rate: Healthy in absolute terms, but flat. Tide change, for the better, is to be expected
Jump in Trailing Result EPS: No. Flat Q4 YoY@ Rs.2.26
Jump in Quarterly EPS: No -because it follows the seasonally best Dec Qtr.
Expected Gain in 5 Years: 20 times (CMP@7.5) over FY ‘21- FY ’26
Mkt Price: 13.02 / 2.46 being 52 Wk High & Low
Trading Volume: High, expected to turn Low to Moderate (following the past PEs exit)
Brand Power: No at the present but it could turn to Yes hereafter.
Corporate Governance, Reputation of Leaders: Market perception is Poor so far. It can only improve
Fraud reported: No.
Annual Report: One of the Very Best Hard copies in India
Expansion Plans: It’s an ongoing process, to stay competitive.

[Author]

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