[Logan]

@Raj, I don’t think BCG has plans to acquire any streaming platforms, most of the companies are out of reach (Spotify alone is valued at $46Billion and there aren’t many public companies to get an idea on valuations) but it may acquire some company that provides tech to advertise on streaming platforms.

According to the article on ET, the deal is very small ($15-20M) so I don’t think the impact will be big on both valuation and business. We should see how the market will react to the news. If the deal was of a bigger size, then the market would’ve cheered is my opinion.

[Logan]

@valuebuyer001, I don’t think you understood my point. It all depends on your perception. My point was about price and value and timing (best before period). If you are an investor who gives more importance to price and value then paying more money looks stupid but if you give importance to timing more than price and value then delaying the payment looks stupid.

If you give importance to price and value just think of this – Will you pay 150crs more to buy/get back a worthless asset that won’t add anything to the business? It’s nothing but a perfect example of burning cash without any purpose. And you can’t do that just because there’s a litigation. You also have to look at the severity of the litigation. The case is there since 2016 and what harm did it cause to the business?

That’s why I said nobody is right or wrong in this. Personally I don’t see any value in Lycos but I can’t force my opinions on anyone.

[Logan]

I really appreciate and would like to thank everyone for supporting me when some people made baseless allegations against me.

The allegations made by that person are very silly and they don’t even make any sense. He’s making his allegations based on comments made by one person in MMB and he thinks that if someone defends/supports the CEO/company then that person must be the CEO.

I’m least bothered about his accusations. First of all, the authorities won’t take him seriously because he has no evidence for his arguments. Then if they do take it seriously, then one Aadhaar card is enough to show that I’m not the CEO. Later I can file a complaint against him for harassing me and for giving a false complaint. I will later sue him. He has openly threatened and blackmailed me saying that he’ll hack into my system to know my IP and MAC addresses. That’s violation of privacy and a serious crime. Not just me but he even accused that the CEO is using @kris id when kris replied to him. This is so silly. Then yesterday he accused almost every forum member of being associated with the company. This is insanity to a whole new level. If he does give any complaint against us then later we all can sue him for giving false complaints.

(On a lighter note – never trust people who like their own comments)

I don’t understand how writing about fundamentals is a crime. He wrote that I’m checking sentiments of people on topics like write off, impairment etc. It was not me who wrote about the impairment topic first, it was some other member. Going by that person’s logic, then it’s the other forum member who is trying to check people’s sentiments on impairment topic by writing about that. What I replied was that impairments are common in product based companies and BCG can’t keep Lycos’ assets in its books when it doesn’t own Lycos (common sense).

That person has invested in BCG’s stock and he should know what type of a company it is. BCG is a product based company, it develops its own software products (like Compass), and that’s why the intangible assets are also more. That won’t be the case in other companies. Some companies won’t even have intangible assets. Impairments will be more in product based companies, and in companies that acquires other companies paying more than book value. Being investors, its very important to know what type of a company we have invested in. We can’t buy stocks blindly without checking all the important factors. It’s not my fault if he doesn’t know about all these.

On stock price movements, people have been saying that the CEO/promoters/management are involved in the suppression of prices and that they are controlling everything etc. I don’t know whether that’s true or not, I’ll believe those only if I see some evidence. I don’t like to make any allegation or accusation if I don’t have any evidence on anything. That’s why few days back I said I’ll continue to believe in market dynamics till I see some evidence which shows that promoters are involved in suppressing the prices.

I won’t support people if they don’t have any evidence and if they just make guesses (or speculations). If we rely on guesses and later complain to the authorities based only on those guesses then, first, the authorities won’t take us seriously and when they do take the complaint and if it turns out to be false then the person against whom we have complained can sue us. I don’t want to be involved in those things.

One more important thing is, I’ll never stop or discourage anyone from complaining to the authorities if they have evidence which links the CEO/promoters to suppression of prices.

Obviously operators are involved in BCG’s stock trades and the management should focus their energy on stopping those operators. There are many ways to stop them (or reduce their activities), but in my opinion, reducing the free float will have the biggest impact, so, the company should buy back shares, or stable investors (promoters or institution or HNIs) should buy shares from the open market.

Then I have seen comments by some people who say that knowing about ad-tech industry is useless and fundamentals don’t matter etc. My advice to everyone is please don’t take those comments seriously. I know it’s very frustrating to see price going down even after having good fundamentals but that should not stop us from tracking the fundamentals. It’s very important to know about the fundamentals of the company and the industry that it is in. When stuff hits the fan (if bad things happen to the company’s fundamentals) then those people won’t come and protect your investments. They’ll misguide you now and later when you ask them about that they’ll say it’s your problem not theirs. This advice is not just for BCG but for any stock that you invest in. Always do both qualitative and quantitative analysis before and after buying any stock.

[Logan]

@anirudhreddy, did you start accusing me because one person on MMB wrote that the CEO is using my id or do you have any proof? If you have any proof then please share it with everyone. Just because you don’t like someone (me), you simply can’t accuse them of weird things. If you were a person who respects other people, you would’ve asked me directly whether I’m associated to the CEO instead of accusing me like this.

Anyways, I’m in no way associated with the CEO or any promoters or the management or any organization. I’m an individual investor just like everyone else here. I have invested my hard earned money in BCG just like others.

Please do complain against me to the authorities. I’m not worried about your accusations because I have nothing to fear and I have nothing to hide. I haven’t done anything wrong. Actually it’s you who should be fearful about complaining to the authorities. Do you know what happens if the authorities find that you gave a false complaint? Have you checked that before making any accusation? If you find out that I have zero connections to the CEO, will you apologize to me publicly? Also remember that I can sue you for giving false complaints.

If you can’t respect other people then just ignore them. Yes, sometimes I support/defend the CEO and sometimes I criticize him, it all depends on what he does (or did) and it doesn’t depend on my mood. I won’t criticize him or anyone just because I’m in a bad mood. Also I won’t support him if he takes bad decisions. Have you seen me supporting him when the company delayed paying dividends or have you seen me defend him on the pathetic state of corporate governance? Have you seen me supporting the PW issuance?

You have written many times that you will complain to the authorities against the CEO/company/management etc. Have I stopped you from doing that? Or have I written telling you not to do that?

I don’t understand how talking about fundamentals like BCG’s business, ad-tech industry, subsidiaries etc is something wrong. It’s your wish that you don’t care about these things but you can’t force it on others. One person wrote that Brightcom was not part of BCG and for that I gave a reply clarifying his confusion, how is that bad? Also, I don’t understand how talking about the impairment topic makes me evil. If you are not aware, many companies impaired their assets last year because of corona and other companies have been doing impairments since many years. Also understand that it’s not just BCG that has impaired its assets. Just a simple Google search will give you many results. I don’t see it as defending the CEO or the company. I won’t simply come and write any post unnecessarily. It’s only you who has problems with me talking about fundamentals, all the other board members appreciate me for talking about the fundamentals.

Do remember that it was me who suggested/requested the Hyderabad members to visit the company and talk to the CEO/management directly. That time we had more uncertainty because of the Axis issue in NCLT. Where were you that time?

As you know, I have argued with Diana Horton many times, but not even once I accused her of anything and she also didn’t accuse me like you have accused me now. Me and Diana respect each other even if we have different opinions. The same goes with other members also, I respect everyone and their views. I have argued with many people here but no one accused me of weird things. They respect my opinions even if they don’t like what I write.

Talking about misguiding others,

How many complaints have you given to the authorities about the company or/and the CEO till now? You always talk about doing that but what has stopped you? I can also accuse you of misguiding others right? I can say that you are using your id to bring negativity about the company and suppress the stock prices right? Have you thought about that.

And the timing of your arrival to this forum is also suspicious. You registered in the forum 1 month, 3 weeks back which is the time PW was not yet approved. What if you are from the management team and you want to bring negativity about the stock so that it didn’t go up till PW got approved? You check the emotions of investors, you influence and trap them saying you have evidence and will complain to the authorities etc. Since day one of your registration I haven’t seen you sharing any evidence here. How to take you seriously?

Then you say fundamentals, ad-tech, subsidiaries are not at all important and these are blah-blah etc. Aren’t you misguiding people on this? What if some person takes you seriously and he/she doesn’t care about the fundamentals and if something bad happens in the company’s fundamental and if it goes bankrupt, will you protect that investor’s money? Be aware that you are writing in a public forum and you should think 10 times before writing anything.

Don’t worry I’m not immature like you to accuse someone if I don’t have any evidence/proof. You wouldn’t have accused me if the price had reached double digits or if it was in upper circuit every day. I’m mature enough to understand the market dynamics and well aware that BCG is not a normal stock and it is plagued by operators. Also all your evidence is based on guesses and information written in MMB. If I take what’s written on MMB seriously then even God won’t help me.

If I have any complaints about the CEO/company/management, I’ll deal with them directly. If I find something wrong and in case if I have to give a complaint, I’ll do it directly.

There’s a limit to what you can talk about others. Just because someone doesn’t agree with you it won’t make them part of the management or it won’t make that person the CEO. It’s childish to even think that if a person supports and defends the CEO then that person is the CEO. In this forum I defend the CEO but in other places I defend many other people so taking your logic seriously, then I’m Virat Kohli because I support and defend him many times. It also makes me PM Narendra Modi because I support and defend him. Please tell me who I am among these people? I’m really confused.

Also you are saying that another person in this forum is also the CEO. If whoever defends the CEO is in fact CEO then many people defend him many times, are they all same person?

Before commenting anything, try to think what you are about to do. Those who live in glass houses should not throw stones. You can’t go around accusing everyone of being part of the management just because you think so. Respect other people and respect their opinions. This is a forum for people to express their views and opinions. Everyone will have different opinions and you can’t expect them to agree with you on every topic.

Criticizing the CEO all the time doesn’t make you genuine investor and supporting him doesn’t make me the CEO or part of the company. Giving speeches and accusing others is easy but make sure that you have some solid proof for your allegations. You can’t say that you told so because you read it on MMB.

[Logan]

I’d like to add one more thing. The impairment that Rubicon/Magnite did was for a book value of $300M (previous year). Out of that total $300M, Additional Paid-In Capital was $400M and Accumulated deficit was -$99M (negative). I’m not an expert on these topics, so my opinion may not be correct but if we ignore the Additional Paid-In Capital of $400M then Rubicon impaired assets worth $95M (650-700crs) on a deficit of -$100M.

Considering these and the losses, Rubicon’s next year book value became $164M, out of which Additional Paid-In Capital was $418M and the Accumulated deficit was -$253M i.e. the deficit widened from -$99M to -$253M.

(I’m not spinning this impairment positively, I’m just saying that sometimes impairment are necessary even if companies are in a difficult situation)

[Logan]

I’m not supporting anyone here, I’m just sharing my opinions on this topic.

Impairment of assets is common in product based companies. Companies develop a product (software etc) and usually after few years, they write off those assets. Most of these assets are intangible assets.

Then there’ll be impairment of goodwill which is very common in companies that acquire other companies and pay more than book value.

Out of the $122M that BCG impaired last year, $71M is related to products, internal tools and databases. This type of impairment should be done regularly instead of doing it at once.

The $47M impairment was related to Advances to Publishers and agencies in developing new markets. These are also common when you don’t get anything in return from keeping some publishers account. Advertisers/Brands won’t be interested in these publishers. The company has be to careful before choosing publishers and agencies and also has to be careful on how to handle new markets.

Rubicon Project (now Magnite Inc) did an impairment of $95M (maybe 650-700crs) in 2018.

Then Lycos assets write off, the company has no other choice but to remove Lycos assets because BCG doesn’t own Lycos. BCG values Lycos at $36M which is close to that 250crs figure.

[Logan]

@jay69, I don’t know how this affects BCG. The good thing is that all the ad-tech companies knew that Google will phase out cookies but I guess they thought Google will replace cookies with an alternative. Now that Google is not doing that, market got nervous and that’s why the recent sell off happened.

With this decision, Google will become more dominant. Already big players have 80% of the market share.

This affects mostly ads on the browser – Google Chrome, so companies that advertise more on it will be affected the most. Still we’ll have first-party cookies so companies working directly with publishers will be less affected.

We should ask the CEO about this. Right now we can only guess about the impact because we don’t know how reliant BCG is on third-party cookies.

As mentioned in the article, most of the companies are coming up with different initiatives to replace cookies. We’ll only get to know about the impact after few quarters or maybe after 2022.

[Logan]

@Raj, no need to apologise to me, I know how frustrating it is to see the price going down even after seeing good developments happening in the company.

Everyone should thank the @admin for creating this forum. Everyone has gained so much because of this forum (even the haters of this forum). You get different opinions on different topics. You don’t get this in other places. Obviously we’ll be biased on many things but no other forum has shared the amount of knowledge that this forum has shared.

[Logan]

@Raj, this is not the first time you have said some weird things about the forum. Whenever the price is in red you come and write that no one should discuss anything because price is not changing etc. Once you had said that this looks like a paid forum etc. There’s a way to criticize someone/something. You can’t use words like unforgivable sin, trapping investors etc.

I don’t like many things that many members write here but I won’t stop them and I’ll simply neglect their posts. I’ll only reply if I find it necessary or when they directly reply to me. I would’ve neglected you today but I didn’t see the logic in linking company’s fundamentals to the forum and I didn’t like the words that you used.

If you don’t like the forum then stop following it but don’t say weird things again.

[Logan]

I don’t see the logic in linking this forum to fundamental developments of the company. If we use that logic then fundamentals of Reliance should depend on Reliance forum in MMB.

Then decision on buying or selling shares of any company (not just BCG) should be taken based on individual research. If they can’t take that decision then people should stick to RDs or FDs or mutual funds.

If any shareholder has any problem with the company, then he/she should talk to the management of the company. If the management doesn’t respond to them, then he/she should go to the concerned authorities. Every shareholder has all the rights to complain against the company and its management if they find anything suspicious.

[Logan]

@sac6310, I understand that you wrote that message because you were frustrated, these things are not new to me. I won’t change my views just because someone else thinks I’m wrong. If we look at only price and not give importance to fundamentals then we should’ve bought DHFL at 700+, Yes Bank at 300+, Gitanjali Gems, LVB and many other companies stocks at sky high prices.

Last time one person wrote that traders won’t give a damn about fundamentals etc. The very same day Google made an announcement on cookies and all the ad-tech stocks fell more than 10-20% on the same day (some are still down 20-30%). Technical parameters of these stocks were very good before the announcement and people were giving very higher targets but what happened later? did fundamentals matter or not? Imagine what would’ve happened if traders didn’t check Google’s announcement and only looked at technical analysis which were very good.

People having different opinions are very common but targeting other people just because they have a different opinion is not good. People like it or not, fundamentals are very important.

[Logan]

@sac6310, its interesting to see you finding problems only in my posts. See I care about stock prices but I also care about fundamentals and business related stuff too. You can’t force me not to write about those things just because you don’t care about them. What problem do you have if I write about subsidiaries or ad-tech industry?

3 weeks back Google announced that it’ll not start an alternative to replace third-party cookies and because of that all the ad-tech companies’ stock prices fell more than 30%. Google, Facebook, Amazon and the big players already control 80% of the market and with Google’s decision on cookies, Google will become even more dominant. Some companies will go out of business because of that. It’ll change the way how internet companies make money, this not only affects ad-tech companies but also affects advertisers, publishers etc. Small businesses will be hard hit by Google’s decision. Shouldn’t we discuss about that? What business will BCG do if it can’t find any advertiser? Who will pay BCG then?

Okay I’ll take your comments seriously and I won’t care about fundamentals, business, subsidiaries and the whole ad-tech industry. Suppose BCG will be hard hit by Google’s decision and it’ll go out of business. That time will you come and protect my investment? Think twice before you comment on anything.

Please dig up everything about BCG and its promoters, no one is stopping you to do that. As a shareholder you have all the rights to do so. Have I told you not to do that even once? Give a complaint against BCG’s promoters, management team, subsidiaries, PW allottess, PO allottees, G-Gang, and everyone you can think of. You have SEBI, the Police, ED, MCA and many other options, you have social media too.

40% of BCG’s revenue and close to 50% of profits come from OMS/Brightcom. If people think Brightcom is not part of BCG, don’t you think we should give clarity on that?
Tomorrow you go and complain to the authorities saying that Brightcom is not part of BCG and you tell them to investigate on that. What will be their response to you? They’ll tell you to check properly before complaining. One simple visit to Brightcom’s website will give you the details.

Please don’t care what the ad-tech industry is all about and don’t care about BCG’s subsidiaries too and don’t compare BCG with other ad-tech companies too. But don’t force it on me.

[Logan]

BRIGHTCOM PRIVACY POLICY

Online Media Solutions Ltd. dba Brightcom (“we” “us” “our” or “Brightcom”) is a global ad-tech company that operates and provides an online supply side platform currently known as “Compass” (“SSP”).

I don’t know why some people have confusion regarding Brightcom/Online Media Solutions. OMS does business as Brightcom. This concept is common in the western countries. You need a brand name to attract people and you can’t use online media solutions as your brand name, that looks like some old company. Brightcom looks modern.

[Logan]

Replying to #11336

@Diana, sorry for the late reply, I have not been feeling well from the past 1-2 weeks and I didn’t follow the forum during that time.

It’s a good news that BCG is planning to go for an acquisition after so many years. I always knew that the CEO will use that PW money for acquisitions. I thought he would go for an AI company (agritech) because he talked more about AI in the AGM. My guess (just a speculation not to be taken seriously) is that the first payment of 65crs will be used to settle with Daum (65PW+31PO=96crs which is $13M). Rest $3M may come from internal accruals or maybe he has negotiated for a lower settlement amount.

Another major event that happened was Google’s announcement two weeks back. I don’t know whether everyone saw the announcement made by Google regarding cookies, it is a very big announcement and it’ll change how adtech companies track people. Google said it will not come up with new technology to replace the current one.

All the major adtech companies’ stock crashed more than 30% after that announcement (companies like TTD, Pubmatic, Magnite, LiveRamp etc) . Most of the adtech companies are prepared for this but still the market overreacted to the news.

I don’t know what impact this has on BCG. Affle was not much affected because it works mostly with apps so it has direct relationship. Google’s move affects mostly ads on Chrome. It has more than 60% market share in that. Many companies have come up with new methods to replace cookies. TTD has Unified 2.0. I think the companies that work directly with publishers won’t be that affected by Google’s move. I think BCG has maintained good relationships with publishers and advertisers all these years which may benefit the company. B Local initiative was a good move.

[Logan]

Replying to #11235,

Yes mayur saar, everyone should be careful and smart enough to understand the motto behind my messages, they should never trust someone like me and should only trust you. I have one confusion saar, should they trust what you write on Twitter or should they trust what you write in MMB? On Twitter, when the price is rising or when there are any developments, you always hype the stock, praise the management and you share so many informative messages but when the price falls you go to MMB and criticize the management. I don’t understand this saar.

You hide (protect) your tweets whenever there’s a fall in prices and sometimes you block people when someone asks you critical questions. Do you remember that Peter Lynch guy (Beating The Street) on Twitter? Last year when the price started to fall, you blocked him.

How many times have you hyped the Adauth data saar?

And your targets saar, when you feel good, you even talk about prices of Rs.5000 per share and recently you have written that the price can reach Rs.1500 also, though this time you didn’t give targets.

Then should I talk about Vertoz Advertising? Who has misguided more people there? Many times I have said BCG is better than AFFLE but not even a single time I have told someone not to buy AFFLE’s shares.

I haven’t changed my mind frequently like you have and I have replied to all the queries that people ask me here. Many times we had arguments but still I won’t stop replying to people’s queries. I have been the same during both good and bad times.

Then technical analysis you share on Twitter, how many times has the price reached predicted levels? It’s not completely true that traders and MIs don’t give a damn about fundamentals. If that was the case then why do prices go up whenever there’s a good news related to fundamentals and why do prices go down if there’s any bad news? If a company posts good results then why do prices go up? Isn’t it related to fundamentals? Just because one person is not ready to sell shares doesn’t mean everyone will have the same opinion. Yesterday I shared my opinion and didn’t force you to agree with me.

Investing is not pure science, you can’t see some charts, put formulas and come to conclusion. If that was the case then every investor/trader would be very rich.

Then finally, okay, I may have some hidden agenda/motto etc but what about you?

Those who live in glass houses should not throw stones

It means that “One who is vulnerable to criticism regarding a certain issue should not criticize others about the same issue.”

If you can’t respect other people then just ignore them and don’t say weird things about them. I don’t have to prove myself to you. This is a public forum and sharing personal details won’t be a good idea. It’s your wish that you chose to use your real name but you can’t expect everyone to follow the same. I have always respected you for bringing awareness about BCG’s business and I will continue to have the same respect. Let’s move on and concentrate on our investments. There’s no use in pointing fingers at each other.

[Logan]

@harshay, great detective work. Keep it up.

[Logan]

@Diana Horton, I apologise if I have hurt you. That’s not my intention at all.

I have not written those posts because you have criticized the CEO, I wrote them because I didn’t like your response to my post #11220. In that post I wrote my opinions on why the price may not increase and you responded saying

“So let’s not try too hard, to conceal the real fact and the real hardcore ugly and pitiful truth, by givng some glorified explanations to safe guard the culprits.”

I felt that your response was little harsh. I didn’t try to conceal any truth, I just shared my opinion. I have seen similar things happen in other companies I have invested in (mostly small cap companies). Then one more thing is that I felt whatever I write these days, you try to undermine the importance of my posts.

Last time we argued about topics related to the markets and before that on a different topic.

Yes, sometimes I’ll be Pro-CEO, Pro-management but not all the time. As you have also written, I have criticised the CEO many times, mostly for the pathetic state of corporate governance. If I don’t like any action of the CEO then I’ll be the first person to criticize him.

When we have different views and opinions, we’ll always have arguments, which is very common. We should make sure that we don’t hurt anyone. Healthy arguments are always good for us. Let us continue to share our opinions and let us focus on achieving our common goal.

[Logan]

There’s no point in arguing with each other when we have different ideologies/understandings. You say you don’t want to have any conflicts with me but you’ll always try to undermine whatever I write. I just shared my opinions on the price movements and you came and commented as if those things don’t matter at all. Anyway, our views and opinions are different but we both have the same goal i.e. good returns on our investments. Let us concentrate on achieving that goal.

One request – from now on please stop replying to my posts. If you don’t like my posts then ignore them. I don’t have to force my opinions on you and you also don’t have to force your opinions on me. All these problems are coming because you reply to my posts and I reply to yours.

As you have written, this forum is for everyone and everyone can express their views and opinions. Let us continue to share our opinions, taking them or leaving them depends on the readers. It’s always better to have different views and opinions for the betterment of the forum.

[Logan]

Conclusion

Looking at all these, we can say nothing is certain and that the Adtech industry is very competitive. Many companies that had more resources than BCG have struggled. 2015-2018 was a period of consolidation in the Adtech Industry. Many companies were acquired by bigger companies and other companies went out of business.

Adtech stocks had good reception in 2012-13 then from 2014-2019, except a few, all the other stocks had very bad reception and were beaten down heavily. Many companies didn’t deserve pathetic valuations but that was the sentiment back then. Now many companies don’t deserve high valuations but the market sentiment is very strong.

BCG’s problems are self-inflicted, okay, but what about the problems of all these companies? Did all these, and many other companies make up problems or are there real problems that every company faces?

Only when we dig deeper we’ll understand what the situation is. This is a business that needs ample cash for survival, and for growth. If you don’t invest in technology and if you don’t stay competitive then you lose business. It took time to close off bank debts because of cash flow issues. BCG had to dedicate cash to balance both – business and resolving outstanding issues. I’m not justifying the delay but it is how it is in this competitive field. As the CEO said in one of the conference calls, if he spent all the cash to pay off debt or to pay DAUM in one-go, instead of focusing on the business then the business would’ve suffered. If the CEO and the management team take even one bad decision also then its all gone.

The companies mentioned above haven’t taken many bad decisions but still they couldn’t survive. What if similar situation happened to BCG? The CEO deserves some credit at least.

[Logan]

Magnite/Rubicon

Rubicon Project, before merging with Telaria fell from $20 levels to below $1.75 levels. Later, after the merger also it struggled for some time but now it’s outperforming all other shares because the interest in Adtech companies went up in the last year and CTV business is gaining momentum. In this case, the combination of two separate businesses created synergy and that helped the combined entity more. If the companies didn’t merge then they wouldn’t have had good growth rates. Combined entity gets the resources, technology etc to grow the business.

Revenue (without adding Telaria’s revenue)

2011 ($37M), 2012 ($57M), 2013 ($84M), 2014 ($125M), 2015 ($248M), 2016 ($278M), 2017 ($156M), 2018 ($125M), 2019 ($156M)

Rubicon’s IPO was in 2014 and like all the other companies, it also had good growth rates when it came to the market but it couldn’t sustain that growth and had to make many structural changes and finally decided to merge with Telaria to form Magnite.

Criteo

Criteo’s revenues have increased all these years but it’s price fell from $60 to below $6 ($5.89 is the 52-week low price). Profits are also almost flat like BCG but still it fell.

Revenue – 2012 ($350M), 2013 ($589M), 2014 ($988M), 2015 ($1.3232B), 2016 ($1.80B), 2017 (2.297B), 2018 ($2.30B), 2019 ($2.262B), 2020 ($2.073B)

Profits – 2012 (+$1M), 2013 (+$1M), 2014 (+$46M), 2015 (+$60M), 2016 (+$82M), 2017 (+91M), 2018 (+$89M), 2019 (+$91M), 2020 (+$75M)

Criteo’s IPO was in 2013 and as I’ve written above, companies have good growth rate when they come to the market (or they choose to come to the market when they can have higher growth rates).

Criteo, once valued ($2.59B) more than that of many other adtech companies put together, crashed to valuations below $400M or something in the last few years. Criteo’s share prices shot up again in the last year because it was beaten down very badly and also it made few structural changes. The market sentiment also improved because in the last one year, the market became more interested in the Adtech industry.

[Author]

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