YOC

Investment summary

YOC has raised its revenue and profit guidance for FY21, underpinned by the evaluation of its order backlog for Q421 and reflecting the success of its VIS.X strategy and high-impact ad formats. Management’s latest collaborative study with Nielsen supports this, highlighting that YOC’s ad formats can provide far higher campaign effectiveness versus standard formats. Revenue is now expected to be in the range of €18.5–19m (previously €17–18m), representing year-on-year and quarter-on-quarter growth of c 21% and c 72% respectively at the mid-point of guidance. Management forecasts EBITDA and net income to be in the ranges of €2.5–2.8m (previously €1.8–2.3m) and €1.5–1.8m (€0.8–1.3m), equating to margins of 14% and 9% respectively using the mid-point of guidance. On an EBITDA basis, this would be 2ppt higher than FY20 despite the substantial investments made through FY21, confirming the higher operating leverage of its VIS.X platform compared to traditional selling methods.