engage:BDR generates year-on-year growth of more than 200%

By Trevor Hoey. Published at Apr 6, 2020, in Technology

engage:BDR (ASX:EN1 and EN1O) has provided a promising trading update and commentary for its March 2020 financial performance, including a comparative analysis of the March 2019 quarter.

March 2020 revenue grew to just over $2 million, representing a 211% increase compared with March 2019.

Additionally, March results reflected an 18% month on month increase.

The strong result underpinned a robust March quarter result that featured revenue of $5.3 million, up 247% on the previous corresponding period, and representing year-on-year growth of 147%.

The following table provides a summary of the aforementioned results, but it should be noted that all figures are unaudited, as all financials are pending audit. All figures are in Australian dollars.

Anticipated second half skew in revenues

To put these results into perspective, the advertising industry traditionally expects 65-70% of its revenues in the second half of the year (July – December), as experienced by EN1 in 2019 (34%/66%).

Management expects 2020 to produce similar revenue seasonality, as experienced in 2019 and all prior years.

Due to approximately 85% of the US population currently in lockdown (stay in place orders), many brands (not specific to EN1) have temporarily reduced their marketing budgets, as consumers cannot transact with them at the moment.

As a result, the ad exchange did not see demand ramp-up as usual in the last days of the quarter.

April starts a new quarter and typically, demand is lighter in the first three weeks of the first month.

Management does not have an indication or statistically relevant data on what to expect in the June quarter, but will update shareholders consistently.

The AdCel executive team expects revenue to increase 25% in the month of April, due to new NetZero publishers going live and maintaining consistent, uninterrupted international demand.

New financing opportunities

In light of significant interest rate reductions, EN1’s 2019 audited financial results and the US government’s US$2.2 trillion stimulus program, management has applied for several new financing opportunities, none of which involve equity.

Management is currently working with a large tier-1 Australian bank in the application process (3 to 4% APR).

Additionally, EN1 qualifies and has applied for US SBA loans under the CARES Act, with UMB Bank US (2 to 3%).

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