Coronavirus Forces Companies to Embrace Adtech and Martech; Sector Booms - Seite 3

As Sales Spike, Cash Flow Breakeven Approaches

Leaning on management's experience that includes leadership positions at Hearst, Google, Yahoo, LinkedIn, AOL Time Warner, RBC, Microsoft, RocketFuel and Facebook, DGTL is hitting its key performance indicators since the Hashoff acquisition. This pattern of success has again been put on display with the company releasing results from the latest quarter and nine months, ended February 28, 2021. DGTL reported revenue of $1.25 million for the quarter, up from $744,984 in the year prior quarter, a 68% improvement. For the nine months, revenue climbed 71% to $3.67 million from $2.14 million.

Even with a conservative estimate of no quarter-over-quarter growth for the final quarter of fiscal year 2021 (which ends May 31, 2021), revenue at Hashoff would extrapolate to $4.92 million in the first 12 months post-acquisition by DGTL. Importantly, DGTL management sees the potential to reach cashflow breakeven within the first year of Hashoff being part of its family. Cashflow breakeven, a point where operations are self-sustainable at the current level of incoming and outgoing cash, is a milestone that most upstarts in the adtech space never claim, much less only a year into executing the business model.

An Enviable Client List

Cash flow neutrality in 12 months is an impressive accomplishment for any young company. The milestone begs the question of what is next for the portfolio. Market participants have taken notice of both the DGTL team and its accomplishments, which has shone through in shares of DGTL increasing more than 200% since going public in August.

As investors look to DGTL, brands have shown an affinity to the Hashoff platform. Companies from a wide array of sectors have turned to Hashoff, including its key categories of consumer packaged goods (CPG), health care and retail — a trio of lucrative markets that should continue heating up as economies re-opening throughout the year. DGTL has made it a habit of providing investors with a steady news reel of activating campaigns for some of the best-known brands in the world. The DGTL client portfolio includes DraftKings, Door Dash, Vertone, Anheuser Busch-InBev, PepsiCo, Nestle, Post Holdings, Danone and Keurig-Dr. Pepper, Dunkin Brands, The Container Store, Ulta Beauty, Pizza Hut, Live Nation, The CW, Scribd, Syneos Health, Novartis and Quaker Oats to name a few.