- Report
highlights Jerrick’s “uniquely low-cost infrastructure and scalable
business model” when citing company’s promising potential “to scale
profitably, while taking market share from legacy platforms”
- Jerrick
balance sheet “much stronger than it appears”
- Company
estimated to increase quarterly revenues throughout 2020 and reach an
estimated $9 million in revenues in 2021
As part of its mission to shine a light on small or
micro-cap companies that are undervalued by Wall Street, renowned research
company Zacks Small-Cap Research recently initiated coverage on Jerrick Media Holdings Inc. (OTC: JMDA), a holding company
that creates technology products for the creative community (http://ibn.fm/fXO2v). Having
concluded that Jerrick’s technology platform Vocal should scale quickly and
profitably throughout 2020, Zacks provided a final estimated valuation for the
company of $13.00 per share by 2021, calculated using a combination of
valuation metrics. This valuation represents a significant increase from the
current share price (http://ibn.fm/eoIHo).
“After five years of building its Vocal platform, Jerrick is
aiming to disrupt the digital media and publishing platform space,” the Zacks
report stated.
Vocal (http://ibn.fm/n3vrw)
enables creators to publish media-rich digital content in a safe and secure
environment that allows for maximum visibility and the opportunity to be
rewarded for their content. Vocal’s revenue model is based primarily on creator
and brand subscriptions. Importantly, the report notes, “Vocal does not charge
readers and, crucially, is not reliant on the diminishing value proposition of
intrusive display advertising.”
In valuing Jerrick, Zacks analyzed the company’s 2019
numbers and balance sheet as compared to a number of public and private
comparable companies. Public companies referenced in the report included
Spotify (NYSE: SPOT), Shopify (NYSE: SHOP), Etsy (NASDAQ: ETSY), Limelight
Networks (NASDAQ: LLNW), and others, while private companies referenced
included Patreon, Medium, and VSCO.
Looking at Jerrick’s balance sheet, Zacks noted that the
company ended the third quarter with $167,000 in cash reserves, $7.3 million in
debt and a negative $8.1 million in working capital. “However, with the current
capital raise, this will change drastically,” stated the report, which noted
that Jerrick had filed an S-1 outlining the company’s plan for a $6–7 million
capital raise and plans for uplisting to the Nasdaq Capital Market. “After the
deal, primary shares outstanding should be closer to 12 million. Even without
this raise, the balance sheet is much stronger than it appears.”
With a nod at Jerrick’s steadily growing body of over
500,000 Vocal creators (i.e. customers) as well as its ability to engage top
brands looking to interact with customers on Vocal, Zacks forecasts favorable
conditions for the company’s growth. Jerrick continues to expand Vocal’s
product offerings, most recently with the launch of creator Challenges in
January 2020 (http://ibn.fm/jiDgN).
Challenges enable creators to participate in various themed storytelling
contests across a diverse range of topics and interests for the chance to win
cash prizes, experiences, and more. Additionally, brands can sponsor Challenges
as a way to tap into Vocal’s powerful network of quality creators and highly
engaged audiences and generate brand awareness in a valuable and non-invasive
way.
In light of this growth as well as future platform expansion
plans (http://ibn.fm/WdLgD),
“Jerrick should be able to increase quarterly revenues throughout [2020] based
on increasing paid subscriber numbers, increased business with brands and
continue[d] growth in ecommerce business at Seller’s Choice.”
With respect to its forecasts and valuation for Jerrick, the
Zacks report noted, “Based on an industry standard range of 7-21x, enterprise
value to sales, Jerrick common stock could be valued at between $62 – $190
million by 2021.” Zacks’ final valuation for the company was set at $13.00 per
share by 2021, which they calculated using the averages of the valuation
metrics from both of the public and private comparative analysis data.
Given its high scalability evaluation and strong balance
sheet, Jerrick poses an attractive option for evaluation by investors looking
to break into the burgeoning industry of digital content platforms.
The full report by Zacks Small-Cap Research can be found
at http://ibn.fm/AlCPf.
Jerrick Media Holdings Inc. develops technology-based
solutions to solve digital problems. Through the combination of design, thought
and data analysis, the company builds products that influence a worldwide
audience. Jerrick’s flagship product is Vocal, a proprietary long-form
digital publishing platform that provides storytelling tools and engaged
communities for creators to get discovered and fund their creativity.
Those interested in weekly news from Jerrick can sign up
at http://ibn.fm/cfq2J
For more information, visit the company’s website at https://Jerrick.media
NOTE TO INVESTORS: The latest news and updates
relating to JMDA are available in the company’s newsroom at http://ibn.fm/JMDA
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www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
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