The share price of Tremor (AIM: TRMR) has been soaring again – adding another 15 percent today. With the share price of Tremor soaring from £1 to £7 over the past year, it is well and truly in multi-bagger territory as it now is on the verge of a £1bn m. cap.
While many investors may have been focused on buying the dips on the blue-chips, the COVID testing space or even the CBD space – Tremor was equally worth a look.
Why? its a reputable provider of digital advertising technologies with a particular focus on video and social.
And guess what? These areas have been booming, not only with big companies but also publishers – Tremor has solutions for them both.
Today it released an update that confirmed that there is no end in sight for the soaring demand it has continued to see since the pandemic struck – and importantly this has translated into a sizable increase in its margins:
“The Company’s performance during the first quarter of 2021, which historically is the lowest quarter by revenue in the year, is significantly ahead of the same period in 2020, predominantly pre-pandemic. This continued sustainable organic growth is a clear endorsement of Tremor’s strategy, executed by the Company’s end-to-end technology platform together with strong demand inflow. Therefore, the Company now expects trading for the year ending 31 December 2021 to be significantly ahead of management expectations.
Tremor expects to report net revenue* of $55 million to $60 million, an increase of 71%-87% (Q1 2020: $32.1 million), and Adjusted EBITDA of $25 million to $28 million an increase of 46-51 times, (Q1 2020: $0.5 million), in the first quarter of the financial year. Programmatic net revenues are expected to grow by 84%-95% in Q1 2020.”Tremor Trading Statement
The share price of TRMR is currently at £7.
What’s fascinating about Tremor is that it appears to be playing very well in a space where there are long-term structural drivers being formed, so investors may be less fearful of revenue and profits ‘falling off a cliff’.
It is one of those few companies on AIM that looks to be worth a hold that you won’t lose sleep over when deciding when to sell if you are holder.
This one definitely looks a hold and a tempting buy – even with its soaring share price given how impressively its scaled its revenue and margins.