VerticalScope Provides Business Update and Revised 2025 Outlook
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF) has issued a revised business outlook for 2025, citing significant headwinds in early 2025. The company faces two main challenges:
1. Changes to video advertising classification have led to reduced bidder activity and lower CPMs, resulting in decreased video ad revenue in Q1 2025.
2. Google's March core algorithm update has caused approximately 10% decline in monthly active users (MAUs).
Key financial projections for 2025:
- Adjusted EBITDA: US$21-24 million
- Free Cash Flow: US$20-22 million
- Free Cash Flow conversion: 85% or above
Despite challenges, the company has completed four acquisitions totaling US$7.3 million year-to-date and continues investing in AI-driven products. VerticalScope aims to maintain leverage between 1.0-1.5x throughout 2025.
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF) ha pubblicato una previsione aziendale rivista per il 2025, citando significative difficoltà all'inizio del 2025. L'azienda affronta due principali sfide:
1. I cambiamenti nella classificazione della pubblicità video hanno portato a una riduzione dell'attività degli offerenti e a CPM più bassi, risultando in un calo delle entrate pubblicitarie video nel primo trimestre del 2025.
2. L'aggiornamento dell'algoritmo principale di Google di marzo ha causato un declino di circa il 10% degli utenti attivi mensili (MAU).
Proiezioni finanziarie chiave per il 2025:
- EBITDA rettificato: 21-24 milioni di dollari USA
- Flusso di cassa libero: 20-22 milioni di dollari USA
- Conversione del flusso di cassa libero: 85% o superiore
Nonostante le sfide, l'azienda ha completato quattro acquisizioni per un totale di 7,3 milioni di dollari USA fino ad oggi e continua a investire in prodotti basati sull'IA. VerticalScope mira a mantenere un leverage tra 1,0 e 1,5x per tutto il 2025.
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF) ha emitido una perspectiva empresarial revisada para 2025, citando importantes dificultades a principios de 2025. La empresa enfrenta dos desafíos principales:
1. Los cambios en la clasificación de la publicidad en video han llevado a una reducción de la actividad de los postores y a CPM más bajos, resultando en una disminución de los ingresos por publicidad en video en el primer trimestre de 2025.
2. La actualización del algoritmo principal de Google en marzo ha causado un declive de aproximadamente el 10% en los usuarios activos mensuales (MAUs).
Proyecciones financieras clave para 2025:
- EBITDA ajustado: 21-24 millones de dólares estadounidenses
- Flujo de caja libre: 20-22 millones de dólares estadounidenses
- Conversión de flujo de caja libre: 85% o más
A pesar de los desafíos, la empresa ha completado cuatro adquisiciones por un total de 7.3 millones de dólares estadounidenses hasta la fecha y continúa invirtiendo en productos impulsados por IA. VerticalScope tiene como objetivo mantener un apalancamiento entre 1.0 y 1.5x durante 2025.
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF)는 2025년 수정된 사업 전망을 발표하며, 2025년 초에 상당한 어려움이 있을 것이라고 언급했습니다. 이 회사는 두 가지 주요 도전에 직면해 있습니다:
1. 비디오 광고 분류 변경으로 입찰자 활동이 감소하고 CPM이 낮아져 2025년 1분기 비디오 광고 수익이 감소했습니다.
2. 구글의 3월 핵심 알고리즘 업데이트로 인해 월간 활성 사용자(MAU)가 약 10% 감소했습니다.
2025년 주요 재무 예측:
- 조정된 EBITDA: 2100만~2400만 달러
- 자유 현금 흐름: 2000만~2200만 달러
- 자유 현금 흐름 전환율: 85% 이상
어려움에도 불구하고, 회사는 현재까지 730만 달러에 달하는 4건의 인수를 완료했습니다 그리고 AI 기반 제품에 대한 투자를 계속하고 있습니다. VerticalScope는 2025년 동안 1.0~1.5배의 레버리지를 유지하는 것을 목표로 하고 있습니다.
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF) a publié une prévision commerciale révisée pour 2025, citant des vents contraires significatifs au début de 2025. L'entreprise fait face à deux défis principaux :
1. Les changements dans la classification de la publicité vidéo ont conduit à une réduction de l'activité des enchérisseurs et à des CPM plus bas, entraînant une diminution des revenus publicitaires vidéo au premier trimestre 2025.
2. La mise à jour de l'algorithme principal de Google en mars a provoqué un déclin d'environ 10% des utilisateurs actifs mensuels (MAU).
Prévisions financières clés pour 2025 :
- EBITDA ajusté : 21-24 millions de dollars US
- Flux de trésorerie libre : 20-22 millions de dollars US
- Taux de conversion du flux de trésorerie libre : 85% ou plus
Malgré les défis, l'entreprise a complété quatre acquisitions totalisant 7,3 millions de dollars US jusqu'à présent et continue d'investir dans des produits alimentés par l'IA. VerticalScope vise à maintenir un levier entre 1,0 et 1,5x tout au long de 2025.
VerticalScope Holdings (TSX: FORA; OTCQX: VFORF) hat einen überarbeiteten Geschäftsausblick für 2025 veröffentlicht und dabei erhebliche Schwierigkeiten zu Beginn von 2025 angeführt. Das Unternehmen sieht sich zwei Hauptherausforderungen gegenüber:
1. Änderungen in der Klassifizierung von Videoanzeigen haben zu einer verringerten Aktivität der Bieter und niedrigeren CPMs geführt, was zu einem Rückgang der Videoanzeigen-Einnahmen im ersten Quartal 2025 geführt hat.
2. Das Update des Google-Kernalgorithmus im März hat zu einem Rückgang von etwa 10% bei den monatlich aktiven Nutzern (MAUs) geführt.
Wichtige Finanzprognosen für 2025:
- Bereinigtes EBITDA: 21-24 Millionen US-Dollar
- Freier Cashflow: 20-22 Millionen US-Dollar
- Umwandlungsrate des freien Cashflows: 85% oder mehr
Trotz der Herausforderungen hat das Unternehmen bis heute vier Übernahmen im Gesamtwert von 7,3 Millionen US-Dollar abgeschlossen und investiert weiterhin in KI-gesteuerte Produkte. VerticalScope strebt an, das Leverage-Verhältnis im Jahr 2025 zwischen 1,0 und 1,5x zu halten.
- Completed four acquisitions worth US$7.3 million
- Strong balance sheet with low leverage
- Expected Free Cash Flow conversion of 85% or above
- Continuing investment in AI-driven product development
- 10% decline in monthly active users due to Google algorithm update
- Decreased video advertising revenue in Q1 2025
- Downward revision of 2025 financial outlook
- Recovery timeline from traffic decline remains uncertain
Unless otherwise stated, all amounts are in US dollars.
The Company has published a shareholder letter providing additional details, which is available on the Company’s investor relations website and the Company’s profile on SEDAR Plus at https://sedarplus.ca.
Following the release of its strong Q4 and full year 2024 results, VerticalScope has observed some incremental headwinds impacting the business in early 2025. These include changes to the Company’s video advertising products and the impact of Google’s March core algorithm update, which has affected organic traffic to VerticalScope’s communities.
- Video Advertising: Changes to classification of programmatic video ads that run in our forums has resulted in decreased bidder activity and lower costs per thousand impressions (CPMs), leading to reduced revenue from video ads in Q1 2025. Management now expects video advertising revenue to decline year-over-year in Q1, and to face continued headwinds through the balance of the year.
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Traffic Trends: Google’s March core algorithm update has led to an approximate
10% decline in monthly active users (MAUs). The Company is actively working on recovery initiatives, but acknowledges that recovery timelines for algorithm impacts are uncertain and may extend over multiple quarters.
Given these factors, VerticalScope expects full year 2025 Adjusted EBITDA to be in the range of
Despite near-term challenges, VerticalScope remains confident in the resilience of its platform and long-term strategy. The Company continues to invest in its AI-driven product roadmap, including the development of AI-powered translations, answers, thread summaries, and enhanced search experiences within its FORA platform, and is seeing promising results.
VerticalScope has also completed four acquisitions year-to-date, totaling
“As we enter this period of economic uncertainty, we are well-positioned with a strong balance sheet and low leverage,” said Rob Laidlaw, Founder and CEO of VerticalScope. “While today’s update may not be welcome news, we felt it was important to share our revised outlook for 2025. As we navigate a challenging market backdrop, we are confident in our ability to adapt to market dynamics, execute our product roadmap, and deliver long-term value to our shareholders."
For further details, please refer to the full shareholder letter available here: https://investors.verticalscope.com/news/default.aspx
About VerticalScope
Founded in 1999 and headquartered in
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the exchange) accepts responsibility for the adequacy or accuracy of this release.
The estimated results contained herein are subject to change upon completion of the Company’s Q1-2025 Financial Statements and the review of such financial statements, and such changes could be material due to, among other things, the completion of the Company’s financial closing procedures, final adjustments, review by the Company’s auditors, and other developments that may arise between now and the time the financial results are finalized. Accordingly, such estimated results are forward-looking statements within the meaning of applicable securities legislation and are subject to the limitations and risks described under “Forward-Looking Statements” below.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation that reflects the Company's current expectations regarding future events. When used in this news release, words such as “should”, “could”, “intended”, “expect”, “plan” or “believe” and similar expressions indicate forward-looking statements. Forward-looking information, including the Company’s financial outlook (including revenue, Adjusted EBITDA and MAUs), plans for organic growth, deployment of capital, leverage, investments in our platform, new platform features, the growth of revenue and MAU, information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, plans and objectives, is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurances can be given that actual results will be consistent with these forward-looking statements. Such risks and uncertainties include, but are not limited to, the implementation and effectiveness of the Company's capital allocation strategy, investments in its platform, the availability of high-quality M&A opportunities, and the factors discussed under "Risk Factors" in the Company’s Annual Information Form dated March 31, 2025, which is available on the Company’s profile on SEDAR Plus at https://sedarplus.ca. Actual results could differ materially from those projected herein. VerticalScope does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
Non-IFRS Measures
This news release references certain non-IFRS measures, including Adjusted EBITDA and Free Cash Flow, and Free Cash Flow Conversion as described below. This news release also makes reference to MAU, which is an operating metric used in our industry. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.
The Company uses non-IFRS measures including:
“EBITDA” is calculated as net income (loss) excluding interest, income tax expense (recovery), and depreciation and amortization.
“Adjusted EBITDA” is calculated as EBITDA adjusted for share-based compensation, share performance related bonuses, unrealized gains or losses from changes in fair value of derivative financial instruments, severance, adjustments to contingent consideration liabilities measured at fair value through profit and loss, gain or loss on sale of assets, gain or loss on sale of investments, foreign exchange loss (gain), impairment and other charges that include direct and incremental business acquisition related costs.
“Free Cash Flow” means Adjusted EBITDA less capital expenditures and income taxes paid during the period.
“Free Cash Flow Conversion” is equal to Free Cash Flow for the period divided by Adjusted EBITDA for the period.
“Monthly Active Users” (“MAU”) is defined as the number of individuals who have visited our communities within a calendar month, based on data as measured by Google Analytics. To calculate average MAU in a given period, we sum the total MAU for each month in that period, divided by the number of months in that period.
For Fiscal Year (FY) 2024, the Company’s Adjusted EBITDA and Net Loss were
SOURCE VerticalScope Holdings Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250408906607/en/
For further information
Investor and media inquiries:
VerticalScope — Vincenzo Bellissimo, Chief Financial Officer, Tel: 416-341-7166, IR@verticalscope.com
FNK IR — Matt Chesler, CFA, Tel: 646-809-2183, fora@fnkir.com
Related Links
http://www.verticalscope.com
Source: VerticalScope Holdings Inc.
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