Final Results and Annual Report – replacement-BIDSTACK GROUP PLC

Final Results and Annual Report – replacement-BIDSTACK GROUP PLC

Annual Report & Accounts 2022

Bidstack Group Plc (AIM: BIDS), the in-game brand activation platform, is pleased to announce its final results for the financial year ended 31 December 2022 ("Annual Report").

The 2022 Annual Report & Accounts will be available for download today at and will be posted to shareholders shortly thereafter.

Financial Performance Highlights

●     Revenue up 101% at £5.3m* (FY21:£2.6m)

●     Gross profit up 298% at £3.7m (FY21: £0.95m)

●     Gross margin improvement to 72%** (FY21: 36%)

●     Loss after tax £7.7m (FY21: £6.3m)

●     Cash balance at 31 December 2022 up 21% at £8.7m (31 December 2021: £7.1m)

*Unaudited gross billings, including all revenues and Azerion minimum revenue guarantee invoiced for FY22, were c.£9.3m (FY21: £2.6m), in line with contractual arrangements previously indicated. However, as a result of the net accounting treatment of revenues in accordance with IFRS 15, Bidstack's reported revenues for FY22 are £5.3m.

** Gross margin has risen significantly as a result of the net accounting treatment of revenues and corresponding costs of sales towards servicing the Azerion contract in accordance with IFRS 15. Excluding this treatment the unaudited adjusted gross margin would be closer to 40%. 

Operational Performance Highlights

●    Successful placing raising proceeds of c.£10.5m in October 2022, including a significant investment by Irdeto B.V., a world leader in digital platform cybersecurity, taking a 13.5% stake in the Company;

● Growing global network of premium developers and publishers with over 250 titles (FY21: 58) across in-game, in-menu and rewarded video. This includes an addition of two further titles with a AAA game publisher and a multi-year renewal with Sports Interactive's Football Manager;

●   Growing revenue per agency holding group as the number of blue chip brands rise as intrinsic in-game becomes a key growth initiative;

●  Partnership with Unity, a cross platform game engine as a Unity Verified Solution recommended tool for game developers across all platforms; 

●   Onboarding of additional resellers with MMP Worldwide (MENA), AdScholars (India), Totally Awesome (APAC), TNK Factory (South Korea) and Omega Media (Vietnam);

●  Internet Advertising Bureau (IAB)/The Media Rating Council (MRC) have recognised standards for in-game advertising. Advertisers now have clear benchmarks on how to measure campaign success; and

●    Enterprise customers licensing Bidstack's technology such as mobile ad-tech company Adways and multi-year deal with metaverse franchise SimWin Sports.

Post Period End Highlights

●   Revenues for H1 2023 expected to be approximately £2.0m (H1 2022 £2.05m) showing Bidstack's strong recovery following re-engagement with agencies and programmatic platforms after the termination of the Azerion commercial partnership in December 2022. The prior year comparison included a minimum revenue guarantee which contrasts with the high quality of commercial revenue generated through the Company's internal sales team this year;

●  Following a comprehensive business review the Company has implemented a cost efficiency and restructuring programme to reduce average monthly cash burn by approximately 40% going forward; 

●    Bidstack filed comprehensive claims against Azerion in Dutch courts demanding the full amounts owed by Azerion under the agreement of 16 December 2021; and

●     The Group is currently negotiating a convertible loan facility with a strategic investor and expects to be able to make further updates in due course.

Trading Update

●   Launch of programmatic "open marketplace" advertising with live connections across The Trade Desk, Magnite, Media Math and Xandr;

●    A pipeline of brand and performance programmatic platforms including OpenX, Equative, Stackadapt and Adform to be integrated in the coming year;

●    Roster of resellers with experience in gaming and new media channels across APAC, MENA, LATAM and EMEA are being onboarded;

●    Reinforcing product with attribution and viewability through integrations with Kochava and solutions with IAS and MOAT;

●   Highlights across the gaming network include Ubisoft's marquee mobile franchise Hungry Shark Evolution and organic growth within publishers such as Miniclip adding further titles. Publisher retention and feedback remains strong driven by account management, advertising activity and platform development; and

●     First-ever NFL club to partner with Bidstack Sports and adopt Bidstack's technology to operate real world and virtual stadiums in partnership with StatusPRO's NFL Pro Era, a fully licensed virtual reality game.

●     Multiple negotiations progressing across sports leagues, teams and publishers.


The US sales team is now fully integrated providing materially improved revenue visibility. Bidstack is also increasing the strength of its relationships with key games publishers and developers through cross-selling the Group's products. In addition Bidstack's reseller network is expanding and automated open marketplace revenue is starting to appear.

The Directors believe that Bidstack's strategy positions the Company well for future growth with its growing global footprint being serviced by additional resellers and the Company's programmatic open marketplace offering now taking root. Bidstack is making robust progress with its key commercial partners and is attracting interest from other significant industry players. As the market continues to develop, further accretive and multi-year enterprise partnership opportunities are coming to fruition.

For FY23, the Board currently expects the Group's results to be in line with market expectations.

James Draper, CEO of Bidstack, said:

"FY22 was a year where Bidstack made the operational shift from early stage to a scale up business. Bidstack grew its market share in the industry, which can be measured across indicators such as the growing number of agencies activating blue chip global advertisers, our new markets, our increased portfolio of games and the growing size of average campaign budgets. 

The US team is now well integrated and hitting the ground running providing the business with ever improving visibility of growing revenue. There is solid momentum in relation to the publishers and game developers as we cross-sell our products and organically grow the portfolio of games.

Current trading reflects our rapid commercial adjustment following the termination of the sales agency arrangements with Azerion. Following a thorough debrief of the market intelligence gained through our relationship with Azerion and, having reignited our agency relationships directly, we are now beginning to roll-out our new look reseller network and automated open market revenue is beginning to flow into our network.

As we look ahead to H2 2023, the intrinsic in-game market remains resilient as major catalysts, such as additional gaming platforms, begin to explore in-game advertising. We believe this will increase the volume of high-fidelity titles within our network and drive increased revenues. Larger screens will command a higher price point from marketers. Publishers are expressing their desire to utilise our technology for monetisation, content management systems (CMS) and as a marketing channel. We have rolled out promising proof of concepts in the sports genre, unifying publishers, licence holders and sports teams. 

We have reviewed our cost base and reduced our average monthly cash burn significantly going forward, to preserve and extend our runway. The alignment ensures that our resources are being maximised for sustainable and accelerated revenue generation.

We are obsessed at Bidstack in ensuring our technology is fully utilised by our clients, the game developers. Generating brand activation revenue, improving player engagement through one-to-one messaging from publisher-to-gamer via our CMS, and a toolset that through our sports offering, can save them money whilst improving the authenticity of the gaming environment."

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