engage:BDR Ltd (ASX:EN1) has downgraded revenue and EBITDA guidance for its FY18 to $12-13 million revenue and a $4-5 million EBITDA loss.
This compares to the originally anticipated revenue of $21-23 million and $1.2-1.5 million EBITDA.
The updated EBITDA loss of $4-5 million is still an improvement on last year’s loss of $7.1 million.
The change to guidance was caused by the company being unable to secure the necessary capital to operate its business effectively.
Securing capital during the recent market turbulence has proved challenging although the company has a good track record of raising capital since its IPO.
engage:BDR listed on the ASX in December 2017
Operating expenses lowered is a positive
The company expects operating expenses for the December quarter to be 53% lower than the same period last year.
Payroll alone was cut by 67% which included executive cuts.
Over the past year, full time employee headcount has decreased from 33 to 15 due to the increasing automation of programmatic revenue sources.
A significant cut on expenses also came from the reduction of extraneous tech costs that were no longer needed.