The company makes money through advertising on videos featured on their website. Their advertisements are unique because of the technology they use. Advertisers can pick many options of display like Branded player, Overlay, Fixed footer, Video Float and others, while each of those interacts with the viewer in a different way. They have already partnered with Samsung and Sony to feature advertisements on certain HD videos on their TVs (Connected TV).
Blinkx browses through millions of videos, categorizes and indexes them, replacing the manual process of tagging. The way it works is that blinkx CORE first divides video into its basic building blocks and then processes each component in the method most effective to the medium: audio is processed with speech recognition technology; images are understood using visual analysis technology; and metatags are indexed and extracted by visual spiders. Once it has collected the most comprehensive data about the video, the CORE engine transforms it into useful information by recognizing ideas and themes within the video. The result is an unprecedented accuracy of the search results and ensures best experience for both viewers and advertisers or content publishers.
The company has grown revenues by an astounding pace, from 40 million to 200 million GBP in the last three years, growing at 73% in the past year alone. Blinkx is debt free, with 90 million in current assets and a market cap of almost 750 million. Recently, they announced Q3 results, easily beating estimates. Our projected upside for the stock is near 150% for the next year. The company has currently only a fraction of videos in it's database, there is significant room for additional growth, given the number of videos posted daily and it's competitive advantage. Financials and Fundamentals