Pureprofile delivers $12m in record quarterly revenue, representing 17% growth
ASX-listed research and media company Pureprofile has released its Q1 FY23 financial report for the period ended 30 September 2022, with the company experiencing accelerated revenue growth and strong operating cash flow movement.
Pureprofile reported a 17% increase to $12 million in revenue for the third quarter, a significant hike since FY21. EBITDA was $1 million for the quarter which was ahead of the Company’s expectations and represented an 8% EBITDA margin.
As communicated at the time of the FY22 full-year results in August 2022, Q1 FY23 EBITDA was expected to be affected due to continued investment in markets outside of Australia. This new investment generated a break-even profit contribution in Q1 FY23, with profitability expected to progressively increase over the balance of the financial year. Notably, Q1 FY22 EBITDA included $120,000 of rental income from UK premises sublease assisting the prior year’s result. Pureprofile reiterates guidance for the EBITDA margin to be 9-10% for the full year.
The record revenue for the quarter was attributed to strong growth in Pureprofile’s core data and insights business, from both new and existing clients across all markets. During the quarter new clients delivered $0.5m in revenue, with the remainder of the revenue uplift driven by growth in the existing client portfolio. The pricing review implemented during the second half of FY22 has positively impacted the business with the average revenue per survey completed increasing by 17% on pcp.
The SaaS (software-as-a-service) platform revenue was up 15% compared to the prior quarter but softened by 10% on pcp, as we cycle a full year’s revenue contribution of flybuys (commenced April 2021). The company said it expects SaaS platform revenue to pick up as additional partnerships come online, particularly following the update to the Audience Builder platform with language translation for non-English speaking regions, which is expected to progressively come onstream from Q3.
During the quarter, Pureprofile made the decision to close its Pure.amplify media business in the UK. This business unit is not considered core to the Company and given the current macroeconomic conditions in the UK, was likely to be challenged during FY23. In FY22, this business unit contributed $1.3m in revenue ($210k for Q1 FY23), had 3 employees and generated a small loss. The company said it expects to retain some revenue and clients which will be managed via the APAC region. Pure.amplify revenue was down on pcp partly due to the closure of the UK business unit in the quarter impacting revenue by $300k on pcp.
The Australian business unit was down slightly on pcp due to the timing of client campaigns across the year.
Pureprofile’s operating cash flow and cash balance was in line with expectations for the quarter due to the additional commercial headcount recruited in Q4 FY22 and Q1 FY23 and one-off costs.
Full-year FY23 operating cash flow is expected to remain positive.
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