Carsten Koerl, Chief Executive Officer of Sportradar, said: “Fiscal 2024 is off to a great start, building on the strong momentum and progress we made last year. This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings. In light of our strong business fundamentals, we are raising our full year outlook and are commencing purchases under our share repurchase program. I would also like to welcome to the leadership team Craig Felenstein as our Chief Financial Officer and Behshad Behzadi as our Chief Technology Officer and Chief AI Officer.”

First Quarter 2024 Financial Highlights

• Revenue for the current quarter was €265.9 million, up 28% year-over-year with broad-based strength across the product portfolio.
• Within our new revenue groupings, Betting Technology & Solutions revenues were €218.8 million, up 35% year-over-year, and Sports Content, Technology & Solutions revenues were €47.1 million, up 5% year-over-year. Betting Technology & Solutions and Sports Content, Technology & Solutions accounted for 82% and 18% of total revenue, respectively.
• From a geographic perspective, Rest of World grew 19% and accounted for 75% of total revenue, while the U.S. grew 65% and accounted for 25% of total revenue.
• The current quarter generated a loss of €0.6 million compared to a profit of €6.8 million for the same quarter last year.
• Adjusted EBITDA (non-IFRS) for the current quarter was €47.2 million, up 29% year-over-year, primarily due to strong revenue growth and operating efficiencies which offset higher sports rights costs.
• The Company’s loss as a percentage of revenue for the current quarter was de-minimis, compared to a profit as a percentage of revenue of 3% for the same quarter last year. Adjusted EBITDA Margin (non-IFRS) was 18%, a slight improvement to the same quarter last year.
• The Company’s customer Net Retention Rate (NRR) (non-IFRS) was 116% in the first quarter of 2024, compared with 111% in the fourth quarter of fiscal 2023, demonstrating the Company’s strength in cross selling and upselling to its clients.
• As of March 31, 2024, the Company had total liquidity of €494.6 million as compared to €459.6 million as of March 31, 2023.
• The Company expects to commence purchases under its $200 million share repurchase program beginning with the opening of the upcoming trading window.
• The Company raised its full-year 2024 outlook and now expects to deliver at least 21% year-over-year growth in revenue and in Adjusted EBITDA (non-IFRS).
  
  Recent Company Highlights
• The Company announced key additions to its leadership team, naming Craig Felenstein as Chief Financial Officer commencing June 1st and Behshad Behzadi, who joined the Company on May 1st, as the Company’s Chief Technology Officer and Chief Artificial Intelligence Officer.
• Signed an extension of the Company’s partnership with the Chinese Men’s Professional Basketball League (CBA) to grow the league’s global presence and help ensure integrity within Chinese basketball.  
• Announced a new long-term partnership with UTR Sports for the UTR Pro Tennis tour, the top tennis tour for rising professionals. Tennis is the second most bet on sport and UTR provides Sportradar with a consistent volume of tennis matches throughout the year, complementing our tennis portfolio and reinforcing our selective approach to expanding sports rights.
• Announced a multi-year strategic partnership with Oddin.gg, a B2B betting-solutions provider for esports, to offer AV streaming of Oddin.gg’s exclusive esports content to Sportradar’s 800+ betting operator clients around the world. 
• Sportradar made Fast Company’s 2024 list of Most Innovative Companies in sports for the Company’s leading Computer Vision technology and Enhanced Table Tennis solution.
   

Update to Segment Reporting

In accordance with our Form 6-K filed on May 8, 2024, Sportradar updated its reportable segments to correspond with its previously announced re-organization and changes in its organizational structure designed to drive growth, further streamline its organization and enhance operational performance and efficiencies in the delivery of its integrated portfolio of products and solutions. The Company now has one operating and reportable segment, will report one consolidated profitability measure (Adjusted EBITDA), and will present revenue from two major groups: Betting Technology & Solutions and Sports Content, Technology & Services. There is no change to the Company’s disclosures, measurement, or recognition of revenue in accordance with IFRS 15 Revenue from Contracts with Customers reported in its Annual Report on Form 20-F for the year ended December 31, 2023.
 

Revenue

Total Revenue for the current quarter was €265.9 million, up 28% year-over-year driven by growth across the portfolio, in particular Betting Technology & Solutions.

Betting Technology & Solutions

Betting Technology & Solutions revenues were €218.8 million, up 35% year-over-year primarily driven by:

• Streaming & Betting Engagement, up €26 million or 46% year-over-year, primarily due to strong demand for our ATP content and U.S. market growth.
• Live Data and Odds were up €19 million or 29% year-over-year, primarily due to premium pricing from NBA and new ATP product offerings.
• Managed Betting Services grew €12 million or 32% year-over-year, primarily driven by higher Managed Trading Services turnover and higher trading margins.
• As a percentage of total company revenues, Betting Technology & Solutions represented 82% of total company revenue in the current quarter as compared to 78% in the prior year quarter.
   

Sports Content, Technology & Solutions

Sports Content, Technology & Solutions revenues were €47.1 million, an increase of 5% year-over-year primarily driven by:

• Marketing and Media Services up 6% year-over-year, driven by clients purchasing more services.
• Sports Performance was broadly flat year-over-year.
• As a percentage of total company revenues, Sports Content, Technology & Solutions represented 18% of total company revenue in the current quarter as compared to 22% in the prior year quarter.
   

On a geographic basis, Rest of World revenues were €200.4 million, up 19% year-over-year. United States revenues were €65.5 million, up 65% year-over-year. As a percentage of total company revenues, Rest of World and United States represented 75% and 25%, respectively, as compared to 81% and 19%, respectively, in the prior year quarter.

Costs and Expenses

• Purchased services and licenses were €65.2 million, up €16.8 million or 35% year-over-year. Of the total purchased services and licenses, approximately €26 million was expensed sport rights. Excluding expensed sport rights, purchased services were €39 million, up €5 million or 14% year-over-year driven primarily by the Company’s investments in its product portfolio.
• Personnel expenses were €79.6 million, up €2.1 million or 3% year-over-year as we benefitted from our cost actions announced last year and our focus on delivering improved operating leverage.
• Other Operating expenses were €21.4 million, broadly flat year-over-year as we benefitted from our cost actions announced last year and our focus on delivering improved operating leverage.
• Total sport rights costs were €90.9 million, up €39.8 million or 78% year-over-year, driven by new rights, in particular our ATP and NBA partnership deals. This increase is in line with our expectations for fiscal 2024.

Share Repurchase Program

In March of this year the Board of Directors approved a $200 million share repurchase program. The Company expects to commence purchases under the program beginning with the opening of the upcoming trading window.

Updated 2024 Annual Financial Outlook

Sportradar is raising its fiscal 2024 outlook for revenue and Adjusted EBITDA (non-IFRS) as follows:

• Revenue of €1,060 million compared with prior outlook of €1,050 million, up 21% year-over-year and representing a 1-percentage point improvement in our full year growth rate.
• Adjusted EBITDA (non-IFRS) of at least €202 million compared with prior outlook of €200 million, up 21% and representing a 1-percentage point improvement in our full year growth rate.
• Adjusted EBITDA margin (non-IFRS) of approximately 19%.