Yesterday, MGI announced that its organic growth rate continued its impressive trajectory, increasing to 25% in February 2024. This follows an earlier announcement of an 18% organic growth rate in January 2024. The continued robust organic growth rate further sets up the start of the year and puts upward pressure on our near-term revenue estimates.

According to the company, February 2024 saw record revenues driven by new customer onboardings, increased budgets from existing customers, and growing demand for ID-less targeting solutions. The increase in new customers and increased spending from existing customers is a strong sign that ad demand has started recovering. In addition, it appears that MGI's investments in ID-less targeting solutions are further improving the competitiveness of its advertising platform and positioning it to take full advantage of the recovery.

Our current estimates assume revenue growth of 11% in Q1’24, which undoubtedly seems low compared to yesterday's announcement and will need to be revised upwards. The increased growth rate in February also increases confidence that a high growth rate can be maintained throughout the year, which subsequently also puts upward pressure on our full-year revenue estimate. Our current revenue estimate for 2024 is 358 MEUR, representing a growth of 11% year-on-year.