<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
     xmlns:media="http://search.yahoo.com/mrss/"
     xmlns:content="http://purl.org/rss/1.0/modules/content/"
     xmlns:wfw="http://wellformedweb.org/CommentAPI/"
     xmlns:dc="http://purl.org/dc/elements/1.1/"
     xmlns:atom="http://www.w3.org/2005/Atom"
     xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
     xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
    xmlns:company="http:/purl.org/rss/1.0/modules/company" xmlns:fool="http://fool.com/rss/extensions"     >

    <channel>
        <title>Taptica News | The Twelfth Magpie</title>
        <atom:link href="https://www.twelfthmagpie.com/tag/taptica/feed/" rel="self" type="application/rss+xml" />
        <link>https://www.twelfthmagpie.com/tag/taptica/</link>
        <description>Share Tips, Investing and Stock Market News</description>
        <lastBuildDate>Wed, 01 Jul 2026 07:15:00 +0000</lastBuildDate>
        <language>en-GB</language>
                <sy:updatePeriod>hourly</sy:updatePeriod>
                <sy:updateFrequency>1</sy:updateFrequency>
        <generator>https://wordpress.org/?v=7.0</generator>

<image>
	<url>https://www.twelfthmagpie.com/wp-content/uploads/2026/05/cropped-Magpie_Icon_Black_RGB-1-32x32.png</url>
	<title>Taptica News | The Twelfth Magpie</title>
	<link>https://www.twelfthmagpie.com/tag/taptica/</link>
	<width>32</width>
	<height>32</height>
</image> 
            <item>
                                <title>Could this tech sector stock help you become an ISA millionaire?</title>
                <link>https://www.twelfthmagpie.com/2019/03/19/could-this-tech-sector-stock-help-you-become-an-isa-millionaire/</link>
                                <pubDate>Tue, 19 Mar 2019 11:10:58 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moneysupermarket.com]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=124548</guid>
                                    <description><![CDATA[<p>This highly profitable company could be a buy despite recent share price gains, says Roland Head.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/03/19/could-this-tech-sector-stock-help-you-become-an-isa-millionaire/">Could this tech sector stock help you become an ISA millionaire?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Tech stocks have been big money-makers over the last few years. In the US, mega names like <strong>Netflix </strong>and <strong>Amazon</strong> have seen their share prices double in two years.</p>
<p>Here in the UK, technology stars such as <strong>Rightmove </strong>and <strong>AVEVA</strong> may have grown more slowly, but shares in both companies have still doubled over the last five years.</p>
<p>Today, I want to look at two other UK-listed tech stocks for which many investors have big hopes. Could investing in either help you become an <a href="https://www.twelfthmagpie.com/money/buy-shares/the-best-stocks-and-shares-isas/">ISA</a> millionaire?</p>
<h2>I&#8217;d buy this cash machine</h2>
<p>One of my top picks in the domestic technology sector is <strong>Moneysupermarket.com Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-mony/">LSE: MONY</a>). The market-leading price comparison website needs no introduction. However, I suspect many website users don&#8217;t realise just how profitable this business is.</p>
<p>In 2018, it generated a return on capital employed of 50%. What this means is that the group&#8217;s operating profit of £108m represented 50% of the money tied up in the business. That&#8217;s an outstanding result, because it shows the firm is able to generate very high returns when it invests surplus cash in growth opportunities.</p>
<p>Management is currently spending some of this cash on developing a new generation of services. From what I can tell, these will provide higher levels of automated switching and tighten the relationship between the customer and Moneysupermarket.</p>
<p>I expect these changes to improve the firm&#8217;s ability to generate repeat income from customers &#8212; good news.</p>
<p><strong>My view: </strong>Moneysupermarket.com shares have risen by more 25% in 2019. They now trade on 19 times forecast earnings, with a 4% dividend yield. In my view, this very profitable business is the kind of investment that could help you build a million-pound ISA. I&#8217;d keep buying.</p>
<h2>Bargain buy or value trap?</h2>
<p>My next stock is a more speculative choice. <strong>Taptica International </strong>(LSE: TAP) is an online marketing specialist that makes money by providing targeted advertising for brands through video and other channels.</p>
<p>Shares in the Israeli firm have fallen by about 55% over the last year. The majority of this decline has happened since December <a href="https://www.twelfthmagpie.com/investing/2019/02/04/i-believe-this-stock-could-double-your-money-in-2019/">when former chief executive Hagai Tal resigned</a> in connection with an alleged fraud at his previous company.</p>
<p>Although there&#8217;s no suggestion that anything&#8217;s wrong at Taptica, investors are understandably wary, given the group&#8217;s non-UK domicile and lack of leadership. Increasing uncertainty about the outlook for growth hasn&#8217;t helped either.</p>
<p>Today&#8217;s 2018 results do little to answer the questions faced by the firm. Revenue rose by 31% to $276.9m last year, while pre-tax profit rose by 57% to $27.2m.</p>
<p>The group ended the year with net cash of $54.4m and management reiterated plans to buyback $15m of shares, after the takeover of video advertising group <strong>RhythmOne </strong>has completed. Despite such strong figures, Taptica&#8217;s share price is only 2% higher at the time of writing.</p>
<h2>What&#8217;s wrong?</h2>
<p>RhythmOne was also hit by allegations of misconduct a few years ago and has struggled to recover. Although a profit is expected for 2019, it has reported a loss every year since 2015.</p>
<p>Taptica hopes to create a market-leading digital advertising business by combing its operations with those of RhythmOne.</p>
<p><strong>My view: </strong>But shares in both firms currently trade on less than six times 2019 forecast earnings. This tells me the market is pricing in a lot of risk. That&#8217;s a view I share. So both Taptica International and RhythmOne are too speculative for me.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/03/19/could-this-tech-sector-stock-help-you-become-an-isa-millionaire/">Could this tech sector stock help you become an ISA millionaire?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/">With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/20/how-much-would-a-portfolio-of-income-shares-need-to-be-worth-to-produce-32700-a-year-in-retirement/">How much would a portfolio of income shares need to be worth to produce £32,700 a year in retirement?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/16/how-much-would-investors-have-to-invest-in-this-ftse-dividend-giant-to-target-16771-a-year-in-passive-income/">How much would investors have to invest in this FTSE dividend giant to target £16,771 a year in passive income?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/15/with-a-6-9-yield-is-this-one-of-the-best-ftse-250-stocks-for-passive-income/">With a 6.9% yield, is this one of the best FTSE 250 stocks for passive income?</a></li></ul><p><em>John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. <a href="https://boards.fool.com/profile/sopavest/info.aspx">Roland Head</a> has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix. The Motley Fool UK has recommended Moneysupermarket.com and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>I believe this stock could double your money in 2019</title>
                <link>https://www.twelfthmagpie.com/2019/02/04/i-believe-this-stock-could-double-your-money-in-2019/</link>
                                <pubDate>Mon, 04 Feb 2019 12:46:25 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=122546</guid>
                                    <description><![CDATA[<p>This fast-growing mid-cap is undervalued by around 50%, argues Rupert Hargreaves. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/02/04/i-believe-this-stock-could-double-your-money-in-2019/">I believe this stock could double your money in 2019</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Over the past 12 months, shares in online advertising group <strong>Taptica International</strong> (LSE: TAP) have slumped 50%. The most significant decline came at the beginning of December when the enterprise announced: &#8220;<em>Hagai Tal, CEO of the Company, has today been found liable for certain statements made in relation to the sale of Plimus Inc.</em>&#8221; When Plimus was sold in August 2011, Tal was CEO. He has since resigned from the board at Taptica.</p>
<p>As well as announcing the above legal action against its CEO, Taptica&#8217;s December trading update also contained a warning. &#8220;<em>Revenue below expectations due to the forgoing of some lower-margin sales,</em>&#8221; the update reported, although it also told investors full-year EBITDA would be ahead of market expectations.</p>
<p>The group has since noted it closed the 2018 financial year &#8220;<em>in line with management expectations,</em>&#8221; and at the end of the year, the firm had net cash of $54.4m after the payment of dividends. </p>
<h2>Growing the business </h2>
<p>The City was expecting Taptica to report earnings growth of 98% for 2018. Growth was expected to slow in 2019, but now the company has announced it&#8217;s acquiring peer RhythmOne. Under the terms of the all-share deal, Taptica and RhythmOne &#8220;<em>will combine to create a force to be reckoned with in the mobile video advertising industry</em>.&#8221;</p>
<p>According to management, the enlarged group will be &#8220;<em>one of the leading video advertising companies,</em>&#8221; which should allow it to compete more effectively in the fast-growing space, particularly in the United States where the market is expected to grow from $17.9bn (2017) to $27bn by 2021. As part of the deal, Taptica will be acquiring RhythmOne&#8217;s cash balance of $18m. Immediately after the deal is closed, the new, larger enterprise plans to spend $15m buying back shares, returning capital to investors and offsetting some of the dilution from the all-share merger.</p>
<h2>Bright future </h2>
<p>I&#8217;m quite excited about what the future holds for the post-merger Taptica. The company is already highly cash generative and is snowballing. By combining with its peer, the company should be able to achieve better profit margins and offer clients a better all-around deal, which should lead to enhanced growth. That can only be good news for shareholders.</p>
<p>However, right now it seems as if the market still doesn&#8217;t trust Taptica after December&#8217;s slip-up. The stock is currently trading at a forward earnings multiple of just 5, without taking into account the amount of cash on the balance sheet. </p>
<p>According to my calculations, cash is worth around 59p per share, which gives a cash-adjusted forward P/E of just under 4, a discount of more than 50% to the rest of the media and publishing sector. </p>
<p>With earnings growing at a double-digit rate, I think a multiple in the <a href="https://www.twelfthmagpie.com/investing/2019/01/03/why-i-think-this-unloved-ftse-100-stock-with-a-7-yield-could-make-you-richer/">mid-teens would be more suitable for this business.</a> With that being the case, I can see an upside of at least 100% or more from current levels for Taptica&#8217;s shares. </p>
<p>In my opinion, that&#8217;s a risk-reward ratio worth buying.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/02/04/i-believe-this-stock-could-double-your-money-in-2019/">I believe this stock could double your money in 2019</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em> Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Why I think this unloved FTSE 100 stock with a 7% yield could make you richer</title>
                <link>https://www.twelfthmagpie.com/2019/01/03/why-i-think-this-unloved-ftse-100-stock-with-a-7-yield-could-make-you-richer/</link>
                                <pubDate>Thu, 03 Jan 2019 11:19:15 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=121175</guid>
                                    <description><![CDATA[<p>I think the FTSE 100 (INDEXFTSE: UKX) is full of bargains at the moment and this is just one. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/01/03/why-i-think-this-unloved-ftse-100-stock-with-a-7-yield-could-make-you-richer/">Why I think this unloved FTSE 100 stock with a 7% yield could make you richer</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><b>WPP</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wpp/">LSE: WPP</a>) has to be one of the most hated stocks in the FTSE 100 right now. The company has come under fire from City analysts who believe that it is struggling to compete in the new world of online marketing, where <b>Facebook</b> and <b>Google</b> dominate the industry.</p>
<p>Indeed, analysts believe WPP&#8217;s inability to compete with these giants will result in a 14% decline in earnings per share (EPS) over the next two years to 108p, from the 2017 high water mark of 126p per share.</p>
<p>Considering all of the above, it is no surprise that investors have turned their backs on the company over the past 12 months. Since the beginning of January 2017, shares in WPP have lost around a third of their value, that&#8217;s including dividends.</p>
<p>However, despite this poor performance, I think the company could be a great addition to your portfolio in 2019. </p>
<h2>The worst case </h2>
<p>Looking at the shares right now, it appears that there&#8217;s already plenty of bad news baked into the price.</p>
<p>At the time of writing, shares in this advertising and marketing conglomerate are changing hands for just 7.9 times forward earnings. Even though EPS are set to decline by 14% over the next two years, this multiple undervalues the company in my opinion. </p>
<p>Personally, I don&#8217;t think the group&#8217;s fortunes will improve drastically any time soon, but now that management is taking action to restructure the business for the 21st century, I think it could only be a matter of time before earnings level out.</p>
<p>And if the company does prove to the market that a recovery is under way, I think the shares could rise substantially from current levels. </p>
<p>Shares in WPP have historically traded at a mid-teens multiple, a return to this level could see them trading higher by around 50%. In the meantime, the stock supports a <a href="https://www.twelfthmagpie.com/investing/2018/12/16/the-top-cash-isa-is-killing-your-chances-of-retiring-comfortably-while-these-ftse-100-stocks-yield-7/">dividend yield of 7%</a>.</p>
<h2>Double your money </h2>
<p>Another advertising business that seems severely undervalued is <b>Taptica International </b>(LSE: TAP).</p>
<p>Unlike its larger peer, it is still growing. The City is forecasting EPS growth of 98% for fiscal 2018 and 5.1% for 2019. But despite this growth, the shares are dealing at a forward P/E of just 4.2.</p>
<p>To try and reassure the market about the group&#8217;s prospects, management recently initiated a share buyback. The company is currently in the process of spending $10m of its $42m cash pile to repurchase shares. With a market capitalisation of £108m at the time of writing, a $10m buyback implies Taptica is going to reduce the total number of outstanding shares by 7.4%, a sizeable reduction.</p>
<p>I think it is a desirable investment for 2019. Usually, companies growing EPS at a double-digit annual rate would command a P/E multiple of 12 or more. If shares in Taptica traded up to this level, I calculate the stock could be worth 460p, a gain of 178% from current levels. At the same time, the dividend yield is 3.3%, which in my opinion only adds to the investment case. </p>
<p>In the worst case scenario, as with any investment, investors could suffer a 100% loss. However, with a possible gain of 178% or more on offer when we include dividends, I think the risk-reward ratio here is desirable.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2019/01/03/why-i-think-this-unloved-ftse-100-stock-with-a-7-yield-could-make-you-richer/">Why I think this unloved FTSE 100 stock with a 7% yield could make you richer</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. </em><em>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares) and Facebook. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Why I believe these 2 secret growth stocks are set to outperform in 2018 and beyond</title>
                <link>https://www.twelfthmagpie.com/2018/03/13/why-i-believe-these-2-secret-growth-stocks-are-set-to-outperform-in-2018-and-beyond/</link>
                                <pubDate>Tue, 13 Mar 2018 14:20:37 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Kape Technologies]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=110405</guid>
                                    <description><![CDATA[<p>Most investors don't know about these growth stocks even though they look set to outperform this year. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/03/13/why-i-believe-these-2-secret-growth-stocks-are-set-to-outperform-in-2018-and-beyond/">Why I believe these 2 secret growth stocks are set to outperform in 2018 and beyond</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><strong>Kape Technologies</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-kape/">LSE: KAPE</a>), which was until last week known as Crossrider, is one of the UK&#8217;s fastest growing security software businesses.</p>
<p>Today the company reported that after a year of steady growth, thanks in part to several high profile hack attacks, revenue increased by 17.4% to $66.4m and adjusted earnings before interest, tax, depreciation and amortisation increased 29% to $8.3m for the year ended 31 December.</p>
<p>One of the group&#8217;s best performing business divisions during the year was CyberGhost S.A, a leading software-as-a-service cybersecurity provider. This business was only acquired last year, but it has already performed ahead of management expectations contributing net profit of $1.5m in 2017. The number of customers using the business&#8217;s services increased 21% to 887,000 during the year, which is still a relatively small amount compared to the size of the overall cybersecurity market.</p>
<h3>Predictable recurring income </h3>
<p>As well as being active in one of the most in-demand industries around, Kape&#8217;s business model is geared to producing the best returns for shareholders. Indeed, it is expecting to deliver $8m of recurring revenue from existing users in 2018, around 12% of revenue reported for 2017. This recurring revenue provides a steady income stream for management, and as long as the company can continue to maintain its offering and reputation, then this guaranteed income should only increase.</p>
<p>The strengths of Kape&#8217;s business model also show on the company&#8217;s balance sheet. At the end of 2017, the firm had a cash balance of just under $70m (49.6p per share). It generated $7.6m in cash from operations during the year, all of which management is now proposing to return to shareholders by way of a special dividend amounting to $7m or 3.6p per share.</p>
<p>As Kape continues to build on its existing success, I believe the firm can achieve outstanding returns for shareholders, <a href="https://www.twelfthmagpie.com/investing/2017/08/29/2-small-cap-under-the-radar-growth-stocks-with-brilliant-potential/">something I first realised back in August 2017</a>. Demand for security software will only increase going forward, and the group&#8217;s cash generative nature tells me that it has the potential to become a dividend champion as well as having plenty of cash available for bolt-on acquisitions.</p>
<p>Another fast-growing tech stock I&#8217;m positive on the outlook for is <b>Taptica</b> (LSE: TAP).</p>
<h3>Building on the offering</h3>
<p>It exploded onto the tech scene in 2016 when, after several years of fast-paced but unprofitable growth, the company reported a substantial net profit of $19.2m. And now the group has established a foothold in the online advertising market, City analysts are expecting revenues to jump 71% for 2017 and more than 50% for 2018. Off the back of this growth, analysts are expecting earnings per share growth of 59% for 2017, indicating that the shares are trading at a forward P/E of just under 14. </p>
<p>In my view, this low valuation does not reflect the company&#8217;s explosive growth rate. What&#8217;s more, Taptica has a net cash balance of around $33m or 37p per share. </p>
<p>According to my figures, based on the current estimates, excluding cash, the shares are trading at a forward earnings multiple of 12.7. Even if growth slows, this valuation undervalues the business in my view. For example, an online advertising giant such as Google parent company <strong>Alphabet Inc </strong>currently trades at a forward P/E of 27. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/03/13/why-i-believe-these-2-secret-growth-stocks-are-set-to-outperform-in-2018-and-beyond/">Why I believe these 2 secret growth stocks are set to outperform in 2018 and beyond</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (A shares). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 unloved small-cap growth stocks that could still make you a million</title>
                <link>https://www.twelfthmagpie.com/2017/11/16/2-unloved-small-cap-growth-stocks-that-could-still-make-you-a-million/</link>
                                <pubDate>Thu, 16 Nov 2017 12:38:57 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Dart Group]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=105265</guid>
                                    <description><![CDATA[<p>These two unloved growth stocks should not be overlooked as they still have enormous potential. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/11/16/2-unloved-small-cap-growth-stocks-that-could-still-make-you-a-million/">2 unloved small-cap growth stocks that could still make you a million</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Shares in travel company <strong>Dart Group</strong> (LSE: DTG) are surging after the company reported a robust fiscal first half. </p>
<p>For the period, revenue jumped 34% year-on-year, while operating profit rose 22% to £204.9m. Basic earnings per share also climbed 30% to 117.4p and, off the back of these numbers, management hiked the interim dividend payout by 9%. </p>
<p>Most of the company&#8217;s growth has come from customer demand, particularly for its flight-only product. According to today&#8217;s release, it seems as if this trend has continued with further strengthening of customer demand during the second half. With customer numbers continuing to rise, Dart&#8217;s management believes the company will perform ahead of expectations for the full-year. </p>
<p>Unfortunately, increased investment in aircraft, advertising and people means that group losses will be higher than projected over the winter period. Still, the company&#8217;s blockbuster first half should more than make up for the increased losses. </p>
<h3>Continued growth </h3>
<p>I believe these figures show Dart still has a bright future. The company&#8217;s hefty investment in its travel operations is really starting to benefit and shareholders have reaped the benefits. Over the past 12 months, the shares have added 61%<a href="https://www.twelfthmagpie.com/investing/2017/07/13/these-high-flying-growth-stocks-could-soar-even-higher/"> and year-to-date the stock is up 32%</a>. </p>
<p>City analysts had been expecting the company to report a 22% decline in earnings for the full-year, as higher investment in the second half offset higher first-half growth. It now looks as if its losses will be better than expected and this bodes well for the years ahead. </p>
<p>Analysts had been expecting earnings growth of 11% for the fiscal year ending 31 March 2019, but I believe that this figure will be revised substantially higher following today&#8217;s better-than-projected numbers. </p>
<p>However, even though Dart&#8217;s outlook is bright, shares in the company only trade at a forward P/E of 14.9 (based on current City figures, which are now out of date), which looks cheap to me. Moreover, the shares may offer only a token dividend yield of 1%, but the payout is covered more than six times by earnings per share, leaving plenty of headroom for further growth. </p>
<p>As well as Dart, I&#8217;m positive on the outlook for Israel-based <strong>Taptica International</strong> (LSE: TAP). </p>
<h3>Blue sky growth </h3>
<p>Taptica operates in the fast-growing online advertising market. Over the past four years revenue has leapt 280%, or by 390% if I include City estimates for 2017 (five-year growth). </p>
<p>This expansion has not gone unnoticed by the market. Over the past 12 months the shares have jumped 150%, and it looks as if there&#8217;s further growth ahead. City analysts have pencilled in earnings per share growth of 34% for 2017 and 22% for 2018. Even though these projections imply that the company is one of the fastest growing businesses on the London market, the shares only trade at a forward P/E of 15.3 or PEG ratio of 0.5. </p>
<p>A more suitable P/E multiple, <a href="https://www.twelfthmagpie.com/investing/2017/09/26/will-israel-based-taptica-international-plc-suffer-the-same-fate-as-telit-communications-plc/">based on future growth,</a> would be 22, implying a share price of 720p, 88% above current levels. </p>
<p>There&#8217;s also significant scope for dividend growth here. Taptica&#8217;s current dividend distribution is covered six times by earnings per share.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/11/16/2-unloved-small-cap-growth-stocks-that-could-still-make-you-a-million/">2 unloved small-cap growth stocks that could still make you a million</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>This small-cap could help you make a million</title>
                <link>https://www.twelfthmagpie.com/2017/06/23/this-small-cap-could-help-you-make-a-million/</link>
                                <pubDate>Fri, 23 Jun 2017 09:58:07 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=98928</guid>
                                    <description><![CDATA[<p>This company has a huge competitive advantage. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/06/23/this-small-cap-could-help-you-make-a-million/">This small-cap could help you make a million</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>The world’s greatest investor Warren Buffett often talks about the importance of the &#8216;business moat&#8217;  and while Buffett has never actually explained what he means by this, it is widely believed that his ‘moat’ is code for competitive advantage.</p>
<p>Competitive advantages can take many different forms, from a world-leading brand to sheer scale, they all accomplish the same aim of giving a particular business an edge over its peers, which will allow it to generate excess returns. </p>
<p>One competitive advantage that is becoming increasingly important is data. Big data is a multi-trillion dollar industry, and while anyone can enter the market relatively easily, it takes time to build a comprehensive dataset that gives the best results. Companies like <b>Google</b> and <b>Experian</b> are prime examples. Both have a leading position in their markets for data and are able to achieve market-beating returns on capital.</p>
<h3>Upcoming data champion</h3>
<p>Small-cap marketing firm <b>Taptica International</b> (LSE: TAP) is an upcoming data champion.</p>
<p>It uses data and machine learning to put its clients&#8217; ads in front of the customers who are most likely to buy. The firm is active in the rapidly growing mobile ads market, where advertisers are keen to expand their presence.</p>
<p>And the company has signed up some big names with the likes of <b>Amazon</b>, <b>Disney</b>, <b>Facebook</b>, <b>Twitter</b> and <b>Expedia</b> all working with the group.</p>
<p>The numbers speak for themselves here. For the year ending 31 December 2016, the company reported revenue of $126m, up from $76m the prior year, growth of 66%. Gross profit leapt from $21m to $46m, growth of 119%. Even though costs increased by 44%, profit from operations surged by 566% from $3m to $20m. The majority of this profit was converted into cash. Operating cash flow during the period was $20m and after spending on dividends and buybacks, the company’s cash balance grew by more than 100% to $21.5m at the end of the year.</p>
<p>This growth is extremely impressive, there’s no other way of putting it, and City analysts expect growth and cash generation to continue for the foreseeable future. For 2017, analysts have pencilled-in earnings per share growth of 29% and growth of 7% is expected for 2018 as revenue rises to $145m. </p>
<h3>Cash cow </h3>
<p>Based on the projected growth rates above, shares in Taptica currently trade at a forward P/E of 12.9, which seems exceptionally cheap considering the group’s lofty earnings growth. What’s more, if you strip out cash of 34p per share, on a cash adjusted basis the P/E falls to 11.5.</p>
<p>As well as its data trove, it’s Taptica’s cash generation that is attractive. Last year the company returned around $12m to shareholders via dividends and stock buybacks. The shares currently yield 1.7% and the buybacks should only accelerate earnings growth, increasing value for shareholders.</p>
<p>So overall, if you’re looking for a highly cash generative, undervalued small-cap with a bright long-term outlook thanks to a strong competitive advantage, Taptica might be perfect for you.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/06/23/this-small-cap-could-help-you-make-a-million/">This small-cap could help you make a million</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em><a href="https://my.fool.com/profile/RupertHargreav/info.aspx">Rupert Hargreaves</a> has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Amazon, Facebook, Twitter, and Walt Disney. The Motley Fool UK has recommended Experian. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>These promising small cap stocks could help you retire early</title>
                <link>https://www.twelfthmagpie.com/2017/05/20/these-promising-small-cap-stocks-could-help-you-retire-early/</link>
                                <pubDate>Sat, 20 May 2017 08:00:29 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Focusrite]]></category>
		<category><![CDATA[Small Caps]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=97765</guid>
                                    <description><![CDATA[<p>So long as you can stand the risk, these market minnows could help you put your feet up sooner.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/05/20/these-promising-small-cap-stocks-could-help-you-retire-early/">These promising small cap stocks could help you retire early</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Staying invested in equities over many years can help to secure a comfortable retirement. However, if you&#8217;re wanting to put your feet up earlier than most, you&#8217;re probably going to need to take on more risk. One way of doing this is by looking further down the market spectrum for companies that offer the possibility of sizeable capital gains. Here are two market minnows that might tick this box.</p>
<h3>On tune</h3>
<p>For reasons other than just its memorable ticker, <strong>Focusrite</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-tune/">LSE: TUNE</a>) has been a striking a chord with more and more investors over the last few months. Since this time last year, the share price of the global<span class="aey"> music and audio products provider has almost doubled. While not in quite the same ballpark as gains achieved by musical instrument seller <strong>Gear4music </strong>(+445%), that&#8217;s still a superb return.  </span></p>
<p><span class="aey">A quick revision of the company&#8217;s interim results &#8212; released at the start of May &#8212; underlines just why Focusrite is proving so popular.</span></p>
<p><span class="aey">In the six months to the end of February, group revenue climbed almost 24% to £32m. The 25% sales growth experienced in the US market was particularly impressive.</span></p>
<p>Profits before tax rocketed by just over 89% to £4.6m with basic earnings per share up to 7.3p &#8212; a rise of 82.5%. Focusrite ended the period with net cash of £9.4m &#8212; well over double the amount it had at the start of March 2016.</p>
<p>On an operational level, the company reported launching six new products over the half-year period and excellent demand for its Scarlett USB audio interface range.  There were also strategic wins in the broadcast business-to-business market for Focusrite&#8217;s RedNet suite of solutions.</p>
<p>At 21 times earnings, the stock isn&#8217;t cheap. With excellent returns on capital, an ambitious new CEO in the form of Tim Carroll and a market leading position however, it might just be a price worth paying.</p>
<h3 class="afb">Strong revenue growth</h3>
<p class="afb">Another small-cap that looks set to keep rewarding investors is mobile advertising technology company <strong>Taptica</strong> <strong>International</strong> (LSE: TAP). If the name doesn&#8217;t ring a bell, you&#8217;re probably more familiar with some of the companies it works with, such as <strong>Facebook</strong>, <strong>Disney</strong> and <strong>Amazon</strong>.</p>
<p class="afb">Like Focusrite, shares in Taptica have delivered an impressive return over the last year, rising a barnstorming 250%. For justification of this, just take a look at some of the full-year numbers released in March.</p>
<p class="afb">Over 2016, revenue at the £170m cap jumped 66% to just under $125m with 86% of this coming from mobile business. Gross profit more than doubled to $46m with gross margin hitting 36.5%.</p>
<p class="afb">While the US market continues to be the company&#8217;s biggest, Taptica is expanding its footprint through the opening of new offices in Seoul and London and partnerships in countries such as Japan. Looking forward, management appears confident that existing clients will continue to grow their advertising spend, thus leading to &#8220;<em><span class="za">strong year-on-year revenue growth in the year ahead&#8221;.</span></em></p>
<p class="afb">You might think that the shares would be trading on a lofty valuation but that&#8217;s simply not the case. Right now, you can grab the stock for just 11 times 2017 earnings. That seems alarmingly cheap for a company with a history of high returns on capital and a £21.5m net cash position.  </p>
<p class="afb">Expect a trading update from cash-generative Taptica very soon. More good news and the shares should continue to soar.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/05/20/these-promising-small-cap-stocks-could-help-you-retire-early/">These promising small cap stocks could help you retire early</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Paul Summers has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Should you buy this small cap as it surges 15% after beating expectations?</title>
                <link>https://www.twelfthmagpie.com/2017/01/25/should-you-buy-this-small-cap-as-it-surges-15-after-beating-expectations/</link>
                                <pubDate>Wed, 25 Jan 2017 12:52:57 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Sky]]></category>
		<category><![CDATA[Taptica]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=92125</guid>
                                    <description><![CDATA[<p>Is this smaller company worth buying right now?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/01/25/should-you-buy-this-small-cap-as-it-surges-15-after-beating-expectations/">Should you buy this small cap as it surges 15% after beating expectations?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Mobile advertising specialist <strong>Taptica</strong> (LSE: TAP) is among today&#8217;s top risers. Its shares have risen by as much as 15% following a positive trading update. It shows that the company is making good progress and its strategy is working well. However, does this mean now is a good time to buy it? Or, is its valuation now unattractive following such a sharp rise in its share price?</p>
<h3><strong>Improving performance</strong></h3>
<p>In the last two months of the year, there was better-than-expected growth from the mobile advertising campaigns being run for new and existing clients. This was centred on the Asia Pacific region, with the technology platform performing well. Due to this, Taptica now expects to record revenues for financial year 2016 that are ahead of previous expectations. They&#8217;re now forecast to be at least $125m, which represents an increase of 65% compared to the previous year.</p>
<p>In addition, the company&#8217;s platform has also been able to deliver operational efficiencies in the campaigns. This means that EBITDA (earnings before interest, tax, depreciation and amortisation) is due to be materially higher than market expectations. It&#8217;s expected to be around $25m compared to just $7.4m for the previous year. The company also expects to be cash generative and had a cash balance of $21m as at the end of the 2016 financial year.</p>
<h3><strong>Outlook</strong></h3>
<p>Taptica is forecast to record a rise in its bottom line of 10% this year, followed by further growth of 11% next year. Despite today&#8217;s rise in its share price, it still seems to offer good value for money. For example, it has a price-to-earnings (P/E) ratio of 13.6 which, when combined with its growth outlook equates to a price-to-earnings growth (PEG) ratio of 1.3. This indicates that the company&#8217;s share price could continue to rise – especially since its current strategy is performing well.</p>
<h3><strong>Sector peers</strong></h3>
<p>The outlook for the business is in line with other stocks within the media sector. For example, <strong>Sky </strong>(LSE: SKY) is expected to report a fall in its bottom line of 9% this year, followed by growth of 18% next year. Of course, Sky is the subject of a takeover attempt at the present time, but Taptica&#8217;s performance indicates that it&#8217;s holding its own against larger and more diversified peers. This should increase its attractiveness as an investment on a relative basis. While a bid approach may or may not take place, the company has significant growth opportunities in the long run.</p>
<p>Clearly, a sector peer such as Sky has stronger finances and a more stable long-term outlook. However, Taptica may deliver better growth in the coming years thanks in part to its greater adaptability and more nimble business model. While gains of the magnitude of the ones recorded today may not continue, Taptica could be worth buying for the long term and doesn&#8217;t appear to be overvalued in the least after today&#8217;s share price gains.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/01/25/should-you-buy-this-small-cap-as-it-surges-15-after-beating-expectations/">Should you buy this small cap as it surges 15% after beating expectations?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em><a href="https://my.fool.com/profile/XMFstockpicker/info.aspx">Peter Stephens</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                    </channel>
</rss>
