# Silverbullet strong growth with revenue up 79% to £4.16 million

- Link: https://www.directorstalkinterviews.com/silverbullet-strong-growth-with-revenue-up-79-to-4.16-million/4121128442
- Published: 2023-09-28T07:23:07+01:00
- Author: Amilia Stone

**Silver Bullet Data Services Group plc** – Silverbullet (LON:SBDS) a provider of
digital transformation services and products, has announced interim results for 
the six months to 30 June 2023.

**Financial Highlights**

|  | Six months to June 2023 | Six months to June 2022 | 
|  |  |  | 
| Revenue | £4.16m | £2.33m | 
| Gross Profit | £3.34m | £1.63m | 
| EBITDA* | (£1.19m) | (£3.41m) | 
| Reported Loss before tax | £1.83m | £3.79m | 
| Earnings Per Share | (£0.10) | (£0.27) | 
|  |  |  |

*_See note 3 of notes to the interim accounts_

**Operational Highlights**

| ·      | For the six months to June 2023, Silverbullet experienced a period of strong revenue growth, with revenue having increased by 79% to £4.16 million versus H1 2022 (2022: £2.33m). | 
| ·      | Increased revenue driven by the expansion of services to established customer base across the Group’s three key markets of US, UK and APAC, alongside new logo wins; notably, over 35% of Group revenue in the period was generated in the US market. | 
| ·      | Revenue from ‘4D’ Silverbullet’s AI contextual data platform has grown by 122% to £1.22m – driven predominantly by significant growth in the US market. | 
| ·      | Revenue from the Customer Experience Services unit has grown by 65% to £2.94m – largely driven by growth with existing clients. | 
| ·      | Significantly reduced operating costs as a result of strong cost management and the successful restructure of the 4D team in late 2022 as the platform reached key milestones on the product development roadmap. |

> **Ian James, Chief Executive, commented: “**We are pleased with the continued 
> positioning and development of the Company and with our strong revenue growth 
> and the reduction in costs leading to a significantly improved overall position
> in H1 2023.
> We have strong visibility on full-year revenues and continue to carefully manage
> our investment in talent and other operating costs. We are growing both revenues
> and customer base in the US, where we believe there is significant further potential,
> and look forward to increasing the proportion of total revenue contribution in
> this market further in H2 2023. Whilst the demand by companies for data and privacy
> services and products remains strong, we are fully aware that the current global
> macro-economic environment remains volatile and will run our business accordingly.
> At Silverbullet, we have technology solutions that assist customers in achieving
> their marketing and advertising objectives at lower cost and with higher returns
> and hence, despite these challenging macro-economic conditions, we continue to
> see robust demand from clients.
> As the Company matures, we are steadily moving toward a position of positive EBITDA
> in early FY24. As a result, the Board is optimistic about the outlook and views
> the future with confidence.”

**Chief Executive Officer’s Report**

Silverbullet is pleased to report that it has delivered a strong set of results 
for the first half of 2023 in line with management expectations, delivering significant
revenue growth whilst reducing its cost base when compared to the six months to 
June 2022.

In the period, the Company achieved revenue growth of 79% versus H1 2022, with revenues
of £4.16 million. The Group has experienced growth across both Customer Experience
Services (CX) unit and 4D, its AI contextual data platform. This growth has been
achieved by expanding engagements with both new and established clients across the
Group’s three key markets of US, UK and APAC, as clients accelerate their data driven
marketing transformations.

During the same period, whilst maintaining investment in key talent in the CX Services
division in order to deliver the revenue growth, the Company reduced the overall
operating costs by 8% to £4.98m. This has been achieved through tight cost management
and as a result of the successful restructure of the 4D team in late 2022 in line
with achieving product roadmap milestones.

As the business importance of customer data (accelerated by AI) continues to increase,
Silverbullet is well positioned as a leading Data-Driven Customer Experience (CX)
company. Silverbullet sits at the centre of the data ecosystem to enable its clients
such as Heineken, Mars, Sony and Omnicom to deliver marketing transformation through
unlocking the value of customer data, marketing technology and AI driven advertising
tools.

As consumer demand for data privacy increases, the Group enables its clients to 
better communicate with their customers in a privacy first way whilst maximising
the marketing ROI from data and marketing technology.

The business is comprised of two divisions:

|  |  | 
| o  | **Customer Experience (CX) Services**: _Professional services specialising in the delivery of data transformations and customer journey orchestration on behalf of global clients. Silverbullet’s trusted data transformation experts enable businesses to curate their CX strategies, utilising right data and marketing technology in order to engage customers across a variety of digital marketing channels (including owned and paid)._ | 
| _ _ | _ _ | 
| o  | **4D, AI contextual data Platform:** _The privacy-first AI contextual targeting and insights platform that enables the delivery of display, video and CTV ad campaigns in environments consumers trust. 4D brings together the most advanced machine learning and AI technologies to help brands engage customers at the right place, right time, and in the right moment – all the while respecting their privacy and legal rights as consumers._ |

**Customer Experience (CX) Services**

Silverbullet’s Customer Experience (CX) Services division achieved growth of 65%
during the period with revenues growing to £2.94m. This has largely been driven 
by securing additional contracts and increased scopes of work with existing global
clients. In particular, multi-brand international clients such as Heineken, Sony
and Mars continue to adopt more services from Silverbullet as the Group expands 
its services offering, product suite and geographical footprint.

Silverbullet’s partnerships with a number of global enterprise-marketing software
companies, such as Salesforce and Snowflake, continue to thrive, ensuring clients
establish long-term transformational data infrastructures which can be systematically
replicated, with the help of Silvebullet CX services, in additional geographical
markets and new brands. This expansion, in turn, provides Silverbullet with robust
pipeline and services expansion opportunities with new and established clients.

**4D, AI contextual data platform**

4D, Silverbullet’s AI contextual data targeting and insights platform, has delivered
exceptional growth in the period, with revenues growing by 122% versus H1 2022 to
£1.22m. This has largely been driven by the managed service offering in the US market.
Having achieved maturity in the development of the 4D AI platform in late 2022, 
the Group is focusing its efforts and investment on commercial growth opportunities
as clients and their media agencies focus on solutions for advertising privacy concerns
whilst improving digital advertising ROI.

Multiple clients regularly used the platform in the period, including a leading 
insurance company, a global electronics manufacturer and a US Government Body, providing
a solid foundation for growth moving forward.

With the 4D AI contextual data platform, established management is now focused on
developing new client use-cases and partnerships, especially around Online Video
and Connected TV, opening up new revenue opportunities. In May 2023, the Group announced
its first 4D reseller contract with Silverpush Global Pte Ltd, a global leader in
cookieless and AI powered advertising solutions, with 18 offices worldwide. This
partnership significantly increases 4Ds global sales reach. A number of clients 
have started to test 4D via this partnership and a pipeline of new clients is steadily
building.

**Outlook**

We are pleased with the continued positioning and development of the Company and
with our strong revenue growth and the reduction in costs leading to a significantly
improved overall position in H1 2023.

We have strong visibility on full-year revenues and continue to carefully manage
our investment in talent and other operating costs. We are growing both revenues
and our customer base in the US, where we believe there is significant growth potential,
and look forward to increasing the proportion of total revenue contribution in this
market further in H2 2023. Whilst the demand by companies for data and privacy services
and products remain strong, we are fully aware that the current global environment
remains volatile and will run our business accordingly. At Silverbullet, we have
services and technology solutions that assist customers in achieving their marketing
and advertising objectives at lower cost and with higher returns and hence, despite
these challenging macro-economic conditions, we continue to see robust demand from
clients.

As the Company matures, we are steadily moving toward a position of positive EBITDA
in early FY24. As a result, the Board is optimistic about the outlook and views 
the future with confidence.

**Ian James**

**Chief Executive Officer and Director, Silverbullet**

Share on: