System1 reports record quarter for data revenue growth

23rd Feb 2023 16:50

(Sharecast News) - Advertising and marketing technology company System1 reported a record-breaking quarter for data revenue growth in an update on Thursday.

The AIM-traded firm said data revenue increased 18% year-on-year in its third quarter to reach £3.4m, accounting for 55% of revenue in the period.

Year-to-date data revenue also saw a significant increase of 31%, reaching £9.6m.

Despite the growth in data revenue, System1 said its total third quarter revenue declined 4% on the comparable period last year, falling to £6.2m from £6.5m.

The decrease was however expected, as consultancy revenue reduced from 46% in the first half to 21% in the third quarter.

Year-to-date, total revenue had decreased 12%.

System1's gross profit margin improved in the third quarter, lifting the year-to-date margin to 82.7% compared to 81.5% in the first half of the 2023 financial period.

"Third quarter period-end cash, net of borrowings, was £5.1m, compared with £6.6m as at 30 September, due partly to high quarter-end working capital following a strong December," the board said in its statement.

"During the period, the company repaid all of its £2.5m revolving credit facility and we do not anticipate a reduction in net cash during the final quarter."

At 1442 GMT, shares in System1 Group were up 11.52% at 184p.

Reporting by Josh White for Sharecast.com.