Sportradar (SRAD) 18 May 222022 Q1 Earnings call transcript

Good morning and thank you for standing by. Welcome to the Sportradar's First Quarter Earnings Conference Call. 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. to Hyder, conference Investor Senior like speaker to Relations. now Rima today Vice would hand over the your I President of Please go ahead.

thank earnings call. Good afternoon, today Catherine. and Sportradar’s you and for XXXX you, us for quarter Thank first joining morning everyone, good

reference to I the forward-looking and future will Please our via or webcast, limitation A our hear at fair risks everyone, this trends to we plus or revenue slides during call question, forecast. begin, out some statements, replay those the materially that yourself be today regarding our These our from website. outlook. remarks, on results to prepared open investors.sportradar.com. you one call and and one available like on cause will phone would consist Before will presentation will uncertainties of point be can including to note may discussion To from that our please without of we follow-up. of questions during via involves statements be limit to investors. will business that today’s the defer accessed website information actual After we the

which please our XX-F obligation non-IFRS with to information, the more both release. discussed as IFRS no financial will assume today’s present along any their earnings on speak We call, Form the of Also and during and with X-K update to statements today in For factors SEC annual risk the respective refer information, or we Form report furnished measures. dates. the forward-looking associated

supplemental to SEC, the non-IFRS measures, filings including non-IFRS in reconciliation which slides, website. measures release, posted each is our of and included are the to investor our regarding IFRS of with earnings disclosures these relations Additional the

and Chief to discussion Joining Gersh, me Officer. Chief Koerl. to like the Carsten Carsten Alex Financial over I’d turn Executive Officer; are Koerl, today

to is our share Thank today. joining a Coming now I'm you, to XXXX you thank and start. fiscal pleased very to X. off Rima that strong slide all for

compared in by and with the products revenue XX%, driven quarter XXXX our first increased across core all US the Our growth in betting of first XXXX quarter businesses. in the

Our for as business, XXX%. a well at Integrity have completion successes partnerships new region. strong licenses X. multiple continued American And as achieved many our such acquisition, in of other our customer retention Slide the North increasing number as we

well a revenue we delivered business continued our of with companies. US as revenues Our as to XXX% as increase key betting increase media customers

growth ads than revenues in rate over at ads in also times business. world's We US higher Globally the our Rest business services. the once Odds our of first again of of the XX% and a saw higher almost increase ad year-over-year or value three of grown in product Rest the from MTS Live we In World, Data XXXX. the sales our have an as the saw such quarter

MBS Our products the MPS increased MTS XX% which is revenue, a and combination the year-over-year. of

content Live Our Live increased XX% more services Odds, a of our to selling existing result as clients. Data

discussion like to the for for priorities strategic now brief Our a XXXX, XXXX. priorities turn into I'd of

that stress data. want to overarching more with our process accelerating powerful I get technology to and continue this networks analyze to our Before AI specific, and I be leadership priorities data-driven

we or any recorded we Every Big human Sportradar, data charity deep world. first can history, has especially in company, institute it Data many are new this opportunity. have entity an individual points. the in understanding academic For of an At living time interaction or data a government, generate

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grow is betting First to core products.

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our areas we the As are content be and and in of and talent, to strategic key we technology scale prioritizing need priorities. our giving investing one tools people always they compete will rapidly, of them in hiring current

our We a have topics environmental, to begun also business. governance impact identifying that significant social have

how in than XXXX, know whatever instrumental and over in conviction our sports order win so we Universal a in future Sportradar XX X,XXX one business is convictions. a competition the reporting fair UFDS Through is annually. we to ecosystem our as more good to our But not that been believe playing approach our success. securing by matches the that want Integrity to good operates We it. matches over in competition, in our helping have integral Our has matter criminal Since must as sports sports monitor underpinned be and business, authorities we level and in Detection central ethics across Fraud that XXX sport it This XXX,XXX player sanctions field. a is new governance and and do. it's guiding suspicious to approach, we System and strongly XX

the sustainability Our will around commitment and never change. we something supporting the in sport integrity is to that globe

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in and of real manage machine executed globally that and Our our to over with risk to is trading by collaboration customer our customers, all This XXX tools in allows to activity, It's margin underpinned technology. across performance thresholds time learning rich surprise sports rules MTS. organizations no liability, that according markets. us betting our set use

This As larger United betting we enabling billion billion to turnover the MTS to this us be first in compared XXXX. in access trading a over the quarter turnover, €X current the highly handle. of €XX top of services XX%. a of year we any the of making operator have globally than and in is five service to growth suite the The close business which expect €XX revenue of range needs. to processed At rate is of rate, their in the MTS XXXX, billion run to largest in modular is bookmakers specialized States by operators range is

can insights the trade remainder. Or trade on trade of behalf they they better to sports a consumer access managed customer to example, all but while them activities. certain betting understanding to sports they elect give can and their themselves, ask trade For can everything themselves, our us their AI-driven services or we

improve such every Sportradar MTS' For their services, order integrating to entire their offering. cater the to as way, us, that them tools, MTS fully are product in on this they portfolio service. have all respective right-size engagement a continue modularity to AV donkey capabilities betting the to products and and ensuring we operators, step as also able the trading which to to journey the trading option superior by sportsbook turnkey is modernize support includes on access partners critical

ad:s GGR, vehicle retention behavior to and In our services our for the typically Gross acquisition AI-driven use recruitment addition and MTS marketing monthly we essentially service up-sell recent model. service is overall with upon by through underpinned Revenue the a product, or through are and share Sportradar a the Commercially, through fee. the to marketing MTS generated our of Gaming cross-sell able Vaix, provisions, portfolio. of based revenue-share as entire minimum services, product is This

margin deployed rate, Our X% have quickly, trading by for MTS between, and current generating us guarantee. to to end Perhaps offering market is superior on turnover. technology sports highly be which liquidity fueling one reduce operational take drive margins speed users expertise for risk product by fans. entrants X% and a increase that and our scalability, and We rate growth. MTS MTS pure and risk our content products, market financial the leveraging X% is to even take customers new a valuable data operators most or making a and versus trading allowing our can engage help importantly,

into targeted experience that fans service, their over versus the traditional with industry. inferred data platform and Vaix's build more quickly to front-end three in measure business allows to like personalization us Vaix's the optimizing products. a over which which acquired receive The player, foundation month, turn through I'd accurate players, more and player-friendly for future the three profitability Vaix give behavior acquisition type us our Next a with the developing Vaix technology much shows key personalized of weeks. the set acquisition and of helps into the The solutions team might to strong the to efficiency future is intelligence our Sportradar In Last we existing innovators offer turn, and this in acquisition, are look with the last campaigns. the iGaming data Pioneer and gives turn days the map priorities. same the a to might the capital bolt transformation. and discussion advertising conversion, priorities. innovative strategies technology product they us that our understand about entrepreneurial the have and to AI already two past engine us likely existing highly for culture our ad:s to with the allocation products a of accelerate our strategic We partnership had

Sportradar Vaix in For years, the coming personalization cash Vaix's the the and has intelligence data retention. promotion two offering. very consistent Sportradar, as strong technology sportsbook remind of systems record well algorithms strong its our is Managed Services generation But products the growth, customer closing, to to Training the incorporated into Vaix all artificial continue where and well its to Sportradar I analytics player everyone past I'm positioned platform. want proven enhance long-term as that

to have fiscal and betting eye quarter and the sets well year technology experience are and and the continued an us strong growth. sports and we for with reiterating to The depth. We the With like by leadership EBITDA we XXXX. investing both guidance gave our call for XX% numbers end and adjusted growth I'll it over growth to toward insight our our that, our in around industry, revenue XX% of quarter that in Alex. technology of entertainment fourth XX% transformation our more first business I'd to Alex discuss XX%. turn in to

Thanks, you, few Carsten. to repeated. Hi, deserves going repeat a just great that everybody. I'm a things be that I'm Carsten but believer news to told great

So the you'll time. hear one news of more great some

once segments XXXX the of the coming the from again across was US, had to growth As of strong strong This the very XXXX. business. Carsten a million all stated, growth we grew quarter growth first all with we of driven segments quarter across quarter of already with COVID Revenue in first was adjusted first increased pandemic. where our by reported our the versus XXXX XX% €XXX first down our with We in XXXX X% in it's to of one-time of million which approximately €XX due to associated And temporary expectations with quarter. primarily EBITDA of higher quarter related company savings were this line public being QX the XXX%. the €X but for a million while year-over-year and costs decrease for highest

adjusted in the full to of we're reminder, forecasting for still As XX%. a range EBITDA XX% a year growth

of at strong the the liquidity cash first our and million of Importantly, with equivalents €XXX quarter. cash remained end

you give details performance. some on now me Let QX our

grew again in our Betting including turnover XX% value-added It the the our Services driven said grew million. primarily Services represents due as of The our revenue both was and largest revenue. existing just to Managed Odds Live Managed grew of higher Platform higher our Carsten quarter to clients. Trading sales uptick Live Growth XX% revenue More Rest included €XX to Odds our €XX segment due increased Services; Services Live Managed segment. while mentioned by World total in our specifically, betting is and million services. €XX an to to XX% million Our Carsten to Data offerings Managed year-over-year XX% and as and Data Betting

In quarter In the year-over-year of sporting to margin a in to from quarter due have as from Australia XX%. €X adjusted XX% Synergy World offset cross-selling the other by Tennis €XX revenue of which Audiovisual successfully content Rest higher first €XX and experienced cost acquired XX%, the the essentially the we million. countries. due its customers we costs, to Hockey League COVID The loss at And from Rest to EBITDA segment customers. was in of by to normal World EBITDA betting grew impacted our addition have million. the sports prior will This begun the primarily right sports of million scouting acquisition. to was on upselling margin Ukraine as period. returned National mentioned flat versus higher I adjusted XXXX This to our World margin drove Synergy of segment with sales content some Rest temporary primarily associated well higher has which rights to we newly growth was in as the pandemic XX% schedule EBITDA declined was increased and adjusted easing. war levels Audiovisual exactly first content with the adjusted adjusted to EBITDA XX% increased the previously, EBITDA the of to normalized. associated sports in XX%, again and declined – expected adjusted calendar savings as XXXX XX% as

clients; sales more betting; our services year-over-year three driven see our and third growth €XX of We segment. and XXX% all which increased to Turning positive in with major audiovisual Synergy. as US betting our was to grew states a legalized factors: products by This second million. strong customers growth grew to impact ads XXX% primarily over and the revenue XXX% the sales growth and respectively. media to from United over increased Revenue First, increased continue highest States, in our

First EBITDA things In past the €XX increased quarter continued segment see A few loss as by larger improvement cost. drive €X we on was €XX with for continued to of quarter prior however, in due investment increased costs operating a our a adjusted to million trends, in growth. did EBITDA negative line to the a million. versus million, Personnel leverage. the adjusted margin quarter result US

quarter first rights costs were by was both rights in And employees of It's €XX return added area. and €XX for the increased NHL XX Other Total company. and expenses New the before the major €X in million for UEFA; XXXX million ICC an to a prior million them prior is approximately which through with schedule important organically by to that technology COVID-related higher XXXX. Growth of mentioned NBA, acquisitions the primarily over rights comprise and and sports and of year, normalized driven mainly our a sports associated being million cricket; note driven our savings public expense. rights sports increase in costs temporary ATP were product MLB. €XX new to I year. and XX%

and ability sports rights conversion over over we EBITDA expect to in we growth confident few same continue are cost period. cash in flow Sportradar's the very that next to While increasing achieve years,

for Cash of in first of to facility million, balance end This balance a the Our due XX, strong from prior million. was undrawn decrease XXXX. subsidiary flow and non-recurring XXXX final was purchase our at non-controlling cash million. as made fiscal the U.S. payment plus liquidity our cash remained decrease €XX in payments €XXX of as approximately acquisition equivalents to of the €XX interest Sportradar quarter. an December adjusted doubled the cash million €XXX Versus credit quarter, in earn-out a free well the LLC related to

XX% to flow cash our last year. We believe flow to that free improve. conversion Our cash from conversion increased continue will XX%

XX%. is we revenue-share a subscription model. few years, for of a range portion model. Services flow expect unlevered Betting significant change our next model be revenue-share the and our to the are XX% to of a a in cash Managed to move on our the A based The conversion in key areas from cash business conversion US fastest-growing free Sportradar, Over namely,

this annual our capital While it working annual timing reiterate And growth, our Back Carsten and fiscal fantastic guidance has offers finally to cash on for XXXX let did. for opportunity also us collection. guidance. as a me effect already

we XXXX, of previously are year full issued the our maintaining For guidance.

be to annual revenue the to expect of between XX% reflecting of million to the XX%. growth €XXX €XXX range We million in

expect XX% million between EBITDA, €XXX in a adjusted range and €XXX to we be to For increase million of XX%. representing the year-on-year

of Russia-Ukraine quarter, last you withstand revenue losses any range believe the one from we not rely as we can told our a on guidance our for potential impact we do As region conflict revenue the growth. as result

meaningful quarter. on you business our told this quarter certainly impact also not adverse is were that of We the a case we expecting the This XXXX. first for

However in this QX, crisis. seeing of we are impact increased

With that for We you call the to these developments continue the open very would line very, closely. are Operator, to questions. now up to happy questions? open we please monitor

Company. Thank you. Bernie question first McTernan [Operator with & comes Needham Instructions] from Our

Your line open. is

revenue right the are while Follow-up their question going and the which one a question. larger smaller to months? Great. deep that assuming think revenue larger there Thank MTS. it? XX a contribute so contributing on percentage operators thank months Is opportunity XX I'm taking to way to services, much you over now is you percentage. more next low the for one about in large all though. Carsten to to outsource And the MTS which who And outsource is detail the and for of if growth operators

from something this with At Tier a operators, might in the for which sports tennis cricket this them clear way. MTS growth of it's us, table the for small is very degree or X are small they relative operators the trade because Thanks which X or question. the to Tier be powering Bernie. moment, Hi, liquidity a service, perspective,

the in which see in are liquidity and different to then our three development innovation with we now. We innovate future, We and here future X low we saying, X are for liquidity putting Tier the heavy the systems. high speak, ultra it's categories as working this Tier into operators, we in a trading. the know mix we for might on trading product are process X see needs which have into, here. trading And as And margins, all Tier this you you

I For think are We trade it very algorithms. also Tier perfect. sports liquidity A can big the bookmakers. very in with X, But high-speed full trading of we a well trading for operator, needs liquidity big smaller fascinating improvement bookmaker, trading. area, the a big

If you trading. which into liquidity aggregates then control side, will the that the deep liquidity on other latency and the the side one that and for lead trading data; highest future big do is on the we alpha and

Vaix this first then, is -- and if customers. hoping about you cross-sell there could opportunities And a How kind sportsbook just that I your bit. was acquisition, the a opportunity. with a, differentiated And the like what iGaming step if Understood. is if little talk in technology is of the larger

Yes, now. it's Look helps depending data you can it. your from The two into can directly where optimize to is need and don't than a see of two campaign significantly. to that's how understand you That how of the this cost for a system, things, because three is. on do step impact you the to to we a big more BI three weeks, traditional campaign much shortening that weeks, you probably know, I this the massive, a in massive tell days. two as one marketing impact, Vaix, AI impact within

Looking to book. sports the

Of them space all is, products key has gaming he is, Vaix course, understanding the and performance campaign player the the here cross-selling natural. very reacts what the the and here. on into player

So this. him once gaming enabler cross-sell is a plan is sports an in better, and behavior Vaix you know of for our the into the

a So for And Vaix going and gaming no bet. shift that the to set a there quickly the into tool is has if this activity, live you and find have you perfect you're easy live a channel perfect stimulation knowledge. betting

for Great. the Thank taking you questions.

you. Thank

you. Thank

Our next Michael with Graham question Genuity. comes Canaccord from

Your line is open.

Mike. for on Jason, is This

just specific you growth On the turnover or regions the any I'm the of Rest notably strong to there. and operators of there talked strong performance? really that countries Anything, segment, call World are driving that driving or higher upselling Betting are and about wondering, out world there?

growth from in and EMEA, the quite Betting MTS big. but The strong comes for the Managed the services. Well, that's this is regions mainly Services here

a stronger couple of growth there which here. -- a we some There which growth. where European is Latin is see see countries, strong So are with we in there America, Africa, very

and That all over For the a some those as which in data markets. of is you the that is the growing which clients XX%, the odds quarterlies see but serving achieved is place. upselling services, growth, also mainly new we in was

a little down detail mentioned, you impact a and Great. on more bit more then just That's drill just QX helpful. there? Ukraine share And from the on being little a you that notable. Can

with you in the mirror in smaller. now EBITDA. of gets Yes. last back looking worst-case the If €XXX the gave car, this We I'm number quarter, scenario million the

definitely Alex some see order some to guided quarter are a of in see Asia. services the two. the will to are in stop impact we actively That have we bookmakers, keep working problems. we get worst best of So guidance mitigation. or as opportunities mitigate We of up to as and we good looking payment is we hinted can. why, we And from popping distance this as and very speak, we We But on a couple we the some case. them you, that see

lot. a Thanks Great.

you. Thank

from with next Our JPMorgan. Karnovsky David comes question

open. is line Your

obviously the towards the lot then shift sports your drives you related and World. partner you think internationally? to way terms relative Do to And to confidence US needs live Thank see push Hi. betting what do companies to structural soccer more Carsten, in much the of US that leagues you. market major the media betting or wagering? from come will underlines where with? continue the And the you a in anything the than noted four Rest of live within percentage you this of US lower being which still people that's consume

of So already doubt, into as behavior doing United markets, way market many and Atlantic kind and by and I since any live. couple from City, many how of and pre-match you are I'm Without very regions, from much saw a this having the there betting a a driven this know, Vegas was betting. betting pre-match people the countries years, shift States

that's think I exciting. And population much a see digital younger these you with trends. more simply with here, so that channels match. bet more during we natural So the And it's very

the to no everybody a And over zero The And from is, can is a live what giving there live piece to now We will is doubt only are is saying, do making with accelerate appealing. targeting live coming things. this course, we of from XX% be betting for the XX%. betting in betting. we a all tools audiovisual Whatever are into into more question range timing. those predominant analysts we stimulation do

the the can up that our the marketplace live more a the US can that push last betting. penetration this of audiovisual course, with match live accelerates more an the betting. soccer we can. are the perspective, and are trying most a stimulate more results here. picks and which from this in and would We accelerate to And the trend in more AV fast-moving centers are soccer hopefully trying And and we all definitely So offer and better streaming achieve is also to more And see products, growth. we love we we course, the to which the accelerator US, shift for to this if the is scores interesting sports we with to word live of content sports best

the in maybe now you from terms wearables. of related, there's that some And data could right source Okay. negotiation know, then I

what key commercial from of what able you're to Assuming the teams media? What player sort data you the versus associations, – and get you are buy-in operators can applications? with betting can share the the

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kind a the from to necessary must unions, the that agreements unions is really discussion. that's a domain? have and league make And do they players want betting? possible. area from use teams commitment want there public chips, For the they the do the what and decide, constant the there need then the for to between to of be and of What data And in to

can be So data we deep me, see agreement the we the And leagues, case. is doubt, in One from In share, will difference it products. told always leagues media we ongoing. But RFD and and the be and the intrusive huge with into probably to without which how I the there. unions doubt player some is there is must betting leagues the between not for into way no sensory without that, any market also commissioner data, always in the the are progress less public some in going there betting systems. personalize valuable other information chips this chip RFD into data look, source there can any globe, see is an for put those there such the unions our still coming a But a around a discussions used.

Okay.

Thank you.

Our Robin UBS. from with Farley next question comes

open. Your is line

potential to mentioned the scenario. on Thanks. million that get worst-case €XXX quarter in range I reiterated EBITDA million. clarification just But million impact of the ago, €XX adjusted wanted you €XXX the to a you Great. had

mention that, in are slides You released today. don't the

And other is anymore? from that range? that €XXX So understand €XX should the we that that sort the being million worst-case is now that to back of the not scenario case downside million of

Hi, Robin.

from question I a is And We way before. this like in expected said you. it

And we number worst scenario are and keep speed we see things. we already So new the I'm hopefully, means, in of guidance, €XXX working are number. back as quarter we of case quarter from you million that kind million, is getting €XXX fall, markets. mitigating see the on The smaller. €XXX to impact those which looking agree million distance we in actively are we car, of but That into are this it we is that a two, if this two I with mirror high speak my the and guidance to having

distance the to getting bigger. with worst €XXX million. case stays So the guidance €XXX the is to million The

that's because unfortunately can And terrible I the this for a the indication to up time. it's longer Now might war situation you. which mitigation, continue give

one. And a Robin just quick

and with we to every new we quarter when continue to will say, at discuss have it look if We you, will. this, something we

still mentioned release since Okay. the it it the like getting the that that thought in was kind wasn't I sounds situation. lower, That are that that odds meant potentially but the of off maybe table. it's

a they're they QX about sports have customer curious promotional of acquisition the have cut that in And talked some much back that just of follow-up. I'm of in change business US terms and seen acquisition ad:s some too overspent in but the that ad:s overspent? Thanks. here there's ad:s on for you given Okay. a on books then Have they so activity. in what Not that business Great. in the in QX feel in like spending they your overall. on far cost they specifically may that in have commercial the just customer QX, been

Yes.

call course, is is, spend we than Rest observed of the I of in States overspend, -- the customer in is higher a continuing It it, that is there trend. And the in not there acquisition So World. United market Robin. would significantly any a other this for the we see

not the the that sustainable aware are advertising, And which I think see we the our and acceptance is of and by those and statements some all growth see going campaigns. is a that with broadly and course read I that that of XXX%. had is it -- discussed a and quarter-to-quarter the and TV penetration the bonuses well Alex mentioned, down. spendings are this ad:s. a that will industry in in here we direction lengthy see better in industry, trend, the will programmatic lead It's we mainly into of pointing

I the for customer way a costs think industry the itself acquisition by will reduce that used be in that the US. for speaks in preferred to channels those

programmatic So it's shift? from QX the benefiting an that so increase actually far you're that in in seeing actually

Yes.

you. Thank Great. Okay.

You’re welcome.

Thanks.

Thank you.

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

Your line is open.

question. Thanks magnitude is guidance agree guess, say question. but reaffirmation given that, Ukraine statement, for turn safe you I odds QX the Russia, given Robin's and into no? potentially with to and just to it our the bigger? lower yes are a the reported, taking Do is or now I you want just But

a is over I question and the hand to for that you. Alex CFO, typical

Okay.

And impact that so is and answer the said -- is, magnitude us the The the Carsten no. on magnitude magnitude is the now of is what smaller. -- just of

think to than million without €XXX a better So We million. we to do get going we're think don't we doubt. €XXX

you to are and mitigate as on working we guidance QX with to trying stay tells that Our and possible. in guidance QX we our and we're going are mitigations as quickly

that which people to QX, sure half impacted. is that However, through make will be understood I almost wanted

on However, mitigation the working we are forward. going

crystal a between probably you worst widened case maybe a just actually is I earlier. misunderstood guess think magnitude the higher and I that now shrunk gap to the is has thought the and just just maybe it €XXX I said potentially be I worst follow-up and And case. base case that Alex has the clear worse. gap the said you million

correct. is That Correct.

We in correct. didn't is The gap lot impact QX. €XXX of statement see second has The million shrunk. a

in there is an on impact but mitigating be QX. working in are to QX, going impact and QX, We QX,

more Got it, helpful. for One me.

locked sports do four leagues versus big -- four How the forward the those. the see optimizing rights US portfolio? Notably soccer the the guys contracts. much pipeline you exclusive in with for existing and do you of you up leagues sports in new two largest have going multiyear business Just opportunity

on growth You depend does right deals. know business our not only sports that

the Our this. with into huge the hope I a growth US, shift from is highlighted live. opportunity there in I pre-match

order also to product. the higher. X% significantly X% take it the to in if For it us, is it from If it goes means average X% can we rate is optimize MPS Odds product,

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So, is college this from is see space, but us the deals opportunity. there a will in which you this

luck. Thanks guys. Good

you. Thank

you. Thank

comes Steve Our next with Deutsche Bank. from Pizzella question

Your line open. is

Hey.

have from follow-up currently? product the data the having And the your to wanted you from Can Just you conferences? NCAA could foresee rights existing on about the talk college. benefits potentially you

enormous college don't from from strategy leagues access big the rights here we think the media limit the of the of What We is significantly the bookmakers which in perspective is four there which have official college sports, have is can think two established power, which has out. do an different in from we a that that the are data Look power big kind we which than popping which players that data with big part see of not namely acquisition channel. US. and them those the of

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Synergy you for outlook then and how talk And that the Okay. Can customers. business? the and you're your Sports is much cross upselling about now you now mentioned product contributing to

Alex, numbers on give it? you can us the

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Okay, great. Thank you.

you. Thank

Our next question Bazinet comes from Citi. with Jason

open. Your line is

that free back points I'm dynamics that working a was I reason share And a to Thank to Thanks. doing what ask I question it the is move you I -- capital But could this rev conversion long-term you targets XX%, question quarter. free this to for math at cash ahead. Alex. you tamper right is that about closer as sort giving to FX the looked out the or conversion. range My your is if model XX% talked EBITDA the think delay had the for of impact, maybe headline go or reasonable for year? just And XX%. good do us if a you cash

highlight and and That's delay in are model are a cash. there It's conversion that's to they I definitely pointing case. -- our working -- revenues why the they to those wanted do exactly is the and capital because fastest-growing

two that we're to towards And this this three for continue -- over is the going target. year targets certainly, the next don't give years, the marching to target want will We for But this start I to year. year. to improve.

two, a is in it terms like Like... you working the of or than of longer just And or that timing rough the Is capital quarter can that? impact? sort

effectively, I the subscription money the right? getting about We mean about think model, us got share. prepayment you right? if model, think This if on you first basis, it is revenue worked our our a subscription

then tell they pay. customers the to the then then So first, revenue have they out we us, figure bill them,

months So you've delayed? a couple of got

Understood.

Thank Okay. you.

Company. with The Thank you. comes from Mike our Benchmark And last Hickey question

Your line is open.

congratulations. good Alex quarter, guys. Carsten, morning, Hey, Nice

periods spend just you a Just Carsten, I through I'm seeing I slowdown run so you sort some two business here your and how of of follow-up. you've originally maybe decades has for view obviously a pressure globally, and sort on trickles global on a And have of just if you questions curious sort you're me. sort sort we're economic business baked into it knowledge. a beacon of we're from your are the think of experiencing obviously your regions to of consideration And eventually consumer which operators in that and behaved historically where that's within you. But stress particular operate. guidance? of

perform that manage it's to our lay first to intend that we Thank And guidance and you case. that to make keep see, indeed what refreshing question, we it in a strong within forecasted. And the always Mike. is also It's conference the the clear, only guidance, exactly we quarter this you since States XX Yes, topic. impact I pleasure in a from We downturn the that side President listen I'm small had only this on We United on the see as industry. working I'm consolation to on has bigger, no winning see of a big where lotteries. But no just That's prizes. you a XXth years the to more remark. current impact the us, if for probably because the where and sports see crisis betting I all years now. exactly in think and resilient see the and markets. recessions. We some I In even from the getting is perspective, have to recession some expect we for we no the small XX operated, probably mentality our impact. acceleration for thing: what people Sports might positive see impact. thing business It crisis same in one is it and money into unfortunately has

same the Sport in sports consumption higher. in see goes that period You generally betting.

hit think our this we downturn. what numbers. impact is to future from how see we in forecast the and no that we able We So and are see

you. Nice. Thank

me. for question Second

strength here. driving profit the obviously highlighted You of And your you're balance sheet.

to and do But that you wanting leveraging this be opportunistic drive Just Carsten sort Thanks. it I leverage do if are that curious of do you how portfolio lean and in buyback? a sort or guess, of capital growth growth? here, environment, And sort of you what forward to cash? acquisitions with

cash of are and First I to super our super that's are balance we In situation, such we key cash. happy sheet happy center. to all, have a generate on to think

very, a situation. very important and being is such generating So, cash-strong in

time acquisition directly Vaix, constantly are we can the it's that a our around paid opportunities, then products. which and and monitored an technology for improving our such stack space key we the conclusion market technology came a long sports, to monitoring since to our be into revenue-driving Looking it implemented

if moment use to we opportunity for trouble here into So, want soon valuation and I discuss valuations fits it's little and currently, guess we accelerate. doing the to stack the acquisitions And this we this But core a detached. is on which monitor a monitor the something different that, the question. private valuation bit continue actively at are we And level. technology coming a we where public is market very as the will and speak. our let's very an And there this these say into And opportunities, is sports actively.

luck Good guys. color. the for Thanks Nice.

you. Thank

Thank you. participating. for This Q&A And conference today's this call. our concludes session. concludes Thank you

have Everyone You a day. great may disconnect. now