engage:BDR’s AdCel fires as revenues increase 400%
engage:BDR (ASX:EN1) has provided a promising update in relation to the group’s progress in May, a development that could provide further share price momentum on the back of a rally of approximately 35% over the last fortnight.
Specific areas of outperformance included AdCel’s exponential revenue growth, EN1’s peak revenue and preliminary consolidated revenue for the month of May.
AdCel boarded new mobile app publishing partners by the middle of May as announced on 20 May.
Management updated the market with regards to their impact, as daily revenue doubled.
EN1 targeted revenue to double once during June, but management has beaten guidance with the doubling in revenue already achieved.
This growth rate equates to about 400% or $5800 per day, well up on April’s daily average of $1400 per day.
Based on new publishers’ performance, AdCel’s revenue is expected to double once more, by the end of July with daily revenues expected to be in the order of $11,500.
The new publishing partners are still at test capacities, ranging between 10% and 20% of their available traffic.
As these new publishers increase traffic to AdCel, revenue will scale in parallel.
AdCel monthly EBITDA positive from July
AdCel is currently run-rate profitable on a monthly-basis, and management now expects AdCel to deliver monthly EBITDA positive results starting in July.
Consolidated revenue reached $59,000 per day by the end of May 2019.
Management is confident the company will reach its target of the $65,000 by the end of June 2019, or before.
Gross margins have grown to the 45% mark, with no compromise for revenue growth.
Preliminary analysis of consolidated revenue for the month of May shows approximately $1.4 million, about 20% higher than the previous month.
Management will further update the market once the audited financial data is to hand.