27 Oct ASX ANNOUNCEMENT: Strong start to FY2017 – Q1 revenue up 31%
Pureprofile Limited (ASX: PPL) (“Pureprofile” “PPL” “the Company”) is pleased to report a strong start to FY2017 with revenue for the first quarter expected to exceed $8 million.
- Record quarterly revenue of $8.1 million (31% growth over Q1 FY2016). Driven by strong performances in:
- Data & Insights – $3.0m (+25% over Q1 FY2016
- Programmatic – $5.1m (+34% over Q1 FY2016)
- Positive operating cash flow $0.522m (Q1 FY2016 negative $1.106m)
- Cohort Group acquisition on track to complete on 8 November 2016. Cohort Group recorded strong double digit revenue growth
- Expanded Pureprofile Group is now well positioned to capitalise on the shift to increasing spend on data and insight driven marketing
Leading data-insights and programmatic media company, Pureprofile Limited (ASX PPL: or ‘the Company’), is pleased to report a strong start to FY2017. The Company continues to grow revenues each quarter driven by increasing campaign activity and average campaign value.
Consistent with guidance, the Company reported revenue of $8.1 million, representing a record first quarter performance for the Group and quarter-on-quarter growth of 31% over Q1FY2016.
Cohort Group Acquisition
On 21 September 2016, Pureprofile entered into a binding agreement to acquire 100% ownership of Cohort Global (‘Cohort’), a leading digital marketing group that provides lead generation solutions in Australia, the UK and the US. Cohort generated revenue of $27 million and EBITDA of $3.7 million in FY2016. Full details of the acquisition are available on the Company’s ASX announcement and accompanying investor presentation dated 22 September 2016.
The acquisition is on track to complete on 8 November 2016 in accordance with the indicative timetable set out in the investor presentation. Completion is subject to passing the relevant resolutions at the Company’s Annual General Meeting. Details of the resolution are set out in the Company’s Notice of Annual General Meeting, which was released to the ASX on 29 September 2016.
Cohort’s Quarter 1 FY2017 revenue and EBITDA performance delivered double digit growth over Q1 FY2016, in line with budget expectations. The growing UK and US operations represented 13% of global revenues for the business for the quarter. Revenue and EBITDA contribution is not included in the underlying Pureprofile Group trading performance reported in this update.
Post completion, Pureprofile will have a database of 3.5 million registered consumer profiles, which is growing at approximately 150,000 each month. With little crossover of existing clients, Pureprofile and Cohort will have the opportunity to explore cross-sell opportunities between each of their unique client base and publisher relationships.
Summary and Outlook
PPL has recorded its strongest quarterly revenue result marking a strong start to FY2017. This growth is underpinned by a strong performance in all operating businesses, as the campaign and partnership activity continues to drive our local and global sales pipeline.
PPL continues to enhance its technology across its proprietary platform and continues to benefit from key alliances including News Corp and AA Smartfuel.
The outlook for Quarter 2 indicates further growth across all business units and markets. This growth will be further fuelled by the contribution from Cohort Group following completion of that acquisition.
Annual General Meeting
The Company will hold its Annual General Meeting at 11:00am on Monday, 31 October 2016 at Level 12, 225 George Street, Sydney NSW 2000.