System1 (SYS1) , a database provider that allows brands to compare their ads against competitors, updated markets on trading for the quarter ended 30 September 2023 (Q2) and for the first half, detailing continued sales momentum and an improved profit margin. 

System1 saw platform revenues increase by 55%, with growth of Predict Your (data) revenue seeing a 57% increase to reach £5.0m while Improve Your (data-led consultancy) revenue grew by 49% to £1.0m. The Group's overall revenue grew by £1.9m, up 35%, led by strong performance in Europe and the UK.

That meant that the company delivered an aggregate 27% total revenue increase in H1 and 44% platform revenue growth, resulting in a gross profit of £11.6m at an 87% margin. Operating costs rose by £2.2m, primarily due to staff expenses, lowered IT development capitalisation, and an expanded database. 

Additionally, System1 added over 100 new clients in H1, including a global top three advertiser, a leading breakfast foods company, a leading car manufacturer, a budget airline, a 'big four' UK supermarket, and a multinational consumer goods company. The company anticipates reporting pre-tax profit just below £1.0 million for the half-year, while on September 30, cash stood at £6.3m. 

Commenting on the trading update, CEO James Gregory said: "The sales momentum in the platform business continues, with platform revenue up 55% in Q2, 44% in H1 and all at an improved profit margin".

 

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A strong performance from System1, with healthy cash flows and a focus on delivering profitable growth setting the company up well for the second half. 

System1 is a data-driven marketing and advertising company specialising in predictive analytics to help businesses make informed decisions. Its core offerings include the Predict Your (data) and Improve Your (data-led consultancy) services, which help clients better understand consumer behavior, improve advertising effectiveness, and drive growth. More specifically, System1’s product, platform and data-led consultancy offer a clear IP, that understands and evaluates how emotion translates to business performance and ultimately profit.

Overall, the company's emphasis on data-driven decision-making, coupled with its ability to secure new clients and maintain profitability, positions System1 as an increasingly significant player in the marketing and advertising analytics sector.

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