Catching up w/ my companies, this weekend I went over #APPS, #IAC and Reliance Industries calls, materials. Thread to share broad strokes of highlights.
Digital Turbine:
Revenue -25% YoY was beyond, expectations in contracting cyclical ad tech sector, how I interpret...
When marketing budgets contract, companies consolidate on highest ROI platfoms. For IG, Tiktok clients, preinstalled app hits the mark, but for others, user data is required for targeting and what does APPS have there?
The first thing I looked for during ER evening: BS debt
They successfully deleveraged 100M YoY (~422M remaining). In higher % env, this matters.
Admirable efficiency and profitability, regardless of top line downturn. 20% EBITDA margin.
CEO Stone mentioned they are consolidating revenue from clients onto single entity post acquisitions, which also had some negative effect. But macro of course is a major force here.
Mentioned they have booked tens of millions revenue for fiscal 2023.
On app stores (and stake in Aptoid)
"That's a 100B market today. And if you think about the marketplace where I paid a 1% from Visa, paid 3% from Amex and you're paying 30% w/ the current app store environment. So our view is that's going to get disrupted [... when not if]"
#IAC - unremarkable. Angi 2 yrs in a row SBC > Adj. EBITDA.
Mantra of "value in Angi" was not materialized in buybacks at 15, nor, 10, 5 of last q sub 2$/share.
Missed questions on other bets. Whole call on Dash and Angi only. Dash's projected EBITDA is ofc postponed and butt cheeks are tight. "Back to basics" - better be.
Personally glad, they kept enough firepower for M&As, as I market macro to the downside from here (same as IAC, based on their allocation I suppose).
One more note on Angi rebrand. People don't forget dis-tasteful experiences. They admitted to lots of failed experiments and change of name might not necessarily work. (it's Facebook till the end of my days).
Reliance Industries. Smooth sailing.
Jio rides two compounding waves:
Growing subscriber growth <> higher ARPU.
Marketplace - original thesis playing out. Early amazon. One BUT...
Modi "imposed Special Additional Excise duty (SAED) on export of transportation fuels with effect from July 1, 2022 resulting in an adverse impact on the profit for the quarter determined at ₹1,898 crore"
(230M USD or ~10% net profit).
No gifts from exceptional geo environment.