Verve Group SE delivers double-digit growth in Q2 2025 despite challenging migration to unified platform
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Verve Group SE delivers double-digit growth in Q2 2025 despite challenging migration to unified platform Verve Group SE delivers double-digit growth in Q2 2025 despite challenging migration to unified platform
Stockholm, 15 August 2025 – Verve Group SE (ISIN: SE0018538068), a fast-growing software platform in the advertising technology industry, once again reports double-digit revenue growth for the second quarter of 2025, underscoring the Group’s resilience and agility in a demanding market environment. The Company went through unification of its in-app marketplace, which was finalized by the end of July, leading to improved platform performance. The key figures for business development are as follows:
Net Revenue increased 10 percent year-over-year, or 14 percent on a currency-adjusted basis, to EUR 106 million (Q2 2024: EUR 96 m) while Adjusted EBITDA of EUR 29 million was slightly up compared to the same period last year (Q2 2024: EUR 29 m). Accordingly, the Adjusted EBITDA Margin reduced slightly to 28 percent (Q2 2024: 30 percent). On the demand side, Verve recorded significant gains, with revenue up 82 percent. Growth was primarily driven by both a continued influx of new customers and successful scaling of existing client relationships. Synergies from the Jun Group acquisition, concluded in August 2024, continue to make an increasingly positive contribution to Group results. The expanded brand and agency sales teams delivered first measurable results in the quarter, strengthening Verve’s market coverage and supporting further growth in client demand. The most transformative operational step taken in recent quarters has been the unification of all in-app marketplace activities onto a single platform, with the integration process completed in July 2025. The migration to one technology stack, following years of intense planning and systems development, marks a major leap forward in structural efficiency and operational performance. “By eliminating costly duplication and data fragmentation from multiple legacy systems, Verve is now ideally positioned to drive further scale, optimize data flows, and enhance performance across the network”, explains Remco Westermann, CEO of Verve Group SE. “However, this strategic transition was not without challenges. The technical migration proved to be much more demanding than initially expected, leading to short-term operational issues including scaling, load balancer performance, and temporary interruptions in bidding volumes.” The technical challenges, which relate solely to platform unification of in-app marketplace activities on the supply side, have turned out to be much more demanding than anticipated in the extensive planning process of the project. In particular, noticeable delays in the onboarding of new customers meant that incremental new revenues could only be realized with considerable delays. Various technical issues in relation to load balancer performance, temporary interruptions in bidding volumes, and temporary asynchrony of AI algorithms, led to revenue reductions during the unification process. The process of unifying all in-app marketplace activities onto a single platform has now, however, been completed in July, which will lead to significantly improved platform performance, cost efficiency and scaling going forward. The recovery in revenue intake from supply side marketplace activities has proven slower than expected, as observed in onboarding of new customers and customer scaling. As a result, supply-side net revenues were down -3 percent year-over-year. Management considers these effects as temporary, with most issues resolved by the end of the quarter and supply-side revenues further recovering and already approaching the previous year’s Q3 performance. Despite these headwinds, Verve’s KPIs point to a fundamentally healthy business development. The Company grew its total number of software clients organically by almost 10 percent, while maintaining existing clients with an all-time high client retention rate of 98 percent, underlining high customer satisfaction. Thanks to sustained strong customer growth and this continued high retention, an 8 percent reduction in ad spend by existing customer base led to only a 4 percent decrease in organic performance year on year. Higher infrastructure expenses and one-off support costs related to the unification process had an additional adverse impact on Adjusted EBITDA. Nevertheless, the slight increase during the platform migration reflects disciplined expense management. As new capabilities from the unified platform are leveraged and ramp-up effects dissipate, further margin improvement is expected in the coming quarters. Having completed the platform unification of its largest revenue driver in-app in July, platform performance has improved considerably. The new combined platforms are continuously enhanced and onboarding of new customers has been resumed, which will lead to increased revenues and improved margins in the second half of the year. The supply side platform unifications for other formats, such as CTV, will conclude within the coming quarters and are expected to have only minor impacts on upcoming results. Outlook The further expansion of the sales team, with increased headcount and stronger segment focus, is already starting to contribute to growth. Despite the slight pressure seen in the market during Q2, historical trends show advertising budgets typically rebound swiftly following temporary contractions. Since mid-June, market sentiment has stabilized and continues to stabilize further into Q3. As published, the Company has reduced its outlook for the full year 2025. In terms of net revenue and adjusted EBITDA. The revised outlook entails a net revenue range of EUR 485 to 515 million (previously EUR 530 to 565 million) and an adjusted EBITDA of range of EUR 125 to 140 million (previously EUR 155 to 175 million). The downward revision of the forecast is due to two factors, which stand in contrast to the development anticipated in the original outlook. First, a one-off impact from more severe technical issues arising from the platform unification leading to direct revenue impacts, and in particular prolonged recovery in revenue intake from supply side marketplace activities after the completion of technical unification. Secondly, the Company sees significantly stronger negative FX translation impacts as well as outlook than Management previously anticipated In order to give existing and interested investors an even better understanding of Verve Group SE's technologically sophisticated business model, the Company will host a Capital Markets Day on 19 August, starting at 10:00 CEST. The Capital Markets Day will be hosted as a hybrid event, live in Stockholm and online as interactive webcast. During the event, Verve will present its interim report for the first half of 2025 as well as a commercial update on the Company’s strategic roadmap for the upcoming quarters. In addition, expert presentations on the topics of artificial intelligence and ID-less targeting in the advertising technology industry will be held. Registration for this event can be done via the following web link: https://verve-group.events.inderes.com/cmd-2025/register. Further information about Verve Group and its subsidiaries can be found at www.verve.com. This information is such information that Verve Group SE is obliged to make public in accordance with the Securities Markets Act (2007:528). The information in this press release has been made public through the agency of the responsible person set out below for publication at the time stated by Verve’s news distributor EQS Newswire at the publication of this press release. Contact: Ingo Middelmenne Sören Barz
Verve Group is a fast-growing software platform in the advertising technology industry, connecting advertisers seeking to buy digital ad space with publishers monetizing their content. Driven by its mission “Let’s make media better.” Verve provides responsible, AI-driven advertising solutions that deliver superior outcomes for advertisers and publishers. The company focuses on emerging media channels like mobile in-app, connected TV and others. In anticipation of growing demand from users and advertisers for greater privacy, Verve has developed cutting-edge ID-less targeting technology that enables efficient advertising within digital media without relying on identifiers such as cookies or IDFA. Thanks to its strong differentiation and execution, Verve has achieved a revenue CAGR of 33 percent over the past four years reaching net revenues of 437 million euros in 2024 with an adj. EBITDA margin of 30 percent. Verve's main operational presence is in North America and Europe, and it is registered as a Societas Europaea in Sweden (registration number 517100-0143). Its shares - with the ISIN SE0018538068 - are listed on the regulated market of the Frankfurt Stock Exchange (Ticker: VRV) and on Nasdaq First North Premier Growth Market in Stockholm (Ticker: VER). Verve has an outstanding bond with the ISIN: SE0023848429. The Companies certified advisor on the Nasdaq First North Premier Growth Market is FNCA Sweden AB; contact info: info@fnca.se.
Catch-up with Verve on upcoming conferences and roadshows 01.09.2025 German Fall Conference Frankfurt, Germany 03.09.2025 Citibank Global TMT Conference New York City, USA 22.09.2025 Berenberg & GS German Corporate Conference Munich, Germany 23./24.09.2025 Baader Investment Conference Munich, Germany 08.10.2025 GBC 16th International Investment Forum Virtual 13.11.2025 Pareto Nordic TechSaaS Conference Stockholm, Sweden 12./13.11.2025 MKK – Münchner Kapitalmarkt Konferenz Munich, Germany 24./26.2025 Deutsches Eigenkapitalforum Frankfurt, Germany
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