- Digital advertising specialist engage:BDR (EN1) told shareholders today its business is glowing in the face of Covid-19 lockdowns
- The company said it has been prepared to operate remotely since 2009
- In fact, with people around the world quarantined at home, the company said it expects advertiser demand to soar
- engage:BDR told shareholders it expected a 30 per cent increase in revenue in March compared to February this year
- Still, investors seem somewhat-sceptical about the company’s bold claims
- Shares in engage:BDR are trading grey today at 1.6 cents each
Ever the source of some dazzling market updates, engage:BDR (EN1) has told shareholders today its business is immune to Covid-19.
While today’s announcement made no direct reference to the coronavirus, the digital advertising company touted its ability to work entirely remotely and continue to grow revenue in a volatile global economy.
The company said its “work from home strategy” has been enabled with zero impact to operations. The company’s business has suffered no cancellations, interruptions, throttling, or negative outcomes throughout the whole of 2020.
In fact, engage:BDR said daily revenue has grown by 19 per cent in the last week alone, and 11 per cent over the 24 hours before today’s announcement was released.
Further, the company said it expects to increase revenue in March by $500,000 or 30 per cent compared to February 2020. Compared to the first quarter of 2019, engage:BDR expects 300 per cent more revenue for the current quarter.
The company made a point to note that these figures are unaudited.
Home is where the money is
engage:BDR said it has been prepared for at-home work for over a decade.
The company was founded in 2009 and fully deployed in the homes of its creators. Further, given the nature of the business, the company told shareholders today it generated seven figures in revenue before ever leasing an office space.
As such, with countries entering into lockdown to stave the spread of Covid-19, the company told shareholders 95 per cent of its employees are working remotely and the business is running like normal.
Moreover, engage:BDR works exclusively in mobile app and connected television (CTF) advertising. With more and more people staying home, company management said it expected CTF traffic to grow at a “very aggressive” rate.
With more people home to watch television, the company is advertiser demand to skyrocket, putting engage:BDR in a unique position wherein global quarantine benefits the business.
Bold claims, delayed gains?
However, once more, engage:BDR’s hefty claims have failed to budge its share price. While company shares are sitting grey in a day plagued with red, shares are only marginally up from January 2019’s all-time-low price.
It’s likely the investor scepticism comes from engage:BDR’s balance sheet which, though allegedly improving quickly, worried shareholders last quarter.
At the end of December 2019, the company had roughly $1.8 million in cash on hand and was expecting to spend $4.1 million during the current quarter. Further, the company spent $2.5 million more than it earned for the 2019 calendar year.
Today, the company said in a separate announcement to shareholders it had drawn down a further US$450,000 (roughly A$732,000) of a zero coupon convertible amortising security (ZCS).
The news may have left investors asking the question: if company operations are tracking along so nicely, why the need for the drawdown?
As such, it seems shareholders are happy to wait until the predicted massive revenues are reflected in future engage:BDR balance sheets before placing any major buy orders.
engage:BDR shares are worth a flat 1.6 cents each in mid-afternoon trade today.