Programmatic revenues driving growth at engage:BDR

By Trevor Hoey. Published at May 6, 2019, in Technology

engage:BDR (ASX:EN1, EN1O) provided a promising update for the month of April, which featured record revenues for the company’s programmatic exchange, indicating that the group is off to a strong start in the June quarter.

As well as achieving robust revenues, gross profit margins were sustained and the group’s consolidated receipts and cash outflows were slightly higher than previously reported.

The result also featured stringent cost management with net cash used in operating activities less or better than previously reported.

Management noted that $250,000 of April’s cash flow was deployed for future revenue, unrelated to April’s operating activities.

Consequently, the benefits of this investment should assist in driving sustained revenue growth.

As a snapshot, the company generated $1.2 million in revenues and received cash of $1.4 million which reflected a gross profit margin of 40%.

EN1 finished the month in a normalised net cash positive position of $240,000.

Investment aimed at activating publishers

Management informed the market in mid-March that it planned to deploy significant capital to activate publishers in order to generate incremental revenue.

The first group was quickly completed, and since then a second group activation has been initiated.

Initial steps to activate these publishers have been completed and EN1 will update the market with regard to the performance of the publishers, once live, against management’s expectations.

Providing further promise was management’s anticipated activation of additional groups of publishers in the near term.

Growth attributed to programmatic products

EN1 shifted its entire business model in 2016 to automate all sales channels to be entirely programmatic, abandoning the lower margin, non-programmatic legacy business.

The first full year of the programmatic business (2017) yielded $8.9 million, from zero to nearly $9 million for a brand-new product and essentially a new company.

Additionally, 2018 yielded nearly $10 million in the group’s second full year of operation.

This year will be the programmatic business’ third full year, and management is confident of another strong performance based on the results so far and it expects to continue the growth with an amplified trajectory.

It is worth noting that on an annualised basis, April revenues equate to $14.6 million, which would represent year-on-year growth of approximately 40% relative to the group’s 2018 performance.

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