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engage:BDR maintains impressive start to 2020 with EBITDA positive February

The company notched up its strongest February since ASX listing with consolidated revenue more than three times that registered in the same month of 2019.

engage:BDR Ltd - engage:BDR maintains impressive start to 2020 with EBITDA positive February
engage:BDR is a cross-device video and display advertising solution provider

engage:BDR Ltd (ASX:EN1) continues to build on a pivotal 2019 when it achieved profitability with further impressive revenue growth in February along with preliminary indications of an EBITDA positive month.

The digital advertising company’s February 2020 revenue was A$1.72 million, more than three times greater than February 2019.

This monthly total also represented growth of A$170,000 over the revenue for January 2020, which in itself was almost 281% of revenue in the same month of 2019.

Revenue growth over prior month - figures in Australian Dollars.

Preliminary gross margin of 41%

While all financial figures are awaiting audit, indications are that the company was EBITDA profitable in February 2020 with a preliminary gross margin of 41% at A$704,000.

Based on the recent 4E filing, EN1’s consolidated operating expenses totalled A$7.76 million for 2019 or about A$647,000 per month.

EBITDA does not include non-cash items and is synonymous for ‘operating profit’.

These preliminary financial figures show that EN1 notched up its strongest February since ASX listing.

The strong start to 2020 for the company augers well for continued improvement in financial figures during the remainder of the year.

Revenue seasonality

As EN1 demonstrated in 2019 and in previous years, the advertising industry traditionally expects 65-70% of its revenues in the second half of the year with the company’s first half-second half mix in 2019 being 34%:66%.

While management expects 2020 to produce similar revenue seasonality, it also expects revenue, gross margins, EBITDA and NPAT to continue to increase in 2020 as a result of the company’s client and partnership mix.

During 2019 EN1’s revenue increased from A$11.4 million in 2018 to A$17.1 million in 2019 while EBITDA profit increased to A$1.6 million from A-$7.3 million.

Gross profit earned grew 216% to A$9.3 million over 2018 while gross margins grew to 54% from 38% in 2018.

“Head start on 2020”

These annual figures prompted the company’s co-founder, executive chairman and CEO Ted Dhanik to state: “We grew revenues 50%, grew gross margins 42%, achieved profitability and consistently signed key customers and new partnerships, previously unattainable.”

On the strong start to 2020, he added: “We now have a blank slate; we are positioned well with a strong balance sheet, key and unique partnerships and most importantly, the winning team.

“We have a head start on 2020 with about three times the revenue we had this time last year; we’re focused on keeping that momentum growing. I’m looking forward to enjoying greater wins with you in 2020!”

Quick facts: engage:BDR Ltd

Price: 0.009 AUD

Market: ASX
Market Cap: $8.3 m

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