System1 Q1 revenues improve, driven by platform growth

12th Jul 2024 10:02

(Sharecast News) - Market research firm System1 said on Friday that revenues were markedly improved over the three months ended 30 June, driven by a surge in platform revenues throughout the quarter.

System1 said total revenues were up 53% in Q1 at £9.5m, while platform revenues were 74% higher at £8.6m. Non-platform revenues were down 30% at £900,000, in line with internal expectations.

The AIM-listed firm highlighted that its revenue growth was driven mainly by the US, where total revenues rose by 94% to £3.3m and platform revenues skyrocketed 164% to £2.9m. New business performance was also said to be strong in the quarter, with over 75 new client wins.

System1 also noted that it had achieved an 87% gross profit margin in Q125, in line with the same period last year and ahead of its 85% benchmark.

Chief executive James Gregory said: "Customer demand was exceptionally strong in the first quarter, somewhat ahead of our own expectation. It's early in the year but this strong first quarter performance puts us firmly on track for sustainable growth and to achieve our full year expectations."

As of 1010 BST, System1 shares had rallied 8.76% to 745.00p.

Reporting by Iain Gilbert at Sharecast.com