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High Roller Technologies, Inc.(ROLR) - 2025 Q1 - Earnings Call Transcript
ROLRHigh Roller Technologies, Inc.(ROLR)2025-05-15 21:30
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Financial Performance Overview - High Roller Technologies reported total revenue of 6.8millionforQ12025,reflectinga46.8 million for Q1 2025, reflecting a 4% increase compared to the same period last year, with a gross win margin of 4.8%, up by 4.3% year-over-year [4] - The net loss for the quarter was approximately 3.3 million, with a net loss ratio of 0.39,whichis500.39, which is 50% greater than the previous corresponding period [4] - The operating loss increased compared to the previous corresponding period, primarily due to a marketing overspend of approximately 4.1 million, a 50% increase from the previous year [5] Business Lines and Market Data - The affiliate brand Casino Room contributed nearly 1.6millioninrevenueduringQ12025,maintaininganaffiliate−onlymodelinemergingandnon−coremarkets[15]−Thecompanyaddedover750newgamestoitscasinolibrary,bringingthetotaltoover5,300gamesfrommorethan90providers[6]−HighRolleradded30,000newactivedepositingcustomers,representinga341.6 million in revenue during Q1 2025, maintaining an affiliate-only model in emerging and non-core markets [15] - The company added over 750 new games to its casino library, bringing the total to over 5,300 games from more than 90 providers [6] - High Roller added 30,000 new active depositing customers, representing a 34% increase from the previous corresponding period [7] Strategic Direction and Market Focus - The company is focusing on high-potential regulated markets, specifically targeting Finland, Ontario, and Alberta for future expansion [9][10] - High Roller has submitted its initial licensing application to Ontario, which is one of the largest regulated markets globally, with a total addressable market opportunity of nearly 2.5 billion annually [11] - Alberta has passed legislation to establish a framework for online gaming, which aligns with High Roller’s strategic focus on regulated markets [12] Management Commentary on Future Outlook - Management expressed optimism about the future, highlighting the strategic organizational and operational realignment plan aimed at focusing on high-potential markets [5][9] - The company expects cash flow and margins to increase in the second half of 2025 as it reallocates capital to growth market opportunities [6] - Management emphasized the importance of partnerships, particularly with Spike Up Media, to drive customer acquisition and enhance marketing effectiveness [19] Other Important Information - The company is undergoing a brand identity refresh in anticipation of its regulated market expansion [6] - A strategic advisory board has been established to assist with the transition and optimization of operations [5] Q&A Session Summary Question: Future market expansion beyond mentioned markets - Management indicated excitement about future market expansion, leveraging industry connections and data insights to make strategic decisions [26][27] Question: Plans to add sports betting - Management confirmed that while the primary focus is on casino operations, they plan to add sports betting as a secondary revenue stream when it becomes relevant [28][29] Question: Impact of organizational operation agreement plan - Management noted positive outcomes from the strategic initiatives, with expectations for growth in regulated markets like Ontario and Finland [30][31] Question: Concerns about capital and potential capital raise - Management reassured that current capital is expected to sustain operations through the year without the need for an additional capital raise [38]