Pureprofile Q3 FY24 Business Update

Pureprofile Limited (ASX: $PPL) has reported a record 3rd quarter group revenue of $10.9m for Q3 FY24, marking a 6% growth on pcp. The company presented its Q3 FY24 business update for the period ended 31 March 2024, with all commentary and financial metrics being presented on a preliminary, un-audited, and continuing business basis, excluding discontinued Pure.amplify Media businesses.

Executive Commentary on Q3 FY24 Performance

Pureprofile CEO Martin Filz stated, 'Due to the challenging Australian economic environment, the ANZ business has experienced a soft five months to March 2024. Following the hard work from the ANZ team, improvements made to the business, and signs of a market-based turn-around, we are now seeing a steady improvement in the ANZ business, with our forward bookings pointing towards a strong Q4. Meanwhile, investments made in the Rest of World business, stronger economic environments, and a lower starting base is reflected in the 11% growth for the quarter. Moreover, Rest of World now delivers 45% of group revenue. Behind the scenes, we continue to roll out and build technology solutions, ensuring we are able to deliver faster and more effective results for clients.'

Summary of Q3 FY24 Update and Outlook

Pureprofile has delivered a record 3rd quarter group revenue of $10.9m for Q3 FY24, representing a 6% growth on pcp. The company experienced a softer Australian trading environment in January and February, followed by a recovery in trading conditions in March, with a 16% increase on pcp. Rest of World revenue saw an 11% increase on pcp, significantly bolstered by strong growth in the UK. The company's EBITDA (excl. significant items) declined 49% to $0.5m for the quarter, partly due to the impact of the change in the Executive Remuneration policy implemented from November 2023. Pureprofile's priorities for the final quarter of the year include focusing on returning the Australian business to strong growth, international expansion, data and panellist growth, technology improvements, and maintaining NPAT profitability. The company has revised its financial guidance for FY24, with revenue expected to be in the range of $48m to $49m and EBITDA margin (excl significant items) expected to be in the range of $4.1m to $4.5m. Pureprofile anticipates the closing cash at bank to be in the range of $4.5m to $5m by the end of FY24, with Q4 typically being the strongest quarter for operating cash flow.