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Investing.com -- Verve Group shares fell sharply in European trading Wednesday after reporting first-quarter revenue below analyst expectations.
The Stockholm-based advertising software platform saw its revenue jump 32% year-on-year to €109 million, but missed the analyst estimates of €110 million.
Verve shares tumbled nearly 6% in Stockholm.
Organic revenue growth came in at 16%, supported by a 51% increase in large software clients and a 24% increase in ad impressions.
Adjusted EBITDA grew 37% to €30.2 million, lifting the margin to 28% from 27% a year earlier.
The company attributed the earnings improvement to continued platform scalability, efficiency gains, and strong new customer momentum, despite Q1 typically being its weakest quarter.
Operating cash flow was modest at €0.3 million, while net debt increased to €375.9 million. The adjusted leverage ratio stood at 2.5x, down from 3.2x in Q1 2024.
Looking ahead, Verve expects full-year revenue between €530 million and €565 million, representing 21–29% annual growth, compared to the consensus estimate of €523.2 million.
Adjusted EBITDA is guided at €155 million to €175 million, up from €133 million in 2024. Management said the outlook reflects ongoing investments in sales, platform integration, and product innovation, while accounting for macroeconomic and currency risks.
“We’re pleased to report another strong quarter, with 32% revenue growth, gaining further market share, while further expanding our EBITDA margin and growing our EBITDA by 37%,” said Verve Group CEO Remco Westermann.
“Both our demand and supply sides are developing well, while we also continue our focus on product innovation for ID-less, AI, targeting and measuring. We are investing in further future growth by hiring a substantial number of new sellers and support on especially the brand and agency side.”