S4 Capital PLC on Tuesday raised its 2021 targets after revenue and gross profit growth accelerated in the first quarter, as clients continue to increase investment in digital content and data.
The U.K. digital advertising and marketing-services company said it will now target 30% like-for-like growth in revenue and gross profit in 2021, up from 25% previously, and a strong operating earnings before interest, taxes, depreciation and amortization margin.
For the first quarter, revenue and gross profit were up 35% and 33%, respectively, on a like-for-like basis.
S4 said reported revenue increased 71% to 122 million pounds ($169.7 million) in the quarter, while gross profit was up 71% at GBP104 million.
The company also said there is a strong chance of achieving its three-year plan of doubling the group's size organically.
"We are extremely optimistic about our prospects for this year and next, given the huge global fiscal and monetary stimulus introduced to counter the impact of the pandemic and the subsequent increase in consumer savings ratios and stagnation of corporate capital investment," Executive Chairman Martin Sorrell said.