System1 (SYS1) , a database provider that allows brands to compare ads against competitors, issued a trading update for the quarter ended December 31, 2023 (3Q24).
System1 (mktcap £45.6m) made significant progress on objectives set out in its 2022 strategic review, including growing platform revenues in 3Q by 46% year-on-year. Predict Your (data) revenues rose 53% from 3Q23 to £5.2m and Improve Your (consultancy) revenues increased by 16% to £1.0m. Total group revenues increased by £1.9m to £8.0m, up 29% from 3Q23, with strong growth in the US, UK, and Europe.
In the 9 months to December 31, 2023, Predict Your (data) revenue surged by 49% to £14.2m from the prior-year period and Improve Your (consultancy) revenue increased by 25% to £2.9m, bringing total platform revenue up 44% to £17.1m. Total group revenue grew by £4.7m to £21.4m, up 28% with year-to-date gross profit margin remaining high at 87%.
System1 finished 3Q with with £6.4m, up from £5.7m on March 31, 2023.
"We continue to deliver quarter on quarter revenue and profit growth, exceeding £8m revenue for the last quarter and increasing platform revenue by 46%. We are executing our go-to-market plans and building out ever-improving customer propositions, creating the momentum to grow further over the coming years" commented CEO James Gregory.
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Very strong results from System1 in 3Q24 with platform revenues up 46% to £6.2m and a comfortable quarter-end cash position. The release prompted an equally strong reaction from markets on Wednesday, sending SYS1 shares 21% higher.
System1 entered 4Q24 with good momentum following a consistently strong 3Q. Consequently, the board now expects the group to deliver full-year results ahead of previous forecast. FY24 revenue is to be at least £29m, up from £23.4m in FY23, with statutory profit before tax comfortably above £2m from £0.7m in FY23, and significantly ahead of current consensus.
From 1Q to 3Q, System1 won c. 200 new clients, with c. 60 signed in 3Q. The new clients include Pfizer, M&S, Tesco, easyJet, Toyota, Muller, B&Q, and Just Eat. Additionally, new partnerships were secured with a leading US cable network as well as Roku TV, Radiocentre, Aardman Animations, and Fuse OMD Worldwide.
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