Market cap: 6 Mill
Share price:7.6 cents
Cash at last (March) Quarterly: $5.5 Mill.
Cash burn last quarter : $1.2 Mill
Catalyst: cash burn turning to cash positive in the very near future in my option, have a read of the below statement from the CEO. Chart has bottomed and is trading very close to cash backing. All things tech are shit hot at the moment.
Announcement from CEO from 30 April:
The reason for commercialisation is strong:
Whilst I am confident for many reasons that our revenues will recover in our performance marketing division, it is important to note that this division was highly profitable last year. Whilst the company overall is making a loss at this point in time, the majority of this loss is attributed to the other divisions of Tech Mpire which produce our technology. As many of you know, the company did $37m in revenue last year for an EBITDA of $903k. What you may not know is the performance marketing division on a stand-alone basis, did almost $3m EBITDA on the $37m in company revenue. The addition of another revenue stream from our existing technology portfolio is therefore a logical choice considering its potential and the speed of which it can be brought to market.
Commercialisation of proven technology to address a growing industry problem:
Firstly, the TrafficGuard platform has been tested within the Tech Mpire performance marketing division. So, we know it works as it has blocked over 4 billion fraudulent events.
Secondly, to the best of the company’s knowledge, there is no other company that can offer the same services that we can offer. Whilst some companies can block General Invalid Traffic (GIVT) at the click level, we believe we are the only company that can block Sophisticated Invalid Traffic (SIVT) at the click level. This gives us a clear path to market with a value add proposition for any major advertiser looking to protect their digital advertising spend. Blocking of SIVT is not easy. TrafficGuard has been built by a highly talented team of software engineers, data scientists and econometric PhD employees over several yeRs.
Thirdly, our intellectual property which is highly complex and unique, now has a patent pending status. Commercialisation was not possible without this being done.
Full commercialisation of TrafficGuard is due on 1st July 2018 and I am already in discussions on the integration of TrafficGuard by multiple trade players who are interested in protecting their clients’ marketing spend.
The opportunity for TrafficGuard in the SaaS arena is something that myself and the team is excited about and confident in. The growth of fraud in the mobile advertising industry is occurring at a faster rate than what the overall market is growing at. The fraud in the market is costing firms billions of dollars and we have the best value proposition which makes commercial sense to global advertisers with a very easy integration process.
It’s important to note that whilst still in beta till July 1st, TrafficGuard has been operational across our network since October 2016. Over the last few months, our data and engineering team have been making modifications behind the scenes to ensure our SaaS systems are fast and ready to scale.
(20min delay)