YouGov PLC (LON:YOU) said the phasing of its revenue growth and margin delivery will be weighted towards the second half of its current financial year.
The market research firm said it is confident it will achieve full-year targets in line with its second five-year growth plan.
In the six months to January 31, 2021, YouGov said it performed well during the period with underlying revenue growth across all three divisions.
Performance was led by Data Services thanks to strong demand for more tactical, fast turnaround projects, while progress in Data Products and Custom Research was more moderate.
However, both divisions have seen positive momentum with larger, more strategic projects coming through towards the end of the calendar year, which provides visibility for the second half.
Mainland Europe is on track to deliver a better than expected performance, the firm said.
Headline operating profit was impacted by an increased non-cash share-based payments charge, while underlying margin continued to grow.
During the period, YouGov said it continued to invest globally, starting expansion into a further 15 countries, and expnding its technology platform by launching new products and working towards bringing its entire product suite onto a single platform.
In a note to clients, analysts at Peel Hunt upgraded YouGov to ‘add’ from ‘hold’ and raised their target price for the stock to 1,200p from 1,020p as they said the incoming multi-year projects will underpin organic revenue growth for the coming years.
“The group is making good progress in achieving its five-year financial targets with the potential of earnings beats in the near term,” they noted.
YouGov shares shed 2% to 1,070p early on Friday.