Be careful what you wish for because you just might get it. Though the provenance of this adage remains ambiguous — some point to an ancient Chinese proverb while others suggest a derivation from Aesop’s Fables — the message couldn’t be any clearer: don’t run into a situation without careful consideration of the consequences.
Perhaps no other professional industry has been hard at work seeking wisdom from antiquity than the marketing and advertising sector. With the advent of digitalization and connectivity-based solutions, it has never been easier for enterprises to reach out and engage their customers. From the convenience factor to customized interactions to even environmental impact, digital marketing and advertising initiatives have been roundly superior to their analog alternatives.
Later, the advancement of artificial intelligence (AI) sparked the phenomenon of programmatic promotional campaigns or the “use of automated processes to buy, place and optimize advertising,” per Harvard Business School. Naturally, marketing executives latched onto these algorithmic solutions — yet it came at a cost.
Prior to the 2022 Winter Olympics, Coca-Cola Co. (NYSE: KO) spent big on its global promotional footprint, only to be forced to pull out of its U.S.-based campaign because of the uproar of human-rights-related controversies leveled against China.
Too much dependency on automated tech poses problems, hence the interest in Basis Global Technologies Inc., a smarter way to advertise.
What is Basis Technologies?
Formerly known as Centro, Basis Global Technologies — which conducts business as Basis Technologies — provides “unified software and services to simplify and automate digital media operations and drive increased profitability and greater efficiency for marketing organizations.” Specifically, the company’s system features a comprehensive command center that comprises workflow automation, a media-acquisition execution platform and an AI-powered real-time marketing performance optimization protocol.
To put it simply, Basis connects quarterbacks with the best receivers in the sport of football, empowering impact players to deliver even more meaningful results. Basis generates income primarily through a Software as a Service (SaaS) business model that incorporates usage-based pricing. Its clients range in size from mid-market advertising agencies to Fortune Global 500 companies.
When is the Basis Technologies IPO Date?
After a blistering two-year period of new listings, it was going to be inevitable that 2022 would start off relatively slow. With so many news items to absorb, many executives of privately held companies held off on launching an initial public offering (IPO), or the first time a private firm releases its equity shares to retail investors.
However, the upcoming debut of Basis Technologies is a sign that new listings haven’t lost their fervor. On Jan. 14, 2022, the business intelligence software provider filed its IPO prospectus with the U.S. Securities and Exchange Commission (SEC). However, the company is still in the early stages of the process and thus has not yet disclosed an entry date for the IPO calendar.
Still, investors can use the time to conduct a thorough examination of Basis Technologies, particularly if they wish to acquire shares on a pre-IPO basis. First, what interested parties do know is that Basis intends to raise up to $100 million, though no per-share pricing terms were revealed. Keep in mind that this figure can fluctuate if management decides to amend its prospectus.
Second, Basis intends to list its shares on the Nasdaq exchange under the ticker symbol BASI. Goldman Sachs Group Inc. (NYSE: GS), Bank of America Corp. (NYSE: BAC), Royal Bank of Canada (NYSE: RY), Bank of Montreal (NYSE: BMO), Stifel Financial Corp. (NYSE: SF), and Needham & Co. represent the joint bookrunners for the offering.
While any IPO entails both risks and opportunities, BASI stock commands an especially pronounced investment profile. On the positive end of the spectrum, Basis Technologies’ smart advertising platform couldn’t be more relevant. For instance, earlier this year, NOBL Media — a credibility-targeting solution for programmatic advertising initiatives — integrated with Basis, thus enabling the soon-to-be public company to ensure responsible, scandal-free ad placements.
As you’re well aware, controversy in media has become a pernicious issue for marketers, who want to steer their brands away from the collateral damage that could occur when government entities violate basic ethical principles or when social influencers broadcast incendiary opinions.
On the other end of the scale, the global capital markets have been all over the map as investors attempt to navigate unusually treacherous waters. From the Federal Reserve seemingly determined to raise borrowing costs to brewing conflicts in eastern Europe and Asia, risk-on assets are not quite in vogue. Such an ecosystem could cloud the debut of BASI stock.
Basis Technologies Financial History
Typically, advanced technology-driven enterprises feature a compelling forward-looking narrative but not much in the way of substantive financials. However, Basis Technologies is a unicorn in the sense that it features both an enticing storyline and robust numbers.
Regarding the growth aspect, in 2020, the company generated total revenue of $387.6 million, up just under 1% against the $384 million posted in 2019. Of course, the COVID-19 crisis utterly disrupted the economy, thus preventing many businesses from coming anywhere close to their pre-pandemic sales.
True, the programmatic advertising industry’s footprint expanded fortuitously because of the mass pivot of customers from linear TV subscriptions to streaming services. As well, advertisers had a hostage audience during the lockdowns early into the crisis. However, the lack of products and services to advertise negated some of this cynical benefit. Therefore, posting any kind of growth in 2020 was an impressive achievement.
Against the trailing nine months ending Sept. 30, 2021, Basis Technologies’ business truly came alive, generating revenue of $361.9 million that trounced the year-ago level’s tally of $242.7 million by a whopping 49%. Moving forward, Basis has the opportunity to convert some of the new normal behaviors into consistent sales streams.
On profitability as well, Basis delivers the goods, with net income in 2020 amounting to $3.16 million, a far cry from the net loss of $6.9 million in the prior year. Over the first three quarters of 2021, the company posted net income of $27.14 million, comparing favorably to a net loss of $9.93 million in the year-ago comparison.
While on paper it appears Basis has no vulnerabilities, investors must make sure that they’re not paying too high a premium for the financial profile above. According to Gurufocus.com, the industry median price-earnings ratio for software companies is 28.5 times.
Basis Technologies Potential
Principally, one of the biggest factors bolstering the investment profile of BASI stock is the underlying platform’s ability to give back more bandwidth to key decisionmakers. In other words, Basis helps streamline or outright automate the more mundane tasks associated with marketing, allowing senior executives to navigate the particular sensitivities of modern content dissemination.
At the same time, competition will be a major concern for BASI stock. With advances in technologies leading to lower costs for raw computing power, the barrier to entry for programmatic solutions may decline substantially over the intermediate to long term. Therefore, it’s vitally important that if you participate in Basis Technologies’ IPO, you do so at a premium that makes financial sense.
How to Buy Basis Technologies IPO (BASI) Stock
If you choose to acquire Basis Technologies shares at the open market, you’ll need to know how to buy stocks. Below is a quick guide.
Step 1: Pick a brokerage.
With the best brokers competing on similar incentives, take the time to figure out which platform ideally suits your needs.
Step 2: Decide how many shares you want.
IPOs are risky because they involve the great unknown. Thus, if you participate in BASI, choose a balanced share count.
Step 3: Choose your order type.
Before trading, learn these market concepts.
- Bid: The buyer’s best offer for a stock.
- Ask: The seller’s lowest acceptable price.
- Spread: The difference between the bid-ask price, the spread indicates market risk as this is also the profit margin for market makers.
- Limit order: Buy or sell requests at a predetermined price, limit orders provide transparency but no execution guarantees.
- Market order: Market orders guarantee fulfillment but only at the current rate.
- Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
- Stop-limit order: Stop-limit orders only leave positions at a specified price, but they also carry non-fulfillment risks.
Step 4: Execute your trade.
Follow these steps to execute a market order:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Hit the Buy (or Sell) button.
Follow the same sequence for limit orders (but include your execution price).
BASI Restrictions for Retail Investors
Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.
If you wish to buy BASI on a pre-IPO (initial offering price) basis, visit Freedom Finance. You have until Feb. 14, 2022, to apply.
Fighting the Myth of No Bad Publicity
In Hollywood, being in the spotlight for any reason keeps a celebrity relevant, even if the action represents a Faustian bargain. But for major corporations in the modern era, they may lack the luxury of duplicity. Therefore, BASI stock could rise higher, although conducting due diligence is an absolute must.