You On Demand: Unproven Business Model, Scant Revenues, 70% Downside
Ian Bezek • 10 Comments
Ian Bezek • 10 Comments
Mon, May 16, 2:00 PM
- You On Demand (NASDAQ:YOD) is off 3.1% after it narrowed losses Y/Y in Q1 earnings that come alongside a company realignment.
- The company is shifting into four different verticals after a cash infusion from tycoon Bruno Wu and his Sun Seven Stars Media Group, including team-ups with Frequency Networks, GoLive and Huawei.
- Net loss was $2.27M; revenue (pre-Sun Seven Stars, legacy revenue) was $1.27M, up 24%, mainly due to to new channels on over-the-top platforms that made up 51% of revenues. The company swung to a gross profit.
- Conference call to come at 4:30 p.m. ET.
- Press Release
Mon, May 9, 11:01 AM
- Video provider You On Demand (YOD +3%) has formed a strategic partnership with cloud-based content provider GoLive TV, which focuses on HD content sent via smart televisions.
- The team-up should not only increase YOD's offering in China, but it's targeted at creating a foreign distribution business to be called Global On Demand.
- The deal is happening through YOD's Chinese unit Tianjin Sevenstarflix.
- The pair expect to reach 12M smart TVs by the end of the year. GTV has formed partnerships to distribute content with several makers of smart TVs. In 2017, they expect to offer channels and videos covering 10 different languages.
Tue, May 3, 12:38 PM
- You On Demand (NASDAQ:YOD) is forming a joint venture with Los Angeles-based Frequency Networks to take on consumer video management in Asia.
- Shares have jumped 9.3% on heavy volume today.
- The venture, Frequency Asia, will include a purchase by YOD of a 9% strategic equity stake in Frequency, which powers a number of white-labeled video services.
- Expanded distribution will come in the new deal -- Frequency Asia programming will include more than 70,000 channels organized into more than 60 unique verticals -- along with a stable of made-for-Web channels with brand partners that will be distributed globally.
- The investment into Frequency comes via purchase of Series A preferred stock, with an initial purchase of $3M in shares. Frequency issued 6-year warrants exercisable into up to 3M shares of preferred stock.
Wed, Mar. 30, 12:46 PM
Wed, Mar. 30, 12:35 PM
- Video on demand provider You On Demand (NASDAQ:YOD) is up 11.1% after Q4 earnings results where it posted a narrower net loss (for the quarter and the year) and boosted revenues 241% from Q3.
- Revenue for the year rose 135% from 2014, to $4.6M.
- Current assets at year-end were $10.1M; cash didn't include the $10M in proceeds the company received from an investment by Bruno Wu and Beijing Sun Seven Stars Culture Development Limited.
- Conference call to come at 4:30 p.m. ET.
- Press Release
Mon, Mar. 28, 9:47 AM
- Video provider You On Demand (YOD +2.8%) has named Mei Chen its new chief financial officer, effective April 1.
- In addition, Bing Yang is joining the firm to head up a newly formed E-Commerce division.
- Chen joins the company most recently from Microsoft China, after years at multinationals including Cisco and Nokia. Yang, meanwhile, was most recently CEO of e-commerce firm KJT.
- The company will discuss the hires and the new division on its Q4 earnings call, now moved from Wednesday morning to after the close Wednesday, at 4:30 p.m. ET.
Mon, Feb. 29, 4:40 PM
- You On Demand (YOD +5.9%) is confirming it doesn't expect new online publishing rules in China to have an impact on business, despite some new restrictions.
- The company provides Hollywood movies and premium content to screens in China, and the country has issued new Administrative Provisions on Online Publishing Services that affect overseas entities and joint ventures.
- Foreign entities (and Sino-foreign joint ventures) continue to be prohibited from operating online publishing services and engaging in content distribution.
- You On Demand says it's still following laws and regulations with regard to approvals at the State Administration of Press, Publication, Radio, Film and Television. "You On Demand is not, and has never been, a company that exploits gray areas in the Chinese regulations," says CEO Mingcheng Tao.
Tue, Jan. 12, 10:52 AM
- China-market video firm You On Demand (NASDAQ:YOD) is up 1.9% after adding two members to its board, including tycoon Bruno Wu, elected as the firm's chairman.
- Jian Ren (Jerry) Fan also joined the board as of Jan. 6. Fan, most recently a managing director and country manager for Analog Devices, was appointed to the board's Audit Committee.
- Wu, founder and CEO of Sun Seven Stars Media Group, replaces Xuesong Song, who steps down as executive chairman but stays on as a director. Founder Shane McMahon will become vice chairman.
Dec. 23, 2015, 10:44 AM
- You On Demand (YOD +1.7%) has closed on a (slightly restructured) $10M strategic investment from Bruno Wu's Sun Seven Stars Media Group.
- SSS has invested $10M in YOD common stock at $2.20/share, about a 21% premium to its current price of $1.82 (and about a 10% premium over volume-weighted average closing price on Nasdaq in the past 60 days) and receives two-year warrants to buy up to another 1.818M shares at $2.75/share.
- SSS also gets a six-month promissory note, automatically converted on shareholder approval into another 9.21M shares in exchange for licensing rights.
- The restructured investment means You on Demand will no longer seek shareholder approval at the Dec. 29 annual meeting.
Nov. 24, 2015, 9:26 AM
- You On Demand (NASDAQ:YOD) is up 9.6% premarket after confirming a definitive deal for a strategic investment from Bruno Wu's Sun Seven Stars Media Group.
- Sun Seven Stars had proposed a strategic investment of $10M at $2.20/share, in a plan that included loans for operations as well as non-exclusive content rights for more than 3,100 hours of content.
- The deal is unanimously approved by both boards and is set to close in December; You On Demand's largest shareholders have pledged to vote in favor.
- YOD was trading at $2.29/share premarket.
- Previously: You On Demand +7.4% after strategic investment from Sun Seven Stars (Nov. 16 2015)
Nov. 16, 2015, 9:27 AM
- You On Demand (NASDAQ:YOD) is up 7.4% premarket following Q3 results where it swung to a wider loss on lower revenues, but also announced it received a strategic investment proposal from investing conglomerate Sun Seven Stars.
- Revenues fell by 26%, accounting for a $196K increase in gross loss. SG&A expenses dropped slightly and net loss rose to $2.34M from a year-ago $2.12M.
- Sun Seven Stars Media Group, founded by Bruno Wu, has offered to make a strategic cash investment of $10M at $2.20/share, an 8.4% premium over Friday's close of $2.03.
- The plan includes loans for operations and a non-exclusive right to more than 3,100 hours of content (valued at about $29.1M) in exchange for stock at $3.16/share, as well as selling YOD a branded pay content service.
Nov. 12, 2015, 12:57 PM
- Chinese video provider You On Demand (NASDAQ:YOD) is up 2% after announcing an exclusive partnership with Ai Shang Media, the IPTV entity of China Network Television -- sole national broadcast controller of the entire country's IPTV platforms.
- The deal will see YOD and Ai Shang providing Hollywood film content to China's IPTV users, and YOD will have right of refusal on all movie content distribution.
- "This deal is particularly significant to YOD on multiple levels," says CEO Weicheng Liu. "First, it makes You On Demand the exclusive gatekeeper of Hollywood movie content to potentially 40+ million IPTV users. Second, it provides YOD, in addition to the typical SVOD and TVOD revenue split, a separate and additional recurring revenue that will be tied to its heavy involvement in CHINA IPTV operations and marketing and how those engines drive CHINA IPTV growth and expansion."
Aug. 13, 2015, 11:43 AM
- You On Demand (NASDAQ:YOD) is trading up 4.8% now, after its Q2 report where losses widened Y/Y, but six-month revenue has surpassed all of 2014's.
- Revenue of $1.48M was up 44% sequentially and resulted in gross profit of $651K. Net loss widened to $1.3M from the prior year's $1.09M, chiefly due to the change of fair value in warrant liabilities.
- Revenue grew primarily due to growth in video streaming on mobile and OTT platforms.
- Cash and equivalents at quarter's end were $6.9M.
Jun. 18, 2015, 9:47 AM
- Chinese VOD provider You On Demand (YOD -2.6%) is expanding its partnership with Dr. Peng Group's Beijing Hiveview, to closer tie together the two firms' services.
- Hiveview makes the Domy Box, an over-the-top set-top box, and the Domy Smart TV. The new deal will bundle a year or two of YOU Hollywood service with the first 2M purchases of the newest Domy Box, and the first 200K purchases of the new Smart TV.
- With the fee for the service incorporated in the hardware price, You On Demand will be paid by Hiveview, which expects 3M Domy Box users and 500K Smart TV users by the end of the year.
May 14, 2015, 11:03 AM
- VOD service provider YOU On Demand (NASDAQ:YOD) is down 2.7% after a first quarter with a narrower net loss that amounted to $2.92M.
- Revenue of $1.03M was up 636% Y/Y but down sequentially 3%, which the company attributed to Chinese New Year seasonality and revenues that will be recognized in Q2.
- Gross loss of about $15K, down from a year-ago loss of $738K, primarily due to the sevenfold increase in revenue against a number of fixed costs.
- The company substantially cut net interest expense (to $28.3K from $2.29M). Cash and equivalents of $8.4M at quarter's end.
- CEO Weicheng Liu expects revenue from three new provincial IPTV platform deals to be realized in coming quarters.
Mar. 30, 2015, 8:45 AM
- YOU On Demand (NASDAQ:YOD) is off 15.3% premarket after posting a wider loss per share in 2014, but finishing with revenue strength in Q4 (up 536% Y/Y and up 55% sequentially).
- Gross loss for 2014 of $794K was down from $2.8M in 2013 primarily due to the revenue gains coming from video on demand.
- Net loss from continuing operations was $13M, comparable to the prior year's $13.1M.
- CFO Marc Urbach is resigning effective tomorrow as part of the company's plans to re-center personnel in Beijing, and will work over the coming six months to help the firm seek a China-based CFO. Finance VP Grace He will take over day-to-day duties.
- Cash and equivalents at year's end were about $10.8M, up from $3.8M at 2013's end. The company said on its conference call that cash burn is about $2M/quarter.
YOU On Demand Holdings, Inc. is a premium content Video On Demand service provider with primary operations in the People's Republic of China. The company through its subsidiaries and variable interest entity, provides premium content and integrated value-added service solutions for the delivery... More
Industry: CATV Systems
Country: United States
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