Verve Group SE Achieves Strong Growth Driven by Mobile In-App Advertising

Verve Group SE reported significant growth in the first nine months of 2024, with digital revenue climbing 31.1% to €292.78 million. The ad tech firm capitalized on the advertising market's recovery, benefiting from a strong demand for innovative solutions like ATOM and Moments.AI. A notable increase in ID-less targeting solutions and mobile full-screen ads propelled their expansion.

Despite a decrease in EBITDA compared to last year, due to a previous one-off effect, the adjusted EBITDA rose significantly to €84.80 million. Operating cash flow saw a dramatic increase of 152.5%, reaching €81.46 million. The company's leverage ratio improved, indicating stronger financial health.

For Q3 2024, Verve experienced robust organic growth in sales by 31.0%, partly due to enhanced customer acquisition. The Jun Group acquisition also contributed positively. Looking ahead, the firm anticipates continued double-digit growth, raising their 2024 financial estimates and maintaining a 'BUY' recommendation with a target price of €6.70 per share.