Friday, March 24, 2023
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong Q4 results. The company reported strong Q4 revenue of $29.4 million, in line with our estimate of $29.3 million. The quarter was driven by robust Sell-side advertising revenues of $22.4million, an increase of 231% from the prior year period. Q4 Adj. EBITDA of $1.8 million was flat year over year and missed our estimate of $2.7 million, largely due to elevated compensation costs.
2023 outlook. The company is shifting its focus to pursue larger, but more price sensitive clients. As such, we expect higher investment and compensation costs to support larger accounts. The company plans to invest to offer new products, like data analytics to support higher future margins. We believe adj. EBITDA will be flat over the prior year, given increased investment and lower margin clients.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.