YouGov shares sink after issuing soft guidance

YouGov investor had a nasty shock on Thursday after the research and data group slashed its revenue forecasts and issued disappointing profit guidance. 

In March of this year, the company buoyed investors with talk of £650m revenue in the medium term as the benefits of an acquisition were felt. 

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Fast forward barely three months and the company has blamed lower data product sales bookings for full year revenue not exceeding £327m.

YouGov shares tanked over 30% as a result of the negatively revised guidance on Thursday. With shares trading at 540p, the YouGov stock is significantly below 52-week highs set in February 2024.

YouGov said sales of its data products were slow and some of the integration of a recent acquisition may slip into the next financial year. Suggesting to investors they could achieve revenues of £650m in the medium term now seems somewhat premature.

“Casual observers of YouGov might assume the company would enjoy a bumper time during the election but its polling operation makes a relatively modest contribution to group revenue,” said AJ Bell investment director Russ Mould.

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“The data analytics side is more important and this is where the company is struggling. The company invested for an expected acceleration of growth in the second half of its financial year which, in classic fashion, failed to materialise.”

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