Thread by @Pratyus79525701

A Thread on Brightcom Group

• Business model of BCG
• It's Products
• Subsidiaries of BCG
• Some Misconceptions regarding BCG
• Recent Development
• Future Prospects

Let's start

BCG is an Adtech Co. which provides online or digital marketing services to: direct marketers, brand advertisers and marketing agencies.

It is divided into 3 main segment -

1) Media ( Ad tech & Digital marketing) - Contributes 80% to revenue

2) Software services
3) Future technologies (AI ,ML)

These both combinedly contributes 20% to the revenue.

BCG software development services are based in India while all other subsidiaries provide adtech services.

Some of BCG's prestigious clients & brands by which they are associated with are - Google , American Express , HUL , Yahoo , CNN , Amazon , L'oreal etc.

Some of its famous products are -

1) Compass platform - It was nominated as finalist for best AdTech tool at Cynopsis Model D Award 2016. BCG recently launched its newer version Compass 2.0

2) LYCOS Life band - It was featured in 10 best fitness band in India - 2016

3) VoloMP - It's an email marketing tool with in built tracking algorithm.

4) Blocal - It's a platform to provide digital ad services to local newspapers. Onboarded 14 new newspaper this Q

5) Onetag , Coreg , Proxytool , Pangea are some other imp. products of BCG

It's subsidiaries & their revenue contribution (FY 2019)

• Online media solutions (37%)
• Dream Ad group (15%)
• Frontier Data Management (11%)
• Dyomo Corporation (8%)
• International Expression (4%)
• Ybrant Brazil (2%)
• Brightcom India [ software+ digital ] ( 20%)

• Max Interactive (3%)

Recently acquired Mediamint , an Indian Adtech Co.

• Some Misconceptions/ Doubt regarding BCG especially among Fintwit experts -

1) Why did the BCG changed its name three time in the past ?
Reason - BCG was originally Ybrant Digital which acquired

many adtech companies across the globe between 2004-11. One among them was Lycos which they acquired from Daum Communication for $36 million.

Lycos was a popular brand worldwide in late 90s bcz of which Management changed its name to Lycos internet as they thought it would help

them make a Brand recall & subsequently will increase the popularity of the co. across the globe .

But after few years a dispute happened due to some share purchase agreement between the Daum Communication & Ybrant Digital ( BCG ) due to which they were forced to change their

name. Thereafter they renamed the co. as Brightcom Group in 2018 and kickstarted a new beginning.

This is the reason bcz of which BCG changed its name in the past.

This is for those who criticises BCG just bcz it changed its name in the past without knowing the proper reason

for doing so.

Recent Developments -

1) Cleared off the remaining debt

2) Raised money from Institutional investors and HNI such as Shankar Sharma.

3) Money raised will be used for acquisitions . Already acquired Mediamint and going to acquire an audio based US Adtech Co.

4) Launched Brightcom Video player & Blocal which are gaining immense traction in the market
Some of Blocal publishers are - The Advocate , The Seattle Times , The Salt Lake Tribune etc.

5) BCG became an Google MCM partner.

6) Touched 90 billion impression in Dec month.

• Future Prospects -

1) Adtech industry is estimated to grow at 20% + CAGR & key players within it are expected to grow around 30% + CAGR

2) Indian Adtech market is growing faster than rest of the world & thus acquisition of Mediamint will further fuel the growth of BCG

3) Management has a target of 500Cr+ Free Cash Flow by Q1 FY23 & ROE above 25%

4) Programmatic advertising within the Adtech segment is growing at a very rapid pace after Covid in which BCG has a strong foothold as compared to its peers which will further help BCG going forward

BCG is trading at a PE of 22 & Mcap/Sales of 4

Affle is trading at a PE of 84 &
Mcap/Sales of 19

Trade Desk is trading at a PE of 130 & Mcap/Sales of 26 (approx)

There is huge valuation gap between BCG & its peers but I think it is due to skepticism of market around BCG

But with the passage of time, things will become more clearer & brighter & ultimately this valuation gap will shrink which will lead to a massive value unlocking for BCG

Disc - Biased & Invested

Hope you'll liked the thread & got to know few new things regarding Brightcom Group #BCG

Brightcom has signed a Letter of Intent (LOI) to acquire a US based digital audio company
#BCG

This deal is of $102.5 Million & will add $45 Million to BCG's revenue & $15 Million to its EBITDA