Last close As at 05/08/2026
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Research: TMT
YOC develops software for the digital advertising market, with the aim of optimising the advertising experience for advertisers, publishers and users of mobile internet and applications. Central to this is YOC’s proprietary ad formats, as well as its VIS.X platform, launched in 2018 to create a scalable and automated exchange. The platform’s operating costs are largely fixed, providing scope for margin expansion as revenues build. YOC’s H121 results provide early evidence of this, where revenues increased by 22% y-o-y to €7.7m with net income from continuing operations of €228k. Tailwinds within digital advertising support the company’s positive outlook and its new partnership with Oracle bolsters its positioning for the upcoming withdrawal of third-party cookies.
Written by
YOC |
Improving the AdTech experience
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TMT |
Deutsches Eigenkapitalforum 2021
3 November 2021 |
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YOC is a research client of Edison Investment Research Limited |
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YOC develops software for the digital advertising market, with the aim of optimising the advertising experience for advertisers, publishers and users of mobile internet and applications. Central to this is YOC's proprietary ad formats, as well as its VIS.X platform, launched in 2018 to create a scalable and automated exchange. The platform’s operating costs are largely fixed, providing scope for margin expansion as revenues build. YOC’s H121 results provide early evidence of this, where revenues increased by 22% y-o-y to €7.7m with net income from continuing operations of €228k. Tailwinds within digital advertising support the company’s positive outlook and its new partnership with Oracle bolsters its positioning for the upcoming withdrawal of third-party cookies.
VIS.X delivering scalable growth
YOC has developed VIS.X into a full-stack platform, enabling the automation of both publisher inventory trading and transformation of standard advertisements into its proprietary high-impact formats. This is a competitive advantage for YOC as most other AdTech platforms only offer one or the other. Automation increases the number of transactions YOC can complete and reduces the manpower needed to operate the platform, increasing operating leverage and its potential for margin expansion. Publishers and agencies using VIS.X benefit from programmatic advertising, providing scope for more efficient, targeted campaigns with higher monetisation potential. YOC has developed relationships with tier one and tier two European publishers, as well as with prominent global advertisers.
Achieving profitability
In H121, revenue growth was 22% y-o-y and net income was €228k, driven by YOC’s VIS.X platform. Momentum is expected to build in H221, underpinned by YOC’s FY21 guidance for revenue of €17–18m (+13%) and EBITDA of €1.75–2.25m (+20%). Net debt fell to €1.8m following the conversion of its convertible bond, which equates to net debt to EBITDA of 0.8x based on FY21 guidance. That said, management needs to deliver on its VIS.X strategy to address its net liabilities position, although we believe this is achievable at the current cash generation rate.
Valuation: Strong share price performance
Following a period of underperformance, YOC’s share price grew by 90% in 2020 and by a further 30% in 2021 to date. On guided FY21e sales and EBITDA, YOC trades at EV multiples of 2x and 18x, a discount of 69% and 25% respectively to our peer group. This discount could shrink as its VIS.X strategy develops.
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Historic financials and FY21 management estimates
Source: YOC. Note: FY21e is based on management guidance |
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Research: Industrials
paragon’s renewed focus on its core Automotive operations should soon be confirmed by the divestment of Voltabox. The refreshed strategy remains to drive sustainable, profitable growth through the development of innovative proprietary technology solutions and expanding geographical penetration and footprint. Despite the pandemic disruption to global car production, paragon Automotive is delivering strong sales growth. FY21 revenue guidance is for €145m with EBITDA margins of 12–15%. We expect a recovery in car output and new products to drive growth from FY22.