QYOU Media (TSXV: QYOU) – The World Is Watching

Investors frequently tend to only focus on business and financial news as it relates to emerging companies keeping an eye on their investments.

QYOU Media had four significant news releases in the month of October as it shared growth in new global markets as well as announcing the milestone reach of 100 million people.

  • QYOU launches first localized channel in Poland with Mediakraft
  • QYOU set to launch daily esports TV and multiplatform series with Super Channel
  • QYOU strikes again in Portugal with NOWO
  • QYOU Achieves 100 Million Reach Milestone

QYOU Management shared that the reach of these four announcements went far beyond the normal channels of a news release and the summary below has links to 49 additional pieces of coverage across the globe in the month of October.

Click to view summary

 

QYOU Media Secures Bought Deal Financing And Clarus Tech Analyst Calls For “Lots of Catalysts In Second Half”

QYOU Media is adding fuel to its growth engine with this morning’s (October 31) news that it secured a Bought Deal with Clarus Securities that will see the investment firm purchase 13.5 million units for gross proceeds of just over $5 million. The unit is comprised of a common share and a half warrant with each warrant good for 24 months and exercisable at $0.55. There is also an over-allotment provision where an additional two million units could be taken up by Clarus, which would see gross proceeds rise to $5.7 million.

The added bonus with this news is that there has been some “street expectation” that the company would raise additional growth capital, which tends to keep a lot of potential buyers out of the market. Quite simply, once the street knows a company has the funds it requires for the future, people are more comfortable investing in the organization.

This bought deal follows two recent updates from Clarus Technology Analyst Joseph MacKay, who is calling for near-term robust growth.

In addition to his review of Q4/Fiscal 2017 (June 30) results, which saw revenues climb to $1.33 million or 322% over Q4/F2016, Mr. MacKay provided his perspective on the second half of calendar 2017.

He’s looking for the quarter ended September 30th to jump to $2.3 million and the December 31st quarter end at $2.9 million. On a calendar basis, he remains committed to revenues of $7.5 million for 2017 and $15.4 million in 2018. His price target is $1.10 per share.

Source: QYOU, Clarus Securities

He also provided comment on last week’s announcement that come January 2018, QYOU is launching a dedicated sports program with Super Channel’s GINX eSports TV Canada. Following the announcement on Heads Up Daily (HUD), management held an investor conference call where it was stated that the company expects revenues of $3 to $5 million just in 2018 from this new program.

Mr. MacKay wrote that management “believes that international revenue in 2019 could reach 4-5x 2018 levels. The mid-point of management’s eSports guidance represents 26% of our 2018 revenue forecast, while a 4-5x increase in 2019 would represent 64%-80% of our 2019 revenue estimate”.

The analyst is forecasting $25 million in revenues for 2019 and this was before the HUD deal was sealed.

It was also reiterated that 70% to 80% of annual revenues are recurring.

To view today’s news release, please click here.

 

QYOU Media’s New International Contracts Prompt Comments From Clarus Analyst

TSXV: QYOU

Since Clarus Securities Technology Analyst Joseph MacKay called for a $1.10 target price on QYOU media in his September initiation coverage, QYOU Media has released news on three international deals, which expand its global reach for its unique programming.

In an updated report released earlier today (October 18), Mr. MacKay discusses QYOU’s  extended international reach due to these new contracts and confirms his Target Price of $1.10.  This would equate to a 189% potential return based on this morning’s $0.38 stock price.

First, there was news of a New focus in India on Sept 13th, then Further Expansion in Portugal with NOWO TV Service on October 10th, and on October 17th, news of Launching QYOU’s First Fully Localized Channel in Poland.   

QYOU’s Best-of-the-Web” short form content for multi screens now reach more than 100 million consumers over six continents. The target audiences are millennials and Gen-Z.

Mr. MacKay has estimated 2017 revenue of  $7.5 million followed by estimated 2018 revenue of $15.4 million and positive EBITDA of  $4.9 million. Details on his first report can be seen here.

“QYOU’s Profitability Is Right Around The Corner”

Pending profitability, recurring revenues, and being THE world leader in short-form video content were the points tabled by QYOU Media’s Chairman G. Scott Paterson in a just released interview with Capital Ideas Media publisher, Mark Bunting.

Mr. Bunting bills the interview as “talking to the charismatic, irrepressible and high-energy Scott Paterson, one of Bay Street’s most prolific dealmakers and the Chairman of QYOU Media. Find out how this company is creating a new MTV by packaging web videos for broadcasters and targeting the millennial market.”

In the writer’s view, Mr. Bunting mentioned MTV, as the founders of that very successful company (and groundbreaking for its time) are the founders of QYOU Media.

In addition to the discussion about the rapid pace of revenue growth, Mr. Paterson makes the following key points, as well as the investment thesis for why people should seriously entertain becoming shareholders.

  • Viewership of short-form video “dwarfs” television viewing
  • Growth of mobile video exceeds cannabis sales at nearly 50% per year
  • QYOU Media partners with “major media conglomerates” such as Sinclair Broadcasting
  • 70% – 80% of QYOU Media revenue is recurring partly due to fees
  • QYOU Media recently launched with Lufthansa Airlines and Buffalo Wild Wings
  • QYOU Media has partnerships with Vodafone, Liberty Sky, Tata and others

Mr. Paterson’s interview is the first segment in the program.

Below is the Financial Model referenced during the interview that illustrates management’s thinking on growth in 2017 and 2018.

As a reminder, Clarus Securities Technology Analyst Joseph MacKay has a $1.10 Target Price on QYOU.  For more information on the Clarus report, please click here. 


On the heels of recently announcing that the company’s premium ‘best-of-web’ video for multiscreen distribution for its programs and linear channels now reaches an addressable audience of more than 100 million consumers across six continents, QYOU added to those numbers today (October 10th) with more news titled, QYOU strikes again in Portugal with NOWO.

Here are some key highlights from today’s news release:

  • QYOU Media’s linear channel will bring best-of-web video content to almost a million additional homes through NOWO TV service.
  • The agreement sees further expansion of the QYOU channel reach across Western Europe.

To read the news release, please click here.

QYOU Media Is A BUY – Clarus Securities Research – Target Price 170% Above Current Market

Joseph MacKay who is the Technology Analyst for Clarus Securities has just initiated coverage on QYOU Media with a $1.10 Target Price, calling it Undervalued; “QYOU is trading at 4.4x and 1.8x 2018E and 2019E EV/EBITDA in a sector that typically trades at 8.0x-12.0x. We believe that as revenue ramps in 2H17 and as the company becomes EBITDA positive in Q1/18, this valuation discrepancy will disappear.”

As of this writing, the stock was trading in the $0.40 range with Clarus accounting for approximately 40% of the volume of close to 400 thousand shares.

QYOU Media, which is lead by the team that steered MTV, Atlantic Records and Lionsgate Digital to great success, has already created over 5,000 hours of original programming with its “Best-of-the-Web” video content for multiscreen distribution that targets the millennial and Gen-Z market through global content providers on any device. Its programming is now aired in more than 30 countries.

QYOU has proprietary technology that underpins its ability to identify premium “best-of-the-web” content.

Mr. Mackay commented that the low valuation comes from a lack of investor knowledge as QYOU is new to the market as it only began trading in March of this year with the completion of a Reverse Take-Over and it has a short history of publicly reporting financial results.

Below are the analyst’s forecasts through 2019, which call for more than a doubling of revenues in 2018 compared to this year and a healthy jump to more than $25 million in 2019. Mr. MacKay’s statement that the company is slated to become EBITDA positive in Q1/2018 also reflects management’s public position.

Mr. MacKay notes QYOU’s marquee customers, which speaks to the quality and attractiveness of the programming. He noted a few major names; “QYOU provides content to Sinclair’s TV station, “TBD”, which will be available over-the-air in 81 U.S. markets by the end of 2017. With Tata Sky, QYOU is providing content to 17M connections while with Ericsson, QYOU’s content has been added to Ericsson’s new delivery platform which is being rolled out to over 40 service providers”.

The market tends to embrace companies with a strong recurring revenue stream. QYOU is now at the front end of that growth, which prompted the comment from the analyst that, “With the typical contract 2-4 years in length, 70-80% of QYOU’s revenue is recurring on an annual basis. Based on our forecast, QYOU will be EBITDA positive in Q1/18 and will generate $4.9MM in EBITDA in 2018 up from negative $2.7MM in 2017”.

To view QYOU’s latest investor presentation and other related material, please visit: https://howardgroupinc.com/qyou-media/

QYOU’s CEO Curt Marvis Interviewed – “Our Market Is Truly Global”

“Anyone Who Is Displaying And Distributing Content To A Screen Worldwide Is Potentially A Customer For Us” – Curt Marvis, CEO of QYOU

Mr. Marvis recently sat down with Lawrence Harte who has interviewed over 3800 tech and business leaders with his podcast being carried on Internet TV Plus. The 30-minute interview covered much of QYOU’s business offering including:

  • What is a Short Video TV Channel?
  • Why are Short Video TV Channels important?
  • Who needs a Short Video TV Channel solution?
  • How do you create a Short Video TV Channel?
  • What changes are needed to implement Short Video TV Channels?
  • How long does it take to setup a Short Video TV Channel solution?
  • What services and/or equipment are needed to provide Short Video TV Channels?
  • Are there other benefits to branded Short Video TV Channel Solutions?
  • Any special training required for operators or users?
  • Will Short Video TV Channels work with most systems?
  • Are there industry standards for Short Video TV Channels?

To listen to the interview, click below or go to: https://internettvplus.com/internet-tv-plus-podcast/creating-tv-channel-from-short-videos/

 

QYOU Media Management Update and Discussion Call Now Available

Recent News and Financial Outlook Discussion


QYOU: TSXV

The market has been responding very positively to yesterday’s (June 27th) “news filled” management update call with the stock climbing above $0.50 on more than two million shares as of this writing. 

Chairman G. Scott Paterson and CEO Curt Marvis hosted the company’s first investor call, with  Mr. Paterson commenting that the board is encouraged more than it ever has been with QYOU’s business. He believes the stock is grossly undervalued based on recent accomplishments, and especially so in light of yesterday’s news on the expansion of the relationship with Tata Sky.

Understandably, he’s happy to see the market’s positive reaction and stated, “there is lots more planned on the investor relations front.”

To view Tata Sky news release, click here.

CEO Curt Marvis started his discussion about the roll out and early success of QYOU’s partnership broadcasting its specialty programming through Tata Sky in India.  Although they had just started broadcasting QYOU programming in December 2016, significant uptake in viewership resulted in approval for Tata Sky to broadcast QYOU’s 24/7 service of online content to 17 million devices.

Mr. Marvis discussed the success of its ongoing relationship with Sinclair Broadcast Group and its TBD Network, which is currently available on a free-to-air basis in the U.S. to nearly 40 million homes, hopefully growing that to over 70 million this year.

Mr. Marvis also discussed the significant revenue growth QYOU has achieved this year and mentioned he is comfortable projecting 3x growth over 2016 towards ~$7 million in revenue this year.  A large percentage of 2017’s revenue will carry into 2018, where he can see another 2-3x growth again to between $15 and $21 million.  2018 will see positive EBITDA margins as well.

The recent financial guidance can be viewed in the new investor presentation that is now available by clicking here.

Listen to the Management call below or click here.

QYOU CEO Presents At New York MicroCap Conference

Curt Marvis, CEO of QYOU Media Inc., presented the newly trading company to buy-side investors through a series of one-on-one meetings followed by a formal presentation to attendees at the annual MicroCap Conference in New York City.

Mr. Marvis delivers a compelling 23-minute presentation summarizing QYOU and its global opportunity of curating, programming and packaging premium short form web video.

To access the presentation, please click here.

Curt Marvis presenting at The MicroCap Conference on April 4, 2017