YouGov (YOU) Trading Update summary

Financial performance and trading update

• FY24 revenue expected at £327–330m and adjusted operating profit at £43–46m, slightly ahead of revised guidance, driven by strong Q4 performance in data products and custom research.

• Leverage ratio stands at 1.8–2.0x, including 12 months of CPS, well within loan covenants.

• Custom research saw strong demand from existing clients, offset by a decline in fast-turnaround Omnibus/Data Services work, resulting in mid-single-digit underlying growth.

• Data products maintained high subscription rates (~80%) and stable pricing, with ~2,000 subscriptions and early signs of growth as FY25 begins.

• Group remains well capitalised with £70m in cash.

Operational efficiency and cost optimization

• £20m in annualised cost savings targeted, with 70% expected to be realised in FY25, mainly from right-sizing teams, reducing support functions, and cutting third-party supplier spend.

• About 7% of roles impacted, with additional savings from office closures, real estate rationalisation, and scaling back in non-core regions.

• Capital expenditure for FY25 will remain focused on data products, matching FY24 levels.

• Streamlining enables continued investment in key growth areas and supports meeting FY25 market expectations.

• Revenue shortfall in Q4 had a high impact on profitability due to limited flexibility in reducing fixed costs.

Strategic initiatives and innovation

• Acquisition of Yabble to accelerate AI and machine learning integration into core data products, enhancing usability and enabling new offerings.

• Yabble's AI tools are used by Fortune 500 clients and major brands, including some of the largest customers.

• New Chief Product Officer and Chief Commercial Officer appointed to drive product innovation and sales focus.

• Sales strategy simplified, with teams focused on high-potential sectors and clients, and account managers given smaller, more sector-specific portfolios.

• Launch of CategoryView, a mid-market targeted product leveraging existing syndicated data, to address pricing pressure and broaden market reach.