Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Q4 2024 Earnings Presentation
22 slides from Verve Group Se Class A's earnings presentation, 2025
Slide 1: Verve Group SE Year End and Q4 Report 2024
Verve Group SE Year End and Q4 Report 2024 Let’s make media better.
Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS PRESENTATION IS STRICTLY CONFIDENTIAL. ACCORDINGLY, THE INFORMATION INCLUDED HEREIN MAY NOT BE REFERRED TO, QUOTED OR OTHERWISE DISCLOSED BY YOU, NEITHER DIRECTLY OR INDIRECTLY NOR WHOLLY OR PARTLY. BY REVIEWING THIS INFORMATION, YOU ARE ACKNOWLEDGING THE
Slide 3: We Are a Leading Digital Media Company
We Are a Leading Digital Media Company That enables better outcomes With responsible advertising In emerging channels for advertisers and publishers solutions Our mission Let‘s make media better.
Slide 4: A Successful Q4 and a Strong 2025 Outlook
A Successful Q4 and a Strong 2025 Outlook 1 2 Strong Growth and Structurally Strong Customer Led Growth and Well- Improved Profitability Diversified Customer Base 3 4 Full-Screen and Video Ads, as well as ID-Less Unifying and Growing Targeting Solutions Continue to Drive Growth our Demand Side 5 6 J
Slide 5: Strong Growth and Further Structurally Improved Profitability in Q4
Strong Growth and Further Structurally Improved Profitability in Q4 Revenue Growth (+46%) Leads to Positive Scaling Effects (+53% EBITDA and +192% Net Result) +46% +8pp +53% +192% €m €m €m €m 144 24% 48 14 16% 32 99 5 Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4’24 Net Revenue Organic Growth Adj. EB
Slide 6: More Than 400 Large Customers (>100k $) Added Last 12 Months
More Than 400 Large Customers (>100k $) Added Last 12 Months Combined with growing budgets and strong loyalty, signaling strong organic growth potential in the coming quarters >100k $ Software Clients >100k $ Client Retention Rate2 +57% 1,140 98% 1,076 97% 96% 96% 851 998 1,014 1 95% 727 764 Q4’23 Q
Slide 7: Diversified Customer Base: The Foundation of Strong Growth
Diversified Customer Base: The Foundation of Strong Growth Low client concentration with no single client making up more than ~6% of segment revenue Robust Client1 Acquisition Engine Top 10 Advertiser Concentration Top 10 Publisher Concentration +413 . 6% . 6% 5% 4% 5% 4% +316 +176 . +133 61% 66% 20
Slide 8: Full-Screen and Video Ads Continue to Drive Growth
Full-Screen and Video Ads Continue to Drive Growth Early stage banner ad Later stage native ad Current stage interactive full screen ad Time Full-Screen & Video Ads 13 +149% 9 6 Revenue €m 5 4 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 8 Notes: (1) Based on gross revenues from the programmatic ad exchange busine
Slide 9: Clear Path to Unifying and Growing our Demand Side
Clear Path to Unifying and Growing our Demand Side Strengthening our end-to-end platform boosts reach, efficiency, and campaign performance for our customers Demand vs. Supply Revenue Composition1 27% “We continue to +169% invest in scaling 14% the demand side. 73% Our Goal is a Demand 86% +24% 50:5
Slide 10: Integration Accelerates Jun Group Growth
Jun Group Organic Growth 46% EBITDA Margin Integration Accelerates 10% Jun Group Growth 1% -4% 2022 2023 2024 Organic Revenue Growth X 10
Slide 11: Operational Benefits and Integration Of Jun Group Into Verve Group
Operational Benefits and Integration Of Jun Group Into Verve Group Integration of Jun is Progressing According to Plan Type Initiative Technical Integration Status 0% 100% Connected Launch a competitive CTV offering using TV Verve’s supply for Jun Group clients Marketplace 0% 100% Enable Verve deman
Slide 12: Well-Positioned for Fast Growth in a Strong U.S. Market
Well-Positioned for Fast Growth in a Strong U.S. Market #1 Quality and Reach Strong Outlook for Our Core Market1 Leading U.S. Mobile Ad Supply SSP iOS Market SSP U.S. Seller Share U.S.2 Trust Index3 250,00 Verve #1 Verve #1 CAGR: 200,00 10.2% IronSource #2 VideoHeroes #2 Liftoff #3 IronSource #3 150
Slide 13: Verve is Leading the Transition into AI-Driven ID-Less Advertising
And Verve is Leading the Transition into AI-Driven ID-Less Advertising The backbone of user tracking and ad personalization (ID-based) disappears Additional upside through google policy changes expected Verve iOS revenue surged2 ~20% Share of ID-less android traffic ATT on Verve’s ad- platform Share
Slide 14: Financials
FINANCIALS Let’s make media better. 14
Slide 15: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Acceleration of Revenue and EBITDA Growth Strong Organic Growth Highly Profitable and Cash Generating 46% 24% Profit Growth Revenue Growth1 Organic Revenue Growth adjusted for FX and M&A 53% 57% 149% Adj. EBITDA Adj. EBIT EPS +46% growth2 growth2 growth3 €m Net re
Slide 16: Strong Double-Digit Organic Revenue Growth throughout 2024
Strong Double-Digit Organic Revenue Growth throughout 2024 Continuing a Track-record of Long-term Revenue and Profit Growth Strong 5 Year Revenue and Profit Growth Organic Growth3 In €m +33% CAGR 25% FY 2024 437 31% 26% 24% 2 322 303 21% 252 16% 140 133 95 107 93 71 77 77 55 29 18 1% 2020 2021 2022
Slide 17: Strong Free Cash Flow, Continuous Investments in Organic Growth
Strong Free Cash Flow, Continuous Investments in Organic Growth Lift in Operating Cash Flow and Structurally Low Maintenance Capex leading to strengthened FCFs Operating cash flow development1,2 Capex development In €m In €m 296 134 137 €10-15 million interest cost savings once 23 existing debt is 5
Slide 18: Strong Deleveraging Achieved
Strong Deleveraging Achieved Decreasing Leverage and Increasing Interest Coverage Ratios Net Leverage Ratio Interest Coverage Ratio In €m In €m 378 1442 1472 351 319 295 300 274 105 95 98 93 199 71 2.8x 2.9x 3.1x 3.2x 2.8x 2.6x 2 29 4.7x 2.1x 2.4x 4.0x 3.3x 3.3x 2.5x 2.4x 2.6x 62 4.1x 2020A 2021A 20
Slide 19: Outperforming Initial Forecast, Hitting Upper Guidance Range FY 2024
Outperforming Initial Forecast, Hitting Upper Guidance Range Strong organic growth combined with the highly accretive acquisition of Jun Group Updated Initial Third Guidance FY 2023 Guidance 2024 2024 Guidance 2024 FY 2024 (post Jun) Revenue (in €m) 322 350 – 370 380- 400 400-420 437 Adj. EBITDA (in
Slide 20: Verve Group Confirms its Mid-Term Financial Targets
Verve Group Confirms its Mid-Term Financial Targets Verve Continues to Deliver on its Mid-Term Financial targets with Further Focus on a Moderate Net Leverage of 1.5-2.5x Revenue CAGR EBITDA margin EBIT margin Net leverage 25-30% 30-35% 20-25% 1.5-2.5x 2024 36% 30% 25% 2.4x Achieved in 2024 20 Notes
Slide 21: Key Objectives for 2025
Key Objectives for 2025 In 2025, we expect to capture further growth and deliver further profitability improvements AI driven ID-less targeting expansion Operational Focus and Improvements Growth in Free Cash Flow and EPS Capture Positive Development of the Ad Market Let‘s make media better. 21
Slide 22: One Brand, One Team, One Mission
One Brand, One Team, One Mission Let’s make media better.