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, released the
following letter to shareholders from Robert Machinist, Troika
Media Group Chairman and CEO.
Dear Troika Media Group Shareholders,
On behalf of Troika Media Group’s Board of Directors, our senior
management team, and employees, we are delighted to have you as a
shareholder and valued part of the TMG family. Accordingly, I
would like to touch upon some important developments since we
completed our Initial Public Offering just shy of one year ago.
Since that time, we reported a significant improvement in our
business performance in the first half of 2022, completed the
transformative acquisition of Converge Direct,
and have set the stage for accelerated growth as we
execute on our priorities for the second half of 2022 and going
forward.
Resurgence of Growth in Our Core Branding Business
With the reopening of economies and the return of global brands
with their large marketing budgets, we have
experienced significant incremental demand for our
digital content, media expertise, and data & analytics.
The pandemic has accelerated digital transformation and we believe
the secular trend to digital marketing provide our Company
with strong tailwinds. In the first half of 2022, both
existing and new clients helped us deliver revenue growth in
excess of 78% for the first six months of fiscal year 2022.
Building a Comprehensive Digital Advertising and Media
Solution for Global Brands
Our strategy is to build a leading-edge digital
advertising and marketing services business through the
integration of businesses in three practice areas: Content,
Data & Digital Media and Technology Services. Our Content
practice, led by our Troika Media Group and Mission teams, are well
established and recognized as leading brand consultancies, offering
creative design and consumer engagement to global clients for more
than twenty-years. Building on that core competency, we
launched Troika Labs, a new division with the primary mission
to leverage its expansive data and content creation
capabilities to provide a fully integrated digital and creative
offering to clients. By combining the expertise of data insights
and integrated marketing throughout the entire strategic and
creative process, we can provide a higher level of service,
creating solutions and strategies that drive optimal results
for brands across the TMG client footprint. Identifying client
needs in a fast-changing environment led to the launch of our
Troika IO subsidiary to help brands monetize their
intellectual property and create additional revenue streams
through non-fungible tokens (NFTs), fan centric
transactions and digital assets. After integrating these new
businesses into our platform, we identified technology services as
the one area that we needed to build greater capabilities and scale
in order to better serve our brands and grow the business
faster.
Growing Our Digital and Performance Media Footprint with a
Company Changing Transaction
Our most recent acquisition, Converge, is certainly the largest
and most transformative for TMG. Founded in
2006, Converge is a leading digital and offline
performance media and marketing company serving customers
in multiple end markets. Converge collaborates with its
clients to curate a one-to-one targeted media strategy on a mass
scale; helping clients to drive rich engagements with their
existing and new audiences. This acquisition marks a
significant step forward in our strategic goal of creating a
global, end-to-end brand solutions platform, adding a significant
innovative technology capability to vastly expand the range and
depth of our client solutions. TMG also gains significant financial
benefits from this transaction. Converge generates over $300
million in revenue principally composed of recurring
revenue with 90% retention rates, high margins and rapid
growth. With an estimated combined adjusted EBITDA of
over $27 million for calendar year 2022, the acquisition of
Converge is expected to be significantly accretive to our
adjusted earnings per share.
We are excited about this important new growth opportunity and
look forward to further integrating our teams and capabilities as
we move forward.
What’s AheadTMG
is focused on the following top five objectives:
- Continue to grow our top and
bottom line
- Further integrate our client
offering around our content, data & digital, and
technology practices
- Leverage our 350+ client
relationships across 16 industries
- Broaden and deepen our content,
data & digital and technology practices
- Deliver improved shareholder
value
Finally, I would like to thank all our
shareholders for your confidence and support of TMG and its
management. Together we are working hard to build an unparalleled
business that can serve large and growing markets, with our unique
creative branding and performance marketing solutions.We appreciate
the confidence you have shown in us to date, and we look forward to
earning your continued support.On behalf of the Board of
DirectorsRobert MachinistChairman and CEOAbout Troika Media
GroupTroika 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.comForward-Looking StatementsCertain 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.Contact:
Troika Media GroupKevin
Aratari kevin@troikamedia.com
Investor RelationsTraDigital IRKevin
McGrath+1-646-418-7002kevin@tradigitalir.com
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