Very bullish comments from management on 3-screen measurement business.
-RENT has an AMI 3-screen subscription based measurement division (sound familiar), which is producing very strong growth, which CEO described as producing "material and measurable results". Very upbeat comment about being in the "right industry at the right time".
-RENT's AMI division revenues doubled in the last year and are now contributing 30% of total company revenue from 15% last year.
-RENT signed deals ad measurement subscription services with 25 TV stations, just this past year. Last year, there were 0.
- RENT CEO commented that VOD usage of set top boxes is now at 45% from 13%. Said VOD dynamic ad insertion is expected to be strong growth area going forward in the industry.
- RENT indicated that the 3-screen measurement business is highly profitable (e.g. 73% gross margins) and very desirable space, but data collection and analysis is very difficult and proprietary. Strong barriers to entry for the competition.
No forward guidance provided, but the optimism on the call speaks for itself. No slowdown in this area.
Thanks for the summary- very helpful. I'm just starting to look at this stock and trying to figure it out. Neutral so far but it's nice to be looking at something that is a pure growth story and not just another roll up of tired ideas. Always hard for me to buy rich valuations like this though- guess that's why I've missed the last 100+ similar situations that either get huge on their own or get bought out by GOOG, MSFT, NEWS or pvt equity.
Congrats RENT longs on a nice quarterly report on 3-screen growth. Personally I think Rentrak partner, Concurrent (CCUR), represents a much better value proposition, with similar 3-screen measurement growth prospects.
But by the sound of the Conference Call, there is plenty of growth ahead in this space.