- Revenue and profit ahead of guidance
- Positive contribution from CPS acquisition
- Improving momentum going into 2025
Shares in online research data and analytics group YouGov (YOU:AIM) jumped more than 10% to 441p after revealing better-than-expected full-year revenue and profit and predicting a pick-up in sales bookings.
The stock is down 64% so far in 2024 following a profit warning in June when the company flagged lower than anticipated bookings and lowered guidance.
Revenue for the year to 31 July increased 30% to £335.3 million, slightly ahead of the reduced guidance range of £324 million to £327 million, while adjusted operating profit came in at £49.6 million, some 17% ahead of guidance and 14% higher than consensus estimates.
The jump in revenue was largely due to the CPS (consumer panel services) acquisition which made a higher contribution owing to a greater level of research delivered in July. Underlying group revenue grew 3%.
Analysts at Berenberg noted that CPS’s revenue contribution of £74.2 million and adjusted operating profit of £19.7 million was 9% and 45% respectively, ahead of its forecasts.
WHAT DID THE COMPANY SAY?
Chief executive Steve Hatch commented: ‘The 2024 financial year has been one of transition, challenge, and change. We have made significant strategic progress in the financial year.
‘We completed the acquisitions of CPS and KnowledgeHound, which strengthen our product offer and technology as well as increasing our addressable market. Consistent with this, post period-end we acquired Yabble, which will transform our Data Products segment using generative AI.
‘As we enter FY25, we anticipate that momentum will build throughout the year, weighted towards the second half, as the benefits of our cost optimisation plan and new commercial leadership are realised.’
EXPERT VIEW
Berenberg said it expected 2025 consensus forecasts to remain unchanged but highlighted two positives. Firstly, the Americas delivered 8% underlying revenue growth while peers such as Ipsos cited a difficult market; and secondly, the research division delivered 5% underlying revenue growth year-on-year.
‘These are two signs that while there were areas of weakness, YouGov's offering continues to resonate strongly with key customers in key markets’, explained Berenberg.
