YouGov : FY23 Half-Year Results

21 March 2023

YouGov plc

("YouGov" or the "Group")

Results for the six months to 31 January 2023

• • Strong H1 performance with continued growth momentum against a difficult macro environment
• Significant margin improvement despite ongoing investment in technology and international reach
• • Continued confidence in achieving FY23 market expectations

YouGov, the international research and data analytics group, announces its results for the six months ended 31 January 2023.

Summary of Results

1. Defined as growth in business excluding impact of current and prior period acquisitions and movement in exchange rates.
2. Defined in the explanation of non-IFRS measures below.

Financial highlights

• Revenue growth of 30% (HY22: 28%) to £131.4m, with underlying¹ business growth of 13%, reflecting continued growth well ahead of the industry.
• Adjusted operating profit2 up by 58% (HY22: 33%) to £22.1m, with underlying¹ business growth of 32%, as business efficiencies and operational leverage benefits continue to come through.
• Adjusted operating profit margin2 up 300 basis points (bps) to 17%, strong margin expansion despite continued investment in the business for future growth.
• Statutory operating profit up by 89% £20.4m (HY22: £10.8m).
• Adjusted earnings per share2 up by 81% to 19.2p (HY22: 10.6p).

• Robust balance sheet position maintained with net cash at period end of £41.4m (31 January 2022: £20.1m).

Operational highlights

• Continued sales growth in panel-based Custom Research with increasing opportunities for multi-year contracts and trackers, building on the strong momentum seen in H2 2022.
• High-qualitydata products remain embedded across clients' workflows resulting in increased customer stickiness and retention.
  o Data Products revenue increased by 9% on an underlying¹ basis (20% on a reported basis) to £41.9m, driven by strong subscription renewal rates.
  o Data Services revenue decreased by 9% on an underlying¹ basis (3% decline on a reported basis) to £23.0m as general market softness continued to delay some clients' more discretionary spending.
  o Custom Research revenue increased by 28% on an underlying¹ basis (55% on a reported basis) to £65.3m, driven by continued sales momentum globally, as clients prioritise strategic research projects, resulting in the expansion of several client relationships.
• Broad-basedgrowth across all geographic segments, with the US remaining the key growth driver with large market opportunities continuing to accelerate in important sectors.
  o Demand in the UK has picked up despite recessionary market conditions, while Mainland Europe posted a weaker performance due to lower tactical PR activity impacting Data Services.
• Investments made during the period to meet client demand and further strengthen our technological capabilities included:
  o Technology: Continued investment of £4.4m (HY22: £3.7m) in technologies to drive long term growth, including the development of our self-serve tool, YouGov Surveys.
  o Panel: Ongoing investment of £4.8m (HY22: £4.4m) in the build-out of our panel and allocation of resources to high growth areas such as the US and Europe, to meet demand for customised research.
  o Centres of Excellence (CenX): Remain operationally integral to our platform strategy as we increase the number of functions with representation in a CenX.

Current trading and outlook

• Driven by continued investment in our technological capabilities and our international reach, the Group's sales pipeline remains healthy and continues to provide good visibility as we go into the second half of the financial year.
• While the Group has seen some slower client decision making on more discretionary spend, we continue to see large strategic opportunities in key markets and have not experienced any other material changes in client behaviour to date.
• We remain disciplined in our investment approach and will continue to optimise our cost base to ensure we are poised for further margin improvement.
• Capital expenditures, which are aimed at positioning the business for further growth in the next strategic growth plan (SP3), are expected to be maintained at a similar level to the prior year.
• While the overall weakness in macro sentiment may impact the speed and level of some client spending, our strong performance in the first half gives us confidence in

maintaining the current sales momentum to end the financial year in line with current market expectations3.

Board Succession Planning

• In line with the previously disclosed Board succession plan, Roger Parry will be standing down from the role of Non-Executive Chair. Stephan Shakespeare will assume the role of Non-Executive Chair, upon a new CEO commencing in post, currently anticipated to be on 1 August 2023, subject to the outcome of the CEO search process. The Board's Nomination Committee is considering a wide variety of both external and internal candidates as part of an international search process. A further update will be provided in due course.
• On 23 February 2023, the Group announced the appointment of Shalini Govil-Pai and Devesh Mishra as Non-Executive Directors. Shalini Govil-Pai has over 25 years' experience in the consumer technology space, particularly in the US, while Devesh Mishra brings over 25 years of global operating leadership experience across technology, product, and business operations. The addition of our two new Non- Executive Directors in Shalini and Devesh, ensures a majority of independent members on the Board following the Chair transition.

Stephan Shakespeare, Chief Executive Officer, said:

"YouGov delivered a strong performance in the first half of our financial year, against a difficult macro environment. In line with our strategy, top-line growth momentum has continued across all geographic segments, and we achieved significant margin expansion and good cash generation during the period.

Our demand environment remains robust with increasingly sticky, long-term relationships with existing customers, and growing opportunities for multi-year contracts and trackers with new customers. This sales momentum has continued into the second half of the year, giving us confidence that YouGov can achieve top-line growth for the full year in line with current market expectations.3

As we approach the final stretch of our current long-term strategic growth plan, I am more confident than ever that we are investing in the right areas to realise the full potential of our business. We look forward to showcasing the results of our efforts alongside our plans for SP3 at our upcoming Capital Markets Day."

3. Based upon the average of 6 analyst estimates, the Company-compiled consensus estimate for FY23 Group revenue is £265 million.

Analyst presentation

A copy of the presentation will be available online at https://corporate.yougov.com/investors/presentations/shortly after the half-year results announcement is live on the Regulatory News Service (RNS).

Capital Markets Day

The Company will host a Capital Markets Day for institutional investors and analysts in London on Wednesday 17th May 2023 where we will present the next strategic growth plan and our continued evolution into a leading market research platform. The day will be hosted by CEO Stephan Shakespeare, CFO Alex McIntosh, and COO Sundip Chahal and will include presentations from leaders within the Group.

Forward looking statements

Certain statements in this full year report are forward looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

About YouGov

YouGov is an international online research data and analytics technology group.

Our mission is to offer unparalleled insight into what the world thinks.

Our innovative solutions help the world's most recognised brands, media owners and agencies to plan, activate and track their marketing activities better.

With operations in the UK, the Americas, Europe, the Middle East, India and Asia Pacific, we have one of the world's largest research networks.

At the core of our platform is an ever-growing source of consumer data that has been amassed over our twenty years of operation. We call it Living Data. All of our products and services draw upon this detailed understanding of our 24+ million registered panel members to deliver accurate, actionable consumer insights.

As innovators and pioneers of online market research, we have a strong reputation as a trusted source of accurate data and insights. Testament to this, YouGov data is regularly referenced by the global press, and we are the second most quoted market research source in the world.

YouGov. Living Consumer Intelligence.

For further information, visit business.yougov.com

Chief Executive Officer's Review

YouGov has delivered another strong performance in the first half of the current financial year as demand for our products and services remains robust. While the overall macro environment remains uncertain, the Group has continued to demonstrate the value of its data to clients thereby maintaining strong renewal rates and expanding several key relationships. Following a concerted focus on limiting cost growth, the Group has seen significant improvement in its operating profit margin in the period, while investing in areas that will drive future growth.

Factors contributing to our positive performance in the period include:

• Key geographies: Solid performance was seen in the US, particularly in Custom Research, and recovery in the UK as overall market sentiment has improved.
• New products: Initial contribution from early-stage products, YouGov Safe and FreeWall®, that are gaining encouraging traction with clients.
• Operational leverage: Investments in recent years to expand our sales teams, central functions and CenX operations are beginning to deliver margin benefits as our top-line expands.

Delivering on our strategic priorities

Based on our strategy, we have previously identified five key priorities that will be a focus in the near term. The key progress made under each of these priorities over the first half of the financial year has been set out below.

Product development and technology

• Launched YouGov Surveys, our self-serve tool allowing users to build surveys with granular targeting capabilities.
• Continued the development of the YouGov Platform with the launch of free audience and brand data tools that enable individuals and businesses to experience the power of
  YouGov's data.

Panel

• Growth in our global research panel of 20% to 24 million registered members, while lowering global cost per acquisition through diversification and optimisation of our acquisition channels, including the use of YouGov Chat to recruit hard-to-reach groups.
• Utilised our latest technology acquisition, YouGov FreeWall®, to expand our panel reach through publisher networks to deliver targeted digital campaigns.

Global accounts

• Increased share of wallet with several key clients globally, particularly in the technology and gaming sectors in the US, through panel-based Custom Research projects.
• Achieved strong renewal rates for our subscription products in an increasingly uncertain macro environment.