ASX listed influencer platform Engage:BDR sacks sales team, sees profit rise

Engage:BDR, the ASX listed, US-based influencer marketing platform told the stock market yesterday that while income remains stagnant, profits are expected to be up following the company letting go of most of its sales team.

The company, which raised $10 million at the time of its ASX listing last December, estimated its 2018 revenues will be slightly higher than last year’s, however it expects to turn around a loss of $1.45 million thanks to an industry shift to programmatic trading and a reduction in ad fraud.

In its release, the company announced it expects $24.5 million income with earnings before interest, tax, depreciation and amortization coming in between $1.25 and $1.5 million. This compares with an EBITDA loss of $1.46 million on $21.8 million revenues last year.

The company attributed the turn around to the market shift towards cheaper programmatic sales, with January 2018 programmatic revenue being 280% higher than corresponding month in 2017 and February 2018’s coming in 310% higher than the previous year. This has allowed the company to almost completely eliminate its sales team.

Engage:BDR’s management also said it expected to reduce the amounts payable to suppliers as it resolves a number of ad fraud issues, saying: “The company is working with its suppliers to determine the correct amount that should be invoiced.

“When this is determined the amount of trade payables is likely to be substantially reduced and accordingly is expected to be significantly less than the trade payables amount shown in the 2017 financial balance sheet.

“As this analysis is ongoing, the company is unable at this point to determine the likely adjusted amount, however the company will update the market in this regard as soon as it is in a position to do so.”

The company also said it expects to be cash flow positive by the end of 2018 and is considering acquisitions with some at an advanced stage of negotiation. Most of these acquisitions are likely to be completed on an equity basis, the company said.


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