Taptica International (LON:TAP)
Market Cap £203 million
Price 295p Bid/Offer 290p - 300p Normal Market Size 1,500
About the Company
We provide data-focused marketing solutions that drive execution and powerful brand insight in mobile by leveraging video, social, native, and display to reach the most valuable users for every app, service, and brand.
Full Year Results
Taptica International plc released impressive headline results which were very much in line with market expectations.
Taptica International plc - Full Year Results 20th March, 2017
The key takeaway is that the company is now a mobile-focused business capable of generating high levels of cash. Profits and cash are likely to continue to grow through opening further international offices and doing partnerships in other countries.
New offices were open during the year in Korea, China, and Japan. These offices will target firms in those countries to use Taptica's targeted marketing services. This will help the foreign based companies in Asia-Pacific to successfully export more to Europe and USA.
Using Taptica's technology seems a no-brainer if payment is based on customers interaction and spending patterns. Taptica by building its user profile database can target adverts to "valuable audiences" (Taptica own words) for their products. This year Taptica was able to increase revenue from its existing clients by 93% above the previous year. The company must be doing something right to achieve this!
The final Q4 of 2016 was an excellent quarter which suggests 2017 may be somewhat better than currently forecast. Taptica's database is growing its number of user profiles continuously which represents potentially greater future revenue earning streams. Their database automatically expands by its "machine learning ability".
The company is currently working with 600 mobile advertisers. They have 17,000 advertising campaigns underway. These campaigns are promoting 450+ brands which use Taptica's extensive 220 million user profile database. The user profile within the database allows Taptica to target customers likely to be interested in particular products or services. This enables the overall cost of customer acquisition to be kept lower than otherwise expected. A "win-win" situation for both the advertiser and Taptica International.
Today's Price Action
Investors on reading the full year headlines liked what they saw, bought the shares and the share price obliged by going up for the first hour. By the end of the day, the price was back to where it started. The share has …
