YouGov (YOU) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached £335.3 million, up 30% reported and 3% underlying, with adjusted operating profit at £49.6 million and EPS of 29.4p, slightly ahead of revised guidance.

• Strategic progress included the acquisitions of CPS, KnowledgeHound, and Yabble, strengthening data products and panel quality.

• Cost optimisation plan targets £20 million in annualised savings, with 70% expected to be realised in FY 2025.

• Unaudited results released, with audited numbers expected soon and no material changes anticipated.

Financial highlights

• Adjusted operating margin declined to 15% from 19% due to limited organic growth and higher staff/tech costs.

• Cash conversion remained strong at 93%, supporting investments and deleveraging.

• Net debt at £148.2 million, with net debt/EBITDA at 1.7x and interest cover ratio at 9.7x.

• CapEx increased, mainly for panel recruitment, and is expected to remain in line with revenue.

Outlook and guidance

• FY 2025 trading expected to meet market expectations, with margin improvements weighted to H2 as cost savings materialise.

• Sales bookings momentum anticipated to pick up in Q2 and Q3 FY25, with performance improvement in the second half.

• Continued focus on capital allocation discipline and maintaining robust cash balances.