YouGov nudges up guidance, acquires AI firm Yabble

6th Aug 2024 08:49

(Sharecast News) - Shares in research and data analytics firm YouGov surged on Tuesday after the company upgraded its full-year guidance and announced the acquisition of research-focused AI firm Yabble.

The firm, which delivered a profit warning to the market in June due to lower-than-anticipated sales bookings, said revenues for the year ended 31 July would now be "slightly ahead" of recent guidance.

Full-year revenues will be around £327-330m, while adjusted operating profit is tipped to be £43-46m, ahead of the £324-327 and £41-44m respective ranges given previously.

YouGov said that, since the last update, it has accelerated a strategic review of the core business and started a "cost optimisation plan", which includes a reduction in support functions and the discontinuation of under-performing products. These measures should save £20m a year.

In a separate statement on Tuesday, YouGov announced the £4.5m acquisition of New Zealand-based Yabble, which uses generative AI to deliver audience insights.

"Generative AI is transforming the insight landscape and with the acquisition of Yabble, YouGov is strongly positioned to take advantage of this change," said chief executive Steve Hatch.

The stock was up 18% at 516.92p by 0951 BST, but still remains well below the 1,100-1,200p range seen at the start of the year.