YouGov full-year revenue inches past August guidance
By Josh White
Date: Wednesday 06 Nov 2024
(Sharecast News) - YouGov reported a modestly positive performance for the financial year ended July on Wednesday, with revenue reaching £335.3m, a 30% year-on-year increase, slightly surpassing its August guidance.
However, underlying revenue growth was limited to 3%, and adjusted operating profit grew only 1% to £49.6m, reflecting challenges from increased costs and slower sales momentum.
The AIM-traded firm said statutory operating profit for the 12 months to 31 July dropped significantly, by 75% to £10.9m, largely due to acquisition and restructuring expenses.
It said the integration of Consumer Panel Services (CPS), acquired for €315m in January, was progressing well, with CPS contributing positively to overall revenue.
Despite challenges, the Americas region showed strong underlying growth of 8%, driven by demand from the technology sector.
YouGov completed the acquisition of AI-driven data platform Yabble post-period, aiming to enhance its data products segment.
The board said a cost optimisation plan, announced in August, targeted £20m in annual savings by reducing non-core expenses and underperforming products.
YouGov anticipated realising 70% of those savings in the 2025 financial year.
It reaffirmed its 2025 guidance, expecting second-half weighted performance improvements, particularly in data products subscriptions as new offerings roll out and market conditions stabilised.
"2024 has been a year of transition, challenge and change - we have made significant strategic progress in the financial year," said chief executive officer Steve Hatch.
"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."
Hatch said the macroeconomic environment remained challenging across the wider market research industry and for YouGov, while internal execution also contributed to the challenges the company faced.
"We acted quickly over the summer and I am confident that we have put the right initiatives in place as we focus on the execution of our long-term strategic plan.
"Our clients continue to value the quality of our products and services, this is reflected by our high renewal rates and strong customer relationships.
"As we enter the 2025 financial year, 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.
"We consequently expect YouGov to achieve growth for FY25 in line with current market expectations, and remain confident in the group's ability to deliver on its long-term ambitions."
At 1027 GMT, shares in YouGov were up 4.51% at 463p.
Reporting by Josh White for Sharecast.com.
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