A market-leading, premium marketing technology company, engage:BDR Limited (ASX:EN1) caters to world-class publishers in the United States, and globally. The Company was founded by executives from revolutionary internet companies (MySpace and LowerMyBills). It is renowned for developing innovative solutions for advertisers, content owners, brands and agencies that aim to deliver unique, transparent inventory for publishers, programmatic buyers and advertisers.
Quite recently, EN1’s influencer marketing platform IconicReach, was featured in top global publications including Forbes, Digiday, Ad Age, and Entrepreneur. Adding a feather in its hat, the Company released its financial commentary for CY19, registering a pivotal, successful and profitable year.
EN1’s Growth Highlights in CY19
2019 proved to be a pivotal year for EN1, with revenue growth of 50% and gross margins growth of 42% (compared to CY18). The Company recorded profitability and witnessed the addition of key customers and new partnerships, which previously seemed unattainable. Below are few growth highlights for the period-
- Revenue amounted to $17.1 million, zoomed by 50% on CY18 (from $11.4 million)
- EN1’s gross margin increased to 54%, demonstrating a 42% growth on CY18 (from 38%)
- Gross profit soared by 216% to $9.3 million
- Recorded EBITDA profit of $1.6 million
- NPAT amounted to -$1.2 million, a $9.6M improvement over CY18 (from -$10.8 million).
- Balance sheet strengthens further, net assets increased to $3.4 million, net tangible assets grew to $384k and cash improved to $1.8 million from $320k
Goal Accomplishments- Strategic Plan to Profitability
Last year in February, the Company had intimated about the Strategic Plan to Profitability with Key Milestones for 2019. As per the plan, EN1 vouched to attain specific milestones within defined timeframes, with the ultimate goal of achieving profitability.
Succeeding in doing so, the recent results reported the achievement of 100% of the initial milestones and 100% of the subsequent, upgraded milestones (on or before schedule in 2019).The icing on the cake, the Company also achieved a seven-figure profitability, registering 50% revenue growth and 42% gross margin growth.
Substantial Cost Reductions
Successful implementation of cost-saving measures is a big edge in today’s contemporary and competitive times. Adhering to this business practice, EN1 successfully executed several cost-saving measures during CY19.
The aim of the cost-saving measures was to reduce operating expenses, in which EN1 succeeded. Relative to CY18, total staff costs decreased by 43% and operating and administrative expenses (incl. tech infrastructure) reduced by approximately 26%.
EN1’s Current Growth Position
The Management opines that the Company has been on a sound footing for revenue, profitability and market share growth. The Company remains profitable, has a sound balance sheet, a scaling revenue and margins with access to sizable capital.
Currently, on a year to date basis, EN1 has generated approximately 300% of CY19 (revenue). In January 2020 alone, the Company secured approximately 281% of January 2019.
The Management remains confident that EN1’s revenue is on track to exceed January 2020, and nearly 300% of February 2019.
Moreover, at the back of partnership integrations (which differentiate EN1 from a bunch of its US peers) and a robust client and partnership mix, the Management expects revenue, gross margins, EBITDA and NPAT to continue to increase in CY20.
The hyper-focused areas for CY20 include-
- NetZero publisher boarding
- AdCel growth
- New integrations for programmatic ad exchange and scale existing
Building positively onto investor sentiment, the EN1 stock has delivered returns of 11.76% in the last five days (as on 02 March 2020 closing price).
As on 03 March 2020, EN1 quoted $0.021, up 10.5% (1:56PM AEDT).
The Company is passionate about improving marketer outcomes and understands the value of working directly with premium, high quality publishers with addictive content. It can be deciphered that its continued offering of cutting-edge solutions, focus on content quality and a strong management outlook could bode well for EN1 in the coming years.
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