Sportradar Group Ag · NASDAQ:SRAD
Sportradar — Q4 2023 Earnings Presentation
27 slides from Sportradar's earnings presentation, Mar 20, 2024
Slide 1: Q4 & Full Year 2023 Earnings Presentation
Q4 & FULL YEAR 2023 EARNINGS PRESENTATION | March 20, 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 Record Performance & Shareholder Value
DELIVERING RECORD PERFORMANCE & SHAREHOLDER VALUE 1 Record results in 2023, 3rd consecutive year of at least 20% topline growth. 2 Enhanced content portfolio signing long-term partnerships, including ATP, NBA, NASCAR, CONMEBOL & Bundesliga. 3 Authorized $200mm USD share repurchase program. 4 Bolster
Slide 4: FY 2023 Financial Highlights
FY 2023 FINANCIAL HIGHLIGHTS Strong Execution Delivering Double-Digit Growth and Margin Expansion Revenue Adjusted EBITDA1 Adjusted EBITDA (in millions) (in millions) Margin1 €878 €167 19% Adjusted EBITDA Revenue Growth Adjusted EBITDA1 Growth Margin1 Expansion +20% +33% +177bps 4
Slide 5: Sustainable Revenue Growth Profile
SUSTAINABLE REVENUE GROWTH PROFILE Revenue more than doubled in Marks 3rd just 3 years Marks 3rd Consecutive Consecutive year of 20%+ year of 20%+ Revenue Revenue Growth Growth 5
Slide 6: Continued Business Momentum
CONTINUED BUSINESS MOMENTUM Sports Leagues and Federations Betting Operators and Sportsbook Solutions • Enhanced content portfolio with signings of ATP, NBA, • Locked in ~100% of US market for official NBA data with NASCAR, Bundesliga and others. signing of Caesars and BetMGM. • Global partnerships
Slide 7: Leading Solutions Provider to the Sports Ecosystem
LEADING SOLUTIONS PROVIDERTO THE SPORTS ECOSYSTEM 800 BETTING OPERATORS • Largest AV content offering with 450,000 live AV streams • Scaled managed trading business with €30B in annual turnover 900 MEDIA PARTNERS • Generated over 10 billion live odds changes • Collect, curate and distribute almost 2
Slide 8: Enhanced Content & Data Portfolio with NBA and ATP
ENHANCED CONTENT & DATA PORTFOLIO WITH NBA AND ATP 1.6B 2.2B Fans Worldwide Fans Worldwide #1 Most bet U.S. sport #2 182B Bet on sport in Estimated betting the world turnover 87M Tickets processed through MTS system 8
Slide 9: Revolutionizing the Audio Visual Market with Sportradar4Sight
REVOLUTIONIZING THE AUDIO VISUAL MARKET WITH SPORTRADAR4SIGHT STREAMING TECHNOLOGY The next evolution in audio visual engagement Launched with ATP at Indian Wells. Enhances our core audio visual offering. Seamlessly integrates with sportsbooks. Integrates animated overlays. Leverages deep data. Incl
Slide 10: Creating the Ultimate Bet and Watch Experience with Embet
CREATING THE ULTIMATE BET AND WATCH EXPERIENCE WITH EMBET Watch. Engage. Bet on sports content. Video Streams Live Data Unlock new revenue streams for OTT streaming & sportsbook partners while allowing fans to bet on the streamed game in real-time. Insights Integrates first-to-market betting and eng
Slide 11: Alpha Odds Is a Game Changer
ALPHA ODDS IS A GAME CHANGER Game-Changing Trading Technology, Proven to Increase A Betting Operator's Profitability Preferred choice for over 60 betting operators around the world. Builds on market-leading core odds product, using our advanced AI capabilities. Generates tailored odds for individual
Slide 12: Strong Outlook and Long-Term Value Creation
STRONG OUTLOOK AND LONG-TERM VALUE CREATION 1 Targeting at least 20% growth in both revenue (€1,050 million) and adjusted EBITDA (€200 million) in FY2024. 2 Growth driven by underlying market, sustained momentum from existing business and uplift from NBA & ATP. 3 Strong topline growth, enhanced oper
Slide 13: Financial Results
sp rtradar SPORTS TECHNOLOGY. REIMAGINED. FINANCIAL RESULTS
Slide 14: Delivered Strong Revenue and Margin Expansion
DELIVERED STRONG REVENUE AND MARGIN EXPANSION CONSOLIDATED REVENUE (€M) CONSOLIDATED ADJUSTED EBITDA1 (€M) KEY TAKEAWAYS 878 FY 23 167 • Delivered strong top and bottom-line 730 growth with revenue up 20% and AEBITDA up 33%. 126 • Marks 3rd consecutive year of at least 20% revenue growth, consistent
Slide 15: RoW Betting
RoW BETTING 467 REVENUE (€M) 389 KEY TAKEAWAYS 132 106 FY2023 20% • Increased revenue 20% YoY, driven by increased sales of MBS 25% which grew 29%, as well as Live Odds growth of 21%. Q4 22 Q4 23 FY 22 FY 23 • Grew Adjusted EBITDA 15% YoY, as growth in revenue was slightly offset by higher operating
Slide 16: RoW Audiovisual
RoW AUDIOVISUAL REVENUE (€M) 182 KEY TAKEAWAYS 50 161 FY 23 42 20% 14% • Increased revenue 14% YoY, driven by new rights (CONMEBOL) and NBA, as well as uplift from services to Q4 22 Q4 23 FY 22 FY 23 existing and new customers. ADJUSTED EBITDA1 (€M) • Grew Adjusted EBITDA 12% YoY, due to strong reve
Slide 17: United States
UNITED STATES REVENUE (€M) 166 KEY TAKEAWAYS 127 53 41 FY 23 28% 30% • Drove 30% revenue growth, benefitting primarily by 72% growth in Betting & Gaming and AV. Q4 22 Q4 23 FY 22 FY 23 • Achieved profitability with AEBITDA of €19 million or an AEBITDA margin of 11% vs a loss in 2022, due to strong m
Slide 18: Personnel Expenses and Other Operating Expenses
PERSONNEL EXPENSES AND OTHER OPERATING EXPENSES PERSONNEL EXPENSES (€m) KEY TAKEAWAYS Share-based compensation (SBC) Personnel expenses excl. SBC 326 FY 23 89 266 40 81 • Personnel expenses excluding stock-based compensation (SBC) grew 8 29 286 9 21% due to greater number of FTEs, higher salaries an
Slide 19: Purchased Services & Licenses and Sport Rights Costs
PURCHASED SERVICES & LICENSES AND SPORT RIGHTS COSTS PURCHASED SERVICES AND LICENSES (€m) KEY TAKEAWAYS 152 FY 23 48 37 • Purchased Services and Licenses* grew 18%, primarily driven by 129 one-time set-up costs for the Taiwan Lottery service offering, 30% 18% investments in external development and
Slide 20: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Years Ended KEY TAKEAWAYS December 31 in € million 2023 2022 • Strong cash position. Total liquidity is €497 million comprised of €277 million Cash and cash equivalents as of January 1 244 743 cash and cash equivalents and €220 million credit facility as of December 31, Net c
Slide 21: Continued Strong Growth Expected in FY2024
CONTINUED STRONG GROWTH EXPECTED IN FY2024 GUIDANCE YoY INCREASE Revenue At least €1,050m At least +20% Adjusted EBITDA1 At least €200m At least +20% Adjusted EBITDA Margin1 19% Note: 2024 guidance assumes Euro to USD exchange rate of 1.07 1 Non-IFRS financial measure; see the Appendix for defined t
Slide 22: Cost Profile and Drivers of Operating Leverage
COST PROFILE AND DRIVERS OF OPERATING LEVERAGE Expenses as a % of Revenue 90% 80% KEY TAKEAWAYS 70% 26% 26% 24% 30% 60% • Increased AEBITDA margin1 by 90 basis points from 2021 to 50% 2023. 40% 30% 56% 57% 57% 51% • Targeting flat margins in 2024 with cost actions driving 5 20% pctg points of operat
Slide 23: Q&A
sp@rtradar SPORTS TECHNOLOGY. REIMAGINED. Q&A
Slide 24: Appendix
sp rtradar SPORTS TECHNOLOGY. REIMAGINED. APPENDIX
Slide 25: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES Non-IFRS Financial Measures and Operating Metrics We have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA and Adjusted EBITDA margin (together, the “Non-IFRS financial measures”), as well a
Slide 26: Sportradar Q4 P&L and Adjusted EBITDA Reconciliation
SPORTRADAR Q4 P&L AND ADJUSTED EBITDA RECONCILIATION Consolidated Statements of Profit or Loss Reconciliation of IFRS Profit (loss) to Adjusted EBITDA & Margin Three Months Ended Three Months December 31, Ended December 31, in €'000 2023 2022 in €'000 2023 2022 Continuing operations Profit (loss) fo
Slide 27: Sportradar 2023 P&L and Adjusted EBITDA Reconciliation
SPORTRADAR 2023 P&L AND ADJUSTED EBITDA RECONCILIATION Consolidated Statements of Profit or Loss Reconciliation of IFRS Profit (loss) to Adjusted EBITDA & Margin Years Ended Year Ended December 31, December 31, in €'000 2023 2022 in €'000 2023 2022 Continuing operations Profit (loss) for the period