EN1 influencer platform IconicReach sees rapid Q1 growth
engage:BDR (ASX:EN1) has provided an encouraging update on the progress of its rapidly growing IconicReach Instagram influencer marketing business, along with an overview of the IconicReach business in general.
IconicReach was launched by EN1 at the Sundance Film Festival in early 2018. Since then it has received considerable interest from a range of influencers, and in mid-April had 800+ influencers registered. New influencer registrations are being received at a current approximate rate of 100 per month and the company expects this to continue.
Due to the rapid uptake of the platform, EN1 has increased its original projected revenue from $1.2 million to $3 million for the 2018 financial year; further, it is expected that the IconicReach business will be profitable and cash flow positive within its first full year of operation.
The company has added 66 advertising customers on the IconicReach platform, from industries such as health and beauty, clothing, electronics accessories, cryptocurrency, online lottery and medical marijuana companies.
Within the first three months of 2018, the IconicReach team has already achieved the original total annual budget. The revenue projection has accordingly been increased to $3 million for CY2018 and it is likely that the $3 million revised forecast will also be exceeded.
Further, the margins being achieved in EN1’s IconicReach business are nearly 140% of that being achieved in its core, programmatic advertising business.
EN1 Chief Executive Officer, Ted Dhanik said: “The $3 million revised forecast should be exceeded for the year as we have seen unprecedented demand from companies keen to engage with their target markets through the influencers we have signed.
“IconicReach has a range of features that make it a unique product in the market. It is one of the world’s first self-serve Instagram marketing platforms. The IconicReach platform lets brands browse and discover influencers, create campaigns, and reach customers through limited time advertisements posted by those influencers.
“IconicReach provides unique capabilities for Instagram influencer marketing through such activities as discovering influencers for a specific marketing campaign, providing engagement data to better vet influencers, measuring advertisers’ return on investment (ROI), providing comprehensive reporting and data analytics systems and allowing brands to launch campaigns across hundreds of pages with one click”.
Yet EN1 does remain a speculative investment and investors should take a cautious approach to any investment decision made with regard to this stock.