Taptica International - Reaches the most valuable users for advertisers

Monday, Mar 20 2017 by
11

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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 …

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Disclaimer:  

All articles and comments are for general information only. No investment advice intended.

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Taptica International Ltd offers data-focused marketing solutions that drive execution and brand insight in mobile, leveraging video, native, and display to reach the users for every application, service, and brand. The Company’s technology is based on artificial intelligence and machine learning at big data scale. The Company works with more than 450 advertisers, including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, and Zynga, and more than 50,000 supply and publishing partners worldwide. more »

LSE Price
125.89p
Change
1.5%
Mkt Cap (£m)
157.5
P/E (fwd)
3.5
Yield (fwd)
n/a



  Is LON:TAP fundamentally strong or weak? Find out More »


3 Posts on this Thread show/hide all

iwright7 21st Mar '17 1 of 3

Dearg,

I think that Taptica International (LON:TAP) is a PEAD type share, where brokers and the market take time to appreciate +ve news and under-reacts accordingly. The test for this will be the next 1-2 weeks, if/when the share price starts to drift upwards. Ian

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David Cheong 21st Mar '17 2 of 3
1

Are dividends/capital gains subject to Israeli tax?

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vik2001 20th May '17 3 of 3
1

Great article many thanks

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