Sportradar AG(US:SRAD)2023-11-01 11:20Revenue 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]