Hi
@dailep
My understanding is:
The monthly OPEX is $650k AUD, plus the cost of the new financing facility, so say $700k AUD / month. Ie/ that is the cost of keeping the lights on.
The OPEX figure does not include the cost of the ad inventory (COGS).
EN1 buy ad inventory and sell it at 35% gross margin. If they sell $2 million worth, they'll make $700k profit, which covers OPEX, ie/ breakeven.
Looking at a single quarter doesn't paint the picture IMO, as costs aren't spread evenly throughout a year. Note that receipts on a 4C and revenue are also not the same thing. My understanding is revenue is for example a signed contract with a $ amount, receipts are the money landing in the bank account, at EN1 I believe there can be a delay of upto 90 days for the receipt of revenue.
As for where I got the $650k AUD / month figure, I can't find it. The best I can find is:
https://hotcopper.com.au/threads/ann-en1-13-programmatic-revenue-growth-2018-audited-financials.4692503/
Junewas 650k, Q2 $1.99M
https://hotcopper.com.au/threads/ann-en1-q2-2019-preliminary-results-material-improvements.4853239/
Anotherthread first comment an email from Ted, which I'd take with a grain of salt, asit's HC:
https://hotcopper.com.au/threads/ted%E2%80%99s-response-costs-vs-revenue.4728484/
I think it may have been mentioned in the fireside chats, but they go for hours. Worth a watch if you have time.
https://engagebdr.com/asx/video/
