Silver Bullet Data Services Group plc – Silverbullet (LON:SBDS) a provider of digital transformation services and products, has announced interim results for the six months to 30 June 2023.
Financial Highlights
| Six months to June 2023 | Six months to June 2022 | |
| Revenue | £4.16m | £2.33m |
| Gross Profit | £3.34m | £1.63m |
| EBITDA* | (£1.19m) | (£3.41m) |
| Reported Loss before tax | £1.83m | £3.79m |
| Earnings Per Share | (£0.10) | (£0.27) |
*See note 3 of notes to the interim accounts
Operational Highlights
| · | For the six months to June 2023, Silverbullet experienced a period of strong revenue growth, with revenue having increased by 79% to £4.16 million versus H1 2022 (2022: £2.33m). |
| · | Increased revenue driven by the expansion of services to established customer base across the Group’s three key markets of US, UK and APAC, alongside new logo wins; notably, over 35% of Group revenue in the period was generated in the US market. |
| · | Revenue from ‘4D’ Silverbullet’s AI contextual data platform has grown by 122% to £1.22m – driven predominantly by significant growth in the US market. |
| · | Revenue from the Customer Experience Services unit has grown by 65% to £2.94m – largely driven by growth with existing clients. |
| · | Significantly reduced operating costs as a result of strong cost management and the successful restructure of the 4D team in late 2022 as the platform reached key milestones on the product development roadmap. |
Ian James, Chief Executive, commented: “We are pleased with the continued positioning and development of the Company and with our strong revenue growth and the reduction in costs leading to a significantly improved overall position in H1 2023.
We have strong visibility on full-year revenues and continue to carefully manage our investment in talent and other operating costs. We are growing both revenues and customer base in the US, where we believe there is significant further potential, and look forward to increasing the proportion of total revenue contribution in this market further in H2 2023. Whilst the demand by companies for data and privacy services and products remains strong, we are fully aware that the current global macro-economic environment remains volatile and will run our business accordingly. At Silverbullet, we have technology solutions that assist customers in achieving their marketing and advertising objectives at lower cost and with higher returns and hence, despite these challenging macro-economic conditions, we continue to see robust demand from clients.
As the Company matures, we are steadily moving toward a position of positive EBITDA in early FY24. As a result, the Board is optimistic about the outlook and views the future with confidence.”
Chief Executive Officer’s Report
Silverbullet is pleased to report that it has delivered a strong set of results for the first half of 2023 in line with management expectations, delivering significant revenue growth whilst reducing its cost base when compared to the six months to June 2022.
In the period, the Company achieved revenue growth of 79% versus H1 2022, with revenues of £4.16 million. The Group has experienced growth across both Customer Experience Services (CX) unit and 4D, its AI contextual data platform. This growth has been achieved by expanding engagements with both new and established clients across the Group’s three key markets of US, UK and APAC, as clients accelerate their data driven marketing transformations.
During the same period, whilst maintaining investment in key talent in the CX Services division in order to deliver the revenue growth, the Company reduced the overall operating costs by 8% to £4.98m. This has been achieved through tight cost management and as a result of the successful restructure of the 4D team in late 2022 in line with achieving product roadmap milestones.
As the business importance of customer data (accelerated by AI) continues to increase, Silverbullet is well positioned as a leading Data-Driven Customer Experience (CX) company. Silverbullet sits at the centre of the data ecosystem to enable its clients such as Heineken, Mars, Sony and Omnicom to deliver marketing transformation through unlocking the value of customer data, marketing technology and AI driven advertising tools.
As consumer demand for data privacy increases, the Group enables its clients to better communicate with their customers in a privacy first way whilst maximising the marketing ROI from data and marketing technology.
The business is comprised of two divisions:
| o | Customer Experience (CX) Services: Professional services specialising in the delivery of data transformations and customer journey orchestration on behalf of global clients. Silverbullet’s trusted data transformation experts enable businesses to curate their CX strategies, utilising right data and marketing technology in order to engage customers across a variety of digital marketing channels (including owned and paid). |
| o | 4D, AI contextual data Platform: The privacy-first AI contextual targeting and insights platform that enables the delivery of display, video and CTV ad campaigns in environments consumers trust. 4D brings together the most advanced machine learning and AI technologies to help brands engage customers at the right place, right time, and in the right moment – all the while respecting their privacy and legal rights as consumers. |
Customer Experience (CX) Services
Silverbullet’s Customer Experience (CX) Services division achieved growth of 65% during the period with revenues growing to £2.94m. This has largely been driven by securing additional contracts and increased scopes of work with existing global clients. In particular, multi-brand international clients such as Heineken, Sony and Mars continue to adopt more services from Silverbullet as the Group expands its services offering, product suite and geographical footprint.
Silverbullet’s partnerships with a number of global enterprise-marketing software companies, such as Salesforce and Snowflake, continue to thrive, ensuring clients establish long-term transformational data infrastructures which can be systematically replicated, with the help of Silvebullet CX services, in additional geographical markets and new brands. This expansion, in turn, provides Silverbullet with robust pipeline and services expansion opportunities with new and established clients.
4D, AI contextual data platform
4D, Silverbullet’s AI contextual data targeting and insights platform, has delivered exceptional growth in the period, with revenues growing by 122% versus H1 2022 to £1.22m. This has largely been driven by the managed service offering in the US market. Having achieved maturity in the development of the 4D AI platform in late 2022, the Group is focusing its efforts and investment on commercial growth opportunities as clients and their media agencies focus on solutions for advertising privacy concerns whilst improving digital advertising ROI.
Multiple clients regularly used the platform in the period, including a leading insurance company, a global electronics manufacturer and a US Government Body, providing a solid foundation for growth moving forward.
With the 4D AI contextual data platform, established management is now focused on developing new client use-cases and partnerships, especially around Online Video and Connected TV, opening up new revenue opportunities. In May 2023, the Group announced its first 4D reseller contract with Silverpush Global Pte Ltd, a global leader in cookieless and AI powered advertising solutions, with 18 offices worldwide. This partnership significantly increases 4Ds global sales reach. A number of clients have started to test 4D via this partnership and a pipeline of new clients is steadily building.
Outlook
We are pleased with the continued positioning and development of the Company and with our strong revenue growth and the reduction in costs leading to a significantly improved overall position in H1 2023.
We have strong visibility on full-year revenues and continue to carefully manage our investment in talent and other operating costs. We are growing both revenues and our customer base in the US, where we believe there is significant growth potential, and look forward to increasing the proportion of total revenue contribution in this market further in H2 2023. Whilst the demand by companies for data and privacy services and products remain strong, we are fully aware that the current global environment remains volatile and will run our business accordingly. At Silverbullet, we have services and technology solutions that assist customers in achieving their marketing and advertising objectives at lower cost and with higher returns and hence, despite these challenging macro-economic conditions, we continue to see robust demand from clients.
As the Company matures, we are steadily moving toward a position of positive EBITDA in early FY24. As a result, the Board is optimistic about the outlook and views the future with confidence.
Ian James
Chief Executive Officer and Director, Silverbullet
