Silverbullet flags strong rise in total group revenue

29th Feb 2024 14:07

(Sharecast News) - AI-focussed digital transformation specialist Silverbullet reported a substantial increase in total group revenue in a trading update on Thursday, to £8.3m, making for 42% growth compared to the prior year's £5.8m.

The AIM-traded firm noted an 85% surge in revenue from 4D AI, reaching £2.8m from £1.5m in the 2022 financial year.

That growth was attributed to the rising adoption of AI-driven marketing models by global brands to enhance customer experience and marketing return on investment.

Moreover, Silverbullet highlighted that over 50% of total group revenue now stemmed from US and globally-operating clients, indicating a significant expansion of its international footprint.

That expansion was further facilitated by strategic client relationships, including notable names like Mars and Heineken, positioning the company for accelerated growth and broader adoption of its 4D AI offerings in 2024.

The company said its efforts to streamline operations and enhance revenue streams resulted in a substantial reduction in losses for the year.

Its adjusted EBITDA loss narrowed by more than 65% compared to the prior year.

Silverbullet also announced successful technology integrations in 2023, including partnerships with OpenX Technologies and Pubmatic, bolstering its technological capabilities and expanding recurring revenue streams.

In a significant post-period development, Silverbullet extended its partnership with Mars Petcare US for the third consecutive year, securing $2.3m for 2024.

The extended collaboration would focus on implementing AI-driven first-party customer data intelligence across multiple workstreams.

Looking ahead, Silverbullet said it had secured bookings totalling £5m for 2024, with strong demand for its 4D AI product and customer experience (CX) services.

The company anticipated moving towards positive adjusted EBITDA in early 2024, buoyed by sustained client engagement and the increasing relevance of AI-driven marketing solutions.

Furthermore, Silverbullet noted the favourable market conditions following Google's announcement of its third-party cookie deprecation initiative in January.

"Our results show strong, sustained growth on the backdrop of a once in a generation shift to data and AI driven marketing transformation," said chief executive officer Ian James.

The demise of a generation-old AdTech ecosystem 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% of marketers report they're concerned about the disappearance of the third-party cookie."

James said Silverbullet was "perfectly placed" to deliver that 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."

Silverbullet said it would announce its full-year results for the year ended 31 December in May.

At 1313 GMT, shares in Silver Bullet Data Services Group were down 15.39% at 160.75p.

Reporting by Josh White for Sharecast.com.