Bidstack Group Faces Lowered Revenue and CFO Resignation

Shares of Bidstack Group have taken a significant hit after the company announced that its full-year revenue is expected to fall well below market expectations. The London-listed in-game advertising group also revealed that its Chief Financial Officer (CFO), Thomas Bullen, will step down immediately. The news of the revenue shortfall and CFO resignation has led to a 32% drop in the company's shares.

The company's Chief Operations Officer (COO), Camila Franklin, has also decided to step down from her role with immediate effect.

During the first half of the year, Bidstack Group reported a pretax loss of £5.3 million, compared to £3.7 million in the previous year. This widened loss was primarily due to higher costs. Additionally, revenue for the period decreased from £2.045 million to £1.967 million following the termination of the Azerion commercial partnership in December.

In response to these challenges, Bidstack Group has accelerated its transition into a technology-licensing model. As part of this shift, the company has signed a non-binding agreement with Virtual Sport Technology (VST), a sports marketing agency. Per the agreement, VST will pay Bidstack a license fee of £1.5 million and a quarterly service fee of £45,000. Bidstack will retain 70% of the revenue share while also providing support services to VST. As a cost-saving measure, some Bidstack employees will be transferred to VST.

To summarize, Bidstack Group is facing lowered revenue expectations and the sudden departure of its CFO. In response, the company is pivoting towards a technology-licensing model and has entered into a proposed partnership with VST, which includes transferring some employees and cost savings measures.