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QYOU: Reiterating Target Price on Recent Updates

What you need to know:
• QYOU announced a partnership with Coolita to include QPlay+ and its channels on Coolita’s network of Connected TVs.
• QYOU appointed digital leader and strategist, Raj Mishra as Indian Group CEO.
• Chtrbox reported its largest revenue month since inception at $1.15M.
• QYOU also launched an influencer marketing campaign for the new Call of Duty: Modern Warfare III.

QYOU Media (QYOU:TSXV) has reported several solid updates over the last month that reaffirmed our investment thesis and target price stated in our initiation report (read here). This included a TV distribution partnership, appointing Raj Mishra as India Group CEO, Chtrbox’s largest revenue month in history, and the launch of an influencer marketing campaign with Call of Duty. We are maintaining our BUY rating and $0.15/share target price on QYOU Media.

TV Distribution Partnership
On October 26th, QYOU announced an expansion of its Connected TV distribution for QPlay+ and its featured channels via a partnership with Coolita (a leading global smart TV+OS brand). Coolita’s powered TVs in India and across the globe will have simple access to stream The Q, The Q Kahaniyan, Q GameX, Sadhguru TV, and Bollywood Hungama Live on a free ad-supported basis. This includes Panasonic, Croma, Thomson, COOCA, and METZ TVs, in addition to Coolita’s operating software. Coolita has shipped over 2M large-screen devices in India, making it an ideal distribution partner for QPlay+.

We remind readers that the Connected TV market is growing at a rapid pace, with the 25M households in India expected to grow to 45M by 2025. From an advertiser’s perspective, Connected TVs provide much higher visibility and customer segmenting, translating into growing marketing dollars and satisfied customers for QYOU.

Raj Mishra Appointed to India Group CEO
On November 1st, the Company announced that Indian digital leader and strategist, Raj Mishra, has joined as Group CEO of India operations to lead the pivot into digital distribution and DTC initiatives. Mr. Mishra was appointed to QYOU’s board in May 2023 and will now oversee all business units in India. Mr. Mishra has a stellar track record in the digital media industry, being the first employee at Musical.ly in India (now TikTok) and leading it to over 60M MAUs as Country Head. Following the acquisition of TikTok, he became Head of Strategy at ByteDance where TikTok amassed 610M downloads in India in less than three years. Following that, Mr. Mishra joined Triller as Country GM and India Head, laying the foundation for its India and Asia-Pacific business.