Did you know that the global influencer marketing, international and the US programmatic advertising are a market worth USD 108 billion, for 2020?
Tapping this lucrative direct addressable market is internet-based marketplace platform and associated technology solution provider, engage:BDR Limited (ASX:EN1), which has recently declared its financial commentary for CY19. Management has reported a pivotal, successful and profitable year for the Company- growing revenues by 50 per cent, gross margins by 42 per cent, achieving profitability, consistently signing key customers and new partnerships.
Let’s take a closer look-
engage:BDR- The Premium Advertising Marketplace
Marketing technology company, EN1 has developed proprietary AI and machine learning technologies that automate and maximise the transaction of digital video, native and display advertising and influencer marketing for advertisers (along with their agencies and app publishers who display these advertisements).
The Company was founded in 2009 and has a clientele of world-class publishers, to whom it delivers the strongest yield and monetization technologies like IconicReach (an influencer marketing platform), reXer (the ad exchange platform), AdCel (EN1’s proprietary Software Development Kit) and NetZero (publisher payment platform).
The below outlines EN1’s key facts-
EN1’s Key Facts (Source: EN1 Website)
Let’s move on to more recent and significant updates-
EN1’s Significant 2019 Financial Summary
In the beginning of CY19, EN1 set out to move a mountain with just a strong plan, the Strategic Plan to Profitability that set key milestones for 2019. The ultimate goal was achieving profitability. By the end of the year, the company was able to beat its targets by miles.
- The revenue soared by 50 per cent, to $ 17.1 million, from $ 11.4 million in the prior corresponding period (pcp)
- EBITDA increased to $ 1. 6 million, from -$ 6.3 million in pcp
- Gross margin depicted a 42 per cent growth and increased to 54% from 38 per cent
- Gross profit was up by a whopping 216 per cent to $ 9.3 million, from $ 4.3 million
- Net asset amounted to $ 3.9 million -$ 6.6 million in pcp
- Net tangible assets stood at $ 876k from -$ 9.1 million.
- Cash improved to $ 1.8 million from $ 320k
2019 Milestones - Back to Profitability, Effective Cost-Saving Measures
In accordance to the Strategic Plan to Profitability, EN1’s Management has achieved 100 per cent of the initial milestones and 100 per cent of the subsequent, upgraded milestones. Moreover, the Company achieved seven-figure profitability as well, validating its ultimate goal of achieving profitability.
On the expenses end, EN1 consistently executed several cost-saving measures to reduce operating expenditures- total staff costs slumped by 43 per cent and operating and administrative expenses shrunk by ~26 per cent.
Current Growth Prospects
As per the management, EN1 has never been positioned better for exponential revenue, profitability and market share growth. The Company has a healthy balance sheet and remains profitable. It has scaling revenue & margins and access to significant capital. Moreover, partnership integrations differentiate it from many US peers.
Take a look at the below figures, that demonstrate EN1’s growth trajectory-
- As on 15 March 2020, EN1 has already generated about 300 percent of 2019 revenue on a YTD basis.
- In January 2020, EN1 achieved about 281 per cent of January 2019, February exceeded January 2020 and 322 per cent of February 2019.
- Following suit, the Run-rate for March 2020 is within 10% of December 2019’s revenues and stronger gross margins. It should be noted here that December 2019 was the highest revenue month in 2019.
EN1’s Outlook- Management Expects Greater Wins in 2020
The Company aims to become Asia’s largest programmatic platform in digital video, display advertising and influencer marketing. Pacing towards this intent, EN1 has recently entered into new integration agreements with market leaders of the fast-growing Chinese and Indian markets. It should be noted that these regions are still largely operating on a traditional and expensive non-programmatic basis, providing a lucrative opportunity to EN1.
IconicReach is steadily probing the APAC region, and is currently focused on South Korea. It has boarded several new customers in 2019 and is continuing the strategy in 2020.
The Company believes that several thousand influencers and at least 25 brands will join the IconicReach platform in 2020.
The Management aims to deliver significantly increased trading margins as a consequence of the move to a fully automated operation during 2020. Q120 is likely to close at about 300 per cent of Q119 revenues.
An event to watch out for will be the Annual General Meeting, due to be held on or about Friday 29 May 2020.
The stock last traded at $ 0.016 on 23 March 2020.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.