Growth through acquisitions
In an interview with AlphaStreet, Bright Mountain Media CFO Ed Cabanas said the acquisitions helped the firm expand to highly valued verticals. “With Wild Sky came several female-focused parenting websites with approximately 25 to 30 million unique visitors. So from an acquisition perspective, we are targeting more of the digital publishers and the key niche verticals that we are focused on, as well as technologies that can help in analytics data integration, optimization, fraud prevention, etc,” he said.
Going forward, the management expects to continue adding new companies under its wings and expand to new verticals including healthcare, finance, and young male demographic.
The company last announced earnings results in November, when it reported revenues of $9.44 million for the first nine months of fiscal 2020, a 141% increase over the same period a year ago. Meanwhile, the company’s losses widened during this period, with capital mostly invested into scaling operations. Cabanas said the management is envisioning getting into profitability, at least a cash flow from an operations perspective, in 2021.
Vast market opportunity
Digital ad spend is expected to grow 85% from 2018 to 2023 in the US alone. While around 75% of this is likely to be concentrated among the big tech players including Facebook, Google, Amazon, Pinterest, etc, the rest of the market still provides vast growth opportunities to digital ad firms like Bright Mountain.
Cabanas estimates the potential market size to be a whopping $90 billion, offering plenty of upside for a company in the microcap space. He added that the trend of uninterrupted services, spearheaded by firms like Netflix, will not hamper the overall market opportunity for advertisers.
“I don’t think it’s ever going to go 100% uninterrupted. I think there is always going to be a split. The key thing for us is to be able to capture that data as best we can, interpret it, and utilize it.”
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As of March 12, 2020, the stock was trading in the OTC market at $2 per share. Interestingly, the stock has doubled over the past 12 months. Bright Mountain Media is slated to report fiscal 2020 financial results around March 31.
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