Slide 1: Maintaining Momentum
Maintaining Momentum FY25 Interim Results December 2024
Slide 2: H1 Highlights
H1 Highlights Platform revenue up 53% on H1 last year, total revenue up 38% US total revenue +79% 161 new platform clients in H1 providing £3.3m revenue Platform NRR over 120% Gross profit margin 87.3%, in line with FY24 £2m additional investment over next 18 months in revitalising innov
Slide 3: James Gregory, Chief Executive Officer
James Gregory Chief Executive Officer
Slide 4: Chris Willford, Chief Financial Officer
Chris Willford Chief Financial Officer
Slide 5: Fourth consecutive half year of Revenue growth
Fourth consecutive half year of Revenue growth Total Revenue £m 18 16 14 12 10 8 6 4 2 0 FY23 H1 FY23 H2 FY24 H1 FY24 H2 FY25 H1 © System1 Group PLC 12
Slide 6: Driven by Platform Revenue
Driven by Platform Revenue Platform Revenue £m 18 Data-Led Consultancy 16 14 +75% H1FY25 YoY 12 10 Data 8 6 +48% 4 +48% H1FY25 YoY 2 0 FY23 H1 FY23 H2 FY24 H1 FY24 H2 FY25 H1 Data Data-led consultancy © System1 Group PLC 13
Slide 7: We delivered over 120% Platform Net Revenue Retention in H1 FY25
We delivered over 120% Platform Net Revenue Retention in H1 FY25 Platform Revenue £m 18 16 New client revenue 14 12 10 8 6 NRR 121% 4 2 0 H1 FY24 H1 FY25 © System1 Group PLC 14
Slide 8: H1 FY25 continues to show benefit of our scalable business model
H1 FY25 continues to show benefit of our scalable business model H1 FY25 H1 FY24 Change % Platform Revenue 16.7 10.9 +53% Total Revenue 18.3 13.3 +38% Cost of Sales (2.3) (1.6) +43% Gross Profit 16.0 11.7 +37% Statutory Profit Before Tax 2.6 0.9 +176% Profit after Taxation 1.8 0.6 +180% Diluted earn
Slide 9: Opportunities Ahead
Opportunities Ahead
Slide 10: We remain focussed on our reasons to believe
We remain focussed on our 3 reasons to believe Innovation USA World’s Largest (Idea Testing) Advertisers © System1 Group PLC 17
Slide 11: Innovation
Innovation
Slide 12: There is massive headroom in the pre-testing market
There is massive headroom in the pre-testing market and we are playing in growth areas Total Addressable Market $20.43bn Ad Pre Testing Innovation Testing Brand Tracking $2.46bn $12.02bn $5.95bn Source | Global Market Research 2023 | ESOMAR © System1 Group PLC 19
Slide 13: We relaunched our updated Test Your Innovation proposition
We relaunched our updated Test Your Innovation proposition
Slide 14: We are investing to revitalise our Innovation Proposition
We are investing to revitalise our Innovation Proposition Innovation Innovation Go To MD Team Market
Slide 15: Winning in America
Winning in America =
Slide 16: We have a significant opportunity in the US as the biggest market
We have a significant opportunity in the US as the biggest market $71bn 55% 29% $129bn Global Insights Industry Key Industry % of revenue FY24 % of revenue Source | Global Market Research 2023 | ESOMAR © System1 Group PLC 23
Slide 17: US Revenue up 79% with platform more than double H1 FY24
US Revenue up 79% with platform more than double H1 FY24 US Revenue £m 7 6 5 4 3 2 1 0 H1 FY24 H2 FY24 H1 FY25 Non platform Platform © System1 Group PLC 24
Slide 18: We continue to invest in fame, partnerships and go-to-market in the US
We continue to invest in fame, partnerships and go-to-market in the US Go To Fame Partnerships Market © System1 Group PLC 25
Slide 19: World's Largest Advertisers
World’s Largest Advertisers
Slide 20: Big Wins | £3.3m new business in H1
Big Wins | £3.3m new business in H1 +£1.3m +£1.6m +£0.4m A California-based multi-billion A global social media platform; Australia's leading Out-of-Home enterprise software company; advertising company; A travel technology platform; and A challenger brand family that A world leader in p
Slide 21: Future Growth
Future Growth System1
Slide 22: We believe the value opportunity is greater with accelerated investment
We believe the value opportunity is greater with accelerated investment Without Accelerated Investment With Accelerated Investment Core expenditure Core expenditure -base EBITDA Additional investment EBITDA 30% Revenue (Total Stack) Revenue (Total Stack) 20-25% 30% 30% FY24 Act Medium Term Longer Te
Slide 23: We are planning c.£2m additional discretionary investment in FY26
We are planning c.£2m additional discretionary investment in FY26 to accelerate top line growth Innovation Advertising Other People Marketing IT Development INDICATIVE deployment of accelerated investment © System1 Group PLC 31
Slide 24: We believe we need to invest in growth now to maximise shareholder value
…and we believe we need to invest in growth now to maximise shareholder value KPIs H1 FY24 H1 FY25 3-Year Range Goal at Scale Platform Revenue % total Revenue 82 91 90-95% 95% Platform Revenue growth % 44 53 20-30% 10-20% Gross Profit % Revenue 88 87 85-87% >85% Adjusted EBITDA % Revenue 12 16 15-20
Slide 25: Questions?
Questions?