Finding Opportunities in Marketing Technology and the Ad Tech Industry

SEATTLE, WA / ACCESSWIRE / April 27, 2016 / The marketing technology and ad tech industries may have experienced a rough couple of years in terms of stock price performance, but investors may want to take a deeper look at the performance of some of these companies before making any snap judgements. Many of these companies have growing top-line performance and have achieved – or are on track to achieve – bottom-line profitability, which addresses some of the key concerns expressed by investors in the space.

In this article, we’ll take a look at a couple companies that have been accelerating top-line growth, while focusing on improving bottom-line profitability.

Accelerize: Growth & Profitability

Accelerize Inc.’s (OTCQB: ACLZ) CAKE platform revolutionizes the way that advertisers leverage their digital advertising data. Last year, the company
reported record revenue that grew 30% year-over-year to $21.4 million. While many companies in the ad tech space have been criticized for their mounting losses, the company achieved profitability during the fourth quarter on an adjusted EBITDA basis and is on track to remain profitable throughout 2016.

“2016 was another year of record revenue for Accelerize, but more importantly, it was a pivotal year of change that I believe will set the stage for a progressive profitable expansion in the years to come,” said Accelerize Inc. CEO Brian Ross. “By remaining focused on our vision of delivering a cutting edge digital marketing solution while streamlining our operations, we have transformed Accelerize into a business that not only delivers strong revenue growth through innovation, but one that also can deliver a strong bottom line performance.”

The company continues to add new clients and drive revenue higher moving into 2016. For example, Vivint
selected the CAKE platform to gain immediate insights on its lead and install volumes for its smart home technology that serves over a million customers. Management has also made great strides in diversifying its revenues into international markets, which account for nearly a third of its total revenue, as of the fourth quarter of 2015.

The company is targeting 30% growth in 2016 over its 2015 financial results, according to a recent letter to shareholders. In addition, management hopes to achieve a positive cash flow during the first quarter of the year to put the business on solid financial footing. The CAKE platform has also been recognized
for the second time as a Vendor to Watch by the 2016 Gartner Magic Quadrant, as it continues to add new enterprise clients and grow revenue.

Sizmek: Growing Operating Cash Flows

Sizmek Inc. (NASDAQ: SZMK) is an open ad management company that operates an independent online advertisement campaign management and distribution platform. With over 19,000 advertisers and 3,700 agencies leveraging its platform in over 60 countries, the company has become a leader in providing end-to-end solutions in planning, creative, delivery, management, and optimization of online media campaigns across channels.

As of the fourth quarter of 2015, the company had $42 million in cash, no debt, and a modest cash burn of about $3 million. The cash burn was largely attributable to merger and integration costs associated with the StrikeAd and PointRoll acquisitions, and when removing those costs, the company generated positive cash flows of around $11 million. By narrowing its R&D focus, the company hopes to further build this cash flow moving into 2016.

“Revenues for 2016 are expected to be between $182 million and $190 million [and] adjusted EBITDA for 2016 is expected to be between $16 million and $18 million,” said Chief Financial Officer Ken Saunders during the company’s fourth quarter financial results conference call. “Our guidance reflects actions we have begun to take to reduce cost and improve profitability as well as to focus on the three most critical areas of the company.”

Looking Ahead

There are many different companies operating in the ad tech and marketing technology space, including smaller companies like Accelerize and Sizmek and larger companies like Rocket Fuel Inc. (NASDAQ: FUEL) and Tremor Video Inc. (NYSE: TRMR). Investors may want to take a closer look at smaller companies in the space that have focused their efforts on improving profitability and focusing their growth efforts to cost effectively expand revenue.

For more information about Accelerize, visit the company’s website at www.accelerize.com.

For more information about Sizmek, visit the company’s website at http://www.sizmek.com/en/.

Legal Disclaimer

Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.

SOURCE: Emerging Growth LLC

ReleaseID: 439272