System1: US sales soar as demand for advert testing continues to grow

Ad testing firm System1 has seen its revenue soar following a jump in its US sales, marking an “exceptionally strong” start to its financial year.

The AIM-listed firm grew its total revenue to £9.5m in the three months ending June 30, 2024, compared to £6.2m during the same period in 2023.

System1’s platform revenue soared by 74 per cent over the three months, hitting £8.6m from £4.9 in the same period last year.

This was driven by a surge in sales in the US, with total revenue increasing by 94 per cent year on year to £3.3m and platform revenue growing by 164 per cent to £2.9m.

During the three months, the company onboarded more than 75 new clients as it said customer demand remained strong for its products.

CEO James Gregory said: “Customer demand was exceptionally strong in the first quarter, somewhat ahead of our own expectation.

“It’s early in the year but this strong first quarter performance puts us firmly on track for sustainable growth and to achieve our full year expectations.”  

System1 revealed huge revenue climbs when it released its full-year results last week.

Its overall revenue grew by 28 per cent to £30m in the year ending March 31, 2023, which the firm said was largely down to winning 260 new clients – a 44 per cent rise in the number of customers it works with.

New clients included five of the top 10 advertisers in the US and seven of the UK’s top advertisers.

System 1‘s pre-tax profit grew accordingly, up from £400,000 in FY 2023 to £2m – a rise of more than 400 per cent, although slightly lower than forecast.

Meanwhile, adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) grew 175 per cent to £4.4m.

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