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Sportradar AG(SRAD) - 2023 Q4 - Annual Report
2024-03-20 12:06
Macroeconomic and Geopolitical Risks - The company faces significant risks related to macroeconomic conditions, including potential recessions that could adversely affect consumer spending on entertainment and discretionary activities [38]. - The ongoing conflict in Ukraine and other geopolitical tensions may negatively impact global financial markets, potentially leading to reduced customer spending and increased operational risks [38]. - The company has not experienced material impacts from the COVID-19 pandemic, but ongoing restrictions and changes in consumer behavior could still pose risks to its business operations [44]. - The company is exposed to foreign exchange rate risks due to its international operations, which could lead to financial losses if not effectively managed [42]. Competitive Landscape and Market Position - The competitive landscape in the sports data and betting markets is rapidly evolving, with new entrants potentially offering better technology and services, which could threaten the company's market position [53]. - The company relies heavily on strategic relationships with sports leagues for data and statistics, and any failure to maintain these relationships could harm its competitive advantage and financial performance [48]. - The demand for sports content solutions is sensitive to changing consumer preferences, and failure to adapt could result in reduced revenue [52]. - The company faces challenges in retaining customers, with the quality of products and services being critical to maintaining sales and operational results [59]. Operational and Infrastructure Risks - The company may face challenges in managing operational risks in less developed countries where it has a significant customer base [46]. - The company’s rapid growth necessitates effective management of its operational infrastructure to maintain employee morale and product quality [69]. - The company relies on third-party vendors for various services, and any failure on their part could disrupt operations and negatively impact financial performance [66]. - The company must effectively address capacity constraints and upgrade systems to avoid adverse effects on financial condition and operations [90]. Regulatory and Compliance Challenges - Changes in public perception regarding responsible gambling could lead to increased regulatory scrutiny and restrictions, adversely affecting the company's operations and revenue [51]. - Regulatory changes in sports betting legislation could materially impact the company's operations and revenue generation capabilities [95]. - The company operates in jurisdictions with varying regulatory frameworks, which may affect its ability to provide services and generate revenue [102]. - Compliance with evolving regulations, particularly regarding privacy and data protection, is costly and time-consuming, with potential fines under GDPR reaching up to €20 million or 4% of total annual turnover [126]. Technology and Cybersecurity Risks - The company is subject to cybersecurity risks, including phishing and denial-of-service attacks, which could harm its reputation and financial condition [79]. - The integration of AI and machine learning in products presents risks, including potential reputational harm and legal liabilities due to flawed algorithms or biased data [94]. - The company has implemented disaster recovery and business continuity processes, but these may not fully protect against all potential disruptions [83]. - The company has experienced cyber-attacks but has not yet faced material liability; however, future incidents could impact its operations and reputation [84]. Financial Performance and Growth Strategy - The company generated 5.8% and 6.5% of total revenue from a single customer for the fiscal years ended December 31, 2023 and 2022, respectively, and 26.1% and 25.5% from the top ten customers combined [59]. - The company expects to continue significant spending on customer acquisition through product and content marketing, focusing on digital and direct channels [56]. - The company’s growth strategy may need to be altered if the gross profit from new customers does not exceed the associated acquisition costs [56]. - The company believes its existing cash and available borrowing will be sufficient to meet operating and capital requirements for at least the next 12 months [162]. Intellectual Property and Brand Management - The company faces challenges in obtaining and maintaining intellectual property rights, which could diminish competitive advantages and affect product development [127]. - The company implements industry-standard practices to protect proprietary information, but cannot guarantee effectiveness against unauthorized disclosures [128]. - Maintaining and enhancing brand recognition is critical, with substantial investments anticipated as competition increases [131]. - The company may face challenges in protecting trademarks, which are essential for building brand identity and preventing market confusion [132]. Market Opportunities and Projections - Sportradar's revenue is projected to grow from $82.2 billion in 2023 to $128.4 billion in 2028, with a compound annual growth rate (CAGR) of 9.3% [221]. - The U.S. sports betting market is expected to expand from $1.8 billion in 2019 to $11.8 billion in 2023, representing a CAGR of 59.2%, and further to $24.6 billion by 2028, with a CAGR of 15.7% [222]. - The company is positioned to benefit from the ongoing legalization of sports betting across various regions, unlocking significant market opportunities [222]. - The company has a diversified customer base, allowing it to generate revenue irrespective of competitive dynamics in specific geographic markets [215].
Sportradar AG(SRAD) - 2024 Q1 - Quarterly Report
2024-03-20 11:10
Exhibit 99.1 SPORTRADAR REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS Delivered record results, growing revenue 20% and Adjusted EBITDA 33% for fiscal 2023 Targeting strong outlook in 2024 of at least 20% growth in revenue and Adjusted EBITDA Authorizes $200 million Share Repurchase Program ST. GALLEN, Switzerland, March 20, 2024 – Sportradar Group AG (NASDAQ: SRAD) ("Sportradar" or the "Company"), a leading global sports technology Company focused on creating immersive experiences for sports fans and b ...
Sportradar AG(SRAD) - 2023 Q3 - Earnings Call Transcript
2023-11-01 17:52
Sportradar Group AG (NASDAQ:SRAD) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET Company Participants Christin Armacost - Manager of IR Carsten Koerl - CEO Gerard Griffin - CFO Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group Robin Farley - UBS David Karnovsky - JPMorgan Michael Graham - Canaccord Genuity Jason Bazinet - Citi Stephen Grambling - Morgan Stanley Jordan Bender - JMP Securities Stefanos Christ - Needham and Company Shaun Kelley - Bank of America David Katz - ...
Sportradar AG(SRAD) - 2023 Q3 - Quarterly Report
2023-11-01 11:20
Revenue Performance - Revenue for Q3 2023 increased by 12% to €201.0 million compared to Q3 2022[6] - Revenue for Q3 2023 was €201,037 thousand, an increase of 12.3% compared to €178,835 thousand in Q3 2022[26] - Revenue for the nine months ended September 30, 2023, increased to €625,035 thousand, compared to €523,900 thousand in 2022, marking a growth of 19.4%[33] Profitability Metrics - Adjusted EBITDA for Q3 2023 rose by 38% to €50.5 million, with an Adjusted EBITDA margin of 25%, up from 20% in the prior year[6] - Adjusted EBITDA for the nine months ended September 30, 2023, was €127,259 thousand, up from €90,738 thousand in 2022, reflecting an increase of 40.2%[32] - The Adjusted EBITDA margin for the nine months ended September 30, 2023, was 20.4%, down from 17.3% in the same period of 2022[33] Net Income and Losses - Profit from continuing operations decreased by 64% to €4.6 million, representing 2% of revenue, down from 7% in Q3 2022[5] - Net income for the period from continuing operations was €4,615 thousand, down 63.8% from €12,750 thousand in Q3 2022[26] - Profit for the period from continuing operations decreased to €11,458 thousand in the nine months ended September 30, 2023, compared to €43,774 thousand in the same period of 2022, representing a decline of 73.8%[30] - The company reported a loss for the period from discontinued operations of €451 thousand in the nine months ended September 30, 2023[30] Cash Flow and Liquidity - The company had total liquidity of €509.7 million as of September 30, 2023, including cash and cash equivalents of €289.7 million[6] - Cash and cash equivalents increased to €289,701 thousand from €243,757 thousand as of December 31, 2022, reflecting a growth of 18.9%[29] - Net cash from operating activities increased to €206,448 thousand in the nine months ended September 30, 2023, compared to €148,249 thousand in 2022, an increase of 39.2%[30] - Cash and cash equivalents as of September 30, 2023, were €289,701 thousand, down from €512,492 thousand at the same date in 2022, a decrease of 43.6%[30] - Net cash used in investing activities was €152,505 thousand for the nine months ended September 30, 2023, compared to €206,870 thousand in 2022, a reduction of 26.3%[30] Operational Highlights - The company's Net Retention Rate (NRR) was 116% in Q3 2023, indicating strong cross-selling and upselling capabilities[6] - Segment revenue in the RoW Betting increased by 11% to €112.2 million, driven by strong sales of Live Odds and Live Data products, which grew 18% year over year[9] - Segment Adjusted EBITDA for the RoW Betting segment improved by 16% to €56.1 million, with a margin increase to 50% from 48%[9] - Sportradar updated its annual outlook, projecting revenue growth of 19% to 21%, and Adjusted EBITDA growth of 29% to 33% for fiscal 2023[17] - Sportradar's new partnerships include extending its collaboration with BetMGM for NBA data and powering the Taiwan Sports Lottery with a customized sportsbook solution[9] Balance Sheet Overview - Total assets as of September 30, 2023, were €1,393,158 thousand, slightly up from €1,389,061 thousand as of December 31, 2022[29] - Total liabilities decreased to €596,542 thousand from €631,632 thousand, indicating a reduction of 5.6%[29] - The company incurred an impairment loss on goodwill and intangible assets amounting to €9,854 thousand in Q3 2023[26] - Personnel expenses rose to €75,359 thousand in Q3 2023, up from €68,278 thousand in Q3 2022, marking an increase of 10.5%[26] - Interest expense decreased to €15,861 thousand in the nine months ended September 30, 2023, from €29,400 thousand in 2022, a decrease of 46.1%[30] Risks and Challenges - The company expects to face risks related to market conditions, including the impact of geopolitical events and regulatory changes, which may affect future performance[25]
Sportradar AG(SRAD) - 2023 Q2 - Earnings Call Presentation
2023-08-09 17:40
DISCLAIMER We report under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). We maintain our financial books and records and publish our consolidated financial statements in Euros, which is our functional and reporting currency. There are important differences between IFRS and United States Generally Accepted Accounting Principles ("US GAAP"). This presentation also contains certain supplemental financial measures and other operating met ...
Sportradar AG(SRAD) - 2023 Q2 - Earnings Call Transcript
2023-08-09 14:56
Financial Data and Key Metrics Changes - Company reported revenues of €424 million for the first half of 2023, representing a 23% year-over-year increase [3][27] - Adjusted EBITDA reached €77 million, up 42% year-over-year, with an adjusted EBITDA margin of 18%, an increase of 238 basis points [3][27] - For Q2 2023, revenues were €216 million, up €39 million or 22% year-over-year [30] Business Line Data and Key Metrics Changes - Rest of world betting revenue increased by €19 million or 20% year-over-year, with MBS growing by 25% and live odds and data up 19% year-over-year [30] - U.S. segment revenue rose by €9 million or 31% year-over-year, indicating growth in this developing market [17] - Personnel expenses increased by €20 million or 31% year-over-year, reflecting continued investment in product portfolio and talent [48] Market Data and Key Metrics Changes - The company noted a €10 million year-over-year increase in foreign currency gains, partially offsetting other financial impacts [31] - The U.S. market is seen as a developing area with strong growth potential, while the rest of the world betting segment showed stable growth [22][82] Company Strategy and Development Direction - The company aims to grow core betting products and services, expand in the U.S., establish a foothold in emerging markets, and invest in content and technology [10] - The focus remains on value creation for clients and enhancing the product offering to drive higher-margin solutions [10][28] - The company is committed to maintaining rigorous ROI standards while investing in sports rights [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the highest revenue in the company's history for 2023, with strong EBITDA growth and margin expansion [28] - The company is optimistic about future growth opportunities, particularly in the U.S. and emerging markets, despite competitive pressures [66] - Management acknowledged the impact of foreign exchange variability but emphasized that it would not materially affect adjusted EBITDA due to natural hedges [50] Other Important Information - The company ended the quarter with €264 million in cash and cash equivalents, up from €244 million the previous year [32] - A leadership change was announced with the departure of the Head of Investor Relations, Rima Hyder, effective August 11 [34] Q&A Session Summary Question: Guidance and FX Impact - Analyst inquired about the €10 million headwind from FX and its potential impact on guidance [51] - Management indicated that while FX is a headwind, strength in core business could offset this [73] Question: Penn ESPN Partnership - Analyst asked about the impact of the Penn ESPN partnership on the betting and ads business [76] - Management welcomed the partnership, noting it could create advertising opportunities by reallocating marketing budgets [76] Question: Player Tracking and Enhanced Data Sales Cycle - Analyst requested details on the sales cycle for player tracking and enhanced data [78] - Management explained that investments in data analytics would enhance product offerings and improve margins [78] Question: NFL Contract Renewal - Analyst sought updates on the NFL contract renewal process [82] - Management stated that while they would like to partner with the NFL, the recent extension with competitors would not disturb existing business [82] Question: M&A Philosophy - Analyst asked about the company's M&A strategy in light of market evolution [65] - Management confirmed a focus on enhancing the platform and capabilities, with a preference for organic growth over selling parts of the business [66]
Sportradar AG(SRAD) - 2023 Q2 - Quarterly Report
2023-08-09 11:20
Exhibit 99.1 SPORTRADAR REPORTS STRONG SECOND QUARTER 2023 RESULTS Delivered 23% revenue, 42% Adjusted EBITDA growth for first six months On track to deliver record annual revenue Annual outlook reaf irmed with growth of 24% to 26% for revenue and 25% to 33% for Adjusted EBITDA ST. GALLEN, Switzerland, August 9, 2023 – Sportradar Group AG (NASDAQ: SRAD) ("Sportradar" or the "Company"), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today, an ...
Sportradar AG(SRAD) - 2023 Q1 - Earnings Call Transcript
2023-05-10 14:40
Sportradar Group AG (NASDAQ:SRAD) Q1 2023 Results Earnings Conference Call May 10, 2023 8:00 AM ET Company Participants Rima Hyder - Head of Investor Relations Carsten Koerl - Chief Executive Officer Ulrich Harmuth - Chief Strategy Officer Conference Call Participants Bernie McTernan - Needham & Company Ryan Sigdahl - Craig-Hallum Capital Group Michael Graham - Canaccord Genuity Inc. David Katz - Jefferies Operator Good day and thank you for standing by. And welcome to the Sportradar First Quarter 2023 Earn ...
Sportradar AG(SRAD) - 2023 Q1 - Earnings Call Presentation
2023-05-10 12:49
| --- | --- | --- | --- | --- | --- | |-------------------------------------------|---------|-------|-------|-----------|-------| | | | | | | | | sportradar SPORTS TECHNOLOGY. REIMAGINED. | | | | | | | FIRST QUARTER 2023 FINANCIAL RESULTS | ": 1.25 | | | "y": 1.32 | | | \| May 10, 2023 | | | | | | 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, Sectio Exchange Act of 1934, and the ...
Sportradar AG(SRAD) - 2022 Q4 - Earnings Call Transcript
2023-03-15 16:56
Financial Data and Key Metrics Changes - For the full year 2022, the company reported a 30% increase in revenue to €730 million and a 23% increase in adjusted EBITDA to €126 million, exceeding the top end of revenue guidance and solidly within the adjusted EBITDA guidance range [16][38] - In Q4 2022, revenue increased by 35% to €206 million, driven by strong growth across all segments, with adjusted EBITDA growing 64% [67] Business Line Data and Key Metrics Changes - The US segment, the highest growth area, saw revenue grow 77% in Q4 to €41 million, with betting business more than doubling and advertising business nearly tripling [17] - The Rest of the World betting revenue grew nearly 30% in Q4 to €106 million, primarily driven by Managed Betting Services (MBS) [20] - Managed Trading Services (MTS) saw record turnover, resulting in growth of 75% for Q4, significantly boosted by the FIFA World Cup [68] Market Data and Key Metrics Changes - The US segment achieved close to 80% revenue growth for the full year, with strong growth across betting, advertising, digital media, and sports solutions [42] - The company reported a net revenue retention rate of 119%, indicating strong customer loyalty and upselling opportunities [43] Company Strategy and Development Direction - The company aims to expand its leadership in core betting markets, grow into advertising media, and create innovative fan engagement experiences using AI and computer vision technology [62] - The company is focused on product innovation, including the first end-to-end AI-driven betting solution for Table Tennis, which was well-received at ICE 2023 [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience and the potential for strong results in 2023, despite macroeconomic challenges [34] - For 2023, the company expects revenue growth of 24% to 26% and adjusted EBITDA in the range of €157 million to €167 million, with margin expansion anticipated [64][73] Other Important Information - The company ended 2022 with over €240 million in cash and total cash and undrawn credit facilities of €464 million, indicating strong liquidity [44] - Personnel costs increased significantly due to inflationary pressures and restructuring, impacting overall expenses [83] Q&A Session Summary Question: What is driving the strong growth in the Rest of the World betting business? - Management highlighted the increase in trading volume with existing customers and the enhancement of key products as primary growth drivers [76][78] Question: How is the computer vision technology being utilized? - The technology is focused on automating data capture and improving predictive models for betting, enhancing both efficiency and engagement [81] Question: What are the margin assumptions for the Rest of the World betting segment? - Management indicated that despite increased investments in technology, they expect to maintain strong margins in the segment [82][105] Question: What is the outlook for sports rights costs in 2023? - Management noted that sports rights costs are expected to decrease as a percentage of revenue, with the NBA deal impacting the fourth quarter [101][86]