Collective Audience (NasdaqGM: CAUD) provides one of the most innovative audience-based performance advertising and media platforms for brands, agencies, and publishers. And like it does for them, it can also help itself get bigger faster. For investors, especially at current under-the-radar values, that exposes a potnetially massive opportunity.
For those new to CAUD, the company was listed on the NasdaqGM in Q4 and, since then, has wasted no time strengthening its management, advisory, and board to capitalize on significant opportunities in the ad-tech sector. They’ve also introduced a new open, interconnected, data-driven digital advertising and media ecosystem that eliminates many inefficiencies in the digital ad buyer and seller process for brands, agencies, and publishers. There’s more to appreciate.
They also provide sought-after visibility, complementary technology, and unique audience data that drive focus on performance, brand reach, traffic, and transactions. In other words, CAUD is a one-stop shop for everything related to adtech. And targeting revenue-generating opportunities in a sector estimated to be worth over $839 billion in 2023, at roughly $1.02 a share on Monday, the value disconnect between CAUD shares, assets, and potential, may be too compelling to ignore.
That’s not an overzealous assessment, either.
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CAUD Is Worthy Of A Higher Valuation
Remember, the company listed on the NasdaqGM following the completion of the business combination involving DLQ, Inc., a former subsidiary of Logiq, Inc., and Abri SPAC I, Inc., a special purpose acquisition company, which, at the time, the combined market cap of those entities was roughly $64 million. So, it was indeed a value-creating event for our stakeholders. Since then, Collective Audience has added an all-star management team, including advisory and board members that comprise a Who’s Who talent list.
The company also completed the special dividend portion of the business combination referenced, a second major milestone that positions CAUD to capitalize fully on targeted market potentials. Of course, that’s just a part of the value proposition. From a forward-looking perspective, more likely than not, CAUD will announce additional value-creating events in the coming days and weeks, an expectation based on guidance indicating that the growth pace at the company is accelerating.
That’s timely, considering they target an enormous market opportunity today that’s increasing at a tremendous pace. In fact, the over $839 billion audience-based performance advertising and ad-tech sector market in 2023 is forecast to reach $2.9 trillion by 2031. That puts CAUD in the right market at the right time. As important, they have the products and services arsenal to target the hundreds of millions in play, leveraging its brand and suite of services that are often unrivaled. Still, the company isn’t expected to sit on just the current opportunities. They’ve also indicated an ambitious mission of growing into the more significant emerging market opportunities. In other words, rather than just participating in a technological revolution in the ad-tech space, CAUD intends to be a leader in it.
Capitalizing On A Massive Adtech Opportunity
The stakes are high. Earning even a modest share of the market potential can be transformative for CAUD. And the excellent news is that CAUD is well-positioned to earn its rewards by providing client companies with specialized strategies to enhance digital marketing programs and audience engagement. The plan is excellent, and so are its products. The technology fueling its platform makes them more than different. In many respects, it makes CAUD better than its competition. Combined services include data analytics, targeted advertising, and customer relationship management. While some in the space do one of those, few provide a package as comprehensive, a distinction that does more than expose comparative advantages; it motivates clients to engage.
And keep in mind that CAUD targets more than a handful of companies needing what it provides; they can target millions, large and small, that struggle to remain competitive by lacking the technical or financial resources to stay relevant in the fast-changing adtech and technological landscape. So, from an investor’s perspective, there’s plenty of blue-sky potential to factor in when making a fair-value appraisal, which, at current prices, appears to miss that mark.
Yes, there’s competition. However, as noted, CAUD has assembled a team and product portfolio that enables it to lead a booming market rather than just participate. And by being targeted and efficient in its strategies, they could capture share faster than many expect, especially inherent to its ability to leverage unique data-driven, end-to-end solutions that make it seamless for clients to access data and activate campaigns across multiple media channels. That’s more than an attraction to clients; it’s a value driver that should be recognized and appreciated.
Right Markets At The Right Time
Also, remember, digital marketing and adtech are and will remain the optimal means and solution for companies wanting to communicate with current and prospective customers to create and maintain brand awareness. The services CAUD provides may have been a luxury just a few years ago but are necessary today, particularly with digital marketing, a critical contributor to brands standing out from competitors in congested markets. Collective Audience provides them that ability, offering what’s described as a holistic, self-serve adtech platform that gives users a data-driven, AI-powered system enabling advertising across thousands of the world’s leading digital media and connected TV platforms. That’s crucial in every business sector in today’s digital era.
Keep in mind that billions of eyes are fixed on one type of device or another daily. As it should, that’s led to significant adtech spending, with many companies targeting their customers’ time spent on the growing number of social media platforms. That need opens the door for ad tech providers like CAUD to provide clients with products and services, allowing them to reach targeted demographics through new retail media, connected television, and E-commerce channels. Completing significant groundwork, CAUD has positioned itself ideally to give customers the tools to bring their audience objectives to life quickly and effectively. That’s an additional value driver worthy of appraisal inclusion. That’s not all.
Last week, CAUD announced signing a binding letter of intent to acquire BeOp, an award-winning, Europe-based MarTech and AdTech industry-leading innovator. BeOp brings to Collective Audience a cloud-based modular platform and the industry’s first SaaS- services- and marketplace-based, AI-powered, performance advertising and data platform for media and brands. It’s a significant new addition. BeOp is revolutionizing the advertising landscape with its innovative technology tailored for the latest digital media and advertising market KPIs such as attention measurement, engagement rate, attribution, and time spent. The platform offers a self-serve interface and APIs that enable integration into any environment. This addition should drive near and long-term value and expand CAUD’s business footprint. There’s still more supporting the bullish thesis.
Another factor to consider when appraising the CAUD value proposition is a capital structure that can fuel share price appreciation. Collective Audience debuted on the NasdaqGM with about 13.73 million shares O/S, with roughly 83% held by insiders and about 5.2% by institutional investors. Relatively speaking, that leaves a small number of shares in the public float that, which, on a revenues-to-shares basis, assuming the company grows revenues as expected, can support forward-looking models and the bull’s case for higher valuations. At current valuations, roughly $13.6 million today, there is a strong case for plenty of near-term upside.
Seizing On A Valuation Disconnect
Thus, the shares’ churning between $1.00 and $1.18 post-NASDAQ listing may present a compelling value investment opportunity. Remember, beyond excellent products, services, and technology, CAUD is led by a management and advisory team proficient in succeeding. It’s doubtful they assembled at CAUD to do anything besides have a successful track record repeat.
In fact, if this company can effectively leverage the strength of its asset portfolio, that could happen faster than many expect, closing an open window of opportunity related to an apparently undervalued share price in the process. In other words, factor in the sum of CAUD’s parts when appraising the opportunity. Some of them alone can support a higher valuation. But it’s the combined power behind all of them, and the others expected to accrue, that make this investment proposition attractive. Perhaps more than attractive, that total makes it compellingly actionable.
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