Bidstack Chat - Check In

Hang out and kill some time with some general #Bids chat
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sectornitad
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Re: Bidstack Chat - Check In

Post by sectornitad »

Time to remind ourselves of the mathematical prize...

Global in-game ad market estimated at $130 billion in 2019 (ref #1). This is £100 billion. This figure is for all kinds of ads in all kinds of video games. It is only expected to grow, and grow substantially in the years ahead.

Assume 'only' 1% of this ad-spend is spent on native in-game, the sort Bids does. This is easy maths and is £1 billion.

Based on number and quality of formal, multi year exclusive deals signed (and with today's Ubisoft news) we can with some justification say that Bidstack is the leader of the pack. It is also currently the only player with the coveted IAB Gold Standard. That said, let's say Bids 'only' gets 10% of this evolving in-game market.

Bids share is £100m revenue. Now, this will not be overnight but a realistic target for 2-3 years out.

If we assume a blended operating margin of 20% we arrive at gross profit of £20m.

If Bids grows head count as expected we might predict fixed costs of £10m in 2 years time.

So, after tax that leaves £8m earnings. The future is free-to-play, esports and streaming and Bidstack is positioning itself to be right in the mix of it all. Applying a very conservative PE of 25x and assuming a further 60m shares will be issued next year gives us a price of 45p per share.

45p per share based on the above is not unreasonable. All the other inputs are achievable given today's validation by Ubisoft. Still risky, sure, it is a brand new market in its infancy. However, the market is currently adding precisely zero future potential growth into the price (6p).









#1:
https://www.businesswire.com/news/home/ ... %20change.



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Re: Bidstack Chat - Check In

Post by bidtastic »

sectornitad wrote:
Tue Sep 15, 2020 9:28 am
Global in-game ad market estimated at $130 billion in 2019 (ref #1). This is £100 billion.
The bit I like about this is that that $130 billion doesn't account for secondary viewing native advertising because it not yet a thing :)



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Re: Bidstack Chat - Check In

Post by sectornitad »

@bidtastic agreed - the bit I also like is that my calculations assume only 1% of ad spend migrates into native in-game away from annoying pop-ups etc. and that I assume Bids only gets 10% of it in 2 years.



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Re: Bidstack Chat - Check In

Post by Riosurfer »

Very good thinking Sectornitad based on some fair assumptions but I agree with bidstatic. I think secondary viewing could be a huge driver provided it can be monetized effectively. I actually think the market will grow faster with (i) the next gen consoles marketing into a gaming boom; (ii) the relative decline of OOH and other competitor media; (iii) the secondary viewing opportunity and growth of esports; (iv) the enhancement of the in-game experience that native ads can generate (games can feel more "live" and authentic); (v) more data that indicates higher recall from IGA than, say, social media scrolling.



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Re: Bidstack Chat - Check In

Post by bidtastic »

James Draper

To add Ubisoft to our client list today gives me huge pride in the work everyone at Bidstack Group PLC has accomplished since listing the company two years ago.

The truly innovative Hyper Scape title is such a labour of love from the Montreal team within Ubisoft, it's a privilege to be working with them, to bring truly immersive brand activations into the Battle Royale genre.

Thanks again to everyone who has made this happen - kudos to John Koronaios, Francesco P. and Charlotte Cook here at Bidstack - and, thanks to our friends at Ubisoft, who are a pleasure to work with.

The continued work from our world class team here at HQ, Riga and in the States has got us to this point, thank you to everyone - you know I appreciate it.

https://lnkd.in/dUy9ryc

#bids
https://www.linkedin.com/posts/jamesdra ... 39521-ARVB



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Re: Bidstack Chat - Check In

Post by bidtastic »

Ross Millican
Director, Global Brand Partnerships at Bidstack Group PLC

Very excited to share this news! Lots more big stuff to come from Bidstack in the coming weeks and months, get in touch to find out more
https://www.linkedin.com/posts/ross-mil ... 67456-Rj9a



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Re: Bidstack Chat - Check In

Post by sectornitad »

bidtastic wrote:
Tue Sep 15, 2020 11:30 am
Ross Millican
Director, Global Brand Partnerships at Bidstack Group PLC

Very excited to share this news! Lots more big stuff to come from Bidstack in the coming weeks and months, get in touch to find out more
https://www.linkedin.com/posts/ross-mil ... 67456-Rj9a
He must have been told/allowed to say that. Does appear that we might be about to get a spate of news and hopefully PR to go along with it. Drive this SP to a more realistic valuation. £22m currently is bonkers.



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Re: Bidstack Chat - Check In

Post by bidtastic »

Good to see TW is already out and about calling today's news a "Dirty Ramp".



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Re: Bidstack Chat - Check In

Post by sectornitad »

bidtastic wrote:
Tue Sep 15, 2020 11:34 am
Good to see TW is already out and about calling today's news a "Dirty Ramp".
The man is a class A plonker.



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Re: Bidstack Chat - Check In

Post by bidtastic »

Todays RNS has been downplayed quite a bit by leaving out any mention of numbers or confidence on targets.

The exclusivity on Hyperscape is the bit that has impressed me a fair bit.

It looked like things were maybe going down the path of multi-company agreements.

It's been a long long time since John, Fran & James were hanging out on the Ubisoft Montreal rooftops.

Glad they managed to secure it for themselves even if it as least for this game only. If they have exclusivity to the studio then...

https://montreal.ubisoft.com/en/our-games/

Very happy times are ahead.

Hyperscape - Watchdogs - Rainbow Six - Roller Champions.

:o



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