Mirriad Advertising poised for further growth in North America and Europe
( ), the in-content advertising company, announced final audited results for FY22 ended December 2022. Revenues decreased to £1.5m from £2.0m in FY21 after the company exited its Chinese business and refocused on the US market. EBITDA loss widened to £15.2m from £11.6m in FY21, and cash burn increased to £12.9m from £10.4m in FY21 as Mirriad continued to develop its US and tech teams. Net cash was still a comfortable £11.3m, down from £24.5m in FY21.
Operational key performance indicators (KPIs) painted a bright picture for future revenue generation. On the supply side, Mirriad's active partnerships increased by 48% to 37, supply partners represented increased by 33% to 61, and seconds of content available increased by 38% to 651,990. On the demand side, the number of advertisers placing campaigns increased by 31% to 59.
Post-period, Mirriad announced a collaboration with Microsoft in May to develop an API incorporating Microsoft's Azure AI. Mirriad also raised £6.3m in a placing and open offer to provide funding until at least June 2024.
Mirriad's lower performance in FY22 was a result of its decision to exit the Chinese market. Covid-19 restrictions in China and their knock-on effect on consumer confidence, content production, and advertising spend, led to a sharp contraction of revenues in that market, prompting Mirriad to cease operations there and refocus on the much larger US market.
The transition naturally hurt revenues, EBITDA loss, and cash burn in FY22. However, with the shift away from China complete, prospects for the company are bright for FY23 and beyond as indicated by the abovementioned operational KPIs. Mirriad is now thriving in North America, with US revenues up 34% to £1.2m, accounting for 78% of total revenue, up from 44% a year ago, and a sharp rise in partnerships. European revenues also increased 24% to £178k during the period with work for Aldi on RTL in Germany and a second campaign on Channel 4 for Pinterest in the UK. Mirriad also announced its first test campaigns in Japan for Fuji TV and Gaie.
In addition, further restructuring of business is underway to reduce Mirriad's cash burn from an average of £1.1m/month in FY22 to an expected £680k/month between July 2023 and June 2024. The company is also increasing R&D spend to develop further integration and automation like programmatic delivery, with the abovementioned partnership with Microsoft expected to yield tangible benefits.
Mirriad is entering H2 2023 with strong momentum on the back of solid growth in the US and EMEA. As streaming opens up to advertising, the company's patented in-content solution is well-placed to benefit from the needs of a global advertising industry that is facing challenges of ad-skipping, dwindling viewer attention, and oversaturation of limited ad space.
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