This is a company started 11 years ago when mobile marketing couldn't have meant much to anyone. Today they claim to be the biggest firm globally in mobile marketing and advertising. The shares move around a bit while I've been watching them, currently about $6.50. They just announced very good results, revenue up 70+% and growth over 100%. They have been aggressive acquirers, their latest move to acquire the leading Chinese mobile advertising company. Velti is based in Dublin and has been traded for only 18 months but the staff and management are all US. The share price seems very fluid its been as high as $18 at one point. I think if anything they are positioned at what is really the start of a new wave of marketing where the customer is carrying with him the device he uses for everything, so is uniquely identifiable and exposed to extreme targeting. A company which can understand this and offer services around this must be a big growth opportunity. From reading reports the stock fluctuates so much because advertising in the USA (as I know from working in the field myself) is an annual event for budgets, so revenue is flaky, one good quarter three poor. Their results are below:-
Announces second quarter revenue of $58.7 million, growth of 71 percent, compared with Q2 2011
Announces second quarter adjusted EBITDA of $6.2 million, growth of 100 percent, compared with Q2 2011
Generates $25.0 million in operating cash flow. Generated $7.0 million in free cash flow excluding acquisition and debt payments, $4.4 million inclusive of acquisition and debt payments
Increases annual revenue and adjusted EBITDA guidance, reiterates expectation for neutral operating cash flow in the third quarter and sustainable positive free cash flow by Q4 2012
DUBLIN, Ireland and SAN FRANCISCO, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Velti plc (Nasdaq:VELT), the leading global provider of mobile marketing and advertising technology and solutions, today announced its financial results for the second quarter ended June 30, 2012.
"The second quarter was excellent for Velti," said Alex Moukas, chief executive officer. "In addition to solid revenue and adjusted EBITDA growth, we achieved positive free and operating cash flow, reduced our comprehensive DSOs, successfully integrated our two recent acquisitions, Air2Web and Mobile Interactive Group (MIG), and signed up significant new customers that will drive Q4 revenue. Despite global macro-economic weakness, the secular growth story of the mobile channel overwhelms any cyclical macro concerns. We experienced healthy growth across our products and geographies, especially in the Americas, Western Europe and Asia.
"Looking forward, we expect our net cash position to trough in Q3 as we deploy working capital ahead of our large Q4 campaigns. We remain highly confident that we will achieve approximately neutral operating cash flow in Q3 and consistent positive free cash flow beginning Q4, while improving comprehensive DSOs throughout the rest of 2012.
"Our ending cash balance for Q2 was $44.7 million, and our net cash position improved by $5.1 million between Q1 and Q2. We are also pleased to report that we have closed a $50 million credit facility with HSBC.
"During the second quarter, we successfully completed the integration of Air2Web and MIG, and are excited both by their performance to date as well as the benefits that they are bringing to our complete solution. In fact, because of MIG's over-performance, we are accelerating the earn-out and we are more quickly assigning the company's outstanding leadership key roles at Velti. We will pay nearly the maximum amount while maintaining the timing of the earn-out payments. In China, we are using our CASEE acquisition as a platform to expand our mobile marketing offering to augment CASEE's mobile advertising business.
"Finally, as part of our integration efforts and our commitment to become free cash flow positive, we are reducing headcount and costs by several million on an annual basis, with the full effect being visible sometime in the fourth quarter."
Announces second quarter revenue of $58.7 million, growth of 71 percent, compared with Q2 2011
Announces second quarter adjusted EBITDA of $6.2 million, growth of 100 percent, compared with Q2 2011
Generates $25.0 million in operating cash flow. Generated $7.0 million in free cash flow excluding acquisition and debt payments, $4.4 million inclusive of acquisition and debt payments
Increases annual revenue and adjusted EBITDA guidance, reiterates expectation for neutral operating cash flow in the third quarter and sustainable positive free cash flow by Q4 2012
DUBLIN, Ireland and SAN FRANCISCO, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Velti plc (Nasdaq:VELT), the leading global provider of mobile marketing and advertising technology and solutions, today announced its financial results for the second quarter ended June 30, 2012.
"The second quarter was excellent for Velti," said Alex Moukas, chief executive officer. "In addition to solid revenue and adjusted EBITDA growth, we achieved positive free and operating cash flow, reduced our comprehensive DSOs, successfully integrated our two recent acquisitions, Air2Web and Mobile Interactive Group (MIG), and signed up significant new customers that will drive Q4 revenue. Despite global macro-economic weakness, the secular growth story of the mobile channel overwhelms any cyclical macro concerns. We experienced healthy growth across our products and geographies, especially in the Americas, Western Europe and Asia.
"Looking forward, we expect our net cash position to trough in Q3 as we deploy working capital ahead of our large Q4 campaigns. We remain highly confident that we will achieve approximately neutral operating cash flow in Q3 and consistent positive free cash flow beginning Q4, while improving comprehensive DSOs throughout the rest of 2012.
"Our ending cash balance for Q2 was $44.7 million, and our net cash position improved by $5.1 million between Q1 and Q2. We are also pleased to report that we have closed a $50 million credit facility with HSBC.
"During the second quarter, we successfully completed the integration of Air2Web and MIG, and are excited both by their performance to date as well as the benefits that they are bringing to our complete solution. In fact, because of MIG's over-performance, we are accelerating the earn-out and we are more quickly assigning the company's outstanding leadership key roles at Velti. We will pay nearly the maximum amount while maintaining the timing of the earn-out payments. In China, we are using our CASEE acquisition as a platform to expand our mobile marketing offering to augment CASEE's mobile advertising business.
"Finally, as part of our integration efforts and our commitment to become free cash flow positive, we are reducing headcount and costs by several million on an annual basis, with the full effect being visible sometime in the fourth quarter."
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