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eResearch Corp. has published 2 update reports on DATA Communications Management after its acquisition of Zavy and the release of its Q3/2024 financial results.
DATA Communications Management (TSX:DCM)
TORONTO, ONTARIO, CANADA, December 31, 2024 /EINPresswire.com/ -- Equity Research firm eResearch Corp. has published two update reports on DATA Communications Management (TSX: DCM | OTC: DCMDF) after its recent acquisition of Zavy, a provider of social media analytics, and the release of its third-quarter financial results.
The first report highlights the strategic importance of this acquisition for DCM, as it aligns with the company's goal to shift towards digital solutions. Zavy's platform offers advanced social media analytics, including sentiment analysis, competitive benchmarking, and influencer identification. These capabilities will allow DCM to better serve its clients by providing valuable insights and data-driven solutions for their social media strategies.
According to eResearch's report, this acquisition also presents a significant growth opportunity for DCM. With the increasing importance of social media in marketing and advertising, the demand for social media analytics is expected to grow significantly in the coming years. This positions DCM to capitalize on this trend and expand its market share in the MarTech industry.
The second report delves into DCM Q3/2024 financial results, with strong year-to-date revenue growth of 14.5%, driven by the recent MCC acquisition, but also notes a decline of 11.4% in the quarter due to reduced client spending and strategic account exits. Despite these challenges, DCM's focus on efficiencies and cost reductions has resulted in a 6.6% increase in adjusted EBITDA to $12.6 million, supported by synergies and restructuring efforts.
The second report provides a comprehensive analysis of DCM's financial performance, including a breakdown of revenue by segment and a review of key operational metrics. It also delves into the company's strategic initiatives, such as its focus on digital transformation and expansion into new markets. The report also includes eResearch's outlook for DCM, taking into account the current market conditions and industry trends.
In his commentary, Christopher P. Thompson, Director of Equity Research at eResearch, stated, “DCM continues to diversify revenue streams with tech-enabled solutions, launching the ASMBL platform in Q3/2024 and recently acquiring Zavy. Plant consolidations and investments in new equipment are expected to enhance production efficiency and reduce costs. The Company continues to target Adjusted EBITDA margins above 14%.”
Based on eResearch’s valuation analysis, DCM is trading at a 0.7x 2024 Enterprise Value to Revenue (EV/Revenue), presenting an attractive valuation compared to industry peers trading at an average of 1.0x EV/Revenue, and well below the Digital Asset Management (DAM) and Tech-Enabled Workflow providers trading at 3.5x and 3.0x EV/Revenue, respectively.
Both reports are now available on eResearch's website at www.ersearch.com.
For media inquiries or more information, please contact eResearch on our Contact Us webpage at www.eresearch.com/contact-us/.
Christopher P. Thompson
eResearch Corp.
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