LONDON (ShareCast) - (Sharecast News) - Silverbullet, a provider of AI-driven digital transformation services, reported first-half revenue of £4.4m on Wednesday, a modest increase from £4.2m in the same period last year.
The AIM-traded firm said gross profit remained steady at £3.3m.

Its EBITDA loss narrowed to £0.9m, down from £1.2m in 2023, while its reported loss before tax also reduced, to £1.6m from £1.8m.

Losses per share improved to 0.08p, compared to 0.1p the prior year.

Silverbullet said it was optimistic about achieving an EBITDA-positive run rate starting in October, thanks to continued revenue growth, excluding discontinued business.

The company said its repeatable services business saw a significant increase of 32% compared to the first half of 2023, while revenue from its 4D AI product grew 17% year-on-year.

Integrations of 4D AI into other platforms were expected to further drive revenue growth in the second half.

Geographically, the company experienced increased revenue from global and US clients, which now accounted for 57% of total revenues, up from 47% in the same period last year.

Operational cash generation improved, with £0.2m in cash generated from operations, compared to a £1.3m outflow in the first six months of 2023.

Silverbullet also reported a 21% increase in total bookings and committed revenues as of 31 August, reaching £8.6m, surpassing last year's full-year revenue of £8.3m.

With positive trends in revenue growth, a narrowing EBITDA loss, and strong bookings for the second half of the year, Silverbullet said it was confident in its trajectory towards profitability and further growth in 2024.

"We are delighted with the continued progress and positioning of the company, as well as our strong revenue growth entering the second half of the year," said chief executive officer Ian James.

"With the objective of achieving a consistent positive EBITDA run rate, the board took the decision in the first half to focus on higher margin long-term repeatable business and decided to discontinue previous lower margin projects.

"The second half of the year started particularly strongly with new global contracts and, as a result, we have strong visibility on full-year revenues, having already surpassed the total revenue for 2023 by the end of August."

James said that at the same time, the company was carefully managing its investments in talent and operational costs.

"With the company reporting a positive cash flow position in the first half of 2024 and confident of achieving an EBITDA positive run rate from October onwards, the board remains particularly optimistic about the future of the business."

At 1200 BST, shares in Silver Bullet Data Services Group were down 5.56% at 72.25p.

Reporting by Josh White for Sharecast.com.

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