Engage:BDR soars after strong first-quarter

Published 08-APR-2019 10:41 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

In the space of three weeks, shares in programmatic advertising company, engage:BDR (ASX:EN1), have surged more than 150% in response to positive trading updates.

The stock opened strongly on Monday (up +15%), and this run is likely to continue after the advertising services group today confirmed outstanding revenue growth for the first quarter of 2019, as well as noting a promising start to the June quarter.

As indicated below, the $48,000 in daily revenues seen in the first quarter was quite an improvement on previous quarters.

Importantly, the March quarter close was the strongest seen in the past 12 months for the programmatic product and was 323% higher when compared to the start of the first quarter.

Management upbeat regarding June quarter

Co-Founder and executive chairman Ted Dhanik put the strong start to the March quarter in perspective in saying, “The first seven days of Q2 2019 have yielded healthier operating results than expected.

“Management is pleased to note this has been the strongest start for the programmatic product to any quarter in company history with revenue growth of 228% exponentially greater than the start of the first quarter of 2019”.

Noting the global seasonality of the advertising industry, Dhanik said the group would update the market once statistically-relevant data is available about the moving averages, as the last two days have yielded significantly greater scale than previously reported averages.

Second half skew in revenue

The company estimates that between 65% and 75% of annual revenue could be generated in the second half of the year due to holiday spending.

By comparison, the first and second quarters are quiet and they are expected to deliver between 25% and 35% of full-year revenues.

This trend requires engage:BDR to have access to sufficient capital to prepay publishers to stay competitive and gain incremental advertising inventory during the most competitive seasons.

Bearing this in mind management strongly believes access to capital will be available for these peak seasons in 2019, placing the company in a better position that it has been in prior years.

Integration of StartApp

Management expects to update the market shortly on the progress of the StartApp programmatic buyer integration.

Additionally, EN1 will deliver revenue updates with regards to the recent publisher activations and the second group, which is due to start over the next two weeks.

Developments regarding the integration of StartApp, as well as trading updates could potentially provide additional share price momentum.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X