Sportradar AG(SRAD)2024-05-15 16:38Financial Data and Key Metrics - Revenue for Q1 2024 was €266 million, up €58 million or 28% year-over-year [7] - Net loss for the quarter was €1 million, compared to a profit of €7 million in the prior year quarter [7] - Adjusted EBITDA was €47 million, up €11 million or 29% year-over-year, with an adjusted EBITDA margin of 18% [35][69] - Full-year revenue and adjusted EBITDA growth guidance raised to at least 21% [5][73] - Net cash from operating activities was €67 million, up €10 million or 17% year-over-year [66] Business Line Performance - Betting Technology & Solutions revenue grew 35% year-over-year to €219 million, driven by streaming and betting engagements, live data and odds, and managed betting services [67] - Sports Content, Technology & Services revenue grew 5% year-over-year to €47 million, primarily driven by marketing and media services [37] - Managed Trading Services (MTS) turnover grew 28% year-over-year to approximately €9 billion [30] Geographic Performance - Rest of World revenues grew 19% year-over-year to €200 million, representing 75% of total revenues [68] - U.S. revenues grew 65% year-over-year to €66 million, representing 25% of total revenues [68] Strategy and Industry Competition - The company is focused on driving shareholder value through a growth strategy centered around content, data, and technology [18] - Key partnerships with ATP and NBA are amplifying revenue growth and driving customer uptake of additional services [28] - The company is investing in AI and computer vision technology to enhance products and drive fan engagement [15][62] - The company is leveraging its scale and resources, with over 800 betting operators, 400 sports leagues, and 900 media partners [56] Management Commentary on Operating Environment and Future Outlook - The company is confident in its outlook, supported by a consistent track record of at least 20% revenue growth for the past three years [14] - The company expects adjusted EBITDA margins to progress from the mid-to-high teens in the first half of the year to the low-20s in the second half [44] - The company is focused on sustainable profitability and unlocking operating leverage across all major expense line items [75] Other Important Information - The company is commencing a $200 million share repurchase program in the upcoming trading window [13][72] - The company has made key additions to its leadership team, including a new CFO and Chief Technology and AI Officer [17][26] - The company has simplified its financial reporting approach to align with its streamlined global organizational structure [2][65] Q&A Session Summary Question: Data rights and pricing strategy for NBA and ATP contracts [47] - The company successfully integrated ATP and NBA contracts, with U.S. revenues exceeding expectations [48] - The company expects to benefit from strong growth in the coming years due to the linear amortization of sports rights costs [49] Question: Guidance and cost phasing [79] - The company saw some phasing in cloud service credits and project rollouts, but remains confident in its full-year outlook [80] Question: Impact of AI and technology on growth and profitability [106] - The company is leveraging AI to enhance products and drive innovation, with new products like Alpha Odds showing promising results [108][60] Question: U.S. regulatory environment and its impact on the business [120] - The company sees no negative impact from the current U.S. regulatory environment and is confident in its ability to navigate changes [121] Question: Pricing strategy for NBA contracts [130] - The company focuses on creating value through innovative solutions rather than overstretching pricing, with revenue share being the core model in the U.S. [131] Question: Expansion in Brazil [149] - The company is actively investing in the Brazilian market, which is expected to grow significantly in the coming years [136][151]