| Moran Shaked, Funder News
Productivity Network TASE:, a company in the field of digital advertising solutions that synchronize between search platforms, social networks and content sites, has published a prospectus for the issuance of additional ordinary shares in the amount of approximately $ 100 million. In addition, the underwriters were given the right to purchase additional ordinary shares 30 days from the date of issue, under the same conditions.
The shares of Ferion (NASDAQ 🙂 are dual and traded simultaneously on the NASDAQ Exchange and the Tel Aviv Stock Exchange. Productivity intends to use the raising funds to increase working capital, finance the growth of its activities, including the realization of opportunities for mergers and acquisitions of companies that provide products, services and technologies that complement its activities and other purposes related to its activities.
Productivity has jumped by 80% since the beginning of the year, and its market value has jumped to NIS 2.5 billion. The company’s share is currently on a cessation of trading on the Tel Aviv Stock Exchange, pending the completion of the pricing process in the United States.
In addition, productivity is raising forecasts for the rest of the year, thanks to strong growth in video advertising and smart TVs. The company now expects to end 2021 with revenues of $ 460-470 million, reflecting a growth of about 42% while adjusted EBITDA is expected to jump by about 97% and reach $ 64-65 million.
As early as 2022, productivity is expected to reach revenues of $ 590-610 million, reflecting growth of approximately 29%, and adjusted EBITDA is expected to amount to $ 80-84 million, reflecting annual growth of approximately 27%.
The expected improvement is mainly due to a sharp 115% increase in revenue from video advertising and smart TVs (CTV), including the acquired operations of VideoZo (on a pro forma basis), compared to 2020. This, along with a significant increase in the average revenue from a campaign, and an annual increase of 13% in the average number of funded searches in October and November.
The company further noted that the expected improvement in the adjusted EBITDA rate from total revenue is mainly due to the successful implementation of the “information center” of productivity, which contributed to the reduction of traffic costs.
Productivity CEO Doron Gerstel said:
The updated forecast demonstrates our product diversification strategy and adherence to operational efficiency. The significant growth in the top line along with the improvement in operating efficiency led to higher profitability and cash flow. “Our updated forecast reflects these systemic improvements that are expected to continue in 2022.”
The underwriters that will accompany the offering include the investment houses Oppenheimer, Stifle, and Raymond James. The Needham Investment House will serve as an advisor to the company in the IPO.
- The article was first published on the FUNDER website.
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