Sportradar Group Ag · NASDAQ:SRAD
Sportradar — Q3 2024 Earnings Presentation
28 slides from Sportradar's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 EARNINGS PRESENTATION | November 7, 2024
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Delivering Double Digit Growth & Raising 2024 Outlook
DELIVERING DOUBLE DIGIT GROWTH & RAISING 2024 OUTLOOK Delivered strong results with record 3Q revenue, up 27% year-over-year, growth of 30% in 1 Adjusted EBITDA1 and margin expansion 2 Driving content ROI through innovation and scaling products across our sports portfolio Generated strong Free cash
Slide 4: Strong Performance on All Key Metrics: 3Q 2024 Financial Highlights
STRONG PERFORMANCE ON ALL KEY METRICS 3Q 2024 FINANCIAL HIGHLIGHTS Revenue Adjusted EBITDA Adjusted EBITDA YTD Free Cash Flow margin1 +27% +30% +67 bps +140% €255MM €66MM 25.8% €122MM 1 Non-IFRS financial measure; see the Appendix for defined terms and reconciliations of non-IFRS measures to IFRS me
Slide 5: Achieved Record 3rd Quarter Revenue
ACHIEVED RECORD 3RD QUARTER REVENUE Marks 3Q 3rd has revenue consecutive nearly doubled quarterly in 3 years revenue record 5
Slide 6: Unmatched Breadth and Scale in the Global Sports Ecosystem
400 LEAGUES, TEAMS & FEDERATIONS UNMATCHED BREADTH AND 800 BETTING OPERATORS SCALE IN THE GLOBAL SPORTS ECOSYSTEM 900 MEDIA / TECH PARTNERS MATCHES ANNUALLY, ~1MM COVERING ~ 70 SPORTS 6
Slide 7: Significant Ability to Drive Operating Margins and Cash Flow
SIGNIFICANT ABILITY TO DRIVE OPERATING MARGINS AND CASH FLOW Average contract term remaining for select major contracts ~6 years ~6 yrs • Disciplined and strategic, with a diverse portfolio of exclusive global sports content, including basketball, soccer, hockey and tennis. • Secured major sports co
Slide 8: Driving Content ROI as We Leverage Products Across Sports Portfolio
DRIVING CONTENT ROI AS WE LEVERAGE PRODUCTS ACROSS SPORTS PORTFOLIO 4SIGHT STREAMING IN-GAME & MICRO MARKETS • Award winning audiovisual product, helping to engage, • Our premium sports portfolio lends itself to in-game betting. acquire and retain fans and foster in-game betting. • Launched micro ma
Slide 9: Driving Content ROI: Managed Trading Services and Alpha Odds
DRIVING CONTENT ROI AS WE LEVERAGE PRODUCTS ACROSS SPORTS PORTFOLIO MANAGED TRADING SERVICES (MTS) ALPHA ODDS • Enables sportsbooks to optimize their trading • Provides tailored odds, leveraging deeper data and AI to performance with a range of integrated trading tools, generate higher margins. anal
Slide 10: Scaling ad:s Across Multiple Channels
SCALING AD:S ACROSS MULTIPLE CHANNELS Served over 50 Billion Ad Impressions for over 200 Gambling Operators over the past year Programmatic Affiliate MARKETING Paid search SERVICES Retention Paid social 360° MARKETING SOLUTION FROM UNDERSTANDING THROUGH TO RETENTION Understand Reach Engage Acquire R
Slide 11: Financial Results
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Slide 12: Delivered Strong Revenue and Profitability
DELIVERED STRONG REVENUE AND PROFITABILITY CONSOLIDATED REVENUE (€M) CONSOLIDATED ADJUSTED EBITDA (€M) KEY QUARTERLY TAKEAWAYS • Achieved record 3Q revenue of €255 million, up 27%, and grew Adjusted EBITDA by 30%. • Saw broad-based strength driven by higher customer spending and increased uptake of
Slide 13: Summary of Revenue to Adjusted EBITDA
SUMMARY OF REVENUE TO ADJUSTED EBITDA (€M) Q3 2023 Q3 2024 YTD 2023 YTD 2024 Revenue 201 255 625 799 Sport rights expense (36) (63) (139) (250) Adjusted purchased services1 (34) (36) (99) (110) Adjusted personnel expenses1 (58) (69) (191) (210) Adjusted other operating expenses1 (23) (21) (68) (68)
Slide 14: Betting Technology & Solutions
BETTING TECHNOLOGY & SOLUTIONS REVENUE (€M) KEY QUARTERLY TAKEAWAYS • Betting Technology and Solutions revenue increased 32% YoY, primarily driven by: • Betting and Gaming Content grew €44 million or 37%, benefiting from existing and new customer uptake of our products, premium pricing and strong U.
Slide 15: Sports Content, Technology & Services
SPORTS CONTENT, TECHNOLOGY & SERVICES REVENUE (€M) KEY QUARTERLY TAKEAWAYS • Sports Content, Technology and Services revenue increased 8% YoY, primarily driven by: • Marketing and Media Services grew €3 million, up 10% year-over-year due to strong growth in ad:s revenue as several sportsbooks launch
Slide 16: Sport Rights Expenses and Purchased Services
SPORT RIGHTS EXPENSES AND PURCHASED SERVICES SPORT RIGHTS EXPENSES1 (€M) KEY QUARTERLY TAKEAWAYS 250 • Sport rights expenses were €63 million, 139 up €27 million or 77% year-over-year, driven by new rights, in particular our ▲ ATP partnership deal. 63 80% 36 ▲ 77% • Adjusted purchased services grew
Slide 17: Personnel Expenses and Other Operating Expenses
PERSONNEL EXPENSES AND OTHER OPERATING EXPENSES ADJUSTED PERSONNEL EXPENSES (€M) KEY QUARTERLY TAKEAWAYS • Adjusted personnel expenses were €69 million, up €12 million or 21% year-over-year but were down ▲ ▲ 10% approximately 140 basis points as a percent of 21% revenue. • Excluding the prior year o
Slide 18: Cost Profile and Drivers of Operating Leverage
COST PROFILE AND DRIVERS OF OPERATING LEVERAGE ADJUSTED EBITDA MARGIN & EXPENSES AS A % OF REVENUE KEY TAKEAWAYS • Expect Adjusted EBITDA margin expansion in 2024. Focus on efficiencies in major costs lines driving operating leverage, offsetting the step up in sport rights costs. • Increasing Adjust
Slide 19: Strong Cash Generation and Liquidity Position
STRONG CASH GENERATION AND LIQUIDITY POSITION Free Cash Flow (€M) Total Liquidity (€M) Revolver Cash and cash equivalents KEY TAKEAWAYS • Grew Free cash flow 140% to €122 million year-to-date. 588 • Strong balance sheet with 510 increasing liquidity position and 264 220 no debt outstanding. • Total
Slide 20: Raising FY2024 Outlook
RAISING FY2024 OUTLOOK Metric Prior Revised Change At least €1,070 million At least €1,090 million Revenue + €20 million +22% YoY growth +24% YoY growth At least €204 million At least €216 million Adjusted EBITDA + €12 million +22% YoY growth +29% YoY growth Adjusted EBITDA margin 19.0% 19.8% +0.8%
Slide 21: Q&A
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Slide 22: Appendix
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Slide 23: Non-IFRS Financial Measures and Operating Metric
NON-IFRS FINANCIAL MEASURES AND OPERATING METRIC We have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted purchased services, Adjusted personnel expenses, Adjusted other operating expe
Slide 24: Non-IFRS Financial Measures and Operating Metric
NON-IFRS FINANCIAL MEASURES AND OPERATING METRIC We present Adjusted purchased services, Adjusted personnel expenses, and Adjusted other operating expenses ("Non-IFRS expenses") because management utilizes these financial measures to manage its business on a day-to-day basis and believes that they a
Slide 25: Q3 P&L and Adjusted EBITDA Reconciliation
Q3 P&L AND ADJUSTED EBITDA RECONCILIATION Three-Month Period Ended Three-Month Period Ended September 30, September 30, September 30, September 30, in €'000 2024 2023 in €'000 2024 2023 Continuing operations Profit for the period from continuing operations 37,102 4,615 Revenue 255,172 201,037 Financ
Slide 26: YTD P&L and Adjusted EBITDA Reconciliation
YTD P&L AND ADJUSTED EBITDA RECONCILIATION Nine-Month Period Ended Nine-Month Period Ended September 30, September 30, September 30, September 30, in €'000 2024 2023 in €'000 2024 2023 Continuing operations Profit for the period from continuing operations 34,918 11,458 Revenue 799,486 625,035 Financ
Slide 27: IFRS Expenses to Non-IFRS Expenses Bridge
IFRS EXPENSES TO NON-IFRS EXPENSES BRIDGE Three-Month Period Ended Nine-Month Period Ended September 30, September 30, September 30, September 30, in €'000 2024 2023 2024 2023 Non-capitalized sport right expenses 28,272 10,354 83,258 41,747 Amortization of capitalized sport rights 34,730 25,190 166,
Slide 28: Free Cash Flow Reconciliation
FREE CASH FLOW RECONCILIATION Three-Month Period Ended Nine-Month Period Ended September 30, September 30, September 30, September 30, in €'000 2024 2023 2024 2023 Net cash from operating activities 118,222 76,248 270,854 206,448 Acquisition of intangible assets (53,552) (50,878) (140,165) (145,085)