Mirriad Advertising (MIRI) H2 2023 earnings summary

Executive summary

• Revenue increased 20% to £1.80m for 2023, driven by growth in US and EMEA markets.

• Adjusted EBITDA loss narrowed to £10.4m from £14.0m, reflecting significant restructuring and cost savings.

• Statutory loss for the year reduced to £10.9m from £15.3m year-over-year.

• Major US partnerships expanded Mirriad's access to the US TV ad market from under 10% to nearly 40%.

• Successful fundraises in June 2023 (£6.3m net) and May 2024 (£6.2m net) extended cash runway and supported growth initiatives.

Financial highlights

• US revenues rose to £1.43m (79% of total), EMEA revenues up 93% to £344k, with strong campaigns in Germany and new Middle East expansion.

• Gross profit increased to £1.5m (2022: £1.2m); cost of sales rose slightly to £313k.

• Administrative expenses (excl. depreciation) fell to £12.7m from £16.7m, mainly due to headcount reductions and China exit.

• Net cash at year-end was £6.1m (2022: £11.3m); net assets at £6.6m (2022: £11.1m).

• Loss per share improved to 2.7p (2022: 5.5p); no dividend proposed.

Outlook and guidance

• Q1 2024 revenue reflects seasonal softness; US partner-led sales and Upfronts expected to boost Q3/Q4 revenues.

• Programmatic activation with partners, including TripleLift, targeted for H1 2024.

• Cost base reduced by ~30% year-over-year; further material cost savings identified for 2024/2025.

• Sales pipeline remains strong at ~£3m, excluding potential Upfront revenue.

• Directors expect sufficient funding to reach cash flow break-even during 2025, assuming revenue growth and cost savings.