Bidstack Group PLC (LON:BIDS) said it has exceeded market expectations in terms of revenues for its 2020 financial year.
In a trading update for the year to December 31, 2020, the AIM-listed in-game advertising specialist said its results for the period are expected to include revenues of £1.7mln, up from £140,000 in the prior year, while losses are forecast to be £7.18mln compared to a £5.36mln loss in 2019.
The company said over the second half of the year its sales network had “ramped up significantly” in its core markets, adding that advertising briefs received by the firm are now evolving to ‘on plan’ from ‘test spend’ as advertisers “increasingly recognise native in-game advertising as a dynamic media channel in their efforts to reach the lucrative video gaming audience”.
Bidstack also said its approved partner network has now grown to around 25 members agencies, and that it has ended the year with cash resources of £2.76mln and a total headcount of 69 staff.
Looking ahead, the firm said the current pandemic “may well result in a further lengthening of sales cycles” and that to address this it will concentrate of the “appropriate implementation of its technology even if this is at the expense of some short term opportunities”.
Bidstack also said it has accepted the resignation of Derek Wise from the board with immediate to allow him to pursue other business interests and that it will commence the search for a new non-executive director.
“In 2020, Bidstack has made strong and tangible progress towards our ambition to become the global leading advertising and monetisation platform for interactive entertainment. Bidstack has proven its initial concept through bringing premium advertisers into the world of gaming, securing exclusive contracts with household name game developers and building the technology infrastructure to enable both sides to seamlessly transact. Our native in-game strategy has been to take no shortcuts from a technological or commercial perspective. This is now paying off, with clients planning around our inventory and with our technology they’re able to report transparently on the performance of campaigns via AdConsole, our proprietary tools, or via their DSP of choice, such as The Trade Desk”, Bidstack chief executive James Draper said in a statement.
“I believe that it is now vital that we stick to this strategy. With the commercial, operational and technological proprietary data, software and intelligence we have at hand, I believe we are perfectly positioned to not only identify the end-goal ahead of us but also to accelerate the journey that takes us there. The board intends to be able to give more guidance about our plans for 2021 and beyond with the publication of our full year results for 2020. I would also like to thank Derek Wise for his advice and assistance during his period on the board of Bidstack. We wish him well in his future business endeavours”, he added.
Bidstack shares were 30.7% lower at 7.5p in mid-morning trading on Monday.
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