Verve Group (VRV) Q3 2024 earnings summary

Executive summary

• Achieved 45% year-over-year revenue and EBITDA growth in Q3 2024, reaching €114 million in revenue and €34 million in EBITDA, driven by strong organic expansion, U.S. market strength, and the Jun Group acquisition.

• U.S. market now represents 80% of revenue, with Verve ranked #1 in direct mobile ad supply reach and quality.

• Jun Group acquisition finalized in July 2024, contributing significantly to growth, with early revenue synergies and 13% organic growth in October post-acquisition.

• Large software clients grew 56% year-over-year, with client retention at 96–98%.

• Leadership transition: CFO Paul Echt stepping down, succeeded by Christian Duus effective January 2025.

Financial highlights

• Q3 2024 net revenue: €114 million, up 45% year-over-year; adjusted EBITDA: €34 million, margin 30%; adjusted EBIT: €25 million, margin 22%.

• Operating cash flow reached €54 million in Q3; unlevered free cash flow at €44 million, a company record.

• Last 12 months: €391 million revenue, €160 million EBITDA, €92 million EBIT.

• Free cash flow for the last 12 months improved to €67 million from €23 million in 2023.

• EPS: €0.04 (Q3 2024) vs €0.25 (Q3 2023); adjusted EPS: €0.06 (Q3 2024) vs €0.27 (Q3 2023).

Outlook and guidance

• 2024 guidance raised to €400–420 million revenue and €125–135 million EBITDA, reflecting Jun Group acquisition.

• Full-year revenue including Jun Group projected at ~€450 million, with ~€150 million adjusted EBITDA.

• Confident in strong Q4 and double-digit organic growth for 2025 and beyond.

• Midterm targets: 25–30% revenue CAGR, 30–35% EBITDA margin, 20–25% EBIT margin, net leverage target of 1.5–2.5x.