Financial Data and Key Metrics Changes - Revenue reached a record $277.9 million, up 20% year over year, marking the 10th consecutive quarter of sequential revenue growth [6][14] - Adjusted EBITDA of $36 million increased 54% year over year, demonstrating significant operating leverage [6][16] - Gross margin was 34.0%, reflecting improvements in higher margin markets, offset by player-friendly sports outcomes impacting Colombia [15] Business Line Data and Key Metrics Changes - Online casino revenues grew 34% during the quarter, while online sports betting contracted 16% due to elevated bonusing in Colombia [14] - North American monthly active users (MAUs) increased 34% year over year to 225,000, the strongest quarterly growth in over four years [6][16] - In North American online casino markets, MAUs grew 46% year over year, indicating strong player retention and engagement [7] Market Data and Key Metrics Changes - Delaware saw 74% net revenue growth, Michigan 48%, New Jersey 37%, Ontario 24%, and Pennsylvania 15%, showcasing broad-based growth across various markets [8] - In Latin America, MAUs grew 30% year over year to 415,000, with Mexico revenue growing over 100% [9] - Colombia's net revenue was down 27% due to player bonusing related to a temporary VAT tax, despite GGR growth over 50% [9][14] Company Strategy and Development Direction - The company is focusing on innovation, online casino legalization, and strategic growth opportunities, with leadership changes to enhance operational excellence [5][12] - Planned expansion into Alberta is anticipated to leverage proven success in similar markets like Ontario [12] - The company is monitoring legislative developments across multiple U.S. states to capitalize on online casino legalization opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in North American online casino markets, with acceleration observed every month since March [18] - The company raised its full-year revenue guidance to between $1.1 billion and $1.12 billion, representing a 20% year-over-year increase [20] - Management remains optimistic about the potential for growth in Latin America despite challenges in Colombia [99] Other Important Information - The company ended the quarter with $273 million in unrestricted cash and no debt, providing flexibility for growth investments [17] - The company is focused on maintaining marketing leverage, with marketing expenses expected to grow at a lower rate than revenue [18] Q&A Session Summary Question: Insights on updated guidance and fourth-quarter margins - Management indicated increased marketing spend and ongoing VAT tax in Colombia as factors impacting margins [23] Question: Potential increase in gaming tax rates in Mexico - Management acknowledged tracking the situation and indicated that a tax increase from 30% to 50% is likely, but they are exploring ways to mitigate the impact [25] Question: Next steps regarding VAT tax in Colombia - Management expressed confidence that the proposed tax reform will not pass, allowing normal tax conditions to resume [28] Question: Impact of sweepstakes operators on the business - Management noted that while some states have effectively regulated sweepstakes, others still face challenges, and the proliferation of unregulated products underscores the need for legalized online gaming [58] Question: Customer reactions to sports betting outcomes - Management confirmed that player-friendly outcomes in September impacted hold but noted improvements in the percentage of betting going to in-game and parlays [82]