Ann: EN1 Revenue Update on Cash Deployed for Publisher Activation, page-39

As this was a TA based entry personally I still don't fully have my head around exactly what it is that the company do. This snippet from the recently published strategic plan however goes a fair way to explaining what it is that they need to do to be profitable

Programmatic Integrations

Integrations are fundamental drivers of engage:BDR’s programmatic revenue. The more programmatic partnerships the Company has integrated, the higher the supply and demand sell-through. The additional ad inventory and advertiser demand creates a network effect where demand on all inventory increases competition for each impression, bid-prices, sell-through and margins all increase; this will yield a direct impact on gross profit, net income and EBITDA.

The bottom line is, integrations determine the strength of the engage:BDR’s programmatic exchange revenue. Every two dollars in revenue is worth approximately one dollar in gross profit (at 40-50% margins), which impacts net profit tremendously. In simple terms, gross profit in a given month above approx. $350K would mean that the Company would achieve a profit, because EN1 has a fixed-cost structure (software generates 100% of its revenue), unlike many of its competitors who have variable, or scalable cost models.

Integrations are strong key performance indicators (KPIs) to forecast the Company’s future profitability. To date, the Company has boarded over 175 integrations, including five new programmatic integrations in the first month of 2019. The revenue potential for some of these integrations alone is approximately USD $100,000 per day, as announced previously.

Over this year, the market can expect new integrations to enter into the Company’s platform each quarter, in addition to updates on the revenue-generating impact of those new integrations and ones previously announced. In line with the Company’s overall strategy to increase profitability, the Company intended to exceed 175 programmatic integrations by end of Q1 2019 and surpass 190 by year’s end. EN1 will continue to update the market with regards to traction on all integrations signed and fulfilled and their performance

Full report is well worth a read for anyone else stumbling to get up to speed on what's on offer and why they are worthy of a re-rate

https://hotcopper.com.au/documentembed?id=uOMxKKzFkiWRTLKhOROKAxjvSTYP4g64yRSZpfkIke92GA==