engage:BDR (ASX: EN1) has announced a good head start on 2020, achieving its strongest financial performance for the month of February since listing on the ASX in 2017.
Compared to the same period last year, the advertising technology company has more than tripled its consolidated revenue to $1.72 million.
This result also reflects a $170,000 growth from January 2020’s consolidated revenue of $1.55 million.
In addition, gross profit increased from $558,000 to $704,000 month over month, with the gross profit margin growing from 36% to 41%.
Preliminary results show earnings before interest, taxes, depreciation and amortisations for February 2020 was positive.
Boosted by a ‘pivotal’ 2019
These latest results follow a strong 2019 for the ad tech company, which recently posted a $1.6 million profit and a 50% growth in revenue to $17.1 million for the full year.
engage:BDR had described 2019 as a “pivotal, successful and profitable” year, with gross profit also increasing by 216% to $9.3 million for the full year.
Commenting on the 2019 results last week, engage:BDR executive chairman and chief executive officer Ted Dhanik said the company “moved several mountains” during the previous year through the execution of its strategic plan to achieve profitability.
He said engage:BDR started 2020 with a blank slate and is positioned well with a strong balance sheet, which is already started to pay off.
“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 going,” Mr Dhanik said.
Revenue seasonality and forward plan
Consistent to prior years, engage:BDR noted the advertising industry traditionally expects about 65-70% of its revenues in the second half of the year (July to December).
Therefore, the company said management expects 2020 to produce similar revenue seasonality, as it did in 2019.
In the meantime, engage:BDR said it would focus on three key areas in 2020: NetZero publisher boarding, AdCel growth and new integrations for its programmatic ad exchange.