October 6, 2024
Zoomd Technologies (ZOMD.V in Canada and ZMDTF over-the-counter) is a marketing technology user-acquisition and engagement platform. “The company operates a mobile app user-acquisition platform that integrates with various digital media outlets. Its platform presents a unified view of various media sources to serve as a comprehensive user acquisition control center for advertisers and streamlines campaign management through a single point of contact. It also offers app marketing services. The company is based in Toronto, Canada.” Source of quote: https://seekingalpha.com/symbol/ZOMD:CA
Here is the company’s most recent investor presentation: https://tinyurl.com/32wrhas4
Mobile media budgets are rapidly expanding, making mobile media devices the primary screen for advertisers’ media expenditures. Consumer spending in mobile apps is expected to continue its upward trend.
Zoomd helps companies navigate the complicated ‘outside the walled gardens’ space, where about half the marketing budget is spent.
Zoomd enables brands to expand globally with the least resources and the greatest impact, offering access to a substantial network of both global and local media channels through a single, unified service provider.
Zoomd is entrusted by global brands with customer acquisition. Zoomd’s top ten clients have been with Zoomd for an average of three years.
Since Q2-2023, under the direction of new CEO Ido Almany, Zoomd has engaged in strategic refocusing and the company’s performance has improved, including net income growth for 5 consecutive quarters and solidly positive net income of $2.27 million in Q2-2024. Also, revenue grew by 60% from Q1-2024 to Q2-2024.
Furthermore, from Q2-2023 to Q2-2024 under the direction of Almany, operating costs as a percentage of revenues have declined from 42% to 21%.
The market cap is $32.01 million, while enterprise value is $31.24 million.
Metrics of cheapness:
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- EV/EBITDA = 5.86
- P/E = 11.09
- P/B = 2.86
- P/CF = 9.28
- P/S = 0.94
ROE is 23.49%. This appears to be sustainable.
The Piotroski F_Score is 6, which is decent.
Insider ownership is 22.95%, which is excellent. Cash is $4.39 million, while debt is $3.63 million. Total liabilities to total assets is 47.6%, which is pretty good.
Intrinsic value scenarios:
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- Low case: If there’s a bear market or a recession and/or if demand for the company’s products decreases, the stock could decline.
- Mid case: Annual EPS could reach at least $0.09 if the most recent quarter’s net income is matched or exceeded. With a P/E of 10, the stock would be worth $0.90 per share, which is 170% higher than today’s $0.3328 share price.
- High case: The company’s performance could continue to improve. Annual EPS could reach $0.12. With a P/E of 12, the stock would be worth $1.44 per share, which is 330% higher than today’s $03328.
RISKS
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- Customer concentration: The company’s top 10 customers represent the vast majority of the revenues.
- Increasing competition and emerging technological changes could challenge Zoomd’s ability to stay relevant and to capture new customers.
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