Two strong quarters in a row have delivered engage:BDR’s best half, as the company aims to become the largest digital advertising player in Asia Pacific.
After delivering a strong Q1 that saw revenues return to pre-COVID levels, engage:BDR (ASX:EN1) posted another strong Q2 and delivered its highest first-half revenue in the company’s history.
EN1’s Q2 revenue came in at $4.56m, which was 43% higher than its $3.18m revenue in the previous year’s quarter.
This resulted in H1 revenue of $8.11m, which was the company’s best performance in a half since EN1’s listing on the ASX in December 2017.
Executing on strategy
This quarter’s results are an indication that management’s strategy of integrating new clients on a consistent basis is working – with recent integrations now beginning to generate incremental, recurring revenue.
Also underpinning the strong quarterly result was the signing of several new partners, which include Kidoodle, InfoLinks and Smart – all of which have gone live and generated revenues.
The deal with Infolinks in May, for example, saw EN1 providing monetisation solutions for Infolinks, a company which has 350,000 publishers that command 240 million unique users a month, and 1.5 billion in monthly ad views.
EN1’s deal with Kidoodle, which boasts of the largest children’s content video library outside of Youtube, saw the company providing solutions for monetising Kidoodle’s streaming services’ CTV/OTT inventory.
This rapid growth meant that EN1’s three quarterly revenues in 2021 have all exceeded those reported in the preceding three years, except for Q4 2019.
But that was not unusual, given that the last quarter of the year is historically the advertising industry’s busiest period.
EN1 has also improved its net operating cash activities in Q2, spending just $386k compared to $1.02m the last quarter and $2.2m in Q4 of 2020.
Most of the cash spent in Q2 relates to a one-time extraordinary legal expense of $340k.
The company has also significantly improved receipts from customers, which rose by 35% to $4.3m over the previous quarter.
Potentially huge market
engage:BDR has developed proprietary technologies that automate and maximise the transaction value of digital video, display advertising, and influencer marketing for advertisers who display these advertisements.
The technology enables publishers to achieve optimal monetisation of display, audio/video ad inventory, as well as influencer content.
The company is operating in a potentially huge global digital advertising market, estimated at US$397 billion.
In its 12 years of doing business, EN1 has amassed and reached 500m+ monthly users, and generated around $250m in revenues since 2009.
Within the Asia Pacific, EN1’s stated goal is to become Asia’s largest programmatic platform in digital video, display advertising and influencer marketing.
The company has a strategy of acquiring publishers and media trading companies in Asia, to expand the use of its programmatic and influencer platforms within Asian markets.
EN1 grew from humble beginnings in 2009, and has demonstrated its ability to quickly adapt in dynamic markets, without raising a single dollar of outside capital (debt or equity), until its IPO 2017.
This article was developed in collaboration with engage:BDR, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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