Accelerate, accelerate, accelerate
$EVC thesis update
Hello,
I had planned to focus my next write-up on the most interesting Japanese SaaS names I’ve found, but $EVC’s results from yesterday forced me to shift gears quickly. If you thought $SOFW.TA’s 56% growth acceleration yesterday morning was impressive, you clearly haven’t seen $EVC’s AdTech segment results in the afternoon.
For those who don’t follow, Entravision is a media company I wrote about back in April of this year. A lot has changed under the hood since then, and I initially thought investors were missing the hidden value there. It’s no surprise—they’ve lost their Meta business, made several divestitures, and their traditional media segment is the usual mess of impairments and restructurings, making the P&L look worse than the actual cash flow ability.
I now believe the risk-reward has shifted significantly for the better in the past 7 months since I invested, yet investors are still failing to properly value it, even with today’s 25%+ jump in the share price. This quick update is my way of sharing how I see the current reward shaping up.
The 104% revenue growth and 378% EBIT growth from Smadex and their AdTech segment have me eager to get this article out quickly. So my apologies for not diving into the usual level of detail, but honestly, this is the first time I’ve been involved with a >$250M revenue business growing triple digits. When I first opened the filing, I thought it was a typo.
So let’s dig into why I decided to more than double my position in $EVC.