Albert Technologies Ltd (ALB) is a Tel Aviv, Israel-based software company that seeks to make the digital marketing process more efficient by developing and providing intelligent, cloud-based solution. The company offers autonomous, self-learning artificial intelligence marketing platform, Albert, that fills the gaps into a digital marketer’s existing tech stack and operates it. The platform leverages existing business logic, and maps tracking and attribution to the source, amplifying capabilities beyond the limits of a human alone or simple automation. The company employs software engineers and experts in various fields to create a platform that has an intelligent collection of over 200 different skills. The company’s product helps to better allocate budget against channels, audiences and tactics in search, social and programmatic channels through processing and analysing audience and tactic data at scale, optimising creative and evolving campaigns across various channels. The company differentiates its revenue on a geographical basis, with segments being the USA, Rest of America, Australia, Rest of Asia-Pacific, and Europe, Middle-East and Africa.
Key Financial Highlights (FY 2018, in $m)
Driven by a shift in the customer base, with a focus on large-scale enterprise clients, revenue for the year rose to $4.6m, an increase of 2.7x as compared to the revenue of $1.7m reported in the FY2017. Average monthly revenue per customer increased by 50% year on year to $0.45m. Gross profit was reported at $3.9m in 2018 as compared to $1.4m in 2017, while gross margin remained the same at 84%. Despite an increase in the revenue, operating loss for the year increased to $12.7m, versus a loss of $11.8m in 2017, while adjusted operating loss expanded to $12.2m, against $11.4m loss in 2017. Increase in average headcount throughout 2018, a rise in research and development expenses and selling and marketing costs attributed to an increase in the operating loss.
Share Price Commentary
Daily Chart as at May-29-19, before the market closed (Source: Thomson Reuters)
On 29th May 2019, at the time of writing (before the market closed, GMT 1:00 pm), ALB shares were trading at GBX 9.155, down by 10.68 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 47.75/GBX 9.10. The company’s stock beta was -0.17, reflecting a negative correlation of the stock as compared to the benchmark index. Total outstanding market capitalisation was around £9.25 million.
The company reported that its 2018 financial results met its budget expectations, and it raised $16.8m (net) from new and existing shareholders. During the year, the company began working with a significant number of new enterprise clients which carry huge potential for scalable growth and has enabled it to demonstrate the vast benefit and unique value proposition of its technology. The company continues investing in infrastructure, providing a platform for future growth. At this stage, it is difficult to pinpoint exact predictions of the rate of revenue growth, but early client campaigns have demonstrated how Artificial Intelligence can drive significant improvement in results. Moreover, as compared to the manual execution, the platform also provided previously undiscovered insights. The company’s pipeline is encouraging, with 12 diversified enterprise organisations currently contributing to its revenues, up from 3 enterprise customers at the beginning of 2018. The company expects continued growth in the coming future.
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