NEW YORK - Collective Audience Inc. (NASDAQ:CAUD), a company specializing in audience-based performance advertising and media, has announced a binding letter of intent to acquire BeOp, a Europe-based MarTech and AdTech innovator. The acquisition, which is structured as an all-stock transaction, is anticipated to be operationally EBITDA positive upon completion and is expected to close in the second quarter of 2024.
BeOp, known for its AI-powered, performance advertising and data platform, is designed to operate without reliance on third-party cookies, a significant shift as the industry moves away from this traditional targeting mechanism. The platform's integration with leading data management platforms allows Collective Audience to offer exclusive zero and first-party audience segments for media, a capability that is likely to be extended to advertisers.
The acquisition is expected to enhance Collective Audience's revenue growth and profitability profile through operational synergies and the addition of BeOp's conversational advertising technology. BeOp's technology includes a cloud-based modular platform with a self-serve interface and APIs for easy integration, as well as conversational ad units that claim to deliver high conversion rates.
BeOp's reach extends to more than 80% of the top French advertisers and 90% of the country's premium publishers, with a significant presence in the UK, North America, and Australia. The company has reported rapid revenue growth, with a 35% increase to US$3.7 million in 2023.
In anticipation of the acquisition's closure, Collective Audience has entered into an exclusive interim license and joint venture agreement with BeOp to utilize its conversational advertising technology in North America. This move is expected to immediately ramp up revenue generation for Collective Audience.
The company's co-founders, Louis Prunel and Nicolas Sadki, have been appointed to Collective Audience's Advisor Collective, a strategic advisory community.
The acquisition is expected to position Collective Audience to capitalize on the rapidly expanding global AdTech market, which is projected to grow significantly in the coming years. However, the transaction's completion is subject to certain closing terms, and no assurances can be provided that it will be completed as described.
This news is based on a press release statement from Collective Audience, Inc.
InvestingPro Insights
As Collective Audience Inc. (NASDAQ:CAUD) gears up to acquire BeOp, a strategic move poised to enhance its market presence in the AdTech space, investors and stakeholders are closely monitoring CAUD's financial health and stock performance. The latest data from InvestingPro shows a market capitalization of 12.53 million USD, reflecting the current valuation of the company in the market. Despite the anticipation surrounding the acquisition, CAUD's stock has experienced significant volatility, with a one-week price total return of -9.52%, indicating recent market pressures.
Key financial metrics reveal challenges that the company faces. Notably, the gross profit margin over the last twelve months as of Q2 2023 stands at 12.1%, which is a point of concern when considering the company's profitability. This aligns with one of the InvestingPro Tips, which highlights CAUD's struggle with weak gross profit margins. Additionally, the company has not been profitable over the last twelve months, and it does not pay a dividend to shareholders, factors that might weigh on investor sentiment.
Despite these challenges, there are signs of improvement in certain areas. The one-month price total return shows a strong recovery of 23.7%, which could signal investor confidence in the company's strategic initiatives, such as the BeOp acquisition. For investors seeking comprehensive analysis and additional insights, there are more InvestingPro Tips available, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Understanding the full picture of Collective Audience's performance and potential is crucial, especially in the context of this acquisition. With the InvestingPro platform offering a total of 9 additional tips that could provide a deeper dive into CAUD's financials and stock behavior, investors can make more informed decisions.
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