Acquiring BeOp Puts Potentially Massive Revenue Growth Into Collective Audience Crosshairs ($CAUD)

Under-the-radar Collective Audience (NasdaqGM: CAUD) stock may present an investment opportunity that is too attractive to ignore. That’s a bullish presumption, for sure. However, it’s evidence-based, with CAUD providing investors a number of reasons to support the investment proposition, especially at levels that don’t reflect the value inherent to its completing the business combination involving DLQ, Inc., a former subsidiary of Logiq, Inc., and Abri SPAC I, Inc., a special purpose acquisition company, which, at the time, the combined market cap of those entities was roughly $64 million. The market cap of CAUD today is $13.14 million. 

That’s a disconnect worth seizing. Why? Because CAUD provides one of the most innovative audience-based performance advertising and media platforms for brands, agencies, and publishers. And like it does for clients, it can help CAUD grow substantially in 2024. Thus, at current values, and with tangibles supporting the bullish case, the path of least resistance for CAUD shares may indeed be higher. More importantly, in the near term. 

For those new to CAUD, the company was listed on the NasdaqGM in Q4 and, since then, has wasted no time strengthening its management, advisory, and board to capitalize on high-dollar opportunities in the booming adtech sector. Facilitating that intent, the company introduced a new open, interconnected, data-driven digital advertising and media ecosystem that eliminates many inefficiencies in the digital ad buyer and seller process for brands, agencies, and publishers. That platform may help CAUD do more than capitalize on opportunities; it can help maximize them. 

CAUD Deserves A Higher Valuation

That’s not an overzealous assessment, either. CAUD is unique in many respects by providing clients sought-after visibility, complementary technology, and unique audience data that drive focus on performance, brand reach, traffic, and transactions. In other words, clients need what CAUD offers. As important, they’re a one-stop shop for everything related to adtech, which, in a sector estimated to be worth over $839 billion in 2023, is an excellent position to exploit. And its ability to do so just got stronger. 

That happened after CAUD announced signing a binding letter of intent to acquire BeOp, an award-winning, Europe-based MarTech and AdTech industry-leading innovator. BeOp brings a cloud-based modular platform to Collective Audience and the industry’s first SaaS- services- and marketplace-based, AI-powered, performance advertising and data platform for media and brands. It’s a significant new addition. BeOp is revolutionizing the advertising landscape with its innovative technology tailored for the latest digital media and advertising market KPIs such as attention measurement, engagement rate, attribution, and time spent. The platform offers a self-serve interface and APIs that enable integration into any environment. This addition should drive near and long-term value and expand CAUD’s business footprint. Updates on its contributions should be in the queue. Until then, plenty more supports the bullish thesis. 

Particularly, Collective Audience has assembled an all-star management team, including advisory and board members that are most likely a part of the Who’s Who list as the brightest minds in the adtech sector. Of course, essential to the entire proposition, CAUD announced completing the special dividend portion of the business combination referenced, a significant milestone that positions CAUD to capitalize fully on targeted market potentials. Investors should embrace the magnitude of both. Because from a forward-looking perspective, these are the pieces critical to CAUD announcing additional value-creating events, even transformative ones, in the coming days and weeks. According to company guidance, that’s likely; an optimistic posture supported by a growth trajectory that is visibly steepening. 

Of course, CAUD’s being timely in its opportunities also matters. They are. The over $839 billion audience-based performance advertising and ad-tech sector market in 2023 is forecast to reach $2.9 trillion by 2031. That puts CAUD in the right market at the right time. As important, they have the leadership, products, and services arsenal in place to seize a considerable portion of the hundreds of millions in play by leveraging its suite of services that, in many instances, are unrivaled. Still, keep in mind that CAUD isn’t one of those status-quo companies. Instead, they’ve made clear of being on an ambitious mission of acquiring key accretive assets to help them serve demand from additional emerging market opportunities. In other words, appraise CAUD as a leader rather than just a participant in a technological revolution in the adtech space. Its ability to quickly adapt to changes can keep them in that spot. 

Seizing On A Massive Adtech Opportunity

That’s a valuable distinction. Keep in mind that CAUD earning even a modest share of the market potential can be transformative. And the excellent news on that front is that the company is already well-positioned to earn its spoils by providing clients specialized strategies to enhance digital marketing programs and audience engagement. The plan is a value driver, and so are its products.

In many respects, they make CAUD better than its competition. Uniquely, as a one-stop shop, combined CAUD services include data analytics, targeted advertising, and customer relationship management. While some in the space may do one of those, few provide a package as comprehensive, a package advantage that motivates clients to engage.

And there are lots of them. CAUD isn’t targeting business from a handful of companies needing what it provides; they are targeting business from millions of them, large and small, that struggle to remain competitive by lacking the technical or financial resources to stay relevant in the fast-changing adtech and technological landscape. Thus, while recent announcements show growth, investors may be wise to learn more about the sector, which would provide the basis to understand why CAUD and its stock at current levels present a compelling investment opportunity. As analysts do, factoring blue-sky potential into a valuation model is essential when making a fair-value appraisal. At current prices, that metric appears entirely missing. That’s not the only thing.

Also, keep in mind when appraising the sum of CAUD parts, present and expected, digital marketing and adtech are and will remain the optimal means and solution for companies wanting to communicate with current and prospective customers to create and maintain brand awareness. While the services CAUD provides may have been a luxury a few years ago, they are necessary today, with implementation a critical contributor to brands standing out from competitors in congested markets. Collective Audience provides them that ability by offering a holistic, self-serve adtech platform that gives users a data-driven, AI-powered system enabling advertising across thousands of the world’s leading digital media and connected TV platforms. 

That’s crucial to the toolbox for businesses in today’s digital era. And not just to be relevant on sites like Google (NASDAQ: GOOG), Meta (NASDAQ: META), and Amazon (NASDAQ: AMZN). Beyond eCommerce applications, companies need to manage social impressions on other major sites like Pinterest (NASDAQ: PINS), SNAP (NASDAQ: SNAP), and Hello World (NASDAQ: MOMO). In other words, the CAUD platform is more than helpful in facilitating clients’ specific sales and marketing ambitions; it can manage ancillary interests to gauge performance across multiple business channels. 

Catching The Attention Of Billions Of Eyes 

That’s important, especially with billions of eyes fixed on one type of device or another daily. As it should, that’s led to significant adtech spending, with many companies targeting their customers’ time spent on the growing number of social media platforms. That need opens the door for adtech providers like CAUD to provide clients with products and services that allow them to reach targeted demographics through new retail media, connected television, and E-commerce channels. Having completed the infrastructure to facilitate those intents, CAUD is exceptionally well-positioned to give customers the tools to bring their audience objectives to life quickly and effectively. That’s an additional value driver worthy of appraisal inclusion. That’s not all. 

CAUD’s capital structure is also inviting from an investor’s standpoint. The company debuted on the NasdaqGM with about 13.73 million shares O/S, with roughly 83% held by insiders and about 5.2% by institutional investors. That leaves a small number of shares in the public float that, on a revenues-to-shares basis, assuming the company grows revenues as expected, can support higher valuations. Perhaps appreciably. Critical to and supporting that assumption is that its market cap of $13.04 million on Friday may already be neglecting the value from its business combination, which alone was valued over 4X higher than current prices total. 

Thus, as CAUD shares continue churning, the resistance overhead may weaken. That can be excellent news when performance meets or beats expectations. Remember, investors are always searching for value, especially when markets get frothy. CAUD is worthy of making the list for immediate consideration. Newly listed, they are still making their name known. And that alone may have kept them from participating in a NASDAQ rally. Still, that can change quickly and, with it, lead to an evaporation of lower prices. With the pieces in place to grow bigger faster, that’s more than likely; it’s probable.

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