Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ebiquity PLC (FRA:YO4, Financial) has a strong recurring revenue model with good forward visibility, supported by low customer churn.
- The company is undergoing a cultural and operational reinvigoration under new leadership, focusing on profitability and operational efficiencies.
- Ebiquity's AI-driven solutions and proprietary data analytics tools set it apart in the industry, enhancing service delivery and client value.
- The company achieved significant growth in marketing effectiveness, delivering a 13.4% increase driven by new client wins and expanded scope with existing clients.
- Ebiquity's global presence and local expertise allow it to serve over 75 of the top 100 global brand advertisers, providing a competitive advantage in the market.
Negative Points
- Ebiquity PLC (FRA:YO4) experienced a revenue decline of 4.3% compared to 2023, primarily due to reductions in media performance and media management service lines.
- The company's adjusted operating profit decreased from 12 million in 2024 to 7.9 million, with a decline in profit margin from 15% to 10.3%.
- Revenue in North America and APAC saw significant declines of 7.8% and 13.2% respectively, impacted by reduced media performance scope and competitive pressures.
- The company faced a statutory loss of 3.6 million, although this was an improvement compared to 2023.
- Ebiquity's net assets reduced by 6 million during the year, and there was a decline in lease liabilities and contingent consideration liabilities.
Q & A Highlights
Q: Can you elaborate on the revenue decline in 2024 and the areas where growth was observed?
A: The revenue for 2024 was 76.8 million, a decrease of 4.3% from 2023. This decline was primarily due to reductions in media performance and media management service lines, which saw declines of 2.8 million and 2 million, respectively. However, there was growth in marketing effectiveness by 1.2 million and modest growth in contract compliance by 0.1 million. (CEO)
Q: How did Ebiquity manage costs despite the revenue shortfall?
A: We managed our costs effectively, with staff costs increasing by just over 1% despite inflationary pressures, and other operating expenses also rising by just over 1%. This tight cost control resulted in an adjusted operating profit of 7.9 million, down from 12 million in 2024, with an adjusted profit margin of 10.3%. (CFO)
Q: What were the geographic revenue trends for Ebiquity in 2024?
A: The UK and Ireland remained consistent with revenue broadly flat at 32.2 million. Continental Europe saw a 4.4% decrease to 21.7 million, North America experienced a 7.8% decline to 16.1 million, and APAC saw the steepest drop with revenue down 13.2% to 6.7 million. (CEO)
Q: Can you discuss the performance of different service lines in 2024?
A: Media performance and media management declined by 5.2% and 20.1%, respectively. However, marketing effectiveness grew significantly, delivering 13.4% growth to 10.3 million, driven by new client wins and scope increases with existing clients. (CEO)
Q: What strategic initiatives are being implemented to drive future growth?
A: We are focusing on geographic expansion, particularly in the Americas and Asia Pacific. We are also innovating for the future with acquisitions that enhance our digital capabilities and technology for operating efficiency. Our AI Center of Excellence is a key initiative, with a committed investment of up to 750,000 sterling in 2025. (CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.