Sportradar (SRAD) 30 Mar 222021 Q4 Earnings call transcript

00:06 Good morning and thank you for standing by. Welcome to the Sportradar Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. like Rima the of Hyder, now your over Investor would today speaker Senior I to conference hand to Relations. XX:XX Vice President ahead. go Please

XX:XX fourth quarter thank full-year everyone, of for Thank good and earnings for Sportradar’s the joining us you, and for call XXXX. and Catherine you morning,

IFRS any financial obligation of Also update will SEC with as both consist defer XX:XX and the along please dates. without to be limit available actual regarding we that The to our or to XX:XX one plus today XX:XX statements on presentation will of on we business the today accessed can be associated from to call. factors hear and one our future posted which Before out via our I slides Please may the our from involves the website We will the measures. remarks, limitation call, These call information, follow-up. some of we the uncertainties results discussion our this like note and the including during will our would of statements forward-looking slides please revenue begin, with on outlook. XX-F at today’s release. cause be to risks you in discussed questions annual XX:XX trends prepared investors.sportradar.com. assume furnished reference will fair non-IFRS point webcast those we and at the of website yourself to respective the phone For during Form open no during and will will be more forecast. our materially information statements, investors. X-K call that this Form or present question, on their website. earnings via conclusion To that replay today’s risk After speak everyone, forward-looking to refer information, report A

our the investor to including to which Executive included posted the to each Koerl, Carsten. XX:XX release, with filings discussion measures, like Gersh, non-IFRS non-IFRS Officer; these And I’d regarding and reconciliation measures IFRS turn me are of are earnings Carsten our SEC, the slides, today in to disclosures Additional of is Chief the relations Financial and now, over Chief website. Officer. Alex supplemental Joining

Rima. XX:XX today. Thank Thank joining you. call you, all you Thank the for

employees heart X, to and financial region. fund created of to From the about families the facing the the a company Ukraine. talk our and I in let XX:XX assistance who to the ensure sharing begin helped relief allow those by remind is because Before families their provide the which conflict. our we are and have an hard me this have breaking safety priority time top in Day results, are colleagues We impacted our thoughts, conflict of events to emergency by

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It year on We monitor this we are truly historic, milestones. to is let this, I say the XXXX. year past a achieved many, XX:XX it Having financials to and historic understatement many look in into to was me for Turning will the was an have ongoing and year continue situation. the say the landmark said into which looking slides, us.

annual time time history. mark guidance EBITDA company’s segments. adjusted and revenues, for for the million We in the saw first growth year Our exceeded and robust the full-year we XX:XX business across first all our revenues our surpassed €XXX the

nine and it of off increasing With and achievements other vision less is technologies celebrated which leverages the cutting computer performing help In and called of the and Sportradar field. leagues power acquisitions through meet camera with field continue edge technology automation XX:XX Sports the months, and Solutions multi-year support many, to close on organizations sport profitability use better the world we federations. fully the and and coaching This and Synergy enabled a has Sports, both the customer we needs. its the some Sportradar to well of largest terminating [ph] many hockey, presence Synergy in basketball, year. world’s XX:XX this we to cricket. have both a vertical. There as analytics, baseball, that enabling as in InteractSport of acquired past ice been creating First, than deals [college As new InteractSport, strong integrated now are fears] and professional

leagues federations Council. Second, which NBA, and batting new with continuing sport is XX:XX Cricket in year. major most [indiscernible] the we with which with a to a the deals deals of billion position is basketball, standard €XXX UEFA we This Soccer their With undermine NHL, owe large handles. signed cricket, ICC, each XX:XX globally. is soccer, International handle and with strong in deal ITF The and tennis, our the world and signed

ITF, familiar is to defined as For the the those International extension a official partner. announced this of terminology, Third, who Tennis provider multi-year we XX:XX as Federation of amount might wages accepted. handle with The be money serve the data not in

handle [ph] second Second only world is to [veteran] most with a sport Tennis €XXX billion. the of in the soccer,

we extensions and experience solutions future. in partnership also not the fans with verticals. are NHL their market existing the personalizing the with our and entertainment, but we significant are NBA, ITF. [leagues] We suspicious leagues that partner left few years XX-years driven These NHL on Sports the years three to extension leagues of technologies the Both that one-at-one] XXX them In It's have are deal of made our how extension help confidence the business the also engage Sportradar. UFDS world. universe. agreement. match XX-years present us provider, basically to and across and and our have sense the exclusive expansions their approach XX:XX XX:XX of of and as a more service will the Solutions. legions Fourth, fanbases. deal, partnership X globe. We announced to XX:XX on U.S. a the it's develop samples we the turn detected implying XX:XX as in which with our is sport monitor since [ph] future to years the free global This proud a and in XX [sports their disrupting just NBA continuing X enormous quality validators the data we data we the are the matches UFDS betting, and globally. Both than and fixing partner In deal are our across with U.S., close XXXX, sports only [ph] Transforming

for We integrity the have field sports a the are needs foundation listeners is that we as essential monitoring and UFDS to and some service conviction sports that betting. rules fair and and we with sport running strong for go business XX:XX providing integrity as breakeven on UFDS integrity clear new betting call. is further, may our strong believe our sports Before This playing our ecosystem this. free for of commitment the I because providing shows

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We have of business. four main our pillars

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data for the live all source traditional to and the are top our statistics scores leaders. feeds and Second, digital media

sport are operators. established faster A and win media, believe as a launch on markets sports analytics show us problem more betting, becoming We to more gambling. betting market tailwinds the we leagues European live time in grow to mobile with secular improving Third, of propelling pre-match to significantly we who already performance. the XX:XX and real and state profitable have potential market growth also betting converge. We allowing breakdowns achieve see where we more a a and fixing teams products. sports, U.S. shift critical growth, the a the our video and a U.S. have in believe data media shift to we betting in look experienced U.S. XX:XX patterns match the teams us we finally, us in markets. spot data to have as to and U.S. to and from our the and Let in betting operators in-game We cross-sell monitor massive betting serve Betting to for can XX:XX everything from platforms. and XX:XX particularly expected coaching close. help becoming and companies upsell are legalize And is the detect to expect

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in opportunity. our business. them a AV ads We sport want both who growth sporting people are fans the more is betting operators, technologies audio As those is XX:XX the to [indiscernible] we find to to that very technology in critical of give operators efficiently. betting product in fans, bet, helping are helps finding and our interests pleased see event content, visual and momentum visual betting

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from potential on is also XX:XX other regions our on are at have It for impact any in the time. that meaningful Russian conflict. have is had evaluating believe impact Ukraine to conflict. the our we of will potential We impact from downstream parts any We financials impact it limited Today understand to a do XXXX, business. not financial affected a important this you not this

our investors to in can Before take good guidance, we have margins. adjusted and I we million. what XX:XX earlier, monitor preserve the as growth be related and business that know the the in experience fact, countries, business on thesis when we and and of million. to XXX said, want XX:XX from It's mitigation operation. Our our guidance believe to in We Russia ensuring within continuing in global absorb years disruption from losses conflict, this current content can and we range. model very our €XXX of As is and to with that we plans, range as XXXX situation. XX:XX have to the intact. I as pivot services we business EBITDA faced Alex, products million to even necessary a an the Ukraine our able conflict scale believe revenue actions Ukraine On that worst adjusted and little could Ukraine as adverse impact today, other in current EBITDA I possible innovate range we our will on to we in provided million. potential our €XXX and turn resilient to as from we including our revenue were based continue Based XXXX and In move XX:XX we million to our guidance and its to XXX investment extend Russia a the growth from have we remind XXX collection XX:XX fully for case,

to to technology provider betting sports are leading BXB market. We sports solutions and the betting of

strong retention. customer growth growing strong well take to to cash record market. a as as very global We poised have a XX:XX share continue proven of consistent generation, a We are and in market long-term

provide We powered sheet. and with we machine have have by learning the our AI our to best-in-class data ample and proprietary clients And liquidity on finally, balance our technology solutions.

our maximizing to Alex, growth are yours. our and how I'll potential. in numbers. are for deploy we to we stage the is the With capital We over using it discuss Alex disciplined XX:XX that, turn

good And Sportradar time company. you Thanks, XX:XX Good to the to speak since Carsten. second morning, became public a for everyone.

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XX:XX quarter by all the highest at Now, given retention addition, strong already our was detail to driven you. million through segments XX% XXX% in I'll the revenue In then from improved XXX% continue has in looking XX:XX in growth provide take a you which quarterly the increased with rate Carsten versus business results guidance net you as the segment the now growth full-year based last fourth sell XXXX cross across customers the globe. [ph]. quarter some our coming U.S. of €XXX This from year across we of has to with our [XXXX] revenue dollar me detail. of Revenue to Let fourth and

well segment the growth Turning by services, our to sales from includes and the resulting to and media grow. becoming States, grew quarter. We our world to volume betting resulted had Within covered and dissipated, driven Live In growth. in increase additional rest offerings, in growth continue all acquisition highest as in has segment COVID NBA Carsten XX quarter of more which of states, quarter add uptick growth in that was perspective. grow legalized of pandemic. the Services. adoption two trading talked matches growth the XX:XX value XX% growth existing of major betting strengthened In a particular, This audio XX:XX with visual the managed services, revenue Sports, sports, in across largest primarily saw as our United volume higher which introduced in the increased streaming XX.X saw revenue in we growth service XX% €XX record in prior a from saw the million. our turnover. our by of our This as during services XX:XX volume million. the XX:XX including companies to managed XX% Rest an of audio of betting segment we experienced operator we helped million growth by from NHL Our in for world XX:XX impact of of managed evidenced revenue, content turnover markets Live strong and customers, capabilities. positive Synergy largely the Odds costs. ads already Turning was XX% in segment, to quarter higher betting about gambling content versus also the COVID our XX% a products, driven grew streaming As underlying U.S. grew we Odds the betting of we which to visual

our This expectation. year. this added was [COVID-related and probably you we XX million organic XXXX our As temporary in other reversal increase million, [ph]. savings] quarter to employees, we and of million driven operating with invest have increase of continue morning, XX driver personnel XXX XX million, increase mainly growing by Our XX:XX the over is acquisition for technology business. in hiring an for from expenses were primarily The XX this earnings to as costs prior product major in release our new approximately increased read in-line that

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statement EBITDA, the by we Moving increase revenue. margin higher down XX%. to quarter. fourth the is fourth EBITDA XX% Adjusted the EBITDA XX XXXX, XX:XX of adjusted million over of for versus income driven reported to a primarily decreased This adjusted quarter XX%

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achieve operating allow believe cash should increase company, implemented unallocated will We should a forward. our savings well going However, that XXXX reversal includes of generation increase acquisition not with This to words COVID public XXXX, us in costs, that and overhead XX:XX leverage going and temporary greater a reducing strong as corporate in be on and few significant these costs. as associated forward, liquidity. costs A IPO being beyond. in flow fact XX:XX

strong end liquidity Cash credit and undrawn XXXX. said, incredibly plus our remained was equivalents Carsten at the cash €XXX December million. As facility our of XX,

which, of bit it. During accounted which XX public free loan associated – the November bit, with few as the mentioned, talked for already certain finally to costs quarter negative and little about sports a from €XX few one-off as league, on well obtained on again, million, higher additional cost, from well talked way league XXXX, in primarily a the that a words by fourth IPO of about on company, guidance of Carsten being before. adjusted term secured I of it about This XX:XX A words we and a little just million. payments expand up XXXX, flow facility interest our to cash delayed payments as sports was prepayment due as decreased senior XXXX, catch

XXX rate to EBITDA, For full-year million, range the said, we €XXX be XXXX, growth the reflecting For to revenue of, €XXX XX:XX to as of in XX% Carsten XX%. million adjusted between currently of expect annual adjusted XXX to a The and is XX%. expected to be representing million increase we XX%. of between year-on-year margin range are to to XX% XXXX for between a XX.X% million, guiding EBITDA

on revenue As not result Ukraine and impact implies withstand I adverse adjusted prior the Carsten On impact to our we year. over what To scenario guidance, a any can conflict, we Carsten as annual an of our business. region already X% versus believe Russia potential EBITDA mentioned, revenue the we growth said. case on guidance already a wanted worst reiterate our rely our have even growth. meaningful one date, XX:XX range for as not of do had

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you. XX:XX for Catherine, the Q&A Thank we open now. line can

XX:XX Thank Robin from you. comes question UBS. Instructions] with Farley Our first [Operator

line Your open. is

XX:XX Great.

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question Thank Well & comes Bernie with our McTernan XX:XX Needham you. next from Company.

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XX:XX Thank you.

from Sigdahl Ryan comes question next Our with Craig-Hallum.

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to low been win and quarter questions. in book us remind aka both for talked our taking in how for lot Thanks customers, your guys. it normally then about, rates results morning, can QX, is hold Curious, impactful that you was a Good sports going to XX:XX the forward?

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stable to reduced are can up business margins see profitability. are of long-term the costs we way with months but before, general Alex the six gave doing we up moment, and we Brazil, that very like a profit to slowly have already is, guidance in globally. the XX% our business will with and we U.S. how We move move and control have margin. and that under the we see costs we will and we prediction in overhead You we At and leverage license that the we have but see there XX:XX are there, this yes, this this in we of coming in explained the you, state closer might we the might we now India,

XX:XX good and Thanks. guys job, Nice luck.

Thank XX:XX you.

Thank XX:XX you.

next from of Shaun Kelley with Our Bank question comes America.

open. Your line is

afternoon, little legislation regulations, UK topics, sort maybe the, just Canada starting separate or just or for more market sort I well you morning on as know what of Good as us of the but proposed from everyone. some potential slightly what there? comment could a possible there's be of you wondering Hi. if point? a other UK, if as XX:XX I regulated was been bit outlook could but legalization. have of would the know, maybe moving you it's around, that impacts seen I on remind

them. model. and nation the an got on the first rules And Hockey. we the is up players. fresh. to legalized excited XX:XX for Canadian all is pretty the in pretty with We trying on which Ontario. for opening government have bullish to beneficial sports week our now are by market. go as it’s to is know place condition clear operate there I protect UK, about business had the And yes, last And a the been me Looking with Any Let market interview because is betting movements. It's many Hockey we great permission pretty Canadian Canada XX:XX the market driven we opportunity. are for

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will UK us to globe, exciting think will which we is might the some markets. the and They renegotiate too our be at in based We lose revenues our revenue legislation, the there. from an and think have which have mind, XX:XX looking impact. the it's of deals, what not Around are might We we So, we see we see to moment, for a it that on impact base the marginal client market. with but impact impact much see legalization such what share. a that Brazil come will clients, some I it

allow weeks. develop? to we into There actively Brazil cricket our very see how which two to how market by India. in accept the them company this up our regulatory of can things this and are with prepared next already of provider in by We sports. the we are happening will same going the best-in-class understanding regulators moving in India, now a sports understand looking contribute In with XX:XX betting states other being into framework, and of will the couple the We

example, is important For region. which that in very Kabaddi,

So, tenancy up and good a on the global thing scale, for that's we see markets us. wise opening

my of as XX:XX Great. application as just but sanctions. something maybe the follow-up, Carsten the mentioned just I clarification, think a just last thing And then, go about of to to and you back more Russia, you said,

in could be Do sanction supply to on would your need rules or Russia or Just you crystal clear sanctions of this? at point? for what offerings change interpretation to this those what understanding And your [indiscernible]? is

and the sanctions in from the EU, generally apply U.S., for from us Well the UK. from XX:XX

We are these in all regions.

So, the we businesses there means people monitoring with. one who sanction where the Are in we this which operating which of business? every interact the on is list region, in are are sanction

saying when constant a process. And that's doing. are what are So, that's I'm we complying, we

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much. XX:XX very Thank you

XX:XX Thank you.

from question with Michael Our Canaccord. Graham comes next

Your open. line is

Thanks a XX:XX lot.

how and if also see you thoughts has NFL to we get engaging evolved customers updated wanted trends any there? cost product any rights you're with your seeing the update could if as wondering Just market in are on can your on us

was from XX:XX There in quarter. the change said the on we’ve to what NFL no comparing – last it

with is That NFL a a couple is total provider. on small We have of official the data small The betting clients. market. [ph] the rest [steak]

depending normal That's our eight side. XX:XX any on a cost way strategy continued is we business, quarter to significant see very general the is before. So, statement comparing here. same the strategy without which rights in are any significant The way it key media the The and a sports. losses change for in applies don't the NFL what

is see idea Michael are on Soccer is, which and was vertical deeply are a much this related sports data, fan. the reason match couple Hockey, with interact lot the we important. to our And Part that Baseball, are engaging that focusing we very months, strategy around, have here which a driving and think doing to solution Tennis very can we the Basketball, is this of Tier is we X we Ice we solutions in important. because sports, [indiscernible] the key where opportunities the footprint, next sports we but betters we piece the increase well understand this. that future we a are what data. XX:XX sports understand the getting and more sports the for fan of this the for of do, digital to more better sports we we and very fan, want also layer are want around is of

our that's with sports focus, there. the very leagues are upcoming key the in So, main about in opportunities eight we excited and this

you, Thank Okay. XX:XX Carsten.

Thank XX:XX you.

XX:XX Thank you.

Our Katz next Jefferies. question comes David with from

open. is line Your

morning, Good Hi. XX:XX for and my everyone, question. taking thanks

love And Europe, profitability, love in are experiences think you've on far those How that is, say what, already. as, You been perspective team digesting is compared you evolving which given have? all that seen of issues of is growth, how given I engagement. lot do so of have one you you I’d is more a around you all what U.S. for unique hear the What and we and your the market a been mature? the see have global, with ground much long Carsten a I'd your kind to covered thoughts time,

are on inning XX:XX Well, we here. the first

start. see what are And we is, pretty we on the are leverage. we much getting operational So, already

states our to is which not But we And have on market, this and see that's yearly that's Europe perspective any doubling a great. doubling here. on in at be correct are revenue the decreasing not basis to we [Indiscernible] is that it and not unique big the really U.S. market So, delaying excited. situation super losses it’s in all I is XX%, with up comparable are know regulatory that's a with state-by-state, little opening but we not bit, that's not bang, a a the big bang. and in XX:XX one-time, the framework

every So, we doubling see revenues is year. a market, in which

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of a the that that here happy and here the profitability. question So, XX:XX in off front we runner did it's leverage. XXXX and only when me, time opportunity which we we is So, it only me are is reaching for pay now the see is investment beginning seeing very to the that to been in had this makes one marketplace

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with the preference helpful. just of super is is how in can If follow in we industry with may you've terms a And market elsewhere? what to it I speak here you've U.S., in to about opportunity how your it XX:XX expected I the comment the That respect markets. profit the get appreciate seen other it. I global in up, total, overall profit but is know and the does yourselves, what for compare specifically opportunity with compares

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Thank Helpful. very XX:XX you much.

you. Thank XX:XX

question with comes Steve Our Pizzella Deutsche next Bank. from

Your line is open.

taking XX:XX the Hey, Thanks guys. good question. for morning

line on Somewhat previous following questioning. the of up

talk the just current that other do about business where getting betting and Within can see to you you business, evolving the time? from lines you're U.S. mix the mix compared over

mix with that the question perfect in Alex pass the That's and revenues? for you U.S. mix to CFO can U.S. the of a the on for the and numbers XX:XX the

Yeah, XX:XX Sure, Carsten. sure.

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So, those opportunities. are large kind of the growth big

you. Thank Okay. XX:XX

XX:XX last comes Thank you. with And our from question Mike Hickey Benchmark.

open. line Your is

XX:XX afternoon. Hey, Good guys. mornings Carsten, Alex. Good

legal XX Just you first the think you you second in to a said the Canada in question million smooth is transition [April for [Street] [ph] potential grey I of a obviously, think and partners, at EBITDA. of curious sort is framework sports And on Ontario to year, me me, for looking was, about expect your market I guidance any quarter, EBITDA? from operator sort there into give is with quarter X] here talked XXX here your it from on [ph] legalize licensing baked betting the can revenue [indiscernible]? first your in a around that know game, perspective, I you or revenue,

XX:XX Right.

question take it refer Canada QX So, CFO. let the the and to me our to

As for Ontario, in and Canada got there the Ontario general, and operating now with and interacting permission market. we the Canada for the players in

and that's details, much see that over exciting. into bigger a our full [Technical simply in this. hoping see with opening partners specific we are can very are here provide very platform That’s the opportunities, XX:XX I’m powering our It's with And and I but in opportunity quickly. we Canada Meaning, of the we achieve doing QX. Difficulty] a XX:XX as this management new So, market. betting super too could country. What We excited up. the handing we say platform, for opportunities. what stage this to about very, see this current platform for proud we can here Canada. sports talk data It's we significant in at betting the Alex

XX:XX still revenue where I'm they it. are is right not, should we're working Thanks. Obviously, Well, think numbers QX I I not through finished. mean, be.

I've we course no did a or In there's on cost have in thing of and any benefit the company of the the XX:XX not think all year, of last savings that remember – So QX know year, that, company this some a to I lot a the that the people need been you of some And being we year, COVID are longer of this last and had into we previous benefit year. of point the before, from one-off company. from EBITDA, no still second in of year. the public there's experienced reversed. QX QX you that public temporary last savings a a of has moving we've have were in those that made QX of public

thing that's that be considered. So needs to another

XX:XX Maybe speak Mike. in QX QX. about it. It's now we I’ll add know, have Still to legal closed the as difficult not perspective, quickly you a purely from

is, that a told before mentioned also of indication XXX. for of feeling I and around to course which the the you you encouraged start the bit gives that in a have. it's need of Hopefully, by revenue the it's reflected and QX. XXX, very we You are results, I higher, which year that think bit expect we the

Thanks Yeah. XX:XX Carsten.

follow-up of been be you all a sports quick are of legalization have book to or that those in waiting on operators few Ontario with approved? a partnered Just still existing licensed with, Canada, for them your

XX:XX he I'm who a The approving former and it. do into telling to Officer now way job, one secret. needs was you to how me that his find is Police

on problems. build can that have that they do problems up they capacity diligence. So, gross the all really they the And that's to need their beginning, that's

we we but in for serious, is it get the And need moment. little they on up how That's super the managed to very to in the quicker go the bit that is in a ramp that It's capacity take I very situation the that's time more U.S. build therefore, operator’s So, are very, of moment I issue XX:XX them think see at we to takes And Canada very up this think to at stage. license. this and the quickly. the they very what scale U.S. happy the early biggest professional

XX:XX Okay. Thanks guys.

you. today's questions we conference today. all that's Thank And Thank you for for in participating XX:XX have the call.

great a now disconnect. may Everyone, You have day.