Sportradar Group Ag · NASDAQ:SRAD
Sportradar — Q1 2024 Earnings Presentation
25 slides from Sportradar's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 EARNINGS PRESENTATION | May 15, 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 & Raising 2024 Outlook
DELIVERING RECORD PERFORMANCE & RAISING 2024 OUTLOOK 1 Delivered a strong Q1 performance with record quarterly revenue, up 28% year-over-year. 2 Focused on driving efficiencies, delivering 29% Adjusted EBITDA growth. 3 Raising full year 2024 outlook given strong Q1 performance and momentum across th
Slide 4: Q1 2024 Financial Highlights
Q1 2024 FINANCIAL HIGHLIGHTS Strong Execution Delivering Double-Digit Growth and Better-than-Expected Margins Revenue Adjusted EBITDA1 Adjusted EBITDA (in millions) (in millions) Margin1 €266 €47 18% Adjusted EBITDA Revenue Growth Adjusted EBITDA1 Growth Margin1 Expansion +28% +29% +8bps 4
Slide 5: Achieved All-Time Quarterly Revenue Record
ACHIEVED ALL-TIME QUARTERLY REVENUE RECORD 1Q revenue has more than doubled in 3 Years 5
Slide 6: Leading Solutions Provider to the Sports Ecosystem
LEADING SOLUTIONS PROVIDER TO THE SPORTS ECOSYSTEM 800 BETTING OPERATORS • Largest AV content offering with 450,000 live AV streams 900 MEDIA PARTNERS • Scaled managed trading business with €30B in • Collect, curate and annual turnover distribute almost 2 billion • Generated over 10 billion live odd
Slide 7: Strong Operating Momentum
STRONG OPERATING MOMENTUM • Managed Trading Services (MTS) is • Provides personalized digital • Announced long term partnership with a sophisticated trading risk & liability advertising to drive customer UTR Sports for the UTR Pro Tennis Tour, management solution. acquisition for sportsbooks. the to
Slide 8: Alpha Odds Continues to Change the Game
ALPHA ODDS CONTINUES TO CHANGE THE GAME Game-Changing Trading Technology, Built to Increase A Betting Operator's Profitability • Builds on our market-leading core odds solution, generating odds tailored for individual sportsbooks. • Proven to generate higher margins, increased profits at recently co
Slide 9: Leading in Innovation
LEADING IN INNOVATION • Sportradar made Fast Company’s 2024 list of Most Innovative Companies in Sports for our leading Computer Vision Ranked #2 technology and Enhanced Table Tennis “With the rise of sports betting, sports tech solution among others. leader Sportradar is making video processing fas
Slide 10: Enhancing Industry Leading Management Team
ENHANCING INDUSTRY LEADING MANAGEMENT TEAM Recent additions CRAIG FELENSTEIN – Chief Financial Officer • Seasoned exec with over 30 years of finance experience. • Public U.S. company experience at Discovery, News Corp and Viacom. • Joins us from Lindblad Expeditions where he’s been CFO for 7 years.
Slide 11: Strong Performance and Long-Term Value Creation
STRONG PERFORMANCE AND LONG-TERM VALUE CREATION 1 Year of execution, as we deliver on core commitments and position for continued growth. 2 Delivered an excellent quarter on all fronts, setting us up to deliver continued strong results in the year ahead. 3 Performance underpinned by the depth and sc
Slide 12: Financial Results
sp rtradar SPORTS TECHNOLOGY. REIMAGINED FINANCIAL RESULTS
Slide 13: Updated Segment Reporting and New Revenue Groups
UPDATED SEGMENT REPORTING AND NEW REVENUE GROUPS BETTING TECHNOLOGY & SOLUTIONS • Effective for the quarter ending March 31, 2024, the Company updated its Betting and Gaming Content Managed Betting reportable segments to correspond with its previously announced re- Services organization and changes
Slide 14: Delivered Strong Revenue and Profitability
DELIVERED STRONG REVENUE AND PROFITABILITY CONSOLIDATED REVENUE (€M) CONSOLIDATED ADJUSTED EBITDA1 (€M) KEY TAKEAWAYS 266 Q1 2024 47 • Achieved record revenue of €266 million 208 and year-over-year growth of 28%. 37 • Saw broad-based strength across our product portfolio. • Benefitted from strong cl
Slide 15: Betting Technology & Solutions
BETTING TECHNOLOGY & SOLUTIONS REVENUE (€M) KEY TAKEAWAYS 219 Q1 2024 • Revenue increased 35% YoY, with growth primarily driven by: 163 • Streaming & Betting Engagement, grew €26 million, up 46% driven primarily by new ATP deal and U.S. market growth. • Live Data and Odds grew €19 million, up 29% dr
Slide 16: Sports Content, Technology & Services
SPORTS CONTENT, TECHNOLOGY & SERVICES REVENUE (€M) KEY TAKEAWAYS 47 45 Q1 2024 • Revenue increased 5% YoY, growth primarily driven by: • Marketing and Media Services grew 6% year-over-year, driven by upsell to existing clients. • Sports Performance was broadly flat year-over-year. ▲ • Represented 18
Slide 17: Personnel Expenses and Other Operating Expenses
PERSONNEL EXPENSES AND OTHER OPERATING EXPENSES PERSONNEL EXPENSES (€M) EBTIDA adjusted expenses (non-IFRS) Personnel expenses excl. non-IFRS adjustments1 KEY TAKEAWAYS 80 77 Q1 2024 5 9 • Personnel expenses were €80 million, up €2 million or 3% year- ▲ over-year. 75 3% 68 • Other Operating expenses
Slide 18: Purchased Services & Licenses and Sport Rights Costs
PURCHASED SERVICES & LICENSES AND SPORT RIGHTS COSTS PURCHASED SERVICES AND LICENSES1 (€M) KEY TAKEAWAYS 39 34 Q1 24 ▲ 14% • Purchased Services and Licenses1, excluding expensed sport rights, grew 14% year-over-year, driven primarily by investments Q1 24 Q1 23 in our product portfolio. SPORT RIGHTS
Slide 19: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Three months ended March 31, KEY TAKEAWAYS in € million 2024 2023 • Strong cash position. Total liquidity in Q1 was €495 million comprised Cash and cash equivalents as of January 1 277 244 of €275 million cash and cash equivalents and €220 million Net cash from operating acti
Slide 20: Raising FY2024 Outlook
RAISING FY2024 OUTLOOK PRIOR LATEST At least €1,050, At least €1,060, Revenue (€ million) +20% YoY growth +21% YoY growth Adjusted EBITDA1 At least €200, At least €202, (€ million) +20% YoY growth +21% YoY growth Adjusted EBITDA Margin1 19.0% 19.0% 20
Slide 21: Cost Profile and Drivers of Operating Leverage
COST PROFILE AND DRIVERS OF OPERATING LEVERAGE KEY TAKEAWAYS • Increased Adjusted EBITDA margin1 by 90 basis points from 2021 to 2023. • Targeting broadly flat Adjusted EBITDA Margins1 in 2024 with cost actions and ongoing focus on operating efficiency driving 6% points of operating leverage, offset
Slide 22: Q&A
sp@rtradar SPORTS TECHNOLOGY. REIMAGINED. Q&A
Slide 23: Appendix
sp rtradar SPORTS TECHNOLOGY. REIMAGINED APPENDIX
Slide 24: 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 25: Sportradar Q1 P&L and Adjusted EBITDA Reconciliation
SPORTRADAR Q1 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 Ended March 31, March 31, in €'000 2024 2023 in €'000 2024 2023 Revenue 265,894 207,564 Profit (loss) for th