Bragg Gaming (BRAG)2024-11-14 16:57Financial Data and Key Metrics Changes - The company reported total revenue of EUR26.2 million for Q3 2024, representing a 15.9% increase year-over-year [15] - Gross profits grew by 18% to EUR14 million, with a gross profit margin of 53.5%, up 99 basis points [15][43] - Adjusted EBITDA increased by 7% to EUR4.1 million, with an adjusted EBITDA margin of 15.6% [16][43] - The company reiterated its full-year revenue guidance of EUR102 million to EUR109 million and adjusted EBITDA guidance of EUR15.2 million to EUR18.5 million [17][44] Business Line Data and Key Metrics Changes - Revenue from Player Account Management (PAM) and Turnkey operations was EUR5.7 million, accounting for 21.8% of total revenue, up from 20.6% in Q3 2023 [18] - Total content revenue was EUR20.5 million, representing 78.2% of total revenue, down from 79.4% in the same period last year [18] Market Data and Key Metrics Changes - The U.S. market saw a 40% increase in proprietary content revenue globally compared to Q3 2023 [17][42] - The company expanded its content distribution in the U.S., launching with Caesars in Pennsylvania and Ontario, and with FanDuel in New Jersey [40] Company Strategy and Development Direction - The Board concluded a strategic review process, determining that ongoing execution of the strategic plan is the best way to maximize shareholder value [9][45] - The company is focusing on expanding its presence in regulated markets, particularly Brazil, with plans to launch its technology suite in January 2025 [25][70] - A regional focus has been adopted for commercial strategy, targeting North America, Latin America, and Europe [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business plan and financial prospects, anticipating sustained double-digit topline growth and expanding bottom-line margins in 2025 [20][45] - The company is preparing for the launch of regulated markets in Brazil, expecting significant revenue opportunities [49][70] Other Important Information - The company has strengthened its executive leadership team to enhance operational focus and drive long-term growth [24] - New product features, such as jackpots and a recommendation engine, have been deployed to differentiate the company in the market [27] Q&A Session Summary Question: What should be expected for Q4 revenue and growth markets for next year? - Management indicated that double-digit growth is achievable, with the U.S. and Brazil identified as key growth markets [47][49] Question: What does enhancing shareholder value entail? - Management clarified that while share repurchases are not a priority, investing in commercialization and talent acquisition is essential for growth [50][52] Question: What factors contributed to the best quarter in the U.S.? - The combination of increased market coverage and improved go-to-market strategies were highlighted as key contributors [55] Question: How is the company planning to capture the Brazilian market? - Management expressed confidence in capturing significant market share post-regulation, leveraging existing relationships and a tailored content portfolio [70] Question: How is crypto affecting the market? - Management noted that while crypto is not widely accepted in regulated gaming, its potential acceptance could increase market size and be beneficial for the company [74][75]