Verve Achieves 46% Revenue and 53% Adjusted EBITDA Growth in Q4 2024, Strong Free Cashflow Reduces Leverage Ratio to 2.4x, Organic Revenue Growth of 24% in Q4’24

Verve Achieves 46% Revenue and 53% Adjusted EBITDA Growth in Q4 2024, Strong Free Cashflow Reduces Leverage Ratio to 2.4x, Organic Revenue Growth of 24% in Q4’24

February 27, 2024 (08:00 CET) – Verve Group SE ("Verve" or the "Company", ISIN: SE0018538068; ticker: VER / M8G) a fast-growing, profitable digital media company that provides AI-driven advertising-software solutions, publishes its Year End and Q4 Report 2024.

Net Revenues increased by 46% to 144.2 in Q4 2024 (Q4’23: 98.7) €m

• 57% YoY increase in number of Large Software Clients¹ to 1,140 (Q4’23: 727)
• 33% YoY increase in Ad Impressions to 274 billion (Q4’23: 206 billion)
• 24% Organic Revenue Growth¹ in Q4 2024 (Q4’23: 16%)

Adjusted EBITDA² increased by 53% to 48.5 in Q4 2024 (Q4’23: 31.7) €m, Leverage now below 2.5x

• Structurally improved adj. EBITDA margin of 34% in Q4 2024 (Q4’23: 32%)
• Adjusted Leverage Ratio¹ reduced to 2.4x as per 31 December 2024 (31 December 2023: 3.1x)
• Net result surged 192% to 14.3 (Q4’23: 4.9) €m; EPS increased by 149% to 0.08 (Q4’23: 0.03) €

Key Highlights FY 2024

• Guidance: With full year revenues amounting to 437 €m, Verve Group outperformed its already increased Revenue Guidance of 400–420 €m. Adj. EBITDA of 133.2 €m reached the upper end of EBITDA Guidance (125-135 €m).
• Jun Group: Organic growth increased to 10% in 2024 (2023: 1%). Integration is progressing well, with substantial synergy potential to be realized in 2025.
• ID Less Solutions: Revenues from iOS Apple devices – where most users opt out of tracking – grew YoY by 46% in 2024.

Key Objectives for 2025

• ID-less Targeting Expansion: The shift to ID-less advertising is accelerating. Given the strong outcomes for our clients, we will continue to strategically invest in the rollout and scaling of our ID-less solutions.
• Operational Focus and Improvements: The integration and unification of our current platforms is planned to be completed in 2025. We will continue to invest in innovation but also in increasing the size of our US sales force. 
• Growth in Free Cash Flow and EPS: EBITDA growth and potential bond refinancing are expected to further boost free cash flow, earnings per share, resulting in a further reduction of net leverage.
• Favourable Market Trends: Mobile advertising in the U.S. is set to expand with +12%, in 2025 supported by a robust U.S. economy.

QUOTE FROM THE CEO

“I am delighted to announce record-breaking revenues of 144 €m for the fourth quarter of 2024, reflecting an impressive year-over-year revenue growth of 46%, of which 24% was driven organically (excluding FX and the Jun Group). Driven by the higher revenues, in Q4 we achieved a structurally improved profitability with an adj. EBITDA of 48 €m and an adjusted EBITDA margin of 34%. Our business continued to generate significant free cash flow which reduced our Net Leverage to 2.4x as of 31 December 2024. The addition of Jun Group and our commitment to ID-less advertising solutions, which result in better outcomes for our clients, are additional drivers of this success. We have been able to further increase the number of large software clients in Q4, which grew by 57% to 1,140, while the number of ad impressions increased by 33% to 274 billion. After our strong Q4, we have also started well into 2025. Looking ahead, we expect meaningful double-digit organic growth for the 2025 financial year driven by our ID-less solutions and a strong advertising market in the U.S., our largest market.”, commented Remco Westermann, CEO of Verve Group SE.

KEY FIGURES

ACTUALS vs. GUIDANCE 2024

Notes: (1) All definitions can be found in the Interim Report Q4 2024 on page 16. (2) Items affecting comparability impacting EBITDA negatively with 4.4 (4.4) €m, mainly for Legal, ESOP and for Jun Group M&A transaction costs.

The Year End Report Q4 2024 is available on Verve’s corporate website at  https://investors.verve.com/investor-relations/financial-reports-and-presentations/ in the Investor Relations section.

INVESTOR PRESENTATION 10:00 CET, FEBRUARY 27, 2024  

Verve invites investors to the presentation of its Q4 2024 results by Remco Westermann (CEO) and Christian Duus (CFO) at 10:00 am CET. The presentation will be held in English and will also be available on-demand on the Company’s website: www.investors.verve.com.

To participate via webcast, please visit:

https://verve-group.events.inderes.com/q4-report-2024/register

To participate via phone and ask questions, please register at the following link:

https://conference.inderes.com/teleconference/?id=5004235

Responsible parties

This press release contains inside information that Verve Group SE is required to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out below, at the time stated by MGI's news distributor EQS Newswire upon publication of this press release.

For further information, please contact:

Sören Barz
Head of Investor Relations
+49 170 376 9571
soeren.barz@verve.com
www.investors.verve.com

About Verve

Verve ("Verve" or the "Company", ISIN: SE0018538068; ticker: VER / M8G) operates a cutting-edge ad software platform connecting advertisers seeking to buy digital ad space with publishers monetizing their content. Guided by the mission "Let's make media better," the Company focuses on enabling better outcomes for brands, agencies, and publishers with responsible advertising solutions, with an emphasis on emerging media channels. Verve is focused on delivering innovative technologies for targeted advertising without relying on identifiers like cookies or IDFA (the Identifier for Advertisers). Additionally, the platform fosters direct engagement between advertisers and publishers, eliminating intermediaries for greater efficiency. Verve’s main operational presence is in North America and Europe, and it is registered as a Societas Europaea in Sweden (registration number 517100-0143). Its shares are listed on the Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The company has two secured bonds listed on Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market. Verve's certified advisor on the Nasdaq First North Premier Growth Market is FNCA Sweden AB; contact info: info@fnca.se.

Forward-looking statements

This release contains forward-looking statements that reflect the Company's intentions, beliefs, or current expectations about and targets for the Company's and the group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this release, including the pro-forma financial figures addressed therein, are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements and pro-forma financial numbers are reasonable it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this release (including the pro-forma financial figures) are free from errors and readers of this release should not place undue reliance on the forward-looking statements in this release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this release, unless it is so required by law or applicable stock exchange rules.