RESEARCH REPORTS
WALL STREET RESEARCHER
Troika Media Group, Inc
TRKA NASDAQ
Revs Up 78% – Six Mos
Client Growth Expanding
These Shares Could Triple
These shares are again ready to rumble with superior client expansion and revs increasing by 57% year over year. A recent acquisition of Converge Direct LLC and affiliates makes Troika a much larger company , Converge having over $300 million in revenues and $23 million in EBITDA makes this deal a game changer .
With a yearly high of $4.00 and a 200 day M/A of $1.78 we look for a BREAKOUT above current levels , a move beyond the 200 day M/A and a retest of the yearly high . We urge all serious investors to watch these shares carefully and place them on your BUY LIST immediately
Troika Media Group Named Agency of Record for Real Estate Crypto Finance Innovator Balcony DAO
Los Angeles, CA, Feb. 25, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Troika Media Group, Inc. (Nasdaq:TRKA) (“TMG” or “Company”), a brand consultancy and marketing innovations company that provides integrated branding and marketing solutions for global brands, announced that it has been named agency of record for innovative real estate technology and crypto finance firm Balcony DAO , whose suite of solutions are designed to merge the best attributes of real estate and cryptothrough Real Estate NFTs (reNFTs) that enable participants to share the value of a real estate project with more stakeholders via Web 3.0.
Balcony DAO is a first of its kind real estate NFT investment platform and community that provides access to “real world real estate”, entirely on the blockchain. Balcony not only delivers direct investment in real estate to crypto-natives, but also increases yield by blending the best attributes of web3 and traditional real estate.
Troika Media Group’s Web3 Creative Consultancy, Troika Labs, will handle NFT Creative Strategy, Web3 Community Management, and 360 digital marketing on behalf of Balcony DAO. The Troika Labs team will leverage its expertise and knowledge of Web3 NFTs to build brand value, maximize engagement and broaden recognition of the Balcony DAO brand.
“Real Estate and NFTs are both Non-Fungible, making reNFTs the clear, ideal tech to digitize the real estate ecosystem, ” said John Belitsky, Co-Founder of Balcony DAO. “ Troika Labs stood out with their strategy, creative approach and enthusiasm for this emerging market. The team at Troika Labs understood our goals and their performance across other brands made our decision easy. We look forward to working together and fulfilling our vision of making Balcony DAO a leading player in the market.”
“Our goal at Troika Labs is to partner with game-changing companies who have a true opportunity to lead their industry when it comes to NFT and Web3 innovation,” said Gregg Lester, Chief Digital Officer of Troika Labs. “We are very impressed with the Balcony DAO leadership team and vision, and are excited to work with them to show the world how NFTs can be applied to the world of Real Estate in a way that creates everlasting innovation in the industry.”
About Troika Media Group
Troika Media Group is an end-to-end brand solutions company that creates both near-term and long-term value for global brands in entertainment, sports and consumer products. Applying emerging technology, data science, and world-class creative, TMG helps brands deepen engagement with audiences and fans throughout the consumer journey and builds brand equity. Clients include Apple, Hulu, Riot Games, Belvedere Vodka, Unilever, UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, Tiffany & Co., IMAX, Netflix, Sony, Yahoo and Coca-Cola. For more information, visit www.thetmgrp.com
About Troika Labs
Troika Labs is a Web3 Creative Consultancy that helps brands better engage with their fans via a business focused NFT strategy. Troika Labs offers NFT Strategic Consulting, Web3 Community Management and Building, NFT Creative Services and Web3 360 Digital Marketing. Applying emerging technology, data science, and world-class creative, Troika Labs helps brands deepen engagement with audiences and fans throughout the consumer journey and builds brand equity. For more information, visit www.troikalabs.io .
Troika Media Group to Acquire Converge Direct LLC, a Leading Digital and Offline Performance Media and Marketing Company, for $125 Million
Los Angeles, CA, Feb. 24, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Troika Media Group, Inc. (Nasdaq:TRKA):
Financial Highlights:
Converge Direct, LLC and its affiliated businesses (collectively, “Converge”) generated approximately $300 million of revenue and $23 million of adjusted EBITDA for the year ended December 31, 2021.
Estimated combined adjusted EBITDA over $27 million for CY 2022.
Significantly accretive to adjusted earnings per share.
Following the closing, it is anticipated that the majority of the combined business’ revenue will be recurring.
Increased margins per customer relationship without a significant increase in operating costs with positive client outcomes arising from deeper client engagements.
Consolidated cost synergies of more than $2 million expected in the first year after closing.
Cantor Fitzgerald & Co. is serving as sole debt placement agent to Troika Media Group, Inc. in connection with the transaction.
Troika has a commitment with respect to the majority of the purchase price in the form a senior secured credit facility.
Strategic Highlights:
The acquisition of Converge (the “Acquisition”) creates a global end-to-end branding, marketing, digital advertising, experiential, analytics-as-service (SAS) and SaaS technology company with an extraordinary base of major clients.
The Acquisition adds proprietary “HELIX” business intelligence platform, thereby providing an edge for clients to maximize their consumer interactions and customer acquisition.
The Acquisition significantly accelerates Troika’s business model transformation strategy and positions the Company for future growth and margin expansion.
Post Acquisition service and sector footprint provides broader downstream recurring revenue base resulting from minimal client overlap.
Troika Media Group, Inc. (Nasdaq:TRKA) (“TMG” or “Company”), a brand consultancy and marketing innovations company that provides integrated branding and marketing solutions for global brands, today announced that it has signed a definitive purchase agreement (the “Purchase Agreement”) to acquire Converge Direct LLC and its affiliates (collectively, “Converge”), a leading independent marketing and customer acquisition business for $125 million (collectively, the “Acquisition”). The Acquisition has been unanimously approved by the Boards of Directors and the majority of shareholders of both Troika and Converge. The transaction is expected to close on or before March 15th, subject to the satisfaction of customary closing conditions.
Since its formation in 2006, Converge and its affiliates have grown to approximately $300 million in annualized revenue and $23 million in adjusted EBITDA for the year ending December 31, 2021. Converge is a leading independent performance marketing and managed services business. Converge provides to customer acquisition services utilizing a broad range of engagement channels in the digital, offline and emerging media sectors. Converge utilizes a business intelligence centric approach to its media strategy, planning and buying to deliver its clients’ customer acquisition targets and KPIs to achieve scale, efficiency and/or on time lead fulfillment. Converge’s proprietary solutions and HELIX’s business intelligent software offers clients best-in-class customer acquisition metrics. Converge’s 85 full time employees are expected to join Troika upon the closing of the acquisition and the combined company will have approximately 200 full time employees.
Transaction Details
Troika has signed a binding purchase agreement to acquire Converge for total consideration of $125 million. Troika will fund the transaction with a combination of new debt financing, a restricted stock grant and cash on hand at closing. Troika has a commitment with respect to the majority of the purchase price in the form a senior secured credit facility.
Upon closing, the senior management team of Converge will enter into long-term Employment Agreements and take an active leadership role in the combined business. Sid Toama, formerly Chief Operating Officer of Converge, will join Troika’s Board of Directors, and serve as President of Troika. Tom Marianacci, Founder and Chief Executive Officer of Converge will remain CEO of the Converge entities and be a board advisor to Troika. Other members of Converge’s Executive Leadership Team have agreed to join Troika to provide continuity to Troika’s strategy, growth and leadership.
Cantor Fitzgerald & Co. is serving as sole debt placement agent in connection with the transaction.
EF Hutton is serving as financial advisor and Davidoff Hutcher & Citron LLP is serving as legal advisor to Troika.
Management Commentary
“We are very pleased and excited for the opportunity to combine our two great businesses and leverage our collective resources and expertise to accelerate profitable growth,” said Robert Machinist, Troika’s Chairman and CEO. “Troika has a deep and long history with major global brands that rely on us to build trust and drive customer and fan engagements. The acquisition of Converge will place us in the growth sweet spot of digital content, data and digital media which is moving from brand awareness and trial to conversion at significant scale. With strong top-line growth, solid margins, and a significant shareowner interest in the combined entities, we believe this transaction deepens and broadens our digital client offerings. Accordingly, we expect it that it will substantially enhance shareholder value.”
Tom Marianacci, Converge Founder and CEO, said, “As a leading global digital brand consultancy that connects companies to consumers, combining with Troika’s brand engagement capabilities is a natural next step in the evolution of Converge due to our complementary service offerings, client portfolios and common approach to digital transformation. Our focus on performance-based marketing, proven data and technology solutions, and scale will allow us to leverage the deep customer base and brand building experience that Troika has established over decades to offer expanded offerings that drive new revenue opportunities for the combined companies.”
Compelling Strategic and Financial Benefits
- Significantly Expands Troika’s Presence in the Large and Growing Digital Media and Performance Marketing Sector.
- Transaction Serves Customers in Various End Markets Representing Both New and Complementary Client Opportunities: financial services, consumer products, healthcare & insurance, travel and leisure, education, media and entertainment, home improvement products and services, fitness and wellbeing, and legal services.
- Proprietary HELIX Business Intelligence Platform provides clients with greater marketing insights.
- Leverages Integrated Technology, Data, e-Commerce and Mobile Capabilities to Accelerate and Optimize Omnichannel Strategy for Clients.
- Provides Significant Revenue and Earnings Growth Opportunity. Converge generated approximately $300 million of revenues and adjusted EBITDA of $23 million for the year ended December 31, 2021.
- Generates Strong Cash Flow to Support Balanced Capital Allocation Plans.
- Estimated Combined Adjusted EBITDA over $27 Million for CY 2022.
- Accretive to adjusted earnings per share.
Converge Highlights
- A data and audience centric customer acquisition business with responsibility for over $5 billion in media budgets since inception.
- Expertise in paid digital and offline media buying: Search Engine Marketing, Search Engine Optimization, Email, SMS, Display, Social, e‑Marketplaces, Connected TV, Affiliate platforms as well as Print and Direct Mail media vehicles.
- Responsible for executing over 20 billion ad impressions annually.
- Exponents of data driven one-to-one mass marketing, hyper targeted ad serving and custom audience targeting with measurable media driving financial outcomes.
- Ability to identify and engage consumers and measure their interaction across multiple personal devices.
- Longstanding Google Premier Partner, Bing Elite Partner, and Facebook Marketing Partner.
- Deploy proprietary business intelligence platform “HELIX”, to provide insights on marketing campaign performance, customer journey tracking and real‑time performance optimization tactics.
- Built a robust data aggregation platform to utilize applied analytics maximizing ad engagement and reduce wasted customer ad touchpoints across all channels.
About Converge Direct LLC
Converge Direct, LLC and affiliates is a media managed-service, performance marketing and customer acquisition business. The Company provides complementary services such as advertising strategy and customized advertising campaigns utilizing their proprietary attribution analytics SaaS technology platform, HELIX. The Company is headquartered in Bedford Hills, New York with branch offices in New York, New York and San Diego, California. The Company serves customers in various end markets: financial services, consumer products, healthcare & insurance, travel and leisure, education, media and entertainment, home improvement, fitness and wellbeing, and legal services.
Visit: www.convergemarketing.com
About Troika Media Group
Troika Media Group is an end-to-end brand solutions company that creates both near-term and long-term value for global brands in entertainment, sports and consumer products. Applying emerging technology, data science, and world-class creative, TMG helps brands deepen engagement with audiences and fans throughout the consumer journey and builds brand equity. Clients include Apple, Hulu, Riot Games, Belvedere Vodka, Unilever, UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, Tiffany & Co., IMAX, Netflix, Sony, Yahoo and Coca-Cola. For more information, visit www.thetmgrp.com
LOS ANGELES, Feb. 14, 2022 (GLOBE NEWSWIRE) — — via NewMediaWire – Troika Media Group, Inc. (TRKA) (“Troika” or “Company”), a brand consultancy and marketing innovations company that provides integrated branding and marketing solutions for global brands, today announced financial results for its second quarter of fiscal year 2022 ended December 31, 2021.
Second Quarter and Year-to-Date Financial and Operational Highlights
- Revenue increased 57.1% to $6.99 million in Q2 2022, compared to the prior year quarter
- Adjusted EBITDA was $(1.95) million in Q2 2022, compared $0.8 million to the prior year quarter
- Revenue increased 78.76% to $15.34 million for the first six months of FY 2022
- Accelerating expansion in fast growing gaming and Esports market
- Business mix and client spend shifting to faster growth areas: Experiential, Consumer and Technology
- New client growth accelerating
- Demand for client services across brands continues momentum in Q3 2022 with pipeline growing
Growth in Client Activity First Half FY 2022
Troika has made significant progress in deepening existing relationships and winning new accounts. First half 2022 was another strong period for significant expanded assignments with existing clients including: LA Rams, SoFi, UFC, ESPN, HBO, Yahoo, Netflix, Victoria’s Secret (VSCO), CNN, Riot Games, Ubisoft, Big Ten Network, Pac-12 Networks, Bobbi Brown Cosmetics and Coca-Cola. New client wins included: CNBC, PointsBet, Viacom, San Diego Wave FC, Unimas, ESL, VSPN, Greenpark Sports, LASEC Super Bowl Host Committee, F 45 Fitness, La Mer, Coffee Bean and Wilson Sporting Goods.
Management Commentary
“Our second-quarter performance closes out a strong first half of the fiscal year with robust organic revenue growth of 57%,” said Robert Machinist, Troika’s Chairman and CEO. “We have now reported revenue growth in excess of 78% for the first six months of fiscal year 2022 as compared to the same period in 2021, and with the actions we have taken over the last two years, we are even better positioned for growth. Our formula for success firmly resides with the efforts of our people across Troika, working together to deliver the best client outcomes in a rapidly evolving market. During the second quarter, all of Troika’s business units generated significant new client mandates and we hired aggressively to stay ahead of strong revenue growth year-to-date. We believe our staffing has been optimized to successfully service our expected revenue growth for the remainder of fiscal year 2022. Based on our performance year-to-date, we are optimistic about the outlook for the second half of 2022 and expect to continue to build on our strong client demand, clear strategic direction and improved financial performance to enhance value creation for our shareholders.”
Machinist added, “We believe the demand for digital marketing transformation, involving the sales, marketing and information technology functions in client organizations, will accelerate. We continue to review significant new growth opportunities that would create a stronger organization during the remainder of fiscal year 2022 across all practices in order to help our clients grow their brands and build their businesses.”
Q 2 Fiscal 2022 Summary Results (GAAP)
Revenues for the three months ended December 31, 2021 and 2020 were $6.99 million and $4.45 million, respectively, an increase of approximately $2.54 million or 57.1%. This increase is primarily due to Troika Design recognizing $1.6 million in additional revenue in comparison to the prior period as a result of the generation of new business and increased new business from the UK and US subsidiaries of Mission-Media Holdings Limited.
Operating costs for the three months ended December 31, 2021 and 2020 were $7.49 million and $4.52 respectively, an increase of $2.97 or 65.8%. The primary driver of this increase was an increase of $2.53 million in cost of personnel to service new business wins.
The Company recognized a $1.7 million reduction in gains from the extinguishment of stimulus loans in other expenses in the three months ending December 31, 2021 as compared to the three months ending December 31, 2020. The loans were awarded as a result of the pandemic and the funds were recognized in the prior period as expensed.
Net loss for the three months ended December 31, 2021 increased to $4.11 million from $623,000 for the three months ended December 31, 2020.
Q2 Fiscal 2022 Summary Results (Non-GAAP)*
Troika Media Collaborates with Unimás on Network Rebrand
Unimás relaunches on-air brand with a modern, bold and diverse visual identity that says “Vivelo Todo” or “Live it All”
Los Angeles, CA, Dec. 06, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Troika Media Group, Inc. (Nasdaq:TRKA) (“TMG” or “Company”), a brand consultancy and marketing innovations company that provides integrated branding and marketing solutions for global brands, announced that it has, in collaboration with Unimás, the American Spanish language television network owned by Univision Communications, completed a network rebrand to better reflect the evolution of the audience and content that make up Unimás today.
To view the rebrand sizzle reel, click on the following link: https://vimeo.com/644928193 or to view the Case Study on the rebrand, click on the following link: https://www.troika.tv/work/unimas-case-study/
TMG collaborates with Unimás on Network Rebrand
It has been seven years since Troika and Unimás collaborated on the previous network rebrand, the longest-running identity on their air. For 2021, the intent was to create an evolution of the existing brand. However, Unimás found that the audience and the programming had shifted significantly enough to warrant a completely new look and attitude. Troika and Unimás set out to create a rebrand that would reflect the significant change to both. The result was a completely transformed visual identity, one that became current with the evolution of the channel and reconnects with the people and content that make up Unimás. This was accomplished in large part by moving from a dark and completely graphic design to one that incorporated people, with added motion, color, energy, and a human side to the brand.
“Unimás has been a valued client for many years, and we are delighted to be expanding our relationship and for being chosen as an integral partner in the transformation of its network brand. This new visual identity is in lockstep with a vibrant and thrilling brand,” said Robert Machinist, Troika’s Chairman and CEO.
About Troika Media Group
Troika Media Group is an end-to-end brand solutions company that creates both near-term and long-term value for global brands in entertainment, sports and consumer products. Applying emerging technology, data science, and world-class creative, TMG helps brands deepen engagement with audiences and fans throughout the consumer journey and builds brand equity. Clients include Apple, Hulu, Riot Games, Belvedere Vodka, Unilever, UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, Tiffany & Co., IMAX, Netflix, Sony, Yahoo and Coca-Cola. For more information, visit www.thetmgrp.com
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “believe,” “expects,” “may,” “looks to,” “will,” “should,” “plan,” “intend,” “on condition,” “target,” “see,” “potential,” “estimates,” “preliminary,” or “anticipates” or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company’s facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company’s products and services, economic conditions in the U.S. and worldwide, and the Company’s ability to recruit and retain management, technical, and sales personnel. Further information relating to factors that may impact the Company’s results and forward-looking statements are disclosed in the Company’s filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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