Always been intrigued by app. Issue has been hard to understand biz. Software side actually seems like wrong name for the biz. Doesn’t seem to be accurate description for it to me. Great article.
Thanks for the idea and nice write-up. Outside of consensus ests maybe being too low and the company trading at ~26x '24 Adj. EPS / ~21x '25 Adj. EPS vs TTD trading at +50x, what (if any) do you see as the main catalysts here? Any spinoff of gaming, increased buyback, M&A, or corporate action probable over the next 24 months?
Well the GAAP numbers are depressed by depreciation with the gaming studios optimization, this won't be a constant, so that will over time unwind. So imo, they're not the best metric to look at. Probably FCF - normalized SBC is the best metric.
No specific catalyst needed imo, EPS growth + buybacks can already provide a sufficient return, add to that potential re-rating, and then you can get to a high IRR.
Always been intrigued by app. Issue has been hard to understand biz. Software side actually seems like wrong name for the biz. Doesn’t seem to be accurate description for it to me. Great article.
Agreed, part is software (mediation), and part is data-based trading (discovery). So the lower multiple is justified up to a certain level.
Thanks for the idea and nice write-up. Outside of consensus ests maybe being too low and the company trading at ~26x '24 Adj. EPS / ~21x '25 Adj. EPS vs TTD trading at +50x, what (if any) do you see as the main catalysts here? Any spinoff of gaming, increased buyback, M&A, or corporate action probable over the next 24 months?
Well the GAAP numbers are depressed by depreciation with the gaming studios optimization, this won't be a constant, so that will over time unwind. So imo, they're not the best metric to look at. Probably FCF - normalized SBC is the best metric.
No specific catalyst needed imo, EPS growth + buybacks can already provide a sufficient return, add to that potential re-rating, and then you can get to a high IRR.