Verve Group Media (VRV) Q2 & CMD 2024 earnings summary

Financial and Commercial Update

• Achieved 27% year-over-year revenue growth in Q2 2024 to €96.6m, with 26% organic growth and adjusted EBITDA up 37% to €29.1m, driven by privacy-first ad solutions and new software clients.

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

• North America represents 78% of revenues, with significant growth in full-screen and video ad formats, and Jun Group acquisition boosting demand-side revenues.

• Free cash flow and deleveraging improved, with net leverage reduced to 2.2x (adjusted 2.8x), targeting below 2x by year-end.

• Updated 2024 guidance: €400–420m revenues and €125–135m EBITDA, with pro forma including Jun Group at €447–450m and €151m EBITDA.

Strategic Direction and Business Model

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

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

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

• 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 product innovation.

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.