Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of €311 million, representing a 17% year-over-year increase [8][24] - Adjusted EBITDA increased by 25% year-over-year to €59 million, with adjusted EBITDA margins expanding by 20 basis points to 19% [27][30] - Free cash flow generated during the quarter was €32 million, compared to breakeven cash flow in the same period a year ago, with a free cash flow conversion rate of 54% [31][32] Business Line Data and Key Metrics Changes - Technology and solutions revenue reached €250 million, growing 14% year-over-year, driven by a 13% increase in betting and gaming content [26] - Sports content, technology, and services revenue increased by 33% year-over-year to €61 million, led by a 36% growth in marketing and media services [26] - Managed betting services grew by 16% year-over-year, reflecting increased turnover and higher trading margins [26] Market Data and Key Metrics Changes - U.S. revenue grew by 31% and now represents 28% of total company revenues, indicating strong growth in the U.S. market [10][27] - The company is capitalizing on the expanding global sports betting market, which is expected to grow at a CAGR of 11% through 2027 [8][9] - Revenue from the rest of the world grew by 12% year-over-year, demonstrating broad-based growth across geographies [26] Company Strategy and Development Direction - The growth strategy is driven by four key pillars: global market expansion, increasing take rates, unlocking adjacent market opportunities, and driving innovation through technology and AI [8] - The company is focused on enhancing its product offerings, including the introduction of next-generation products to drive fan engagement [11][14] - The pending acquisition of IMG Arena's sports rights portfolio is expected to enhance growth strategy and strengthen premium content offerings [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather uncertainties, supported by approximately €2 billion of contractual revenue commitments locked in over the next two years [21] - The company anticipates continued strong revenue and EBITDA growth, with guidance for at least €1.273 billion in revenue and €281 million in adjusted EBITDA for 2025 [33][34] - Management noted that the U.S. market is still in an education phase regarding sports betting, but they expect adaptation to international trends [71][75] Other Important Information - The company completed a secondary offering, purchasing €65 million worth of shares under its existing share repurchase program, bringing total repurchases to €86 million [19][32] - The company is well-positioned to invest in long-term growth potential while returning capital to shareholders [32] Q&A Session Summary Question: What drove the U.S. growth of 31% in Q1? - Management attributed the growth to executing a well-defined strategy, leveraging a large portfolio of sports content, and strong monetization of products [39] Question: Is there any softness in the industry or player demographics? - Management indicated that the U.S. market is growing rapidly, with a significant portion of revenue coming from betting-related activities [40] Question: What are the expectations for the IMG acquisition? - Management confirmed that expectations for EBITDA accretion remain unchanged, with the deal expected to close by the end of Q3 or early Q4 [47][48] Question: What is the roadmap for computer vision data capture? - Management stated that while full automation is not feasible for all sports, they aim to cover about 90% of events, enhancing product offerings with more data points [64] Question: What are the biggest variables that could push revenue above the 15% CAGR? - Management highlighted market expansion, new product opportunities, and growth in adjacent markets as key factors that could drive higher revenue growth [92][94] Question: How durable is the growth in marketing and media services? - Management expressed confidence in the sustainability of growth, driven by better returns for clients and increased spending on marketing campaigns [96][99]

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of €311 million, representing a 17% year-over-year increase [7][22] - Adjusted EBITDA increased by 25% year-over-year to €59 million, with adjusted EBITDA margins expanding by 20 basis points to 19% [25][28] - Free cash flow generated during the quarter was €32 million, compared to breakeven cash flow in the same period last year, with a free cash flow conversion rate of 54% [28][29] Business Line Data and Key Metrics Changes - Technology and solutions revenue reached €250 million, growing 14% year-over-year, driven by a 13% increase in betting and gaming content [23] - Sports content, technology, and services revenue increased by 33% year-over-year to €61 million, led by a 36% growth in marketing and media services [24] - Managed betting services grew by 16% year-over-year, supported by increased turnover and higher trading margins [23] Market Data and Key Metrics Changes - U.S. revenue grew by 31% and now represents 28% of total company revenues, reflecting strong growth in the domestic market [9][24] - Revenue from the rest of the world grew by 12% year-over-year [24] - The global sports betting market is expected to grow at a CAGR of 11% through 2027, with established markets like Europe continuing to perform well [7][8] Company Strategy and Development Direction - The growth strategy is driven by four key pillars: global market expansion, increasing take rates, unlocking adjacent market opportunities, and driving innovation through technology and AI [7][16] - The company is focused on expanding its product offerings and enhancing client relationships, with only 40% of clients currently using four or more products, indicating significant growth potential [10][22] - The pending acquisition of IMG Arena's sports rights portfolio is expected to enhance growth strategy and strengthen premium content offerings [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather uncertainties and highlighted the resilience of the global online sports betting market [19][18] - The company anticipates continued strong revenue and EBITDA growth, with guidance for at least €1.273 billion in revenue and €281 million in adjusted EBITDA for 2025 [31][32] - Management noted that the acquisition of IMG Arena is expected to be immediately accretive to adjusted EBITDA and cash margins [17][30] Other Important Information - The company completed a secondary offering, purchasing $65 million worth of shares under its existing $200 million share repurchase program, bringing total repurchases to $86 million [17][29] - The company has approximately $2 billion in contractual revenue commitments locked in over the next two years, providing strong visibility for future growth [19] Q&A Session Summary Question: What drove the outperformance in U.S. growth? - Management attributed the 31% growth in the U.S. to executing their strategy effectively, leveraging their extensive portfolio in major sports leagues [36][37] Question: Is there any softness in the industry or player demographics? - Management indicated that the U.S. market is still adapting, and while some sportsbooks are quicker to adopt in-game betting, the overall trend is positive [40][41] Question: What are the expectations for the IMG acquisition? - Management confirmed that expectations for EBITDA accretion remain unchanged, with the deal expected to close by the end of Q3 or beginning of Q4 [45][46] Question: What is the roadmap for computer vision data capture? - Management stated that they aim to cover about 90% of events with computer vision, which enhances product offerings and monetization opportunities [62][64] Question: What are the key variables that could push revenue growth above 15% CAGR? - Management highlighted market expansion, new product opportunities, and growth in adjacent markets as potential drivers for exceeding the 15% CAGR target [92][95]

Group 1: Earnings Performance - Sportradar Group AG reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, compared to break-even earnings per share a year ago, representing an earnings surprise of 40% [1] - The company posted revenues of $327.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.70%, while year-ago revenues were $288.69 million [2] - Over the last four quarters, Sportradar has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Sportradar Group shares have increased approximately 33% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $353.95 million, and for the current fiscal year, it is $0.30 on revenues of $1.39 billion [7] Group 3: Industry Context - The Leisure and Recreation Products industry, to which Sportradar belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]

Financial Performance - Sportradar achieved a record quarterly revenue of €311 million, a 17% year-over-year increase[5] - Adjusted EBITDA grew by 25% year-over-year to €59 million[8] - The Adjusted EBITDA margin expanded to 189%, a 119 bps increase[8] - Free cash flow reached €32 million, with a 54% conversion rate[8] Growth Strategy and Market Expansion - The global sports betting total addressable market (TAM) is expected to grow at an 11% compound annual growth rate (CAGR) to approximately $131 billion by 2027[16] - The company is expanding into adjacent markets, focusing primarily on iGaming[15] - The company is cross-selling marketing services into iGaming, with 84 iCasino brands receiving Sportradar marketing services, representing 21% of total marketing services revenues[28] Strategic Initiatives - Sportradar extended its MLB partnership through 2032 and announced an agreement to acquire IMG ARENA[5] - The acquisition of IMG ARENA will add approximately 39,000 official data events and 30,000 streaming events[39] - The company repurchased $65 million, or 3 million shares, in April, bringing total repurchases to date to $86 million under its $200 million share repurchase program[5] Outlook - Sportradar is guiding to 2025 revenue growth of at least 15%, Adjusted EBITDA growth of at least 26%, and Adjusted EBITDA margin expansion of at least 200 bps[5]

Core Insights - Sportradar Group AG reported a strong start to 2025 with record quarterly revenue of €311 million, representing a 17% year-over-year increase driven by growth across various product lines and geographies [2][4][5] Financial Performance - Total revenue for the first quarter was €311 million, up €45 million or 17% year-over-year, with notable growth in Betting Technology & Solutions (14%) and Sports Content, Technology & Services (33%) [4][5] - Profit for the period increased to €24 million, compared to a loss of €1 million in the same quarter last year, with a profit margin of 7.8% [5][9] - Adjusted EBITDA rose 25% to €59 million, with an adjusted EBITDA margin of 18.9% [5][10] - Free cash flow for the quarter was €32 million, an increase of €32 million compared to the same period last year [5][13] Revenue Breakdown - Revenue by product showed significant increases: - Betting & Gaming Content: €193.8 million, up 13% - Managed Betting Services: €56.2 million, up 16% - Marketing & Media Services: €46.6 million, up 36% [4][6] - Revenue by geography indicated strong growth in the U.S. market, with revenues up 31% year-over-year, representing 28% of total company revenue [7][8] Strategic Developments - The company extended its partnership with Major League Baseball through 2032, enhancing its content portfolio [3][12] - An agreement was announced to acquire IMG ARENA's sports betting rights portfolio, expected to enhance Sportradar's offerings in major sports [3][12] Customer Metrics - The Customer Net Retention Rate was reported at 122%, indicating strong cross-selling and upselling capabilities [5][8] Balance Sheet and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of €358 million, up from €348 million at the end of 2024 [12][14] - Total liquidity, including an undrawn credit facility, was €578 million, with no debt outstanding [14] 2025 Financial Outlook - The company reiterated its fiscal 2025 outlook, projecting revenue of at least €1,273 million and adjusted EBITDA of at least €281 million, representing year-on-year growth of at least 15% and 26% respectively [20]

Group 1: Intuitive Surgical - Intuitive Surgical has been a leader in minimally invasive surgical procedures with its da Vinci robots, facing competition from Medtronic and Johnson & Johnson, which focus on different device applications [4] - The launch of the da Vinci 5 system in 2024 is expected to reduce procedure times and complications, making the investment in da Vinci systems worthwhile for hospitals [5] - The number of da Vinci systems installed worldwide grew by 15% to 10,189 in the 12 months ending March [5] - First-quarter sales of instruments and accessories rose by 18% year over year to $1.4 billion, with Intuitive Surgical being the sole supplier for these products [6] - Shares of Intuitive Surgical have traded at over 75 times trailing earnings, with a potential for significant gains if purchased during market downturns [7] Group 2: Sportradar Group - Sportradar is becoming a key data provider for media outlets and the online sports betting industry, which is legal in 34 U.S. states as of February [8] - Established relationships with sports leagues provide Sportradar with unique access to stadiums, enhancing its competitive advantage [9] - Sportradar's sales grew by 26% in 2024 to $1.3 billion, representing a small fraction of the revenue generated by its clients [10] - The U.S. online sports betting market generated $115 billion last year, indicating significant growth potential for Sportradar [10] - As the demand for accurate data increases, Sportradar is expected to experience at least another decade of double-digit growth [11] - Sportradar stock is trading at 22 times management's adjusted EBITDA expectation for 2025, which is considered high but acceptable for a rapidly growing business [12]

Core Viewpoint - Sportradar Group AG announced a secondary public offering of 23,000,000 Class A ordinary shares at a price of $22.50 per share, with no proceeds going to the company [1][2] Group 1: Secondary Offering Details - The secondary offering is being conducted by selling shareholders including Canada Pension Plan Investment Board, TCV, and the CEO Carsten Koerl [1] - Underwriters have a 30-day option to purchase an additional 3,450,000 Class A ordinary shares [1] - The offering is expected to close on April 25, 2025 [2] Group 2: Share Repurchase - Concurrently, Sportradar will repurchase 3,000,000 Class A ordinary shares at the same price as the secondary offering, funded by cash on hand [2] - This repurchase is part of an existing $200 million share repurchase program [2] Group 3: Underwriters - Goldman Sachs & Co. LLC and J.P. Morgan are the lead book-running managers for the secondary offering [3] - Other joint book-running managers include Citigroup, Morgan Stanley, UBS Investment Bank, Jefferies, and Deutsche Bank Securities [3] Group 4: Regulatory Filings - Sportradar has filed a shelf registration statement with the SEC for the secondary offering, which became effective upon filing on April 22, 2025 [4] - A preliminary prospectus supplement has been filed, with additional documents to be made available [4] Group 5: Company Overview - Sportradar, founded in 2001, is a leading global sports technology company that provides solutions for sports federations, media, and betting operators [9] - The company covers nearly a million events annually across major sports and partners with organizations like the ATP, NBA, and FIFA [9]

Core Viewpoint - Sportradar Group AG announced preliminary unaudited financial results for the first quarter ended March 31, 2025, with a full earnings call scheduled for May 12, 2025 [1][2]. Financial Performance - Revenue is projected to be approximately €307 million to €311 million [6]. - Profit for the period is estimated to be between €20 million and €24 million [6]. - Adjusted EBITDA is expected to range from approximately €56 million to €58 million [6]. Financial Reconciliation - The reconciliation of profit for the period from continuing operations to Adjusted EBITDA shows a profit range of €20,000 to €24,000 thousand [5]. - Key components affecting Adjusted EBITDA include finance income, finance costs, depreciation, foreign currency losses, and share-based compensation [7][12]. Company Overview - Sportradar, founded in 2001, is a leading global sports technology company that creates immersive experiences for sports fans and bettors [15]. - The company operates at the intersection of sports, media, and betting, providing solutions to sports federations, media, consumer platforms, and betting operators [15][16]. - Sportradar covers close to a million events annually across all major sports and has partnerships with organizations like ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA, and Bundesliga [16].

Core Viewpoint - Sportradar Group AG announced a proposed secondary public offering of 23,000,000 Class A ordinary shares by certain selling shareholders, with no proceeds going to the company from this offering [1][4]. Group 1: Secondary Offering Details - The secondary offering includes a 30-day option for underwriters to purchase an additional 3,450,000 Class A ordinary shares [1]. - Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint book-running managers for the secondary offering [3]. - The company has filed a shelf registration statement with the SEC, which became effective upon filing on April 22, 2025 [4]. Group 2: Share Repurchase Program - Sportradar has authorized a concurrent purchase of 3,000,000 Class A ordinary shares from the underwriters, with a maximum funding of $75 million, as part of its existing $200 million share repurchase program [2]. - The share repurchase will be funded with cash on hand, and underwriters will not receive any fees for the shares being repurchased by the company [2]. Group 3: Company Overview - Sportradar Group AG, founded in 2001, is a leading global sports technology company that provides solutions for sports federations, media, consumer platforms, and sports betting operators [9]. - The company covers close to a million events annually across major sports and has partnerships with organizations like ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA, and Bundesliga [9].