SOI: 462 Million shares, 34 Million listed options strike .25c ( exp 14/12/2020) Top 20 holds 60%. 147 Million shares held in escrow until Dec 2019. MC: $21.25 Million ( @ .046c).
Engage:BDR has developed proprietary technologies which automate the transaction of digital video, display advertising and influencer marketing for advertisers, advertising agencies and the publishers which display these advertisements.
1) Our artificial intelligence algorithms source valuable ad inventory, programmatically and autonomously 2) We wrap it with significant value which demands our margins (user data, exclusivity, etc) 3) Our Ai predicts what the market is willing to pay for inventory, in real-time 4) We offer it in an automated capacity to our programmatic marketplace 5) Buyers bid on the ad inventory; we select the highest bidder as the buyer 6) We buy the inventory (risk-free) and sell it immediately to our buyer (the highest bidder).
EN1’s revenue is generated through its proprietary artificial intelligence technology, which automates and maximises revenue and operating margins. EN1’s sales channels are fully automated and it has no sales staff across engage:BDR, IconicReach and AdCel, its subsidiaries. EN1 is proposing to fully automate the supply or media sourcing channels as well, through its machine-learning and Ai technologies, by late 2019. EN1’s Ai technology, enables it to be differentiating and disruptive in an extremely high growth industry which experiences high human capital costs. The maximisation of margins is a result of its machine- learning technologies which predict, in real-time (70 billion auctions/day), which ad inventory would be most valuable and deliver the strongest ROI for each buyers, then predict their bids in a fraction of a millisecond.
X EN1’s recent daily programmatic revenue average at the close of Q1 scaled to about A$48k per day X The close of Q1 daily average revenue increased about 323% compared to the start of Q1 X Daily average revenues for the close of Q1 were about 212% greater than Q4 2018 averages X Q1 2019 close was strongest close of a quarter in 12 months X The first 7 days of Q2 2019 have yielded the strongest start of aquarter for the programmatic product in company history X The first 7 days of Q2 2019 were 228% of the first 7 days of Q1 2019 X Near-term scale potential is ~A$52k per day X Second group of publisher activations to start imminently.
EN1 is currently conducting due diligence on programmatic social ad buying companies to possibly acquire in 2019. This could significantly increase revenues and expand the range of digital media products and service offerings.There are three distinct areas where marketers spend their digital media budgets: programmatic advertising, influencer marketing, and programmatic social ad buying. EN1 operates in the programmatic and influencer marketing ecosystems and the addition of a social ad buying platform would significantly enhance EN1’s product suite.The companies considered are extremely experienced in the areas of paid social on the world’s largest media platforms, including, Facebook, Instagram, SnapChat, Twitter, YouTube and LinkedIn. EN1’s paid media strategy, coupled with its technology reduces marketing waste and maximises the reach of ads across all digital media channels.
EN1 - MC = $21.25 Million ( 2018 revenue - $11 Million)
ADJ - MC = $47 Million ( 2018 revenue - $7 Million).
EN1 is significantly undervalued in comparison to it's ASX listed peers and should see a significant rerate in coming weeks on expected positive announcements by management showing continued increasing revenue and profitability of this stock.
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