engage:BDR bucks market trend: trades higher on strong revenue and earnings

By Trevor Hoey. Published at Mar 3, 2020, in Technology

Shares in engage:BDR (ASX:EN1) opened 10.5% higher on Tuesday morning, and they have now gained more than 30% in the last two weeks.

The company has particularly come under the spotlight since last Friday when it released an impressive full-year result for the 12 months to December 31, 2019.

Today management has provided a trading update and commentary regarding the group’s financial performance in February with a comparative analysis demonstrating significant improvements against the previous corresponding period.

While these figures are subject to audit they make for impressive reading.

February 2020 revenue of approximately $1.7 million was 322% ahead of the previous corresponding period.

The company is also demonstrating strong growth on a month-on-month basis with February revenues ahead of the $1.55 million generated in January.

The increase in income has been accompanied by strong margin improvement with gross profit margins for February standing at 41% compared with 36% in January.

EBITDA positive in February

From a profitability perspective, it was encouraging to note that February was EBITDA positive.

This is the best measure of earnings for a company such as EN1 as it excludes non-cash items and accurately reflects the company’s operational performance.

Management took the opportunity to note that the advertising industry traditionally generates between 65% and 70% of its revenues in the second half year, and this was case in 2019.

With similar revenue seasonality anticipated in 2020, it would appear that the company is poised to deliver a strong full year result.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X