Tag: Advertising Agencies

Travelzoo (TZOO) – An Improved Balance Sheet; Stable Outlook

Posted on by cpereira@noblefcm.com


Thursday, April 25, 2024

Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Q1 Results. The company reported Q1 revenue of $22.0 million, a modest 1.8% increase over the year earlier results and a significant sequential deceleration from 13.7% in the previous quarter. Adj. EBITDA in the latest quarter was $6.1 million, beating our estimate of $5.8 million by 5.0%, a result of lower marketing spend. 

A year of transition.  In January the company switched to a paid subscription, all new members pay a $40 annual fee, while members who joined prior to January 2024 do not pay a subscription fee until January 2025. Notably, the company plans to increase marketing spend in the coming quarters as it aims to grow the number of paid members, a development we view favorably.


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*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. 

Direct Digital Holdings (DRCT) – Marcum Gives A Bad Impression

Posted on by cpereira@noblefcm.com


Wednesday, April 24, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Non-compliance notice. On April 17 the company was not able to file its 10-K on time, and, subsequently, received a notification of non-compliance from NASDAQ. Notably, the company has 30 days to submit an actionable plan to regain compliance. Importantly, the failure to file its 10-K on time was attributed to the inability of  its auditor, Marcum, to verify impressions data. 

New auditor expected soon. Marcum is terminating its relationship with the company, citing its inability to verify the company’s impressions data. Importantly, we expect the company to sign a top 10 US accounting firm within the 30-day window. The audit should be able to ramp quickly, given that the company will be able to provide timely access to all the data the was requested by the previous auditor. Additionally, we expect Nasdaq will accept its plan and grant the company up to 6 months to complete the10-K filing, as well as its first quarter 10-Q filing. 


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*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. 

Direct Digital Holdings (DRCT) – Hits The Reset Button

Posted on by cpereira@noblefcm.com


Wednesday, March 27, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q4 miss. The company reported disappointing Q4 results with revenue of $41.0 million and adj. EBITDA of $2.3 million. Both figures were well below our estimates of $67.9 million and $6.4 million, respectively. The underperformance was largely driven by system changes that the company made to its Sell-side segment during the quarter.

Re-positioning for the future. During the quarter, the SSP underwent technological changes to enable it to process ad impressions using alternative IDs. This transformation was necessary for the company to prepare for the impending cookie deprecation, which Google is expected to implement later this year.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Townsquare Media (TSQ) – Improving Fundamental Outlook; Boosts Dividend

Posted on by cpereira@noblefcm.com


Monday, March 18, 2024

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid Q4 Results. The company reported Q4 revenue of $114.8 million and adj. EBITDA of $24.8 million, in line with expectations. Revenue for full year 2023 declined a modest 0.9%, excluding political revenue, and adj. EBITDA decreased 9.1% when political is excluded. Digital Advertising was a bright spot for the company in 2023, increasing a solid 7.1% from the prior year. Notably, revenue and adj. EBITDA met the company’s previously issued full year guidance. 

Digital at its trough. Digital revenue in Q4 was down 6.4% from the prior year period. The decrease was attributed to softness in Digital Marketing Solutions, which declined $3.2 million or 14.5% in the quarter. Management provided a sanguine view that this business may have troughed and is positioned for growth by year end. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

AdTheorent (ADTH) – An Upbeat Outlook

Posted on by cpereira@noblefcm.com


Wednesday, March 13, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Posts strong Q4 results. Q4 revenues increased a solid 15.2% to $59.7 million, nicely above our $56.2 million estimate. In addition, gross profit margins were strong at 53.1% (above our 48.4% estimate), supporting better than expected adj. EBITDA ($13.6 million versus our estimate of $10.4 million). 

Prepares for cookie-less world. Management indicated that it is working with Google and has visibility into a cookie-less future. Google has already deprecated cookies in 1% of its Chrome users and is expected to complete the transition in the third quarter 2024. Given that AdTheorent does not rely on consumer IDs, we believe that the company is well positioned to benefit in a post cookie environment. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Entravision Communications (EVC) – Its Digital Business Does A Faceplant

Posted on by cpereira@noblefcm.com


Wednesday, March 06, 2024

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Q4 results. Total company Q4 revenue of $320.1 million, an increase of 8.0%, was better than our $309.7 million estimate, driven by 19% growth in its Digital businesses. Both TV and Radio declined in the quarter due to the absence of year earlier Political advertising. Q4 adj. EBITDA of $16.2 million was slightly below our $19.0 million estimate. 

Meta takes its business in-house. The recent financial results were overshadowed by a late announcement that Meta plans to take its advertising sales in-house, ending its relationship with Entravision and all its sales partners. Meta accounted for roughly 52% of total company revenues and 40% of adj. EBITDA in 2023.  


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Travelzoo (TZOO) – Q4 Caps A Solid Year Of Growth

Posted on by cpereira@noblefcm.com


Thursday, February 29, 2024

Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

In Line Q4 results. Q4 revenues were $21.2 million, in line with our $21.8 million estimate. The results reflected disparity in performance, however, between North America (up 5%) and Europe (up 34%). Adj. EBITDA was $5.3 million versus our $4.7 million estimate. 

Pent up travel demand. We believe that 2023 reflected another year of pent up travel demand by travel enthusiasts following the pandemic. The fourth quarter, however, indicated that the strong advertising demand may be waning, particularly in North America, possibly as travelers face economic challenges. North American revenue growth decelerated from 28% in Q3 to 5% in Q4. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

AdTheorent (ADTH) – More Tools in the Toolbelt

Posted on by cpereira@noblefcm.com


Wednesday, January 24, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Key partnerships announced. The company kicked off 2024 with two important announcements this month regarding technology partnerships, one with Jounce Media and one with Adelaide. The partnerships will help the company focus on high quality ad inventory and increase its performance measurement capabilities.  

Inventory quality. Through its partnership with Jounce, a media consulting group, the company will access key bid stream data. This data will allow the DSP to avoid made for advertising (MFA) sites. MFAs are clickbait websites that exist to sell ads and, as such, represent low quality ad inventory. Excluding such sites should enhance the DSP’s effectiveness.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Entravision Communications (EVC) – Highlights From Noblecon19; Improving Margins Expected in 2024

Posted on by cpereira@noblefcm.com


Thursday, December 21, 2023

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noblecon19. On December 4th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Chris Young, Chief Financial Officer, highlighted the company’s digital growth initiatives, its strong and improving balance sheet and favorable industry undercurrents. A replay of the presentation can be viewed here: https://www.channelchek.com/videos/entravision-communications-noblecon19-replay. 

Digital growth. On a trailing twelve-month basis from Q3, digital revenue comprised 82% of total revenue, and its operations spanned 40 countries. From 2019 to 2022, total company revenue grew at a 52% CAGR, a result of its fast growing digital businesses. Notably, the company is focused on improving digital margins after Facebook reduced commissions from 10% to 7%.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

AdTheorent (ADTH) – Highlights From Noblecon19: A Swing Towards Growth

Posted on by cpereira@noblefcm.com


Tuesday, December 19, 2023

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noblecon19. On December 4th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Patrick Elliott highlighted the company’s award winning machine learning technology and sizeable opportunities for company growth. A replay of the presentation can be viewed at: https://www.channelchek.com/videos/adtheorent-noblecon19-replay. 

Favorable growth trends. The company is experiencing a number of favorable growth trends. Notably, the company’s self-service platform was its fastest growing product offering in 2023 and is expected to be a significant driver of growth in 2024. Additionally, the company is well positioned to benefit from the growing usage of Connected TV (CTV) and has sizeable room for growth in its healthcare vertical.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Townsquare Media (TSQ) – Highlights From Noblecon19; Compelling Total Return Vehicle

Posted on by cpereira@noblefcm.com


Friday, December 15, 2023

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noblecon19 highlights. On December 5th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Stuart Rosenstein, CFO, and Claire Yenicay, VP Business Development, highlighted the company’s strong cash flow generating ability of its hyper-local digital and legacy broadcast radio businesses. Notably, the company stands to benefit from high margin political revenue and prospective improved advertising environment in 2024.

Digital growth engine. The company is focused on growing its digital businesses, which have been a catalyst for revenue and cash flow growth for the past several years. In Q3 digital revenues accounted for 52% of total company revenue, and are anticipated to account for a greater percentage in the future. Notably, the company’s fastest growing business segment, programmatic advertising, is benefitting from the rising popularity of CTV.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Direct Digital Holdings (DRCT) – Demostrates Scaleable Growth

Posted on by cpereira@noblefcm.com


Friday, November 10, 2023

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Impressive results. The company posted revenue of $59.5 million and adj. EBITDA of $5.4 million, both well above our expectations. Revenues accelerated sequentially, up 125.5% in the latest quarter, up from 66.5% in Q2. Notably, Sell-side revenue grew a whopping 174% over the prior year period.

Investments paying off. In our view, the especially strong quarter indicates that the company’s growth investments and tech platform are paying off sooner than expected. Importantly, the Sell-side segment processed 400 billion monthly impressions, due to increased capacity.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Townsquare Media (TSQ) – Sum Of The Parts Support Significant Upside Potential

Posted on by cpereira@noblefcm.com


Friday, November 10, 2023

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

In line quarter.  The company reported Q3 revenue of $115.1 million and adj. EBITDA of $27.2 million, both of which were in line with our estimates. Notably, digital advertising revenue grew a solid 5.5% from the prior year period, in spite of net revenue decreasing 3.8% over the same period. Digital revenues accounted for 52% of total revenue in Q3, a development we view favorably.

Q4 outlook on target. We are modestly lowering our Q4 revenue forecast in light of softer than expected Q4 pacings. Q4 total revenue is lowered from $116.3 million to $111.3 million. Notably, our Q4 and full year 2023 adj. EBITDA forecasts of approximately $24.9 million and $100.1 million, respectively, are largely unchanged due to direct operating expense reductions.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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.