BUY – Adslot Limited (ASX:ADS)
Pioneering the next generation of media, Adslot Limited (ADS) advances how brands, agencies, and publishers collaborate, enabling them to plan, buy, and optimise their media from a single platform.
At the end of July this year, the company released a presentation and an update on their progress through to the end of the June quarter.
Despite a significant slowdown in advertising activity through the June quarter, ADS were able to grow revenue significantly relative to the previous corresponding quarter, and also show quarter on quarter growth in the number of transactions through the platform despite the weak pandemic induced slowdown in that period.
Additionally, ADS appears to be gaining an increasing amount of traction with the largest US-based media agencies following the culmination of Master Service Agreements completed with three of the largest six agencies, and one in final legal review.
The business is guiding to strong growth in the current and coming quarters as advertising growth resumes and partners gain confidence in the platform.
ADS has strong growth potential from current levels and, despite the adoption of their offerings taking longer than expected, we are highly encouraged by recent progress.
Since the release of their FY20 financials in late August, we have also seen significant additional buying in the stock from the Directors of the business which helps to build our confidence.
Further reading
• ADS quarterly activity report, September 2020
• ADS Sept Qrtly AdSlot Chairmans letter
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