Board Change • May 20
No independent directors There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). Director Edvin Malmgard is the most experienced director on the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of experienced directors. New Risk • Sep 11
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr95.1m (US$9.16m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr12m free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 8.7% per year over the past 5 years. Market cap is less than US$10m (kr95.1m market cap, or US$9.16m). New Risk • Aug 14
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Swedish stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr12m free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 8.7% per year over the past 5 years. Minor Risk Market cap is less than US$100m (kr183.9m market cap, or US$17.6m). Reported Earnings • May 21
First quarter 2024 earnings released First quarter 2024 results: Revenue: kr17.3m (up 292% from 1Q 2023). Net loss: kr1.10m (loss narrowed 81% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. New Risk • Mar 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Swedish stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr13m free cash flow). Earnings have declined by 15% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.9% average weekly change). Revenue is less than US$5m (kr51m revenue, or US$4.9m). Market cap is less than US$100m (kr195.3m market cap, or US$18.9m). Reported Earnings • Feb 20
Full year 2023 earnings released: kr0.29 loss per share (vs kr0.76 loss in FY 2022) Full year 2023 results: kr0.29 loss per share (improved from kr0.76 loss in FY 2022). Revenue: kr51.6m (up 209% from FY 2022). Net loss: kr9.34m (loss narrowed 62% from FY 2022). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 25
Price target increased by 19% to kr7.50 Up from kr6.30, the current price target is provided by 1 analyst. New target price is 23% above last closing price of kr6.10. Stock is up 366% over the past year. The company is forecast to post a net loss per share of kr0.35 next year compared to a net loss per share of kr0.76 last year. New Risk • Aug 23
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -kr25m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr25m free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (kr2.8m net loss in 2 years). Revenue is less than US$5m (kr25m revenue, or US$2.3m). Market cap is less than US$100m (kr174.3m market cap, or US$16.0m). New Risk • Jun 15
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: kr24m Forecast net loss in 2 years: kr5.9m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr27m free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (kr5.9m net loss in 2 years). Revenue is less than US$5m (kr19m revenue, or US$1.8m). Market cap is less than US$100m (kr130.1m market cap, or US$12.3m). Major Estimate Revision • May 28
Consensus EPS estimates fall by 34% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr46.2m to kr42.5m. Losses expected to increase from kr0.35 per share to kr0.47. Media industry in Sweden expected to see average net income growth of 32% next year. Consensus price target broadly unchanged at kr6.25. Share price was steady at kr4.40 over the past week. Breakeven Date Change • Feb 03
Forecast to breakeven in 2025 The 2 analysts covering Adverty expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of kr13.0m in 2025. Average annual earnings growth of 67% is required to achieve expected profit on schedule. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Buying Opportunity • Oct 17
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 37%. The fair value is estimated to be kr2.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Earnings per share has grown by 7.1%. Revenue is forecast to grow by 984% in 2 years. Earnings is forecast to grow by 73% in the next 2 years. Buying Opportunity • Sep 19
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be kr2.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Earnings per share has grown by 7.1%. Revenue is forecast to grow by 984% in 2 years. Earnings is forecast to grow by 73% in the next 2 years. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Feb 24
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: kr0.97 loss per share (down from kr0.74 loss in FY 2020). Revenue: kr5.31m (up 234% from FY 2020). Net loss: kr22.0m (loss widened 46% from FY 2020). Revenue missed analyst estimates by 22%. Earnings per share (EPS) exceeded analyst estimates by 7.2%. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 21
Second quarter 2021 earnings released Second quarter 2021 results: Net loss: kr5.46m (loss widened 36% from 2Q 2020). Announcement • Jun 17
Adverty Launches In-Play™ and In-Menu™ Ads in Magic Finger 3D and World Hockey Manager 2021 Adverty AB (publ) announces two new games launching in its network, which will include Adverty's seamless In-Play™ and In-Menu™ formats for both branding and performance advertising to global audiences. First out is Magic Finger 3D from Lucky Kat Studios. With an amazing seamless integration of Adverty's In-Play(TM) ads which include billboards as well as ads players can interact with, Magic Finger 3D also introduces Adverty's Seamless In-Menu(TM) format. Based in The Hague, The Netherlands Lucky Kat Studios produces and publishes casual games with a pop culture twist. In addition to its recent chart-topper Magic Finger 3D, Lucky Kat is also the creator of cult hits such as Road Crash, Nom Plant and Ice Cream Roll. In addition, Gold Town Games (GTG)'s World Hockey Manager 2021 has now gone live with its first In-Play(TM) ads and has since decided to add more integrations. As of today, the leading ice hockey manager simulation game has added both a new In-Play(TM) integration as well as clickable In-Menu(TM) units that appear organically during breaks in the game. Is New 90 Day High Low • Feb 14
New 90-day high: kr17.65 The company is up 318% from its price of kr4.22 on 13 November 2020. The Swedish market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 20% over the same period. Announcement • Jan 28
Adverty and Verizon Media Announce New Deal to Enable a Huge Range of Brands and Audiences to Access Adverty's Innovative Ad Formats Within Gaming Adverty AB (publ) announced a new deal with Verizon Media. The integration of Adverty's platform will enable Verizon Media's wide range of advertisers and audiences to access Adverty's seamless ad inventory at scale. Adverty will connect to Verizon Media's Sell-Side Platform (SSP), enabling its unique and unobtrusive ad offering to reach wider audiences within gameplay, to maximise brand exposure and publisher monetisation. Adverty's announcement means that Verizon Media's clients and partners can access effective in-game advertising at scale, while Adverty itself will benefit from the growing numbers of global marketers looking to advertise within games through Verizon Media Ad Platforms: a unified Demand Side Platform (DSP) that allows advertisers to plan, buy and measure campaigns in premium content environments across every digital screen from mobile, to video, to Connected TV (CTV), to Digital Out of Home (DOOH) and Over the Top (OTT) through leading games consoles and in-game advertising. Announcement • Jan 22
Adverty AB (Publ) Announces the Appointment of Anders Rössel as Chief Financial Officer Adverty AB (publ) announced the appointment of Anders Rössel as Chief Financial Officer. Anders has been tasked to help manage the innovative technology company's growth, following the launch of new offices and a raft of senior hires in 2020. Prior to joining Adverty, Anders was CFO at Howden Insurance Brokers Sweden, where he drove a Finance Transformation Project, whilst also being responsible for IT and HR. Announcement • Jan 12
Adverty AB Grants Second US Patent for In-Game Ad Viewability Technology Adverty AB has been granted a second patent by the United States Patent and Trademark Office forts in-game ad d viewability technology. The new technical patent protects a method of determining whether an advert is considered visible in a three-dimensional gaming environment rendered on a screen - a key functionality of Adverty's industry-leading in-game advertising platform. The new technical patent protects a method of determining whether an object (advert) is considered visible in a three-dimensional gaming environment rendered on a screen, through a comparison of the colors of an advert with the rendered color on the screen. To make the calculation independent of the color of the ad and sampling conditions, the color is swapped for a pseudo color. By this method, gaming objects blocking an advert seen from the camera view can efficiently be detected. Likewise, the effect of lighting conditions in the three-dimensional environment can also be assessed. In conjunction with the previously granted BrainImpressionT patent, Adverty's leading in-game advertising platform is able to factor in measurable viewability when it triggers impressions to adverts exposed to - and seen by - an end user. Is New 90 Day High Low • Dec 29
New 90-day high: kr12.40 The company is up 72% from its price of kr7.20 on 30 September 2020. The Swedish market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 16% over the same period. Announcement • Dec 19
Adverty AB (Publ) Releases In-Game Ad SDK on Unity Asset Store Adverty AB (publ) announced the release of its Unity SDK on Unity Asset Store, providing developers with easy access to its patented ad technology for unobtrusive in-game advertising. Adverty, the leading in-game platform for advertisers, agencies and content creators, has announced the release of its Unity SDK on the Unity Asset Store, a marketplace where game developers and publishers can find, source, and sell everything they need to be successful, including third party assets, tools, and services. Adverty's seamless advertising solution uses Unity to display unobtrusive in-game ads through an SDK (Software Development Kit), previously only accessible from the Adverty website www.adverty.com. In this latest installment, the Unity SDK from Adverty will also be easily accessible to developers on the Unity Asset Store through a direct collaboration with Unity Technologies. The Adverty Unity SDK has been customized for the Unity Asset Store to feature an easy onboarding process for developers using the service. For the ultimate experience, Adverty has included various pre-modeled ad placements such as billboards, floor stands and poster frames in the package. This will satisfy each level of game developer interested in monetizing their creations with unobtrusive, seamless in-game ads. Announcement • Dec 13
Adverty AB (publ) Partners with InMobi, Further Strengthening In-Game Advertising's Programmatic Reach Adverty AB (publ) announced partnership with InMobi to enable more advertisers to leverage market-leading programmatic in-game offering. The partnership is set to launch during first quarter 2021, once the technical integration of platforms has been completed. Adverty delivers unobtrusive advertising which connects brands and audiences through its revolutionary and patented technology built specifically for gaming, while InMobi's industry leading mobile marketing technology is connected to every relevant programmatic DSP allowing advertisers and publishers to engage consumers through contextual mobile advertising. The partnership will allow its buy-side clients to access innovative formats in mobile games at scale within Adverty's platform. The partnership is set to launch during First Quarter 2021, once the technical integration of platforms has been completed. Is New 90 Day High Low • Dec 08
New 90-day high: kr7.70 The company is up 38% from its price of kr5.58 on 09 September 2020. The Swedish market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 15% over the same period. Announcement • Nov 26
Adverty AB (publ) Receives US Patent for In-Game Ad Viewability Technology BrainImpression™ Adverty AB (publ) announced that it has been granted a patent by the United States Patent and Trademark Office for its in-game ad viewability technology BrainImpression; a method for determining ad viewability and impressions within complex gaming environments. The patented invention is one of the core functionalities of Adverty's leading in-game advertising platform. Adverty, agencies and game developers, announced the notice of allowance for its in-game ad viewability technology patent by the United States Patent and Trademark Office. The technology, called BrainImpression™, is a method for determining ad viewability and ad impressions, for example, when an advert is considered as seen by the user, within complex computer-generated graphical environments such as two-dimensional and three-dimensional games. Viewability is one of the most important metrics in brand advertising and several renowned brands tend to exclude websites and other advertising media with low viewability in their media plans. To help advertisers understand and publishers define how to count an ad as seen, the media industry has established standards on how to measure web-based ad viewability. In regards to in-game advertising viewability, the industry is still at its infancy, with Adverty taking an active role in helping both IAB and third party ad verification leaders define these industry-wide, sought-after standards. The BrainImpression™ patent covers and protects a method of deciding if an advertisement, displayed in a gaming environment and shown on a display, has been seen by a user. The method of decision is based on the ad size, time in view and position on display for the user. Depending on the size of the ad on display, the ad is classified as seen after various time intervals, triggering an ad impression by the system. Furthermore, the patent covers specific methods for adverts in the three-dimensional gaming space, where viewing angles and incidence angles towards the ad and the user display determine how well the ad is visible at any given time. For example, an ad unit viewed from the side is not detected as quickly, if at all, depending on its viewing angle, compared to an ad unit seen from a straight angle. Moreover, an advert placed in the center of the field of view is classified as seen faster than an ad closer to the periphery with a higher angle of incidence. The BrainImpression™ patent application was filed in March 2017 at a time when Adverty focused on future gaming platforms such as Virtual, Augmented and Mixed Reality. Altogether, Adverty has established a leading cross-platform framework for unobtrusive, in-game brand and performance advertising, allowing brands to connect with new audiences in unique ways. Is New 90 Day High Low • Nov 05
New 90-day low: kr4.78 The company is down 17% from its price of kr5.78 on 07 August 2020. The Swedish market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is down 6.0% over the same period. Announcement • Nov 02
Adverty AB (Publ) Appoints Johanna Nymberg as Global Director of Business Development Adverty AB (publ) has announced the hire of Johanna Nymberg as Director of Business Development, to spearhead further growth for the innovative company. This follows on the back of the launch of new offices across Europe and APAC and a raft of senior hires earlier this year. Nymberg will be responsible for driving publisher revenue globally for Adverty. With extensive experience in the digital media sector, she was most recently Senior Publisher Growth Manager at AdColony. She will work alongside Niklas Wallgren and Christian Atack to liaise with publishers and game developers globally, widening access and awareness of Advertys unique In-Play and In-Menu enabled in-game advertising SDK.