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YouGov shares have fallen over 70% over the past year / Image source: Adobe
  • Ex-Meta executive served 18 months
  • Shares down more than 70% over the past year
  • YouGov co-founder Stephan Shakespeare will be interim CEO

Shares in YouGov (YOU:AIM) were down nearly 2% to 355p in early morning trading as the online research data and analytics group said CEO Steve Hatch would step down with immediate effect.

Hatch joined YouGov 18 months ago from Facebook-owner Meta Platforms (META:NASDAQ) where he was vice president of Northern Europe.

Under his tenure, YouGov shares have plummeted – falling more than 70% in the past year.

SHAREHOLDER ACTIVIST INVESTOR PRESSURE

Earlier in the year (13 January) shareholder activist investor Gatemore Capital Management called for the urgent replacement of YouGov CEO Steve Hatch in an open letter to the company due to a poor operating performance under his leadership.

Gatemore Capital Management who manages Gatemore Special Opportunities Fund holds an economic interest of approximately 1.5 million shares or 1.3% in the online research data and analytics group.

Stephan Shakespeare, co-founder, and current chair will return as interim CEO while the search for Hatch’s successor begins.

Liad Meidar, managing partner of Gatemore Capital Management welcomed the appointment saying: ‘His long tenure at YouGov’s helm, deep expertise of the media research industry and strong alignment with shareholders will allow him to make the changes necessary to unlock YouGov’s full value.

‘We remain convinced that a sale process is the optimal solution to the company's challenges and urge the company to conduct a comprehensive strategic review.’

HALF YEAR PERFORMANCE IN LINE

Separately the online research data and analytics group said in a trading update that it had delivered a ‘stable’ performance in the half year ending 31 January.

The company’s data products division returned low-single digit growth on an underlying basis due to stable renewal rates and a good performance with their media agencies sector.

The previously announced cost optimisation plan to realise annualised cost savings of £20 million remains ‘on track’, with 70% of those savings expected to be achieved in full year 2025.

A 'POSITIVE NOTE'

Analysts at Berenberg seemed relatively impressed with YouGov’s modest growth (on an underlying basis) in ‘challenging conditions.’

‘On a positive note, data products has returned to low-single-digit growth on an underlying basis and renewal rates have been stable.

‘Research delivered low-single-digit underlying growth and CPS (consumer panel services business) continues to perform in line with management expectations.

‘Additionally, the update highlights that the group will continue to invest in key growth areas such as its data products and AI-enabled capabilities to drive growth in the medium term.’

Berenberg analysts acknowledged the current board changes but did not directly comment on Steve Hatch’s departure.

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Issue Date: 04 Feb 2025