27 February 2023
GlobalData Plc Full Year Results
31 December 2022
GlobalData Plc (AIM: DATA, GlobalData, the Group), a leading provider of industry intelligence, today publishes its results for the year ended 31 December 2022 (FY22).
· Our strong performance in 2022 has accelerated our Adjusted EBITDA earnings expectations for FY23
· Delivered target of 10% underlying revenue growth and Adjusted EBITDA margin of 36%
· Proposed final dividend increases total dividend by 35% to 26.0 pence per share
· Strong momentum with >80% visibility on FY23 revenue and accelerating towards 40% Adjusted EBITDA margin
· Well positioned for sustainable organic growth, supported by earnings enhancing M&A
Mike Danson, Chief Executive Officer of GlobalData Plc, commented:
“Today we are reporting an excellent set of results for FY22 with overall revenue growth of 28%, including underlying revenue growth of 10% and Adjusted EBITDA margin of 36%, delivering our near-term financial targets. As signalled in our trading update on 10 January 2023, our strong performance in 2022 has brought forward our Adjusted EBITDA earnings expectations by a year.
We have delivered on our previously stated near-term financial targets and continue to drive the business forward. The resilient nature of our business model underpins confidence in our ability to continue to achieve double-digit revenue growth, significant margin progression and to pay a progressive dividend.
This year, we have continued to invest heavily in our people, our platform and in our unique product which is yielding such strong results. Our product continues to deliver mission-critical intelligence and insights to our customers driving strong growth across both new and existing customers. I would like to thank the team for all their efforts to evolve our scalable One Platform, which now covers 20 sectors, delivering must-have critical information to a growing global customer base.
We enter 2023 in a position of strength with visibility on more than 80% of our FY23 revenue guidance, giving us the confidence for both growth and margin expansion into 2023 and beyond. I believe we are at an inflection point in our journey and poised to leverage the platform further. With a strong business model and differentiated product, GlobalData is well placed to capitalise on the multiple levers open to us to create long-term compounding growth and shareholder returns in the year ahead and beyond.”
Highlights
Financial results for the year ended 31 December 2022.
| Key performance metrics | 2022 | 2021 | Growth | Underlying growth 1 |
| Revenue | £243.2m | £189.3m | +28% | +10% |
| Operating profit | £56.0m | £38.2m | +47% | |
| Adj. EBITDA 2 | £86.4m | £64.4m | +34% | |
| Adj. EBITDA margin 2 | 36% | 34% | +2p.p. | |
| Statutory profit before tax (PBT) | £38.4m | £32.6m | +18% | |
| Earnings per share (EPS) | 27.1p | 21.9p | +24% | |
| Adj. EPS 3 | 43.3p | 36.2p | +20% | |
| Total dividends | 26.0p | 19.3p | +35% | |
| Invoiced Forward Revenue 4 | £133.5m | £107.7m | +24% | +12% |
| Net bank debt 5 | £249.6m | £177.6m | +41% |
Financial Highlights
· Strong growth in both revenues and profit means we delivered our ‘rule of 40’ goal
o Underlying 1 revenue growth of 10%, underpinned by subscriptions – 81% of total revenues.
o Demonstrates the significant opportunity for GlobalData to grow revenue organically, aided by the benefit of acquisitions and currency tailwinds for reported growth of 28%.
· Adjusted EBITDA 2 up 34% to £86.4m (2021: £64.4m) and Adjusted EBITDA margin 2 improvement of 2 percentage points to 36%.
· Statutory PBT grew by £5.8m to £38.4m (2021: £32.6m) reflecting an 18% increase on prior year.
· Operating cash flow grew by 41% to £85.4m (2021: £60.5m) which was 99% of Adjusted EBITDA (2021: 94%).
· Continued improvement of Invoiced Forward Revenue 4 growth of 24% up to £133.5m at 31 December 2022 (2021: £107.7m), which includes underlying growth of 12%, the benefit of acquisitions and currency tailwinds.
· Final dividend of 18.3p, up 39% (2021: 13.2p); total dividend of 26.0p, up 35% (2021: 19.3p).
Operational Highlights
· Delivering on our Growth Optimisation Plan via four key pillars:
o Customer Obsession, World-Class Product, Sales Excellence and Operational Agility.
· Customer Obsession remains our number one priority
o Enhanced our client relationships with focused initiatives contributing to improved renewal rates, increased average client value and continued traction with multi-year deals.
· Continued investment in our World-Class Product, embedding artificial intelligence and machine learning
o Scalable ‘One Platform’ now covers 20 sectors, delivering must-have critical information.
o Our unique platform is ideally positioned to integrate new datasets and verticals.
· Immediate value derived following completion of two further strategic acquisitions
o Media Business Insight – a new vertical with deep media sector intelligence.
o TS Lombard – bringing global economic and political research filling a gap in thematic intelligence.
o Integrations on track.
· Focus on strong Sales Excellence driving results
o We start the year with 80% visibility of budgeted revenues for 2023.
· Delivering Operational Agility with continued disciplined approach to cost
· Completed refinancing to support future M&A strategy
Current Trading and Outlook
· Entering the new financial year from a position of strength and scope for further margin improvement.
· Set to deliver resilient growth – uncertainty driving demand for our ‘gold standard’ data, delivered through our One Platform.
· A focused approach to cost management and capital discipline, including mitigating the impact of inflation through advancements in technology and efficiency savings, whilst ensuring the business remains appropriately invested for sustainable growth and systematic M&A activity.
· Clear financial targets for FY23 and beyond:
o In FY23, at least 10% underlying revenue growth, adjusted EBITDA margin of 40%.
o Beyond FY23, platform in place to drive further margin enhancement through organic and inorganic growth.
Note 1: Underlying growth: Defined as growth in business excluding impact of movement in exchange rates and adjusts for the proforma results of acquired business.
Note 2: Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, adjusted to exclude costs associated with acquisitions, restructuring of the Group, share-based payments, impairment, unrealised operating exchange rate movements and the impact of foreign exchange contracts. Adjusted EBITDA margin is defined as: Adjusted EBITDA as a percentage of revenue. This is reconciled to the statutory operating profit on page 8.
Note 3: Adjusted EPS: Adjusted profit after tax per share (reconciliation between statutory profit and adjusted profit shown on page 8).
Note 4: Invoiced Forward Revenue: Invoiced Forward Revenue relates to amounts that are invoiced to clients at the statement of financial position date, which relate to future revenue to be recognised. This is reconciled to deferred revenue on page 13.
Note 5: Net bank debt: Short and long-term borrowings (excluding lease liabilities) less cash and cash equivalents.
ENQUIRIES
| GlobalData Plc | |
| Mike Danson, Chief Executive Officer | 0207 936 6400 |
| Graham Lilley, Chief Financial Officer | |
| J.P. Morgan Cazenove (Nomad and Joint Broker) | 0207 742 4000 |
| Bill Hutchings / Mose Adigun | |
| Panmure Gordon (Joint Broker) | 0207 886 2500 |
| Rupert Dearden / Dougie McLeod | |
| Numis Securities (Joint Broker)Nick Westlake / Iqra Amin | 0207 260 1000 |
| FTI Consulting LLP (Financial PR) | 0203 727 1000 |
| Edward Bridges / Dwight Burden / Emma Hall |