Verve Group (VRV) ABGSC Investor Days summary

Business Overview and Strategy

• Provides software for digital ad placement, focusing on direct connections between publishers and advertisers, with an emphasis on privacy and brand safety in emerging channels like mobile, CTV, and digital out of home.

• Transformed from a gaming company to a leading digital advertising software provider, now among the top 30 in the US, with most business in mobile advertising.

• Operates globally with a strong presence in North America and Europe, integrated with 65,000 apps, reaching 2.5 billion consumers, and serving 940 billion ads annually.

• Main business is supply-side (73%), connecting publishers and app developers, with a growing demand-side segment (27%), aiming for a more balanced split.

• Mission centers on improving media outcomes for advertisers and publishers, with a unified brand: "Let's make media better."

Business Model and Technology

• Automates ad buying and selling across all digital devices, matching brands to audiences in milliseconds.

• Leverages AI-driven solutions for ID-less advertising and advanced targeting, including proprietary technology (IDLS) and Atom for privacy-compliant cohort-based targeting.

• Delivers 940 billion yearly ad impressions and serves 1,140 large software clients.

• Focuses on high-growth verticals, especially mobile and CTV, and avoids traditional display advertising.

• 88% of revenues come from mobile, 9% from CTV, and 2% from desktop.

Financial Performance and Outlook

• Reported €437 million in 2024 revenues and €133 million in adjusted EBITDA, with 36% year-on-year growth and a 30% margin.

• Achieved 25% organic growth, with additional growth from acquisitions, and a five-year average growth rate of 33%.

• Met or exceeded all mid-term financial targets: 36% revenue CAGR, 30% EBITDA margin, 25% EBIT margin, 2.4x net leverage.

• 2025 objectives include further growth, profitability improvements, and expansion of AI-driven ID-less targeting.

• Focus on operational improvements, free cash flow, and EPS growth.