Thursday, December 10, 2020

Buying AcuityAds (ATY) @ $7.08

 Acuity Ads is an Israeli / Canadian based advertising platform that brings together advertisers and publishers. The company offers a programatic marketing platform that enables advertisers to connect with their audiences across online display, video, social and mobile campaigns.

- This is a small Cap company - $300M

- Founder: Tal Hayek - this is his second venture. First wan was a lead generation company sold for an undisclosed amount in 2006.

- Several talented ex-8200 employees.

- The programatic company market is ripe for M&A. Acuity Ads is the smallest player in the business and seems to be growing at a nice clip - which could make it an acquisition target for a company like The Trade Desk (TTD).

- The company has been hit hard by Covid as approximately 1/3 of their customers are from the travel industry.

- Company is seeing explosive growth in Connected TV - Revenue jumped 353% Yoy.

- Connected TV is 30% of TV viewing but only 1% of TV ad spending so there is a lot of potential here.

- In the beginning of October 2020, the company released Illumin - an advertising automation platform that allows advertisers to see how their ads are performing in realtime. This allows for quick decision making and helps raise ROI.

- AcuityAds competitors don't have a competing product.

- AcuityAds plans to list on Nasdaq next year - this will raise visibilty and valuation.

- AcuityAds is worth approx. 1% of Trade Desk - clearly there is plenty of room to grow.

1 comment:

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