VOX MARKET 12.02.2020

Look back at old and new Vox Markets interviews involving Bidstack. Share your thoughts
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MGXYZ
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VOX MARKET 12.02.2020

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Re: VOX MARKET 12.02.2020

Post by mike »

Here are my looong notes I took whilst listening. Not a full transcript and not word for word perfect but should help as a reference :geek:

JW: RNS shows that you missed targets, shows your cash level, cash burn. People worried...you say further building blocks before we can achieve revenues..People are questioning whether it's even going to get revenue.

JD: What we meant by the wording is that where the company got to end of last year... Couple of things in play (Plan A) but timeframes weren't allowing, deal was changing and wasn't fully for him, the company or investors so moved away from it. Moved to more of a trading agreement which couldn't be recognised which will be recognised over the course of this year.

When talking about the number of building blocks that need to go in to unlock the revenues, somethings still can't be mentioned or understood by current investor based. A number of pieces have to be put together to create the ad category.

Web based display / out of home billboards is an ad category

In-Game is a new ad category, which involves a bunch of things being put together to make this type of inventory recognised across the entire advertising landscape so it appears on media plans across the world.

Started with friends at Football manager to talk to ad agencies, holding groups, the Dentsus etc who hold the purse strings across the world to understand how it's bought, what they need to get back in return, targets etc.

The reason why these digital games subscriptions are in place are to get information on their audience to get things like age, gender and build up a profile on who they may be. Might have x number of games on phone etc.

Bids have been working with them to break into 3 categories / game env (defining together with likes of Anzu) so we know what would be classified as an impression etc. They found they weren't getting the reporting data back from the game in a timely fashion in order to calculate the number of impressions so have had to work with the game publisher and on the buy side to figure out the technical hurdle. The inventories being used right now are being 'crow barred in' to existing tech and more pressure is being built to change this (agreements etc).

Categories:

1. Circuit Game
2. Stadium Game
3. Open World based game

Open World, playing X game for hours not getting shot, wondering around a city. How do we compare an impression in that kind of environment vs something like a circuit game which is much quicker. An hour wandering around, the DSP would have timed out waiting for a game to complete.

This is what they have been working out. Circuit and Stadium seem to be in hand, but Open World is still going through test environments with different game publishers.

The win is enormous but have to go through a certain path to get these massive spends. Need to make sure the ads fit through the stacks, and need to define what the category is.

Really really huge upsides for this company. Outlook for where this company can ultimately get to he still stands by.

JW: You mention in the RNS that revenues in H1 will be minor and material in H2. Lots of stuff need to be done. How confident are you that this will be achieved

Very very confident. Number of things we are doing. Did a number of things last year that make lives easier this year. Did a number of things that made us confident in hitting the end of year number up until the last minute which, believe me, we were so close. It's a case of now when we looked at it, we had to sit down and recharge over the Dec break. Hit the ground running and treat it as a 12 month sprint.

How do we now maximise the return for the shareholders, what do we need to do in the next 12 months. What allocation of resource.

Built out the tech team, happy with 27 developers in Riga. Building out amazing products. Guarantee you, excite the likes of the right type of companies on the west coast.

They get excited by the things we're doing. It has enormous scalability, frictionless.

Building out multitude set of products, resulting us in being a leader.

Not a case of this being a huge stretch and we're staring at a blank piece of paper. It's an enormous piece of work. Need to make sure what they're doing today will unlock the huge spends ASAP but also be ready for the next wave of gaming infastructure over the next 5 years or so.

Things like Stadia, in their Alpha stage. Advisors in the company, give them information on what the industry are doing, may not be made public yet. Seeing those things and making sure they are prepared.


JW: You had cash of 3.1m at end. Making loss of 5.3 will cash be enough to take up to the revenue generation?

JD: Depends on what type of generation you are referring to. We are generating revnue at the moment.

What the company is trying to do and need to guide it well. Looking in the mirror, this is a legacy project for him. He's a major shareholder, hasn't just rocked up here, doing for a while lots of sacrifices. Win needs to be big for him and the company. Got to make sure all opportunities are being capitalised on.

Need to make sure we have the financial firepower to react and mobilise for all this. What would be silly would be to limit the potential win, strip things back and watch another company who don't need to disclose their actions publicly and they have a massive win. Look back and think Bidstack could have been there.

They need to pick the win and make sure they have the resources for it. Do they forsee a period where they want additional firepower. Yes, they will do this to make sure they are hugely profitable in the future.

JW: New appointment. Looks like you are just covering up the bad news. Are all the advisors still there. Why do you need so many

JD: Yes all still there. Need people to give answers without going out to the wider world, don't want things on BB's etc. Need to be responsible.

Andrew...real shame that it had to be announced yesterday. Was a reason it had to be done yesterday, out of respect for other companies involved (can't name). There isn't a big conspiracy all the time. Andrew is a standalone incredible bit of news. Anyway who is involved in gaming, he was the guy who launched PS4. Was the head of Sony Interative entertainment. He is an impressive character. Very well connected. No-one more connected than him in the gaming landscape. Anything to do with Sony would have had to go through him in the last few years. PSVR was one of his babies. The way in which he is going to assist. he can open doors all over the place. He's grown out divisions, he was CMO of Sony full stop, then built out entertainment, interactive entertainment. Building out models, issues with the platforms, data they get, revenue models, HW lifecycles etc. Understanding of his business, funding connections.

The smart investors will understand that he's been privvy, he doesn't need to do this but he wants to. He's financially wealthy. He's not getting paid, incentivised by options which tier up. He's on a journey to get the share price back to where it should be.

Has people like Bryan Neider who headed up content for EA. SDK's etc going through him.

Mike Hays, turned Sega to a thriving business.

Will Kassoy, head of publishing for Guitar Hero.

...

Benefits they get from these guys being around. None of the advisors are retained on a salary. Andrew for example, flying across to the UK from San Fran / Tokyo once a quarter and doing a day a month, because he believes in what we are doing. can't think of another AIM stock have these types of people around them. They've been under attack but it says so much about what they have been up to.

The amount of flaming going on is not deserved. What they are doing is truly game changing. Everyone should be proud of it. The future is very bright for this company.

JW: The thing with investing is that it is very emotional. Only talk about shares that I hold stock in. People critisise when a share price goes down but no-one does it when it's going up. Massive industry, big, doing a new thing. For people holding, that are quite annoyed, what do you say:

JD: Look after yourself right. Look at the quality of the people who are aligned to the business. They have a fair amount of info about the company and where it's going. They don't need the money. It's a risk for their reputation and they will feel the pain of that. The fact that they are involved should say a lot. Look at the size of the market, do research in the gaming space. You will start to see that there is an awful lot of exciting things happening, including the restrictions coming in the ad space. Which all plays into Bidstacks hands. In a very good space, exciting period of growth. Have tried to give people who have put the shares in the draw and hold, will continue to give guidance on what to look out for on where the company is growing to. Look at Andrews CV and what he has done and the type of things he has been doing in the past. People like that would not be getting involved if they thought it was not going to do well. Wants this company to be existing many years down the road. Don't mind going through a rocky period if it's going to result in good things. Working to provide a great return.



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Re: VOX MARKET 12.02.2020

Post by Nickfletch70 »

Couple of questions for me that are not going away:

1) what other companies is James referring to re new appointment? Seems like a strange thing to say
2) anyone else get the feeling that James has been castigated about being too optimistic and has been over cautious with timescales? Maybe I’m too excitable but I wouldn’t be surprised if there was an IAB announcement around recognition of revenue streams, shortly followed by a few games being announced for us. Whilst James was giving us an insight into the three types of gaming for ads he spent quite a while talking about open world ( fortnite I think after previous social media posts looking v much like fortnite ) And the fact the the ‘timing out ‘ issue is nearly resolved. Hint?



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Re: VOX MARKET 12.02.2020

Post by MGXYZ »

Thanks to Bottomzup who highlighted the below from the AGM RNS update. I'm reading it as the open world problem mentioned in this podcast has been solved - it's now in real time. I hadn't picked up on it before.

"On the technical side the Company has created and improved its AdConsole so that games publishers (as well as advertisers) can now access real time data on the performance of their games."


mike wrote:
Thu Feb 13, 2020 5:07 pm
Bids have been working with them to break into 3 categories / game env (defining together with likes of Anzu) so we know what would be classified as an impression etc. They found they weren't getting the reporting data back from the game in a timely fashion in order to calculate the number of impressions so have had to work with the game publisher and on the buy side to figure out the technical hurdle. The inventories being used right now are being 'crow barred in' to existing tech and more pressure is being built to change this (agreements etc).

Categories:

1. Circuit Game
2. Stadium Game
3. Open World based game

Open World, playing X game for hours not getting shot, wondering around a city. How do we compare an impression in that kind of environment vs something like a circuit game which is much quicker. An hour wandering around, the DSP would have timed out waiting for a game to complete.

This is what they have been working out. Circuit and Stadium seem to be in hand, but Open World is still going through test environments with different game publishers.


The win is enormous but have to go through a certain path to get these massive spends. Need to make sure the ads fit through the stacks, and need to define what the category is.

Really really huge upsides for this company. Outlook for where this company can ultimately get to he still stands by.



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