{"id":11449,"date":"2022-02-15T12:27:24","date_gmt":"2022-02-15T09:27:24","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=11449"},"modified":"2023-06-28T18:15:20","modified_gmt":"2023-06-28T15:15:20","slug":"ipo-of-basis-global-technologies-business-analytics-of-online-advertising","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2022\/02\/15\/ipo-of-basis-global-technologies-business-analytics-of-online-advertising\/","title":{"rendered":"IPO of Basis Global Technologies: Business Analytics of Online Advertising"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p>In the modern world of marketing, online advertising plays a very important role. Promotional campaigns are run on social networks, messengers, and different online services. In the era of business digitalisation, there is a dire need for management, analysis, and optimisation of advertising traffic.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"487\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi-487x630.jpg\" alt=\"Basis Global Technologies mission\" class=\"wp-image-11453\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi-487x630.jpg 487w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi-155x200.jpg 155w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi-768x994.jpg 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi-150x194.jpg 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/1-basi.jpg 989w\" sizes=\"(max-width: 487px) 100vw, 487px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Basis Global Technologies mission<\/em><\/figcaption><\/figure>\n\n\n\n<p>Basis Global Technologies &ndash; the company that developed a SaaS platform for algorithmic media purchase &ndash; is planning to go public by listing on the NASDAQ under the &ldquo;BASI&rdquo; ticker symbol. The exact date of the IPO hasn&rsquo;t been announced yet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_business_of_Basis_Global_Technologies\"><\/span><a><\/a>The business of Basis Global Technologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Basis Global Technologies Inc. was registered in 2001 with headquarters in Chicago, Illinois. The company&rsquo;s founder and CEO is Shawn Riegsecker. The company currently employs over 800 people.<\/p>\n\n\n\n<p>Initially, the key investors were FTV Ventures and NB Holdings. The company developed a SaaS platform that consists of several applications. The platform automates daily routine operations and unifies business processes. The platform&rsquo;s key goal is to improve online advertising cost-effectiveness.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"487\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi-487x630.jpg\" alt=\"The business of Basis Global Technologies\" class=\"wp-image-11454\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi-487x630.jpg 487w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi-155x200.jpg 155w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi-768x994.jpg 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi-150x194.jpg 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/2-basi.jpg 989w\" sizes=\"(max-width: 487px) 100vw, 487px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>The business of Basis Global Technologies<\/em><\/figcaption><\/figure>\n\n\n\n<p>Key features of the Basis Global Technologies product:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Work process automation<\/li>\n\n\n\n<li>Search of clients for buying\/selling media<\/li>\n\n\n\n<li>Managing buying\/selling media<\/li>\n\n\n\n<li>Marketing audit and optimisation<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"556\" height=\"630\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi-556x630.jpg\" alt=\"The business of Basis Global Technologies\" class=\"wp-image-11455\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi-556x630.jpg 556w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi-177x200.jpg 177w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi-150x170.jpg 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/3-basi.jpg 696w\" sizes=\"(max-width: 556px) 100vw, 556px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>The business of Basis Global Technologies<\/em><\/figcaption><\/figure>\n\n\n\n<p>The issuer&rsquo;s clients are small and medium enterprises and also transnational corporations from the Fortune 500 list. As a result, Basis Global Technologies covers a wide target market. Moreover, its customer base is well diversified: none of the company&rsquo;s clients contributes more than 5% of its revenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_market_and_competitors_of_Basis_Global_Technologies\"><\/span><a><\/a>The market and competitors of Basis Global Technologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to Industry Research, the global online advertising market on SaaS platforms was estimated at $18 billion in 2019. By 2025, it is expected to reach $80 billion. As a result, the average annual growth rate from 2020 to 2025 could be 28.2%.<\/p>\n\n\n\n<p>Basis Global Technologies&rsquo; key competitors are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trade Desk<\/li>\n\n\n\n<li><a href=\"https:\/\/roboforex.com\/beginners\/info\/charts\/stocks\/googl\/\" data-internallinksmanager029f6b8e52c=\"249\" title=\"Alphabet Inc\">Google<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/roboforex.com\/beginners\/info\/charts\/stocks\/MSFT\/\" data-internallinksmanager029f6b8e52c=\"262\" title=\"Microsoft Corp\">Microsoft<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/roboforex.com\/beginners\/info\/charts\/stocks\/AMZN\/\" data-internallinksmanager029f6b8e52c=\"232\" title=\"Amazon.com Inc\">Amazon<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_performance\"><\/span><a><\/a>Financial performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the provided report, sales in 2020 were $387.61 million, this is a 0.93% increase in comparison with 2019.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"313\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi-1200x313.jpg\" alt=\"Basis Global Technologies financial performance\" class=\"wp-image-11456\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi-1200x313.jpg 1200w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi-360x94.jpg 360w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi-768x200.jpg 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi-150x39.jpg 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/4-basi.jpg 1280w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Basis Global Technologies financial performance<\/em><\/figcaption><\/figure>\n\n\n\n<p>In the first 9 months of 2021, the company&rsquo;s sales were $361.88 million &ndash; this is a 49.11% increase in comparison with the same period of 2020. As a result, the revenue over the last 12 months was $506.8 million. The reasons for such a high growth were the global lifting of severe quarantine restrictions and the revival of the digital advertising market.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"167\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi-1200x167.jpg\" alt=\"Basis Global Technologies financial performance\" class=\"wp-image-11457\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi-1200x167.jpg 1200w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi-360x50.jpg 360w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi-768x107.jpg 768w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi-150x21.jpg 150w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/02\/5-basi.jpg 1277w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Basis Global Technologies financial performance<\/em><\/figcaption><\/figure>\n\n\n\n<p>The company&rsquo;s net profit in 2020 was $3.16 million. A year before, the issuer had a $6.89 million loss. In the first 9 months of 2021, the net profit increased to $27.3 million. As we can see, the business is starting to generate net profit, while operating expenses are reducing.<\/p>\n\n\n\n<p>The company's total liabilities are $186.78 million, and the cash equivalents on its balance sheet are $33.22 million &ndash; this implies a negative cash position; however, the company is in the black, and this fact compensates it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strengths_and_weaknesses_of_Basis_Global_Technologies\"><\/span><a><\/a>Strengths and weaknesses of Basis Global Technologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The advantages of investing in Basis Global Technologies are justified by the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recovering of the revenue growth rate after stagnancy in 2020<\/li>\n\n\n\n<li>Gross profit growth<\/li>\n\n\n\n<li>Net profit growth<\/li>\n\n\n\n<li>Sound management<\/li>\n\n\n\n<li>High predicted growth rate of the target market<\/li>\n<\/ul>\n\n\n\n<p>Risk factors of investing in these shares are the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unstable cash flow<\/li>\n\n\n\n<li>Strong competition<\/li>\n\n\n\n<li>Business depends on the product&rsquo;s popularity<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IPO_details_and_estimation_of_Basis_Global_Technologies_market_capitalisation\"><\/span><a><\/a>IPO details, and estimation of Basis Global Technologies&rsquo; market capitalisation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The underwriters of the IPO are Samuel A. Ramirez &amp; Company, Inc., <a href=\"https:\/\/roboforex.com\/beginners\/info\/charts\/stocks\/C\/\" data-internallinksmanager029f6b8e52c=\"237\" title=\"Citigroup Inc\">C<\/a>.L. King &amp; Associates, Inc., Academy Securities, Inc., Loop Capital Markets LLC, Needham &amp; Company, LLC, Stifel, Nicolaus &amp; Company, Incorporated, BMO Capital Markets Corp., Siebert Williams Shank &amp; Co., LLC, RBC Capital Markets, LLC, BofA Securities, Inc, and <a href=\"https:\/\/roboforex.com\/beginners\/info\/charts\/stocks\/GS\/\" data-internallinksmanager029f6b8e52c=\"250\" title=\"The Goldman Sachs Group Inc\">Goldman Sachs<\/a> &amp; Co. LLC.<\/p>\n\n\n\n<p>The number of <a href=\"https:\/\/roboforex.com\/blog\/2020\/10\/28\/how-to-invest-in-stocks-for-beginners\/\">shares<\/a> to be sold hasn&rsquo;t been announced yet. The IPO volume is a standard $100 million with an estimated market capitalisation of $1 billion. In the case of favourable market conditions, Basis Global Technologies may yet increase the IPO volume and raise capitalisation.<\/p>\n\n\n\n<p>To assess loss-making companies, we use a multiplier &ndash; the <a href=\"https:\/\/roboforex.com\/blog\/2021\/06\/25\/multipliers-for-stock-analysis-getting-to-know-p-s\/\">Price-to-Sales ratio (P\/S ratio)<\/a>. A <a href=\"https:\/\/roboforex.com\/blog\/2021\/06\/25\/multipliers-for-stock-analysis-getting-to-know-p-s\/\" data-internallinksmanager029f6b8e52c=\"189\" title=\"P\/S\">P\/S<\/a> value for the technological sector with such a rapidly-growing target market could be 15.0-20.0 during the lock-up period. The issuer's P\/S is unknown yet.<\/p>\n\n\n\n<p>This investment might well be of a venture nature if the actual P\/S is over 20. The stock could be interesting to investors who are ready to take risks.<\/p>\n\n\n\n<p class=\"wp-block-button aligncenter\">\n<a class=\"button button-green\" href=\"https:\/\/my.roboforex.com\/en\/register\/\" rel=\"nofollow\">Open Trading Account<\/a><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Basis Global Technologies developed a SaaS platform that helps enterprises to optimize expenses for online advertising. The IPO of Basis Global Technologies will be held at the NASDAQ. We\u2019re taking a closer look at the company\u2019s business modal and financial performance, and trying to determine how interesting the stock might be for investment.<\/p>\n","protected":false},"author":60,"featured_media":11450,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[2568,2567,884],"class_list":["post-11449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-2022-ipo","tag-basis-global-technologies-inc","tag-ipo-analysis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IPO of Basis Global Technologies: Business Analytics of Online Advertising - RoboForex Blog<\/title>\n<meta name=\"description\" content=\"Basis Global Technologies developed a SaaS platform that helps enterprises to optimize expenses for online advertising. 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