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Verve Achieves 45% Revenue and 45% EBITDA Growth in Q3 2024, Strong Free Cashflow Reduces Leverage Ratio to 2.6x, Jun Group Accelerates Organic Growth Post M&A

Net Revenues increased by 45% to 113.7 (78.3) €m

  • 56% increase in number of Software Clients1 to 1,076 (Q3’23: 690)
  • 32% increase in Ad Impressions to 244 billion (Q3’23: 186 billion)
  • 31% Organic Revenue Growth1 (Q3’23: 1%)

Adjusted EBITDA increased by 45% to 33.6 (23.1) €m

  • Improved EBITDA margin of 30% (Q3’23: 29%)
  • Operating Cashflow increased by 94% to 54.1 (27.8) €m
  • Adjusted Net Debt Leverage Ratio1 reduced to 2.6x (30 September 2023: 3.2x)

Further Key Highlights Q3 

  • Verve growth its market share in the US and generates 80% of its revenues in North America and achieves #1 ranking by Pixalate for direct premium supply.
  • Jun Group accelerates organic growth on a stand-alone-basis, rising from 2% in Q2’24 to 13% in October 2024 while maintaining 49% EBITDA margin.
  • ID-less solutions drove a 51% YoY increase in iOS revenue in Q3’24, while full-screen & video ads grew YoY by 233%, showcasing their market impact.

November 28, 2024 (08:00 CET) – Verve Group SE ("Verve" or the "Company", ISIN: SE0018538068; ticker: VER / M8G) a fast-growing, profitable digital media company that provides AI-driven advertising-software solutions, publishes its Interim Report Q3 2024.

Financial Highlights Q3 2024

  • Net revenue 113.7 (78.3) €m, an increase of 45%
  • Organic net revenue increased by 31%, driven by new Software Clients as well as budget increases from existing Software Clients 
  • Adj. EBITDA 33.6 (23.1) €m, an increase of 45%, adj. EBITDA margin of 30 (29) %
  • Adj. EBIT 25.2 (18.4) €m, an increase of 37%
  • Items affecting comparability impacting EBITDA of -2.6 (-40.6) €m, mainly for Jun Group M&A transaction costs
  • Adj. Net result of 10.9 (42.9) €m, a decrease of 75%2
  • Operating Cashflow amounted to 54.1 (27.8) €m, an increase of 94%
  • Total net debt, amounted to 377.7 (305.4) €m
  • Adj. Leverage Ratio of 2.6x (3.2x)
  • Cash position amounted to 118.9 (110.4) €m
  • Earnings Per Share (EPS) amounted to 0.04 (0.252) €
  • Adj. EPS amounted to 0.06 (0.272) €
  • Total Assets amounted to 1,156 (1,006) €m
  • Equity Ratio was 34 (37) %
  • 56% increase in Software Clients to 1,076 (690) incl. Jun Group

 

Quote from the CEO

“I am excited to share that Verve achieved further substantial growth in the third quarter of 2024. Our net revenue reached 114 €m, reflecting an impressive year-over-year revenue growth of 45%, of which 31% was driven organically (excluding FX and Jun Group). We generated particularly strong growth in the US, which now represents 80% of our revenues. Verve’s strong growth has been fueled primarily by our leading position in mobile in-app advertising combined with our strength in ID-less advertising solutions. Ongoing AI technology improvements coupled with feedback loops from each single transaction continuously strengthen our targeting capabilities. Addressability in the fast-growing ID-less part of the ad market is currently one of the biggest challenges for both advertisers and publishers, which is why Verve’s ID-less solutions strongly resonate with new and existing clients. This is confirmed by a 56% increase in the number of large software clients in the third quarter and a net $ expansion rate of existing clients of 108%. As we work on integrating the Jun Group demand activities into the Verve Group, we are proud to report accelerating organic growth on a stand-alone-basis for Jun Group, rising from 2% in Q2 2024 (pre-acquisition) to 7% in Q3 2024 (two months with Verve) and reaching 13% in October 2024. Our adjusted EBITDA saw a notable year-over-year increase of 45%, reaching 34 €m, with a margin of 30% (compared to 29% in Q3 2023). While further increasing our EBITDA, we continue to invest in our sales force and in enhancing our product and platform capabilities. Looking ahead, we expect continued strong organic revenue growth for the remainder of 2024 and beyond, along with further improvements in profitability. Our growth trajectory remains strong." commented Remco Westermann, CEO of Verve”.

Key Figures

 

2024

2023

2024

2023

2023

In €m

Q3

Q3

Q1-Q3

Q1-Q3

FY

Net Revenues

113.7

78.3

292.8

223.3

322.0

Y-o-Y Growth in Revenues

45%

-11%

31%

-4%

-1%

EBITDA

36.2

63.7

84.4

101.2

128.5

EBITDA Margin

32%

81%

29%

45%

40%

Adj. EBITDA

33.6

23.1

84.8

63.5

95.2

Adj. EBITDA Margin

30%

29%

29%

28%

30%

EBIT

24.5

55.4

56.3

79.3

99.0

EBIT Margin

22%

71%

19%

36%

31%

Adj. EBIT

25.2

18.4

65.0

50.2

76.9

Adj. EBIT Margin

22%

24%

22%

22%

24%

Net Result

7.6

39.2

14.5

41.3

46.2

Net Result Margin

7%

50%

5%

19%

14%

Adj. Net Result

10.9

42.9

22.8

49.9

57.4

Adj. Net Result Margin

10%

55%

8%

22%

18%

 

 

 

 

 

 

 

 

 

Notes: (1) Definitions can be found in the Interim Report Q3 2024 on page 17. (2) High EPS in 3Q23 due to large one-off income from the AxesInMotion earn-out release.

The Interim Report Q3 2024 is available on Verve’s corporate website at  https://investors.verve.com/investor-relations/financial-reports-and-presentations/ in the Investor Relations section.

Investor Presentation 10:30 CET, November 28, 2024

Verve invites investors to the presentation of its Q3 2024 results by Remco Westermann (CEO) and Paul Echt (CFO) at 10:30 am CET. The presentation will be held in English and will also be available on-demand on the Company’s website: www.investors.verve.com.


To participate via webcast, please visit:
https://verve-group.videosync.fi/verve-group-q3-report-2024


To participate via phone and ask questions, please register at the following link:
https://conference.financialhearings.com/teleconference/?id=5003783

Responsible parties 

The information in this press release has been made public through the agency of the responsible person set out below for publication at the time stated by Verve's news distributor EQS Newswire at the publication of this press release. The responsible person below may be contacted for further information. 

For further information, please contact: 

Sören Barz 
Head of Investor Relations 
+49 170 376 9571 
soeren.barz@verve.com 
www.investors.verve.com 

About Verve 

Verve ("Verve" or the "Company", ISIN: SE0018538068; ticker: VER / M8G) is a fast-growing, profitable digital media company that provides AI-driven ad-software solutions. Verve matches global advertiser demand with publisher ad-supply, enhancing results through first-party data from its own content. Aligned with our mission, “Let’s make media better,” the company focuses on enabling better outcomes for brands, agencies, and publishers with responsible advertising solutions, with an emphasis on emerging media channels. Verve’s main operational presence is in North America and Europe, and it is registered as a Societas Europaea in Sweden (registration number 517100-0143). Its shares are listed on the Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The company has two secured bonds listed on Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market. Verve's certified advisor on the Nasdaq First North Premier Growth Market is FNCA Sweden AB; contact info: info@fnca.se. 

Forward-looking statements 

This release contains forward-looking statements that reflect the Company's intentions, beliefs, or current expectations about and targets for the Company's and the group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this release, including the pro-forma financial figures addressed therein, are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements and pro-forma financial numbers are reasonable it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this release (including the pro-forma financial figures) are free from errors and readers of this release should not place undue reliance on the forward-looking statements in this release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this release, unless it is so required by law or applicable stock exchange rules.