Silver Bullet Data Services plc (LON:SBDS), a provider of AI driven digital transformation services and products, has provided 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
Ian James, Chief Executive Officer of Silver Bullet Data Services Group, 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.”