SRAD - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Sportradar First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call may be recorded.I would like to turn the call over to Jim Bombassei, Head of Investor Relations. Please go ahead.

James Bombassei

Thank you, operator. Hello, everyone, and thank you for joining us for Sportradar's Earnings Call for the First Quarter of 2024.Please note that the slides we will reference during this presentation can be accessed via the webcast on our website at investors.sportradar.com, and will be posted on our website at the conclusion of this call. call be today's website. on of replay will available also our A our open investors. analysts will remarks, call After we from the prepared to questions and the forward-looking you future will one during yourself revenue our note please and will of business without hear some and consist limitation, today of regarding that information one follow-up.Please including, In to the of discussion interest statements, time, outlook. question limit those from trends our and risks that cause to uncertainties differ or materially These statements involve forecast. actual may results

For Form information, the SEC, respective will financial dates.Also and factors today speak more update earnings refer please risk call, to forward-looking present today's on both during the IFRS obligation associated any discussed to which Report as Annual statements release. of Form in no information, measures. non-IFRS we We along with X-K their our with the XX-F assume and filed or

to included me slides Officer; I'll disclosures discussion these is Griffin, of Carsten non-IFRS over measures, Gerard including of website.Joining each our filings release, posted our to Chief supplemental Koerl, Officer.Now, Carsten. reconciliation are and a Chief earnings which to are turn Investor non-IFRS IFRS and Financial the SEC, the Relations' Additional today the measures with our Executive regarding in

Carsten Koerl

our NBA execution and content benefited the strong and delivered morning solutions of key quarter business strength the from XX% line of today our we be to growth, and want number strong about year. Good and and to are top seeing the everyone.We our I with from you a strong across our up afternoon we start our to as speaking and and teams. to ahead.First, of the year are to good are excited revenues saw across uptake momentum ATP There for the business takeaways we highlight the

to estimation. our which margin, and we of XX% were our ahead focused in on efficiencies organization laser driving adjusted Second, continue be delivered EBITDA

provides strong Chief at EBITDA the leadership additions the and and now performance recently grow adjusted and technology us create solutions year. content depth insights The sport portfolio our preferences, with matches a in differentiated key we Officer. The supported guidance, team, our No the operators, ahead. we program competitive reach are We the XXX XX%.Fourth, leagues our are seeing other the for of our to and we betting partners, giving expect data success upcoming a outlook million confidence by year in and least are media position leading trading our our sport naming repurchase action diverse a the and clients every bringing in our matches our by AI sport unmatched covering This Third, fans commencing worldwide. ecosystem. nearly CFO for and new us together leader our raising a to share advantages.Sportradar sport and personalized technology over named commanding confidence Technology window. we And is in of XXX to revenue full-year by value innovative see engaging strong experience and sports XXX fifth, stock. our bettors into global company our and a is is our and and breadth underpinned in scale, we enabling the resources,

the well group, the the marks our XX% or that as as other at record, and each is XX% XX peer achieved of year. having EUR and last confidence top track years, this.Now X This as least Our being XXX generative. start cash in adjusted we believe have there by our results EUR consistent to strong on for revenue to year revenue line, companies EBITDA in let's public to ahead private, grew saw million. XX% quarter achieved the turn million our We are to results. year-over-year of both bottom a X profitable We backed no growth great

benefits is saw mix, were amplifying growth, rest financials year-over-year, and partnerships, Solutions aligns our revenues while the revenues Technology Before Sports I now drive uptake align have to revenue address note customer XX% and in financial solutions up changes are helping details of results, on ATP feedback ATP XX% were products. of and seen we our the our significant a from fundamentals.And of plan clients X%. and Solutions organization up our for revenue audiovisual running Betting XX% I signing NBA content we uptake recent with get and received additional up our our and and to revenue pricing services.The geographic our with tangible present already ATP business of a approach our We wanted XX% quarter, way the and simpler the U.S. which more into grouping. to up were year-over-year. & Technology world From reporting above up were our to to Content core we that that simplified to this revenue have & customers' than fact,

are nature streaming, of innovations the content. taking also reinforcing latest members this premium our Our like XSight Sportradar

upcoming Underscoring performance, the this quarter for of will be the the to program $XXX growth this to our trading million excellent highlights at EBITDA have year's our repurchase to some window.Now, recently. Given and least we outlook raised putting result, revenue full turning during and more operational adjusted work share XX%. we in

like vision have sports quarter, Tennis our the and Pro will with to UTR expand and pleased UTR Harnessing momentum in UTR our new to helping products rights.We of the selective portfolio bet industry-leading expanding for volume each approach tennis opportunities. insights provides and second top on matches Managed our a sport most to fan is analyzers technology, with for consistent create core complementing Sports year, the announced and a Sportradar saw in very match, in-play tennis long-term our the throughout recently drive Services. we professionals. Tour, Trading tennis and partnership the our reinforcing engagement in tour continued rising new Tennis AI are computer We our

be at changing delivered and digital to for one their success real-time our recently a scale Odds, over quarter data which individual our paid that has ability a game create ad over ticket. of With the drives our programmatic online online exciting and transform MTS personalized advertising new to solution, betting liability on alone, advertisers leading Turnover with this enhanced Our leader and offers continues X top products data. betting a We based is approximately space. for sportsbooks margin launched from customer immersive sportbooks casino our based channels, stimulate on experience and enabling the higher as risk ranking us in-play.One EUR to of and sportsbook, products in casino Alpha we the market insights liquidity generate to proven Key acquisition solutions and we digital a clients. multiple deep rank for including more billion year-over-year rights, and develop bookmaker ad:s first portfolio on their the odds top a odds rich It offering and to our of our is deep the in we business, social. core brands betting builds through XX generating tailored impressions on trading XX% in delivered by to marketplace. which quarter, the globally work billion across as sophisticated and grew liquidity.In us management betting XXX media

fact, for match, an increased by of the concluded it European recently qualifying XX%. In UEFA profits Championship average

we to plan results. in XXXX, While And it and our table XX%.We now turnover we is vision in we will made product bringing growth soon basketball. Odds coverage and to for release X fueling leading Fast it to in fact. live solutions. approximately enhanced in Alpha XXXX seeing X sport of tennis Innovative when innovation By development, initially Companies is our sports, launched it this total our to promising soccer, are computer more Company's list be technology tennis and introducing and it for in leading quarter Most comes Sportradar

some Officer. they the Felenstein of exciting experience on us News CFO Craig the the working be of X Financial Chief success, our teams Technology and team. AI and this on Chief Sportradar Chief years as seasoned Officer and to for Expeditions, finance as its Corp., having to welcome to forward I'm most a Google's dedication he leadership making of X, is and places recognized joined job and developing one drive delighted to the shaping. joins finance AI-first was the sport XX will dual where leadership our publicly Behshad Our an Craig welcomed this the be Behzadi most AI as coming Craig recently operational reflects Lens and in board we Viacom. unwavering in Google, years. listed drivers importance Officer Discovery, He Lindblad talented he from very Assistant, our momentum, played look I'm commitment over him to business products, we including AI capabilities we placed key from Google continue excited a and X him approximately me. shareholder and where with which in have His as Google I'm commercializing role headquarters Next-Gen in Switzerland title looking in partnering Assistant. starting with role is of for to are to front, has and such sitting industry.On he U.S. and have and in our value.Behshad us strategy leverage June executive companies executives and the development on

of this that quarters, passionate want his our have to Executive additions when our drive You in team moment Team foundation. He strong full our key I is a be content, leadership. driven will our this entire the has future that ability depth team strategy By investing enhancing products are it exploring to where growth recruitment organization, in will enhancing be forward say through his growth already meaningful team's monetization. of we the the and deliver with pleasure trading technology with to on highly in This in driving portfolio, been Gerard, capabilities, strengthening technology technology. the in years the with priorities, and and in best continue and fan great the being is strategy and financial luck complement immediate to our services. data our our of and business fundamental are the core shape, a transformational touching our I value centered our for talented, across hearing endeavor.Now for marketing our and future ahead.I operators' impact the believe our for company. drive data win. beyond content, technology his the I are wish and confidence was of take turn a will and but exciting coming an to leaving The I around products execution These advanced value skills in taking we and we will step also him more priorities great about years.By engagement the for our focused now clients and us contributions key a using experience. rights breadth and beta help leadership an coming leader odds AI shareholder in making, new and working pillars organization speak is is on with thank Gerard

an are me. this and the technologist, a wrap core of is excites continued coming strongly ahead. the truly about execution we excellent exciting up, was growth future XXXX, delivering sharing and positioned for I year ourselves look in come. for commitments to more our As AI while around are It year forward and quarter, in exciting our to positioning to continue deliver the our in plans the we well year to this on quarters.To

of a investments strategic financial our efficiency. underpinned business performance future, for fundamentals. making our sharp was and focus execution the we The and by team lays and on scale the Our leadership are driving depth

to our it these Sportradar's optimistic lead I and shareholder over on us growth strategy focus about unwavering Gerard. will with value. of factors are and All continue long-term I'm to turn extremely outlook to client industry and enabling now, the future.And

Gerard Griffin

to the Sportradar. I I your respect of growth work delivered all our to you and the are the you words.It leadership With the for also very great quarter, happy a exciting strong been XXXX, Craig with [ like team where team. kind to Carsten, a ahead. Behshad company, start and welcome big we would and this and you, at and to pleasure best remain positive has fan the top bottom. broad wish Thank with we years ]

I and to and for want we've continue the to positioned are I our fundamentals business success growth performance well Our the raising outlook XXXX, improved our and financial of reporting. to XXXX, on we be continued in we where detail full-year changes QX strong, are our briefly get for our made outlook.Before into comment

core our structure report is major change grouping by and there major approach no our our by reporting is While revenue performance financial and supplemental and business. financial a product discuss with region. will consolidated line supported organizational on we how now analysis basis, more global statements, manage our we in by This geographic streamlined to

We discuss have Investor our of overview our let's of website, Relations that, posted performance. our changes.With these to section QX financial an

XX% versus financial line X profile, XX% the in as year-over-year. XX quarter. of with of results durability profit million XX% EUR million EUR on prior EUR was of and XXX net EBITDA year-over-year. XX growth had We the EUR Adjusted million, reinforce the activities QX in our was year.Net profitability. a in EUR was year-over-year. or from XX Our well XX cash scalability up the as million, margin Revenue our EUR million, or focus the or EUR loss up EBITDA a year was XX%, million operating Adjusted up EUR million, XX X million prior quarter

streaming revenues XX% amplified and Our year EUR million, revenue and XX% marketing represented revenue or partnership basis, and client Services from XX our Solutions XXX year-over-year. year-over-year. by or Services leveraging Betting services, year-over-year. primarily deals. XX% contributions X%.On by This odds by up EUR and the & represented Technology million, driven Content, primarily XX% content products our driven portfolio, XX% base XX XX% total EUR EUR and Managed and of million, up growth million revenues up this EUR & NBA strong Live of delivered of or and XX EUR Betting EUR by was or our of or revenues ATP year-over-year. delivered Rest total XX% up million, streams, Technology the of recurring XX% World was EUR best-in-class and engagement, incremental a data media total betting geographic grew million, XXX primarily up XX year-over-year driven XX XX million, year-over-year, represented which million, X% EUR Sports delivered or and client our million X

EUR in of quarter. XX% base and in finance up million or year-over-year. profit to million XX collectively in by losses, partially EBITDA XX loss which accounted XX% quarter EUR XX Adjusted million, a prior XX%, year. EUR of client foreign U.S. EUR represented of It generated our EUR primarily XX the driven for EUR stock-based revenues up of X delivered million EBITDA. compensation was line with the the year-over-year total million, compared change. the at year-over-year and adjusted change XX in Our year-over-year. This was offset XX% We million X million improvement prior a million an costs lower EUR were year The currency and higher or a EBITDA.Looking million EUR EUR expense margins was XX adjusted X by

on to date operating percentage actions cost flat on profitability in adjusted improved announced improvement they from we've announced 'XX other in XX broadly of leverage on taken sustainable ] and year-over-year operating year-over-year year-over-year, or [EUR million helped actions in from by the rights driven million, were XX and costs. costs, sports improved in ATP X% with operating were rights, to X the primarily of were This partnership for expenses rights the leverage from impact XX EUR leverage. NBA our last and flat expectations. as expenses the first step-up EUR focused our million XX (sic) and million, offset delivering EUR cost was EUR one-time deals. particular, are deals.Personnel XX% were operating cost also benefited we as delivered the year personnel, strategic increase sales delivering XX benefited point the continued leverage.Sports year-on-year, EUR NBA new focus or This our up a operating in well focus Other ATP million EBITDA year operating as partnership the actions While collectively year margins up and X.X the last million, as resulting on our line in

purchases generation cash of flow, the remaining are cash the stronger quarter of robust we year maintain to flow a and very XXX commence profitability and strong XXX feel the upcoming announced levels. sheet, a a million expect our to laser-focused in continue generation our on confidence valuation on EUR outlook. to buyback liquidity we facility million balance trading with cash our improving quarters as expect in Accordingly, and XXX financial year. comprised at business QX a strong share strong no to previously million, the leverage and amounts as cash is company, and outstanding.On record current the the let's adjusted summary, flow cash our over operating fundamentals profitability.With and see of to program to EUR EUR revenues, USD under outlook for achieve cash delivered continue we well credit performance, XXX equivalents we closing that, with full this million long-term window.In track XXXX as strong revolving be EBITDA stock for in We including With turn our revised we attractive

addition NBA Given prior growth primarily revenue EBITDA EUR least XX%.Some strong factors of of our best-in-class expect our million our we to outlook revenue of adjusted consider content products X.XXX client and EBITDA full-year XXX XXXX. year, our guidance our deliver for Revenue the the approximately this and and recurring raising guidance assessing of outlook following. EUR portfolio, of partnerships. will the and leveraging driven year Revenue by streams, million; EBITDA, are to to prior which when margins by ATP XX% amplified be of adjusted versus now growth billion X.XXX strong equates our at to EUR XXX versus in the billion; our EUR start adjusted

taken the on should operating continued challenging to sustainable and in business the we one-time from continuously low-XXs margins costs in the of adjusted the date, NBA from the year are on of of operating leverage.We as we've As resulting that on This we well first rights half expect resources the ATP leverage focus in second and phasing other impact function costs. actions year. profitable realization of primarily focusing the operating of into progress full-year we're the sales This to sports the in and is most rights from personnel, full our we've cost half the deals.For aspects strategic partnership in will of a noted the EBITDA high our offset to cost the all opportunities actions. the expect unlock past, of seasonality leverage of to the talent the profitability benefits in costs step-up as teens ensure year, our unlocking first from year our the mid- XXXX, the rate our and growth and run sports operating

to flow We be focused continue very cash and margins on free enhancing generation. much

beyond year we actively excellent expense benefit stable sports our the items, performance potential the base.In with As from look and rights line and all unlock how the is more operating we unfolding. operating are XXXX, as of manage a summary, we major pleased leverage rate rest run cost to we our see from very portfolio cost QX

well are strong, success fundamentals continued we are for business in XXXX. Our positioned and and growth very

I for been and It's Before Sportradar of with pleasure all you would wish questions, off the open I you, ahead.With success like you open Operator, the questions? I call will would line analysts to like the thank years for and questions. their I to and operator exciting investors a that, hand our to support. for the and for engaging

Operator

comes Our Capital Instructions] question [Operator with Craig-Hallum Group. first Ryan Sigdahl from

Ryan Sigdahl

to in Gerard. endeavors, start want rights. data Best of with luck future I

ones? negotiating you're and ability new new of the existing your kind your pass I customers I of kind NBA have on guess end with through contract, guess your to potential you're So, leagues, the that. of price new what But deals that's also you but you as learned how of tail one think or progressed, about to then

Carsten Koerl

here. Ryan, Carsten

numbers, portfolio. as So new contract in what we as successfully mind. ATP you exactly we reached see see And in overreached the you we integrated in in very and the had our NBA, numbers, U.S. the and

case, So, more we the could here market the AV. upsell this in content, specifically the players of in with ATP

based the and we effect you the new adjusted So, can position very we sport leverage see market performance upsell compensated the you as predicted properties. and strong rights EBITDA, demonstrate with our a from as that see have we in like on and the this this we growth And the in strong the in content. in upstep here the

We are X case many know, years. into next NBA, linear In years looking for all years. of amortization we the have In the to very still as case we now of ATP, because years go. X happy

year-over-year So, and we similar strong profit with is this cost the growth will because year. base the to linear

Ryan Sigdahl

good. Very

just guidance. second curious question, my For on

nice strong of bigger of is So, expectations anything of to your management raising was the quarterly beat Street be little kind the to year. see standpoint, than on kind in guess a to the expectations from QX versus the Maybe basis. just kind Street a I bit a of year of results through for QX, rest the the guide? aware throughout anything QX kind versus on guidance. of versus on the or of expectations that you're cost But flowing

Gerard Griffin

year very with more importantly, Gerard. happy top we said, how the bottom. Listen, It's and both the we think performance, And QX see Ryan. as even Sure, I unfolding.

release an to EBITDA was on extra outlook. updated decision to through point revenues and of our Our growth

happy how into had bit is expected year unfolding, see In see quite cloud year. more terms some to turn We mid-year. from our full of of as quarter a get through credits release bit them hit saw, of there's can the and the view of is of the how And if spend little there a of in was things, we phasing. with to point side that when we terms the we end we'll some out. QX rolling of there that you But phasing the we're are projects service of off a where

Ryan Sigdahl

Gerard? that, that's to way If not, quantify okay. Any

Gerard Griffin

X perspective second you'll million that from the blended EBITDA into EUR year. It's to see of million sort the half X an EUR of around

Ryan Sigdahl

guys. good. Very Well done,

Gerard Griffin

And thank you my for endeavors.

Operator

with from comes question Graham Canaccord. next Our Michael

Michael Graham

strong Congrats X I on questions. performance. the wanted ask to

appointment of as is first Chief Behshad Officer. just with and Technology The AI the

talk in about interested profitability? related somewhat growth the leverage or a blocks enhanced just in maybe now building the of key you to maybe either from the that, of to see high to you benefits Just closer XX%. target points to get Just in about then how initiative EBITDA level, at terms that where of margin are long-term of your talk XX% there.And terms

Carsten Koerl

that Michael, knowing force Carsten here. I Google things company, really I'll take of a professional the very the activities a convince the was first product part and I'm driving Behshad European leave join then we a Lens the proud super like could like building he couple that to in other mentioned in blocks and to Google's call. and Gerard. driving behind our it excited AI,

how imagine to we convince that can we proud are You him could run business. our

moment.So, is it for and is a our real-time comparing this, about is massive and course, we all the engine levels, use what the which profit, clients. higher to on which the on ingest to Odds in up. at given generating there, you value the information, the of generate So all see Alpha the liquidity products data, to the is trading, fan this then strongly XX% sport data sensational MTS it's to have performance build data

which far have very and you this is is have very lot a be to now years. come, AI a core we to next the for by lots is this which sure, thing to Gerard. one of with technology setup for the and The is abilities, us deployed, the there strongest we a is making But in few drive new which products, market.Handing them, Behshad over to predict mentioned couple of development. a hard will So,

Gerard Griffin

operating delivering of if your look year in is sports the down sort from operating see we give which step which we a as sports up. the in leverage then years, the ability an company got sports rights, and cost the rights But our material all the business, spend be next highest operating in is leverage, this stable people our lines, the you've as taken you to sports spend, given rights are number terms operating cost more of leverage, personnel revenue and costs, obviously the But to about at in least starting which the Yes, we've the rights leverage other got the you've us X be the point way year. will no, this terms saw largest out at think break you then that items, points of sales.Those of this will and the That's big we is cost to of spend talent. space offsetting and ticket our step-up a year, actions and base, view. continuing growth, of the

meaningfully in think help that 'XX our XX% XX% of And to get goals you lines those those is all long-term those about between 'XX will growth If 'XX, expectation margins. of and going into will our will our us be EBITDA of revenue lines and be ahead lines. and the growth that

sort having leverage and the it then sports rights continuing level So is all operating lines. of to of a all key more the drive normalized to across

Operator

with question from next UBS. Robin Our comes Farley

Robin Farley

came in later some, the in QX expected in, I credit that guess, year. had that you know mentioned you I

some raise, shift. your million. full-year look up was if revenues So, million, EBITDA is But at EUR there just the timing the X EUR up we the guidance XX and

little -- that So, there like In better offsetting ask are how some as about of revenue think coming expenses in to -- coming other million. EUR you a XX seems it should thought, is just words, incremental than but wanted are well flow so we in through?

should So if may us to flow Major being about the if rights that you'll fixed talking think talk about if you us come help you're that? sports anything how quantify. fairly outlook going about something just sports impact go is think through?And I -- forward. rights that you about Can could you on But then that's know question that. your my how other League you haven't up? out And we know don't with costs I officially don't impacting Baseball

Gerard Griffin

Yes.

top for a decision bottom. we made Robin, we and uplift now, so point -- to the give growth our percentage For in

saw but absolute sports up. I see revenue as think of in in also obviously rights ATP And very nice the our we we in terms were performance, that both pickup said, in you will the terms terms, of a mix.

And through ramp gets think about flow cost terms you the these so of in when flow and sports of we a revenue.As through there progress a through, better. lot correlation obviously, contracts, is the the rights the there

contribution And in the through giving flow we not the now, see more We're see fundamentals of land point. the high look margin. where expansion our we you'll we'll you We'll we're are, a way like in expect -- point love it as so the And margin at the in unfolding. out situation. that to how extra of year. we year terms is we there. is key But normalized was and like I'd again, years. the to But an it take it from yes, would the middle But you holding reemphasize a the

Carsten Koerl

the sample And very our nothing we MLB second NBA, for future. we confident many Robin, announced valued the to grow They are are also to is and can in the be others, or part very a extend there like UEFA. a that NHL as with soon part, today. relationship But very us,

next times. as of not the couple predicted. We portfolio, material, years, So, in a said we nothing strong which we have is of upcoming nothing is see very a couple which

So, can on monetize we We stable have this. portfolio. a

execute when we new will invest look on always into we this. and to rights, sport We ruthless the ROI will

portfolio rights enough will is our this. look the the sport deliver very contributing we into But that have is we can term, they to we if have long is where big stable and we which we believe margin, are numbers. So

investment. this looking to of but with do very return So, we the selectively new sport rights, will always

Operator

from McTernan Bernie with Company. Our Needham next comes question &

Stefanos Crist

Crist Bernie. for is in This Stefanos calling

Just in difference Could the revenue the groups. talk margins wanted new the about to X? you on ask incremental between

Gerard Griffin

a profile dramatically from Actually, they're margin not perspective, different.

I odds think obviously, between core flow strong the through is data our the the -- is X It's critical betting. MTS, difference there's there. mass and the groupings and

term. higher we over slightly opportunities sports margin solutions now, is The those is but less, secondary But at future, in right particular, grow has dramatically could but see overall long it's profile when media the group, streams which the improve different. a obviously to margin, the betting yes, solutions, in revenue group look that our advertising, the not do -- we

Stefanos Crist

just in year-over-year. the betting accelerated Got a And quarter it. follow-up. Sports

but do guidance? You talked accelerate about your major continue expect revenue to drivers, you in the to

Gerard Griffin

guidance increase the you yes, percentage that in year-over-year, to think quarters all I see the -- of Well, But the the we've growth. terms going point. strong given extra you're

Operator

Benchmark Our next The comes with from Company. question Hickey Michael

Michael Hickey

ramp great memories, the couple obviously, question Jim, Gerard. is like the Gerard, Carsten, run Thanks guess starting for luck, to here. business regulatory you. environment. pressure And quarter, looks bud. the on global of Carsten, certainly the for It guys. a a you U.S. here. I Miss is Good decades

into So, markets. I think on have you good can how regulatory view creep a of mature sort change pretty

but far bit obviously, we're So, from to pressure. of we're a little mature, starting see

out getting about think you potential of sort curious you're self-correcting state have? the your service Just the than operators of to going with sort partner or and steps that of thinking a it industry and oversight proactive maybe we in more as can sort front, of federal to in avoiding How it's how and take play the impact could sort maybe a business? how U.S.? you And

Carsten Koerl

moment, market, all Michael, now we this changes our the U.S. that so on from this looking the see, understand impact business. I'm is the on that's back quite to process. our negative I'm if constant now at looking And years usual. business, states, some all in a We the environment regulatory partners in no and

way. to find need You your

go, where You the what critical need for and the rules are spot, the everybody. what to values, is find to are which sweet

important. responsible here that in It's the no in moment, And at with we negative constant there are the important confident And that's market, a said, right example, as will the For is on the the doing. government, the very impact that And talk us. find way. States.I'm very is is all for Taxation gaming I and, players moderation. regulators a it's we partners our of what course, also sports, the the industry. very

also to which way. right the And with will way, confident while takes the minister, this, to similar by in many a moderate all But more Brazil satisfy this very and a U.S. stage there traveling in it's pretty early interest all remark, are than that in all plot, players way groups. to as sports market, finance I'm it having So, best to the continue in the the the X I the find the a weeks ago, was much there talks develop

Operator

Our next Katz question with Jefferies. comes from David

Araceli Masias Moreyra

stays on financial Ara what Masias and a This been is what core Katz. isn't? are core on quarter. on Congrats products. Could There's David thinking As what goes, about the for implications? stated and the and how in focus you describe what you're is

Carsten Koerl

the are to most we looking That's ROI. us. we where important Well, want our deploy capital. That's the for product on

a you looking clients. are will innovative the so of activities ingesting deep products, by data around see products, and for which creating And our value driven massive to now lot

the they us will investments highest from that you in return. deliver So, because space simply see

will perfect We massively we engine properties the now use operational our kind this example leverage, marketplace we of like our U.S. how and is with can for in a demonstrated look distribute some to of it content. content.ATP

always to see with the we will remainder, buy those product looking So, ROI properties. some the we there investments we if are

focus core our is this area. So,

Looking whole little information and from bit, the activities, now to to of is fan a leads to and following them exciting it very course, sports the create up and, trading broaden clients for our services it probability ecosystem use for for predictions marketing to fans. those then generate to

circle for we are we So, all clients. using to our value have closing the information, that which provide additional just

Operator

with Bender question comes next Our Jordan JMP. Citizens from

Jordan Bender

a positive those Can maybe in of of increased then of for targets? from or achieve the to a place footprint even we of margin maybe some you XX-plus the that?And technology positive of break the from pricing EBITDA or shift some do to going be the or factors, how momentum think just to the are percent, lot commentary And in play? in NBA. a coming There even a kind there, seems follow-up. of those base your the inputs target you kind about translating some maybe to those of of When down the between volume out pieces path coming have all today

Carsten Koerl

first the locked was new during in. this XX That's Well, part. with I'll contract to last take months hard NBA. the our the question get to work NBA with convince market It the the

have numbers, in As very see you been this. the with successful we

create how partnership. enhanced the with value is we can it Now,

products you the we we we Pass. and Odds.So, last in the now more the information, As League use Alpha know, like trading and can levels, time have from real-time have And like on we and visualize we foresights data products better NBA, all we products in important this this. get or deep with said much can now significantly

the we And now to players. We can have put stimulate that directly ops successful. and live screen into product a that's very the

So, can a a over potential this. in is looking But hours now is of there see huge the this leverage sports something where future. with forward premium as we next couple being lot properties the NBA years, the one speak of in about what we U.S. I unlock the of could the

Gerard Griffin

ATP, leverage, Taiwanese of In streams then are terms in NBA effectively the and all of there's bit recurring other core of in to run-rate 'XX, drive When lottery. and continuing layering all like about about in thinking revenue and and the offering -- core the the building, product benefits it's the execution clients operating our the here. at look ingredients little a they're timing you

in on growth. have in today, and additional innovations.So, And 'XX growth deep that product to into Odds we as our continue continuing as enhance to it's spend a of our of we'll portfolio, question. points and operating point yes, Alpha to to to go of view, core we level material flow our technology our operating you on continued whether based driven-off XX%, 'XX. stable and the the to not the other you maintain all investment and it, it's last model. earlier, continue that's as long driving as same is teams emBET clip to ROI overall get I see saw embedded and away.Michelle, to data an margin products P&L. said costs that goal our Then will the start 'XX, said, From layering take but invest XX%, As Carsten that space, focus the core TBD, how rationalizing and sports market us like right of the long take all the bring we far into we what products continuing other you on but ultimate focus as in will we'll to new our at to it people you through to that add see drive in more not it's

Operator

America. of comes Our from last question Shaun with Kelley Bank

Shaun Kelley

ask about pricing. wanted I to

a as now so a and out the contracts simply, are see think is is going my recognized contractual increase new about and your the we we with little that do is more customers the one-time question continued share we're part is -- and come -- in everything kind into seeing be what data up year of we sort will you into we of data Or changing movement, move as of as Just is growth rates move more i.e., see with XXXX? more commensurate see the kind rights and latter of bit in? it pricing you that contract, revenue should as the an the that the to NBA

Carsten Koerl

existing as thing now the Shaun, in here U.S. have know. looking share, this we all core is to model, is It's Carsten. revenue the The we which

existing for So, the market we with the grow will product.

I value the going work create that providing think are overstretch back clients. with our to solutions, We're pricing. perfect it for never to a need to is Alpha will value example. innovative which Odds

more simply clients So, higher our engine we helping the this do generate then to can ingesting profits, uplift data with and into them can it.

see where use potential. way growth lot the can we that's where a NBA. sample So, we is of a XSight

This which view, the this for Pass the a the is That seen marketing value of we going marketing lower League who a than pure the purpose is Usually, odds players. matches, a for rate. This significantly uplift X%. XXX% League the here. and of with the or sensational there a is users you had from powerful. rate working for people That's the very operator transaction. with number is providing is generating X.X%, have rate for on the We all all which of engagement solution, the than out League an the give a meaning the XXX Pass.To more are we here into X.X% played Pass

into, now we yes, Looking good situation. a have

the U.S. with, our and a base We them. mentioned base I are leagues of is client distribution value the big by create bit pricing, of a X leverage focus which X far, the products, We new but the can sitting biggest little core few there. on with on in to

Shaun Kelley

Perfect. just And on follow-up Brazil. then be would my

step before? regulatory. maybe mentioned obviously like You a you operators as done should we Brazil? this. Are you you're And haven't bigger do the market experience into this opens new with new that a deals moves when to already function significant in with or expect up what's Or deals able

Carsten Koerl

I was ago. weeks there, X Shaun, personally

interesting federal in the X been government there. the licensed the was It's Main which opportunities, sports all a a passionate all which in there bodyguards measurements, people we So the have wide By necessary, sport. very of Paulo, these had ground. Very on It's a betting there about is, environment, market. or it market. development which we experience as security Sao are with A was very of not know, way, sport friendly activities.The lot lot soccer. December. liberalized exciting

the license, that state. process with generate operators was which taxes on course, down of Understanding foreign a for me speak the June, for finance speaking see And then, people club And the the first their with starting ministry, the to and local it there. the is and ground. So stakeholders, there our we are speaking all are their from there to which essential create will the needs the important leagues, operators the operators, already. with official representatives operators, in very right sport, have get with team from boots the setup.We

and opportunity. a market have that in investing there, We setup are we legal

X the our Looking a EUR in round interested X from billion in believe I billion Brazil And from the very a billion this days, opportunity. complete GGR EUR we to that coming expand to about to with next and as X It's footprint are up said. the growing perspective, growth X we size strategy, to early this is years. EUR use we but are

James Bombassei

I'll joining to earnings it our to thank, for turn everyone, you. over want call. Michelle, We back

Operator

now Everyone, Thank does your you. and everyone, you, This may participation. program, you have conclude for disconnect. Thank the day. great a

Sportradar (SRAD) 15 May 242024 Q1 Earnings call transcript