High Roller Technologies (ROLR) Conference Transcript

Summary of High Roller Technologies Conference Call Company Overview - Company Name: High Roller Technologies (Ticker: ROLAR) - Industry: Online Gambling - Key Brands: High Roller and Frutza [9][10] Core Points and Arguments - Leadership Experience: CEO Ben Plemis has over 20 years in the online gambling industry, previously co-founding Gaming Innovation Group [3][4]. Chief Strategy Officer Seth Young also has extensive experience, including taking Points Bet Sportsbook public [6][8]. - Market Position: High Roller operates in a rapidly growing online gambling market, valued at approximately $200 billion, with a total global gambling market nearing $681 billion [20][21]. - Customer Acquisition: The partnership with SpykeUp Media is highlighted as a significant advantage for customer acquisition, allowing for low-cost entry into high-value markets [13][22]. - Technology and Product Offering: The company owns its front-end and middleware technology, enabling quick adaptation to new markets and efficient operations [12][48]. They utilize AI and machine learning for personalization and user experience [17][48]. - Market Focus: High Roller is concentrating on regulated markets with stable revenue streams, specifically targeting Finland, Ontario, and Alberta [14][31][35]. Finland currently accounts for 60% of their net gaming revenue [31]. - Regulatory Environment: The company is navigating a shift from lottery monopolies to regulated markets, which is expected to enhance revenue opportunities [32][38]. Financial Insights - Revenue Model: The company generates revenue through games with a built-in house advantage, expecting to make approximately 5% on every dollar wagered [24][25]. - Profitability Outlook: The total addressable revenue in their target markets is estimated at over $4 billion, with a potential market share of 5% leading to a projected $200 million in revenue [59][60]. The company aims for a 20% EBITDA margin, translating to $40 million in EBITDA [61]. - Cost Management: A strategic shift led to a 75% reduction in costs and a positive adjusted EBITDA of nearly $400,000 in Q2 [65][66]. - Cash Position: The company has approximately $3.5 million in cash, indicating no immediate need for capital raises within the next 12 months [67][68]. Additional Important Points - Market Differentiation: High Roller differentiates itself through strong branding, a wide game library, and effective customer retention strategies [56][58]. - Future Growth: The company plans to expand into new markets through direct licensing, partnerships, and potential joint ventures [42][43]. They are particularly focused on leveraging their relationship with SpykeUp Media for growth [70][71]. - Investor Value Proposition: High Roller presents itself as a unique investment opportunity in the online gambling space, emphasizing its experienced team, strong technology, and strategic partnerships [69][72]. Conclusion High Roller Technologies is positioned for growth in the online gambling industry, leveraging its strong leadership, technology, and strategic partnerships to capitalize on emerging regulated markets. The company is focused on efficient customer acquisition and retention, with a clear path towards profitability and expansion.