Propel Media, a company whose financial reports have been largely unavailable to the public since 2019, presents a unique challenge for investors attempting to gauge its fiscal health and growth trajectory. Despite this informational void, a deeper dive into the operations of its subsidiary, DeepIntent, through the lens of its asset-based loan data and an increasing borrowing capacity, suggests a robust expansion in revenue. Our initial investment in the company, at a modest $0.24 per share, has remarkably generated a return exceeding 35% through dividends, thereby validating our initial assessment of its undervalued potential.
The lack of transparent financial reporting from Propel Media has necessitated alternative methods of analysis to understand its operational performance. Our focus shifted to DeepIntent, leveraging insights gleaned from its asset-based loan information and the evolving metrics of its borrowing capacity. This investigative approach has been instrumental in forming an estimation of Propel Media's revenue figures, despite the absence of direct public disclosures.
DeepIntent's performance specifically offers a compelling narrative of growth. Records indicate a significant climb in its revenue run rate, escalating from an estimated $90-120 million in 2022 to a projected $230-304 million by early 2025. This substantial increase underscores a dynamic business momentum, signaling a strong and expanding market presence. Such data, though indirect for the parent company, provides crucial indicators of the underlying business strength.
Furthermore, the earlier attempt by IQVIA to acquire the company, though ultimately unsuccessful, did not deter our long-term investment strategy. The consistent dividend payouts, yielding over 35% on our original investment, have provided tangible evidence supporting our belief in the company's inherent value. This return reinforces the initial bargain thesis that prompted our investment, suggesting that the stock's current valuation does not fully capture its intrinsic worth.
We maintain a steadfast position as stakeholders, convinced that the company's valuation remains conservative, even in the absence of a significant liquidity event or further public financial disclosures. Our continued vigilance involves closely monitoring all available data, including future filings from SLR, which may shed additional light on the financial health and strategic direction of Propel Media and its subsidiaries. This patient and analytical approach defines our ongoing engagement with this compelling, albeit opaque, investment.
In sum, while Propel Media's financial visibility has been limited, a comprehensive analysis of its DeepIntent subsidiary’s financial indicators, particularly through its asset-based loan data, points to substantial revenue growth and a strong operational performance. Our investment, initially made at $0.24 per share, has already delivered significant dividend returns, validating our conviction in the company’s undervalued status. Despite the lack of direct reporting, these indirect insights solidify our view that Propel Media holds considerable untapped potential, making it a compelling long-term holding.