10 August 2023

Silver Bullet Data Services Group plc

("Silverbullet" or the "Company", or, together with its subsidiaries, the "Group")

Trading Update

Silverbullet (AIM: SBDS), a provider of digital marketing transformation services and products, is pleased to provide a trading update for the six months ended 30 June 2023 ("H1 2023"), a period of continued strong revenue growth with overall performance in line with management expectations.

Highlights

·    Strong revenue performance of £4.1m - a year-on-year increase of 76% (H1 2022: £2.3m)

·    Significantly reduced losses for the period compared to prior year

·    Reduction in cost base to reflect the focus on achieving a headline profit before tax in Q1 2024

·    Strong growth across key markets: US, UK and APAC

·    Increased demand to Group's Contextual AI product, 4D across all markets especially the US

The strong trading for the Group in H1 2023 has been achieved with revenues of £4.1m, representing a year-on-year growth rate of 76%. This has been primarily driven by our established customer base across the three key markets of US, UK and APAC. Notably, over 35% of Group revenue in H1 2023 was generated in the US market. The Group's overall performance has also been improved by a significantly reduced cost base (now that the 4D product development is complete), resulting in higher margins, which positions the Group to achieve a headline profit before tax on a quarter by quarter basis from Q1 2024.

Growth has been achieved in all areas of the business, as global clients accelerate their use of first-party customer data and privacy led marketing products. As clients' marketing investment and customer experiences continues to shift to digital, especially online commerce, video and CTV, Silverbullet is well positioned as a partner of choice for clients to deliver their data driven marketing transformation journey.

Demand for the Group's Contextual AI product 4D has increased, with notable clients in the period including a leading US media agency with which Silverbullet has received sales commitments of over $1m since the beginning of 2023. As 4D rolls out its generative AI upgrades and the marketplace adapts to the depreciation of "third-party cookies", client demand continues to grow for the "privacy first" 4D contextual AI platform globally.

In the area of first-party data transformation services, notable global clients such as Heineken, Sony, Mars and ITV continue to adopt more services from SilverBullet as the Group expands its portfolio product suite. Silverbullet continues to leverage its key partnerships with global enterprise software providers such as Salesforce, Treasure Data (a Softbank owned software platform) and its Joint Ventures with Google reseller Making Science and global media agency network Local Planet, thus providing a solid pipeline of new clients into 2024.

Ian James, Chief Executive, commented:

"We are delighted that the momentum in the first quarter has continued, with particularly impressive growth from our 4D AI platform. Following our growth in revenue from a reduced cost base, the Group remains on track to achieve a headline profit before tax on a quarter by quarter basis from Q1 2024. The Board is optimistic that market conditions are encouraging customers to adopt our privacy first marketing transformation services and products, which are becoming a vital part of their business strategy."

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About Silverbullet

Silverbullet's proprietary 4D AI platform is designed to enable advertisers to target consumers in a "privacy first post cookie world". The product is a natural extension to its existing marketing transformation services business which already serves a blue-chip client base such as Heineken, Mars, Sony and ITV amongst many others. The growing use of first party customer data and the removal of third-party cookies which has already been implemented by web browsers such as Firefox and Safari, with Google expected to phase out the use of cookies in 2023 is accelerating marketing transformations across all business sectors.

Headquartered in London, the Group employs 80+ employees across Europe, US and APAC. The Group continues to look at other opportunities for expansion worldwide.

The Company has an established and growing services business with significant accumulated industry experience and a proven track record of delivering strategic engagements and activation services to its clients. The majority of the Board have held senior positions at global software companies and have significant industry experience across data engineering, SAAS product development and marketing.

The Group has close technical and commercial partnerships with multiple global technology providers, all of which have existing sales channels and are already delivering to clients.

The Group has established a strategic partnership and an entity with Local Planet, a scaled network of over 60 agencies across the globe. Local Planet Data Services Limited was established in December 2020 and presents a significant opportunity to provide data services and the 4D product to the Local Planet agency network.