Cloud Technologies, one of the world’s largest data providers, is growing at a faster rate than the market. In December 2023, data sales to primary clients increased by 11% year on year. The double-digit growth rate of the technology company, listed on the Warsaw Stock Exchange (GPW), owes to the effective implementation of its development strategy for 2023-2025, which is based on organic growth. Simultaneously, Cloud Technologies, which holds information on 5 billion users from more than 200 markets around the world, plans to expand on the way it uses its data. The Data Seed program, aimed at startups and project teams, serves to find new applications, including for the development of artificial intelligence systems.
“The sales dynamic in December 2023 and throughout the past year confirms that, despite a high base, we maintain data sales growth and can effectively implement our development strategy. We are growing faster than the market and still have growth potential. We are beneficiaries of digital advertising processes and the transformation of the entire sector. Moreover, the development of artificial intelligence systems, which generates a higher demand for high-quality data, favors our business development. Regardless of this, innovative data usage in new areas, such as AI, can become an additional growth engine. This is the kind of solution we are looking for within the Data Seed program aimed at startups,” emphasizes Piotr Prajsnar, CEO of Cloud Technologies.
The reported data sales dynamics index includes key Cloud Technologies clients and is expressed in USD. Approximately 80% of Cloud Technologies’ data sales revenue comes from the world’s largest advertising market, the USA, which is one of the most demanding and competitive advertising markets worldwide. According to eMarketer forecasts, global online advertising expenditures will continue to grow at least until 2027, at a double-digit rate, and the share of online advertising in total advertising expenditures will reach 74%.
The share of data-based advertising, or programmatic, in online advertising is dynamically growing. In the USA – a key market for Cloud Technologies – according to eMarketer forecasts, programmatic advertising expenditures will account for 90% of all digital display advertising expenditures this year, and the share of programmatic in the US advertising market in 2024 will grow by 15% year on year. Meanwhile, according to a report by Grand View Research, the predicted value of the global AdTech market, in which Cloud Technologies operates, will grow to $2.4 trillion in 2030, representing a CAGR of 13.7% in the 2023-2030 period. Cloud Technologies, through their proprietary technology, has the potential to continue growing in this promising market.
The strategic goal of Cloud Technologies for 2023-2025 is further dynamic data sales development in current and new areas with a high growth potential. As part of its strategy, the company plans to allocate up to $100 million PLN in 2023-2025. The detailed plan includes dedicating up to $60 million PLN for potential acquisitions and investments, around $10 million PLN for research and development, and about $30 million PLN for the purchase of 250,000 shares as part of a motivational program for employees, of which 125,000 shares have already been purchased in December 2023. Meanwhile, the Board of Cloud Technologies recommended introducing a dividend policy, with a dividend amounting to approximately 20% of adjusted EBITDA. On June 30, the company paid dividends amounting to a total of 4.6 million PLN from net profit for 2022, which amounted to 1 PLN dividend per share.
