Silverbullet (SBDS) , a provider of digital marketing services, reported strong revenue growth and significant progress toward profitability in a trading update for the 6 months to 30 June 2023 (H1 2023). Shares soared 31.5% on the news.
Silverbullet reported strong overall performance in its key markets of US, UK, and APAC, in line with management expectations. Revenue growth was 76% to £4.1m year-on-year, with "significantly reduced losses" compared to last year, although a loss figure was not given. Revenue was driven by heightened demand for the company's contextual AI product "4D", particularly in the US. Silverbullet also reported a decrease in costs reflecting its focus on achieving profitability by Q1 2024.
Markets welcomed the news as SBDS shares soared 31.5% on Thursday.
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A very strong result from Silverbullet and accompanying strong reaction from markets with a 31.5% jump in share price. While results are in line with management expectations, the revenue performance and cost base reduction still impressed investors. The latter was achieved as product development for 4D concluded, with consequent demand stronger than anticipated, especially in the US which now accounts for 35% of Silverbullet's group revenue. One US media agency client in particular was responsible for $1m of sales commitments since beginning of 2023.
Besides the US, strong growth was achieved in the UK and APAC as global clients accelerated their use of 1st party customer data and privacy-led marketing products. As customers' marketing preferences continue to shift to digital, especially in online commerce, video and CTV, Silverbullet's offerings have become more attractive.
Notable clients of Silverbullet include Heineken, Sony, Mars and ITV who continue to adopt more services from the company as it rolls out its 4D generative AI product. Silverbullet also has partnerships with Salesforce, Treasure Data (a Softbank-owned software platform), and joint ventures with Google reseller Making Science and global media agency network Local Planet. On the back of these relationships, the company has strong momentum into H2 2023 and a solid pipeline of new clients into 2024, and remains on track to achieve a headline profit by Q1 2024.
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