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AcuityAds Holdings Inc. (AT.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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4.1600-0.1400 (-3.26%)
At close: 04:00PM EST
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  • N
    92 million cash on hand don’t forget……
  • D
    Bought some more.... please stay low for a bit longer. I am waiting for some money to come through. May take a few weeks. I want to walk out of this with 10000 shares if I can.
  • N
    I feel we already hit the worse of it, tax selling, new virus, feds announcements, then number of new jobs in November so unless something else bad happens it should be up from here
  • A
    From Seeking Alpha:

    AcuityAds: A Growth Opportunity At A Reasonable Price (Oct. 21, 2021 2:48 PM ET)

    Acuity users are highly satisfied from the services of the company.

    Valuation analysis indicate substantial undervaluation.

    Total addressable market will exceed $1 trillion threshold in upcoming decade.

    AcuityAds Holdings Inc. (NASDAQ:ATY) offers digital advertisement solutions to its consumers. The company achieves high satisfaction level among consumers and has huge total addressable market. Our valuation analysis indicate that the stock is significantly undervalued and the current price is a great entry point.

    Using Acuity services, advertisers get an opportunity to increases the efficiency of their marketing campaigns and lower marketing expenses. The company buys ad spaces from websites at wholesale prices through ad exchanges and supply side platforms. The platform help advertisers to get more clicks and sales from the same budget of marketing expense as it optimizes campaigns and offers highly sophisticated targeting systems. The company is actively investing to develop innovative services. It has introduced Illumin platform last year, where users can build their own campaigns. The introduction of the new platform facilitated the usage as even small companies can easily use the platform to build most effective campaigns for them. The platform has a quite simple and convenient interface, which is facilitating the total process of ad campaign building. The management is comparing the new platform with Shopify (NYSE:SHOP) and Expedia (NASDAQ:EXPE), which have revolutionized their industries giving small consumers availability to expensive products. If an Acuity user is working with employees directly to create a marketing campaign, then in case of Illumin the process is fully automated, and a user works with software. The move is quite beneficial as it can help to cut workforce and improve profitability.

    The business has huge room for growth as the total addressable market for the business is substantial. According to an estimate global advertising industry is worth $614 billion, while only $118 billion comes from programmatic advertisements. It is estimated that the total industry will surpass $1 trillion level by 2027, and the programmatic industry will grab higher market share than current share of 18.4%. The programmatic industry grew at 22% CAGR during the last 3-year period, if the growth rate stays stable then we can see the industry to reach to $400 billion level by 2027, recording 40% market share. Acuity recorded just $95.9 million revenue TTM, which means that it has just achieved 0.08% market share in programmatic advertisement industry. The new products and innovative solutions might bring competitive advantages to the business which will help to increase its market share in upcoming years. Rapidly growing Connected TV ads segment is another great tailwind for the business as the industry grows at a 50% CAGR. The industry was worth only $1.7 billion in 2018, while it is expected to reach to $8.91 billion level by 2022.

    It is also quite important to assess consumer satisfaction level from a business to estimate its growth potential. Acuity users show significant satisfaction as they are used to increase their spending on the platform after the first year they use Acuity. A D2C Mattress Company spent $840,000 in 2018 on Acuity platform. The user was quite content, thus they increased their expense on the platform to $10 million in 2020. A pharma company spent $256,000 in 2018 and increased the amount to $1.1 million by 2020. There are well known brands which trust the Acuity and use the platform. Home Depot (NYSE:HD), Mass Mutual Funds, Western Media Group, Purple and other popular names are among the users of the platform. Mass Mutual Funds' head of social media Alex Silberman once shared his opinion about Acuity.

    So we see that existing clients are quite content from the service, which indicates that we can witness high consumer loyalty and increasing spending from existing consumers.

    According to the Rule of 40 the company is categorized as a high quality growth business if the sum of revenue growth and profitability exceeds 40% level. Analysts expect 24.6% revenue CAGR for upcoming 3-year period, while the TTM EBITDA margin is 12%. So the sum of the two variables is 36.6%, which is quite near to the threshold level, and indicates the strong quality of the business.

    The management is cutting marketing expenses in recent years to increase the level of profitability. In 2015 marketing expenses represented 31.3% of total revenues, while it dropped to 17.3% in 2020. The cut helped the management to achieve positive EBITDA margin, as the margin improved from negative -11.2% in 2015 to 8.9% in 2020. Meanwhile the management prioritizes R&D expenses which were relatively stable in recent years and represent 17.4% of revenues in 2020.
  • E
    As a young investor i thought i was doing great. I decided id pick 7 stocks that looked solid to me. The first 7 have done great over the last few months. All above 10%, a few in the 30% growth range. Thought i was a god. I then saw that all the analysts had picked this stock to go up quite significantly in the next year. I purchased the day before the crash. Moral of the story, stay humble lads lol.
  • R
    Well the "shorters" did what they wanted for the past 6 month, now how about boosting it back to 30.00 again and the shorting again? Since this sort of investing seems to be doing well; waiting on the side line!
    Talking about MANIPULATION EH!!! LOL
    Lets see if they (the shorters) are capable to build since they are so good at destroying value!!!
  • M
    stock is now being punished with rest of the market.... seems like fair value is 4-5 USD range. It could get back to 5 bucks by early next year but expect no more until revs really pick up.
  • B
    It's not a pretty sight but, there is a bright side. In a sector that's being badly pummeled AT is holding up rather well. Since the 30th the stock has lost about 10% while TTD is down 20%. For those with cash, opportunity is knocking.
  • r
    Needham initiated the coverage. Buy rating C$8 price target.
  • J
    let's get some thoughts, so PE ratio is in the teens. even if the stock doesn't grow ( im not saying it is growing now) at the current price its still a buy? last Q revenue dropped across the board and illumin growth made up the short fall....So is this a buy at this price or are we expecting illumin growth to drop off....don't forget Tal hired a pile of sales staff in Q4 ... was that to bolster potentially dropping illumin growth?
  • D
    Downward trend this week due to new variant. Sell off and tax loss selling. Let’s all relax. Shorts on here will say it’s going to 1. Don’t listen to theM. Not a pumper but I do know good fundamentals and this company has it.
  • R
    Monday morning QB?!?!? Weird this is first time you posted here and looking at your history if you actually made $42k you would of posted here in past for sure. What a 🤡
  • R
    Shorts love fear...... invest people! You should be buying for what the stock will be a year or two from now not next week. IGNORE the short term noise.

    Cashflow is strong! 💪🏻
  • J
    This deflation in share price is not tax loss selling. Don’t let anybody tell you it is. This company has been a nosedive from $14 to its current price over the last six months. Unbelievable amateur hour.
  • J
    Remember that insider buying by Richard Dent of 50k shares at a price of $3.95 USD? Wonder what he's thinking right now.
  • P
    88 % crash since $26.
  • Z
    Even majority of the Discord server seems bearish..... retail has thrown in the towel. Hmmm.......
  • A
    TD Investment Conclusion:

    The pipeline of new customers for illumin continues to grow, so we hope that our new forecasts can be exceeded as we move through 2022. One could also argue that the stock is looking inexpensive on future EBITDA (now at 9.6x our revised 2023E EBITDA estimate), or even on a P/E basis if one adjusts for $100 million (~$1.57 per share) in cash. Unfortunately, with such a volatile history for the share price, and with investors concerned about some headwinds for the programmatic advertising industry (supply chain constraints reducing demand for conversion-type media spending, and disruptions from the conversion to new digital identification methods such as cookies and Apple IDs), we believe the market will likely view Acuity as a "show-me" story until there is hard evidence of accelerating revenue growth.

    Management does not expect to see this momentum in Q4/21 (it is taking longer than expected to move large ad buyers through the sales cycle and trial phase for illumin), and we believe investors might have to wait until Q2 or even Q3 of 2022 to see a break-out revenue quarter. We are downgrading to HOLD from Buy.
  • G
    Waiting for sub $4, will buy more then.
    Will come back in Q1 2022.
    Company should be around the $ 7.50 - $ 8.50, just very volatile