Engage:BDR reports daily revenue increase following implementation of programmatic publisher integrations
Revenues for engage:BDR have grown an average of 40% within the past seven days, while sustaining ~41% gross profit margins.
Marketing technology company engage:BDR (ASX: EN1) has reported an initial revenue yield of US$28,000 per day from its recently-activated programmatic publisher integrations.
In February, about US$780,000 was deployed over four weeks to activate some publishers, resulting in positive earnings of US$20,000/day.
These publishers are expected to be at their full capacities within the next eight weeks.
Engage:BDR’s daily programmatic revenue average has since scaled to greater than US$28,000/day and is expected to continue moving upwards as the quarter draws to a close.
The figure is around 75% greater than daily averages during the last quarter of 2018 and is expected to be a strong indicator of present year trends.
Revenue has grown an average of 40% within the past seven days, while sustaining gross margins of around 41%.
Near-term scale potential previously estimated at US$30,000/day has been reset by 25% to US$37,500/day.
The company is planning to implement artificial intelligence technologies to optimise margins and will commence testing of this before month end.
The proprietary auction optimisation technology will be targeted towards the delivery of stronger revenues and sell-through on existing supply and demand, as well as stronger results for the company’s brands and publishers.
Capital raising
At the end of January, engage:BDR raised approximately US$498,000 in a placement to existing shareholders and conducted a draw-down from its existing convertible notes facility of US$720,000.
The capital raising was the first in the company’s six-year history and funds were used to activate dormant publishers which have been strong contributors to programmatic business and revenue growth in the past two years.
The company said greater revenue growth would contribute to its primary objective of returning to profitable operations.
Earlier this year, engage:BDR’s management team published a list of priority activities for the coming 12 months focused around profitability, including new client relationships and ongoing product development.
At midday, shares in engage:BDR were up 13.16% to $0.043.