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A digital advertising company built by pioneers, engage:BDR Limited’s (ASX:EN1) holistic offerings and innovative cutting-edge solutions are a boon for advertisers (brands and agencies) as well as content owners. EN1 is passionate about enhancing marketer consequences and recognises the value of working with premium, high-quality publishers with addictive high-quality content, directly.
In the first week of March 2020, EN1 was a hot stock amid investors and industry experts after it recorded its strongest February since ASX listing wherein the February 2020 consolidated revenue was reported at $ 1.72 million, up over 3 times of February 2019 revenue.
To read more about the February milestone, READ HERE- Marketing Tech Company engage:BDR Records Strongest February Since Listing
Continuing the strong revenue momentum, EN1 recently updated that up until 15 March 2020, the month’s revenue has grown to $ 1.06 million, translating to an excess of 310 per cent relative to the entire March in 2019.
Let’s deep dive-
EN1’s Record March 2020 Revenue
Until 15 March 2020, EN1’s March 2020 revenue grew to $ 1.06 million, which is 310 per cent of March 2019 (month to date basis). However, during the same period in March 2019, this figure was $ 342k. The Company’s management stated that the entire March 2019 revenues outstripped in just the first 12 days of March 2020. Consequently, the Company has achieved its strongest March to date since ASX listing (which occurred on 14 December 2017 wherein EN1 raised $ 10 million from a significantly oversubscribed IPO)
Compared to February 2020, which too was a record month, March mid-month results depicted a 39 per cent improvement in the same range. The revenue until 15 February 2020 was $ 760k.
Interim Financial Results
The Company has achieved its strongest first quarter with interim Q1 revenues amounting to $ 4.33 million. The Gross profit margin has increased to 43 per cent.
The below table explains the break-up across the Q1 months-
Source: Company’s Report
A Bright Outlook- Preliminary Gross Margin to be Significantly Stronger
As per EN1’s Management, March 2020 is likely to demonstrate a similar revenue stream relative to December 2019, which was both the largest revenue month and busiest season of 2019.
Moreover, preliminary gross margin are expected to be significantly stronger in March, approximately 43 per cent. It should be noted that this figure was reported at 36 per cent in the prior corresponding period. Revenue is expected to be within 10 per cent of the December 2019 result.
There is another interesting fact that drives confidence in EN1’s outlook- the advertising industry typically expects 65-70 per cent of its revenues in the second half of the year i.e. between July and December. In line with this, the Company experienced 34 per cent / 66 per cent revenue in 2019. Even 2020 is likely to follow the same suit and produce similar revenue seasonality (mirroring 2019 and all prior years).
To know about the recent Operational Guidance for 2020, PLEASE READ- engage:BDR’s 2020 Operational Guidance, Management Confident of Exceeding 2019 Revenues
Mr. Ted Dhanik, co-founder, Chief Executive Officer and Executive Chairman EN1’s believes that the Company has already discovered massive new opportunities to deliver immeasurable value to its clients and partners.
Bottomline
Welcoming the record March revenue with optimism, investors seemed to have built on positive sentiment for the EN1 stock on 18 March 2020. The stock soared by over 12.5 per cent (3:06 PM AEDT) and quoted $ 0.018, with approximately 3 million shares traded.
Currently, when the world is faced with yet another episode of potential change, it will be interesting to watch EN1 unleash its plan of action to demonstrate how well it can perform in the ongoing environment. One should note the Company has had the history of being on the front line, adapting and influencing the change, controlling its destiny in the ecosystem, as the industry evolved.
