YouGov Shares Fell 4.3% on Its Mixed H1 FY 2024 Trading Update

The YouGov Plc (LON: YOU) share price fell 4.29% after providing an update on its trading performance for the six months ended 31 January 2024. YouGov demonstrated a robust operational stance throughout this period, navigating the persistently challenging macroeconomic landscape.

The leading global research and data analytics firm has experienced continued sales growth within the technology sector, although other areas have presented more challenges. Demand stability for YouGov's Data Products and Research services has been a critical driver of performance, even as discretionary expenditures are affected by overall market downturns.

The company has reported revenue growth comparable, considering the effects of mergers and acquisitions (M&A) and currency fluctuations. The reported revenue for the first half is expected to be strong, bolstered by ongoing investments in the company, especially in staff expenses.

Looking forward, YouGov is focusing on enhancing its commercial discipline, supported by the recent hiring of a Chief Commercial Officer. This strategy is pivotal for reinforcing the company's infrastructure and achieving its third long-term strategic objective.

On 9 January 2024, YouGov finalised its significant acquisition of GfK GmbH's Consumer Panel Services (“CPS GfK”), receiving positive feedback from staff and clients. The integration process is underway, with teams from both companies collaborating to unlock commercial opportunities and leverage their combined strengths. 

Clients of CPS GfK stand to gain from YouGov's extensive profiling capabilities, media consumption, and brand data insights, particularly in the U.S., which continues to be a critical area for strategic growth. Conversely, YouGov's clientele will benefit from CPS GfK's comprehensive behavioural data on FMCG and retail consumer insights. 

The acquisition is poised to fuel YouGov's growth by broadening its service offerings to current clients, attracting new clients, and facilitating expansion into new markets. Since its announcement in July 2023, the acquired entity has performed beyond expectations.

Despite the ongoing market challenges and client budget constraints in the latter half of the financial year, the Board is aware of the growing demand for high-quality, data-centric solutions. Although the company faced extended sales cycles, a significant acceleration in sales momentum was observed in the second quarter following a slower first quarter. 

With a strong sales pipeline as of January 2024, YouGov is optimistic about meeting the current market forecasts for the full fiscal year.

YouGov share price. 

The YouGov share price fell 4.29% to trade at 1172.50p from Thursday’s closing price of 1225.00p.