Avidly: More power found in the growth engine
By Inderes
Avidly's growth in Q2 was strong (+30%), but also controlled as profitability kept on its upward trajectory. Over the past year, the company has proven its ability to grow in a controlled way. The recovery of the market from the COVID slump has supported short-term growth, but, in our view, Avidly has also positioned well for long-term market growth. Looking forward and relying on earnings growth, the company’s valuation seems relatively neutral (2023e adj. P/E 14x) but not attractive enough for us to re-join the company’s promising growth story.