Verve Group (VRV) CMD 2024 summary

Financial and Commercial Update

• Achieved 26% organic growth and 37% EBITDA growth in Q2 2024, with revenues of €97M, EBITDA of €29M, and a 30% EBITDA margin, driven by cost savings and strong operating leverage.

• Customer retention rates remain high at 95-98%, with 33% growth in large software clients and 98% retention in Q2.

• North America now represents 78% of revenues, with significant growth in full-screen and video ad formats, and Jun Group acquisition boosting demand-side revenues and enabling €30-40m revenue opportunities.

• Free cash flow and deleveraging improved, with net leverage reduced to 2.4x–2.8x and further reduction expected below 2x by year-end or 2025.

• Updated 2024 guidance: €400–420M revenues and €125–135M EBITDA, with pro forma including Jun at €450M and €151M EBITDA; mid-term targets: 25–30% revenue CAGR, 30–35% EBITDA margin, 20–25% EBIT margin, and 1.5–2.5x net leverage.

Strategic Direction and Business Model

• Transitioned from gaming to a unified digital media and advertising focus, completing rebranding to Verve for clarity and efficiency.

• Targeting a 50/50 split between demand and supply to maximize efficiency, leveraging platform synergies and multi-channel capabilities.

• Focused on high-growth, emerging channels: mobile (85% of revenues), CTV (11%), DOOH, retail media, and audio, with strong positions in mobile and CTV.

• Privacy-first targeting solutions (ATOM, Moments.AI, zero-party data, SKAN) are key differentiators as cookies and identifiers decline.

• Strategic partnership with Google Cloud enhances AI, data, and cost efficiency, supporting unified data architecture and €20m in bottom-line efficiencies over four years.

Technology, Product, and Market Positioning

• ATOM 3.0 enables privacy-safe, on-device cohort targeting, now generally available and expanding to Android and other channels.

• Identity Graph clusters multiple digital identities for better addressability, combining internal and external data sources.

• AI is embedded across the stack, from edge intelligence to supply and demand optimization, with a unified core platform in development.

• Leading in direct publisher relationships, SDK distribution, and CTV reach (60% of U.S. households), with strong recognition for privacy and quality.

• Enhanced creative and measurement solutions, including custom formats, shoppable ads, and advanced third-party integrations.