REG - Silver Bullet Data - Trading Update

Silver Bullet Data ServicesAnnouncement

29/02/2024 07:00

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RNS Number : 8584E  Silver Bullet Data Services Grp PLC  29 February 2024

29 February 2024

 

Silver Bullet Data Services Group plc

("Silverbullet", the "Company" or, together with its subsidiaries, the
"Group")

 

Trading Update

 

Silverbullet, a provider of AI driven digital transformation services and
products, is pleased to provide a trading update for the year ended 31
December 2023 (unaudited).

 

Highlights

 

 ·           Total Group revenue increased by 42% to £8.3m (FY22: £5.8m) and revenue from
             4D AI increased 85% to £2.8m (FY22: £1.5m).

 ·           US and globally operating clients now account for more than 50% of total Group
             revenues.

 ·           Losses significantly reduced due to revenue acceleration and cost reduction.

 ·           Committed revenue for 2024 currently in excess of £5m, £1.1m of which
             derived from 4D AI and £4.0m from Customer Experience (CX) Services.

The revenue growth of 42% to £8.3m (FY22: £5.8m) can be attributed to the
expanding number of global brands adopting 4D and other AI driven marketing
models to structure customer data in a way that improves direct customer
experience and marketing ROI. The Company has strategically consolidated key
global client relationships such as Mars and Heineken to position itself for
accelerated growth and scalable cross-pollination of 4D AI in 2024. US and
globally operating clients now account for more than 50% of total Group
revenues.

As a result of the significant increase in revenues and a reduced cost base,
Silverbullet has significantly reduced losses for the year ended 31 December
2023, with adjusted EBITDA loss* reduced by more than 65% versus the prior
year. In November 2023, the Company raised £1m through a share placing to
facilitate the significant recent growth in new contract wins and further
accelerate the expansion of the Company's new 4D AI Powered Insights Platform.

In 2023, the Group successfully achieved several 4D AI technology
integrations, including with OpenX Technologies, Inc. and Pubmatic, two of the
world's leading independent supply-side platforms for audience, data and
identity targeting, which will position 4D as a key contextual data targeting
source. These integrations have enhanced technological capabilities of the
Group and expanded its recurring revenue generating distribution.

Post-period Highlight

As announced on 27 February 2024, Silverbullet has extended its partnership
with Mars Petcare US for the third consecutive year, for a value of US$2.3
million from January to December 2024.

 

In this extended collaboration, the Company will be broadening its support to
Mars across three primary workstreams, specifically dedicated to the
implementation of AI driven first party customer data intelligence.

Outlook

In the initial months of 2024, the Group has secured FY2024 bookings totalling
£1.1m for its 4D AI product and £4.0m for its CX Services, with overall
bookings for the year thus surpassing £5m. The strong start to the new
financial year reflects the strength and sustained engagement of key global
client relationships and the increasing importance of 4D AI for clients and
media agencies as they transition to AI driven, first-party data and
privacy-safe digital marketing. As a result of this, the Company continues to
move towards a position of positive adjusted EBITDA in early FY24.

The Company also notes that, in January 2024, Google announced** the launch of
its third-party cookie deprecation initiative in January 2024, which further
accelerates the importance of alternative privacy-safe insight and targeting
tools such as 4D AI, providing a positive backdrop for Silverbullet's position
in market.

The Company expects to announce its results for the year ended 31 December
2023 in May 2024.

* Adjusted EBITDA represents Gross Profit less Total Adjusted Operating
Expenditure (adjusted to exclude depreciation, amortisation, share option
expenses and exceptional items, in line with the equivalent figure for the
prior year).

**
https://www.insiderintelligence.com/content/google-turns-off-cookies-30-million-chrome-users-that-s-just-1
(https://www.insiderintelligence.com/content/google-turns-off-cookies-30-million-chrome-users-that-s-just-1)

 Ian James, Chief Executive Officer of Silverbullet, commented:

"I am delighted to provide this trading update for 2023. Our results show
strong, sustained growth on the backdrop of a once in a generation shift to
data and AI driven marketing transformation. The demise of a generation old
AdTech ecostem based on defunct data sources, such as third-party cookies, is
being rapidly replaced by a first-party data driven, privacy-first marketing
environment. According to a survey conducted in late October by Blis and Sapio
Research, 98 percent of marketers report they're concerned about the
disappearance of the third-party cookie. Silverbullet is perfectly placed to
deliver this transformation, at global scale. We have seen impressive 4D AI
growth, a flourishing first party data enablement offering to global clients,
and a strategic emphasis on the US market. Our future trajectory is clear, and
we are dedicated in our commitment to delivering exceptional transformational
value for our clients."

 

 

For further information please contact:

 Silverbullet                                               via IFC
 Ian James (CEO)

 Strand Hanson Limited - Financial and Nominated Adviser    0207 409 3494
 James Spinney / James Bellman / Robert Collins

 Oberon Capital - Joint Broker                              0203 179 5344
 Mike Seabrook / Chris Crawford / Nick Lovering
 CMC Markets - Joint Broker                                 0203 003 8632
 Douglas Crippen

 IFC Advisory                                               020 3934 6630
 Graham Herring / Tim Metcalfe / Florence Chandler          07793 839 024

 

About Silverbullet

Silverbullet's proprietary 4D AI advertising solution is designed to help
advertisers target consumers in a "post cookie world". The product is a
natural extension to its existing services business which already serves a
blue-chip client base such as Mars, Heineken, Sony, Omnicom Group , Greene
Kingand ITV amongst many others. The removal of third-party cookies has
already been implemented by web browsers such as Firefox and Safari, with
Google expected to phase out the use of cookies in 2024.

 

Headquartered in London, the Group employs 80+ data specialists across five
regions across the globe, including, the UK, Italy, Australia, USA and Latin
America. The Group continues to look at other opportunities for expansion
worldwide.

 

The Company has an established and growing services business with significant
accumulated industry experience and a proven track record of delivering
strategic digital transformation and activation services to its clients. The
majority of the Board have held senior positions at global software companies
and have significant industry experience across data engineering, SAAS product
development and marketing.

 

The Group has close technical and commercial partnerships with multiple global
technology providers, all of which have existing sales channels and are
already delivering to clients.

 

The Group has established a strategic partnership and an entity with Local
Planet, a scaled network of over 60 agencies across the globe.  Local Planet
Data Services Limited was established in December 2020 and presents a
significant opportunity to provide data services and the 4D product to the
Local Planet agency network.

 

 

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