Sportradar (SRAD) 17 Aug 222022 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Sportradar Second Quarter 2022 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. to Armacost, conference Manager like speaker to now Christin today, Investor would hand over the your I Relations.

quarter call Thank thank you. the earnings you and second for for joining Good us for morning, of XXXX. everyone, Sportradar's

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

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

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

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

joining for of thank to and you Christin, us you, today. all you Thank

vision, We believe XX% quarter, strong in we We our we execution On excellent the team from revenue business results basis growth about our results the our face XX% the of the second quality confident our are of year-to-date XX% previously. multi-years are our the delivered global increasing that business, our half year-to-year first our and the by of the of showcases to Sportradar comes of highlighted our visibility adversity. to even a the pleased of guidance which growth, remain strategy. XX% in has from and The through results to range a growth, power with revenue year model. for strong XX%

profitability have consistent acquired over deliver a and next, built and growth, and business you have growing that the network focused global revenue on first, are over along through strong betting platform, leverage will past the XX experience the of time. believe shareholder combined value years for ecosystem long-term with sports our leading we combination worldwide enabling unique company technology experience we sports rights sport globally, immersive know, The sports expansion the fans. with we margin we business As technology, history,

our capital paid managed our by execution position betting of quarter repayment, cash the XX% with in speaking of XXXX, second We capital. in the in record cash believe down team ads two, our And million the million not remains increased business by least, quarter the €XXX and the but Revenue results. long conversion compared quarter available can growth by a operational July, to liquidity. and over business. Post exceptional services with Third, outstanding. that €XXX million achieve our second the million strong and €XXX deliver strong model flow to senior a outstanding solid proven debts flow track last, our free disciplined In over cash for The we XX% driven management free to €XXX over highlights XX% the targets global with U.S., term. allocation.

a Subscription XX% of of and revenue of source our revenue our combination revenue the subscription-based footprint around segment As include ads and the a share solutions about for opportunities advertising such solutions. products. for MBS for you us. will accounts our is U.S., fastest-growing sharing betting our it the growth revenue the The recall, in rest, is stable total, some and as

been be than to in grow less managed can XX% services includes continues XXX% is our rest rate quarter, Last the was XXX% past or has years. the client business success which NRR and revenue trading seen net above world managed second our NRR was retention Total important X%. Our in over double-digit most services of quarter one of betting for X of the that The the highlighted to sportsbook XXXX us. the managed we and metrics. services. attrition for accounting for customer

business in one world, transactions five bookmakers nearly highlight handle the €XX XX% of we €X in XXXX. €XX This including billion Our the in XX% to alone I'd the estimate a the DraftKings to half track on billion over year-over-year. our transactions like as and handle us increased would revenue to also growing in of We between MBS top remain first year-over-year. year comparison. ads FanDuel of make billion and

customer betting largest efficient which over offer XX%. more our operators CPA lower customer, solutions by demonstrate the competing that to than we retention and acquisition, per can is continue We cost

venture Ringier joint with the announced also in quarter. this We

the XX create will connect mark activities around jurisdictions African to management, to partnerships have Africans media interactive sports mark media over ops and will service in sports solutions we interesting biggest experience risk [ph] large for the to with an platform from with profiles. One This listing the immersive ability of sports and bring This future globe. Leveraging with integrated Africa. milestone marketing milestone XXX-degree of existing blueprint African tools million medium fans in Europe millions in for and Pulse, fans a operators media a betting reach houses now other profiles. medium Ringer's a

to Now two. that XX% grew in U.S. the business, quarter

advantage will us in provides a world. you the U.S. parts recall, clear been we States, other investing of success which believe in on XXXX, first-mover in demonstrated As building we the our have the since

an betting products the to proprietary of XXXX operators media XX% in XX by sports growth XX% sports revenue to year. negative professional sports our Sportradar and the leagues key Sportsbooks have betting, Totally, for see revenue data the of of across built the XXXX, XXX continues it U.S. improve rights the We support has key the CAGR U.S. day in of quarter. media industry second data leagues, accounts cover and acquiring have media. and and net We revenue driven online data every business between and ecosystem in EBITDA none. U.S. three components. approximately the and digital customers platform customers, in-play over over and broadcasting is business core margin each of growth delivered used while from proliferation XX% gaming

increase betting sports in First, the of across legislation the country.

to strategy. gain services ability long-term the value are and customers value profitable And for key our successfully this our customer services efficiency. which more deliver relationship deals negotiate from and products, Live Second, more enable to time. betting and third, create components over upselling

the acquisition through we prudent rights also leagues life our the Importantly, which have plans with in invested should with of the actionable paired profitability sport deepening drive contract. relationship over future

to in narrowed pointing region. EBITDA substantially Our to profitability us clear profile margin a has this loss adjusted path

an improvement profitable in As proof, of and revenues, well EBITDA operating attractive a United expectation we building with leverage margin U.S. bodes quarter. of negative States, balance business. This an had is of further XXXX, we XXX% in seeing ahead a are of This long-term which accelerating this in cost loss our plan to EBITDA is in loss more the adjusted adjusted organization XXXX, than XX% narrowed optimization. performance and the streamlining to XX% our down

created under For example, our our to sales enterprise serve team U.S. sales we experienced and and accounts better reorganized customers market. one teams and emerging have the leader

month, future. a changes net and our These team operation our more changes to this customers. team and we the us leading Just strong will to foundation made coordinated to efficient in the closer bringing product

products pricing has strategies, us what optimization more our focused on efficient be customer Our customers. allowing in and we to sell to

betting with company. our value-based on received our rights, a have we focus which recently of develop larger to customers fact, which well. we the very in sport been acquiring In Last, strength engaged has profitability, operator pricing, differentiating some believe of a is

to growth, positioning the achieve ahead Last, to profitability I we increased original decided cost months announce the faster. him He visibility least three to revenue the discipline, invite be public having excellent join Chief Officer, into to after and market September led the at X to of to date. you to now in family the to over our have spotlight he the rights the expect the many I of time, revenues leaving given the he we at We will listed as company, strong process continue accept another over Overall, move on next contributions us X to Sportradar we to Gersh end our costs want level And XX embarks want IPO in well grow Sportradar grow appreciate Alex me next a position. and also, expect that fully U.S., expect target wishing of through first has and back to XXXX years. as that our his States. the United Financial quarters Alex chapter. and

as search company Interim a has Strategy the and Ulrich, since CFO my for a Ulrich's to We me including and the XXXX the XXXX the With contribution Harmuth, activities, that, CFO. a Alex have M&A, Officers corporate priorities. who of has served the new team results. talk over leadership member call of since management turn with execution Sportradar development Ulrich overseeing have partnerships support has named as Chief and and in been launched let I'm about ventures. to financial financial and confident strategic growth on of been

And everyone. Carsten. morning, Thanks, good

and Sportradar doubt go to Carsten Sportradar. challenge, its opportunity very thank First, me And I'm taking for the will years. to in while It's back continue relocating exciting U.S. strength no from very, a new let been I X at that to business. to have on work strength

with - financial numbers. the just Now we'll start

stated, second coming already growth second was where the Carsten €XXX U.S., quarter of we across in second quarter increased strong XX% to the grew we once all XX%. versus Growth growth the the revenue Revenue across highest of of million again XXXX. the segments with from As the quarter. segments all in strong the had XXXX

came new impact €X of business sports Ukraine. conflict of quarter, EBITDA impact rights technology down to revenue conflict, Russian-Ukraine investment primarily in despite Russia approximately the second for million product with adjusted and some losing $XX and reported due million of from year-over-year, our the continued due in outperformance to contracts. We Our XX%

accelerate contract the right will as As improve sport profitability new process. case, is always sales we the

from transaction FX flow to part increased due unlevered Our conversion favorable cash cash balances. in our XXX% large to

exiting Our equivalents cash with and were available total the of €XXX million. liquidity million €XXX quarter

mentioned, we will Carsten As and of July, our go term on. more in €XXX later million into I senior paid details loan, secured down

of the in to total managed value-add betting segments. existing due XX% MBS to million betting €XX Growth clients. record due services. and revenue. world Now offerings, MBS betting, of live the our grew More million, of while higher on services primarily revenue the content live our million specifically, XX% uptick and by Rest €XX upselling X% to quarter turnover, to was to ad or in $XX grew our increased to grew data year-over-year to XX% the our revenue representing rest world an including driven

the The Rest EBITDA EBITDA associated acquired In from acquisition year. the XX% adjusted saw margin last the to versus betting Synergy quarter prior €XX to X% content addition, declined XX% we adjusted in million. same period. increased of decreased sales world our

impact in of mentioned quarter conflict. the have previously, saw the I the of XXXX, second As Russia-Ukraine we

investment in rights. and new mainly in We growth and order drive to which product continued technology, acquire headcount future is sports

time personnel As Russian – from was to traction $XX and the rights almost offset growth adjusted acquisition, right offset process world, driven on increased to revenue XX% with from case, and This EBITDA the loss customers lower products. partially grew sales said million. X% sports margin million. by due of primarily year-over-year sports our I the new over higher Rest XX%, to XX% EBITDA by audio of previously, accelerate as customers. we new €XX Segment is visual margin audio adjusted increased the to for Synergy costs. visual audio costs, those world, with have the of always primarily improves video Rest segment

sports in growth call, We highest which Turning million. the simply be grew spent year-over-year to States, to will on XX% summarize, United continues our growth to segment. our and so approximately solution sports audio earlier growth saw at growth over this XX% I growth time we XX% in in solution Ads €XX large over last our over betting, Synergy Revenue the audio XX% XX% acquisition. by sports media in each. in year's in visual, visual, grew over XX% driven

decrease adjusted negative U.S. XX% year, $X EBITDA by driven adjusted million, at versus $X.X quarter last was of margin U.S. Second was operating a negative EBITDA a about million. negative sequential XX% leverage.

remain we this in As towards before continued XXXX we confident profitabilities highlighted earlier, progression at point. sometimes the

and to compared to Personnel €XX €XX the line with million business. our by Last, with our second million, the revenue as of quarter licenses to expectations, cost product by in in areas to further increased cloud our €XX well services Now €XX new costs continue for rights, and NBA. quarter line XXXX. price million Liquidity. in quarter a normalized total of $XX as the to few growth. the on Growth relates driven €XX million of by hosting second sports million with increased goals. XXXX XXXX, increased content technology quarter capabilities sports in by really second resulting such for primarily increased creation, as to the the cost. from as of growth schedule Purchase XXXX million return of acquire to was hire and in words This in and and we the processing apps growth and cost

of Our is generation, liquidity remained strengthening. and and cash in fact, course, strong

discussed, As cash and structure. use evaluate we of we to previously capital our best the continue

enabled loan our B of a liquidity million that to stands in after the in July amount strong revenue facility prepay portion the term Continued million. growth prepayment, outstanding €XXX position the Even XXXX. €XXX of our and liquidity available company at

us arise. the business invest take We strong allow are improving to confident and they that flow as will the and in of market cash advantage generation opportunities

last to quarter up in free last the and year. $XX million Our cash quarter, negative flow $XX adjusted increased million from from

attributable We million maintain cash gains conversion flow XX%. increased attributable medium-term XX% cash FX during from as cash unlevered flow quarter. target significantly negative our on cash euro free - conversion XXX% to $XX unlevered free was range to X% weakened last was Our to a year. Approximately the favorable our - of the unlevered

the interest our debt And we and summarize of in As currently fiscal on guidance. a reminder, just pay semiannually now year. the quarter to fourth the the second

Let me update mentioned it already and it. Carsten

outlook do to now we for this to million, it adjusted XXXX, of XX%. EBITDA €XXX a XX%. and the between year-on-year of an some are million in €XXX EBITDA of XX% raising or range range of to to back to will implies €XXX The increase remarks. of €XXX between result expected range we from Carsten XX% maintaining year all, XX%. €XXX turn anticipate prior are additional full a our our for any improvement you adjusted of representing revenue to million margin XXXX year, rate Thank conflict XX% I to and to a €XXX a the in million of growth the For Because XX% XX% not million we million or growth rate Russia-Ukraine

And remind of I priorities. Thank key to everyone closing, you, in want our Alex.

Instructions] operator shareholder I Q&A. in business that, continue we first from of our David our risk for on capital, of to We and with Our you. with can in turn invest a accretive and and expand long-term core over through acquisitions and Thank the comes all will and products the opportunistic opportunities, value portfolio our for your up balancing to betting Karnovsky we development be creation. With name internal prudent question managing stewards opening JPMorgan. [Operator focus products,

open. is line Your

what the role commentary outperforming see and Thank cost prior follow U.S. buckets unpack just your the revenue could a to if you. are that your early. Wondering or specific Sportradar you Carsten, where you bit, profitability achieve on to expectation? up

Thanks David. Hello, Yeah. question. for the

So third first, negative last we if XX%. you been quarter, negative quarter XXXX simply fourth had follow the year, quarter's XX%,

this quarter second year, First XX%. XX%, quarter now

it's ads with the So see looking sports operating from and a trend to thing. more the I live betting are for XX%. we states the product, is key we which betting ads perspective, times, growing leverage. segments, us. naturally a clearly a betting to the think undoubtfully, we mentioned And we is here many for If second, betting. of That's first continue good see Live is And us. is up, coming which sports

for live, is margin higher related we this. the and from are is significantly whatever So to profiting

participation Looking our here, to our thanks now to advantage. first-mover

we We it have a was XX% get market If share. the the And with comes you as profits revenues. operators know, generate to betting. there, from live the

answer that does David? question, the So

know, you on Carsten, then, And much. data, habits. data betting sit a very excellent consumer lot about you Yeah, of

on you any economic share there's lot can of regions of if slowdowns we've you a in? kind wondering across Just seen the as consumer insight operate the

We slowdown. a not see absolutely

this some overcompensated. our get looking is have of there of followed problems markets, to online. small I If markets markets, big clients of published operators than are question where This more as many I'm you the times. and kind So the results, the see have you and the might trend. retail Yes, tendency lot in same mainly some now and results

industry to So see case we is for betting resilient sports this of even requests economic the a downturn. markets. an downturn, in many more In of

So positive markets, this, we betting impact. on a activities. see And look in we impact some from overall, all slight even more no if

Thank you.

you. Thank

from have We Craig-Hallum. Ryan with question Sigdahl a

is open. line Your

first. on We Carsten. next Alex, want to into your day, good luck guidance Good venture. dig

it So times contemplate Ukraine from is of or current you was like previous for guidance? gave of the does range, Russia, the outside the impact think that range the and couple potential year rest the I

No…

contemplates. It

Sorry…

ahead. go Carsten,

It contemplates the current downside.

right? that considering And that now just guidance, year. was in further just outcomes and be range, given it potential wider we're the Is outside previous clear, to the the along

right. That's right. That's

to Ukraine the Russia So and these all out is negative in we numbers. of negative that of - expect come everything

Russia et But my mentioned. we next among think you year you the kind that today obviously, EBITDA that the starting for think and margin here other flat higher forward? can going Ukraine, place and as your follow-up, infrastructure, just a you're Then at things we resume of do year-over-year, about you headcount, spend, see cetera, sit that impacting technology Great. reasonable

are said continuing we we that team. look, to Well, [ph] we discipline invest our but growing are

We all within guidance totally technology, investing in the even understand have that in better. or to way are deliver we but we be the

can best that's answer So what you I on the this.

efficiency. very looking are on carefully our We

from is are We which unit carefully looking The and U.S. invest. us kind product very in perspective. of for key we this

So very segments have trading growing where like our market, growing whatever other strong there, or course, services happens but of services, managed we we, also a is the platform invest.

Helpful. Thanks, Alex. Carsten. Good luck,

Thank you.

a from Bernie & McTernan have We Needham Company. with question

You line is open.

Great. Thank profitability any follow-up there's a EBITDA contract on could new the U.S. Maybe you from for thoughts the if the the taking on trajectory how here? question. Interested of just NBA impact

know in for we and we for the one in looking operators, on still a into more changed the that to they're NBA I the course, the piece of that, for old And to clients good. announce is big quarters next contract, can NBA And us. in - I we season. kicking You and and, are pricing value something we contract of value-based this we here we as valid script, But transparency. in - my with working next mentioned very are create And the discussions after extension. speak, our think like with are give we you the model,

in then guys Slide you you And X, in In-Play of wanted on to the that. appreciate XX% where dive say U.S. NGR I great. That's just deliver

anything outsized share doing, a think your Is higher why I'm that, market drive share that's just right regular? there a share of higher U.S. versus so you of you but market have are handle, special think do guys I In-Play? that to would of you on In-Play if

delivering United of have - the XX% sportsbook to our in service the are States. no, We we

might casinos, are very services not from there be small So some which getting any us. very,

less So on, the we for from the profitability perspective, from course, coming us, focus complete numbers the interesting the our live this where strongest it's have of cover we segment is, one clients. highest But are market. more and these or the in is

compile first-mover So our is number XXXX. a client advantage. And includes, this able for first-mover to and We look it started this a have we simply to been in clients comes revenue and relation, from that how preferred here clause. which with our supplier if to example, we advantage, we our build share,

numbers us there data, in that us that then the that to It case because more in position segment. a a with better I contract. clear. starting are gives have data, same we which bookmaker suppliers existing hope the official that is very more bit So the not important has choose makes

Carsten. Thanks, great. That’s

question We with from Farley have a Robin UBS.

is open. line Your

Great, thanks.

back saying not you million on And circle finer to that guidance. and having from going that potentially talked €XX Just you're one and about disruption impact. at your put Russia, that's to point, Ukraine point now a

but rest that than same to due clarify, is Thanks. the on higher Or your thought coming that? in business is disruption? of the you Just to is offsetting less of it amount disruption,

Hi, Robin.

Sorry, go Carsten. ahead,

No, no. Alex, please go ahead.

Carsten second the growth in one. It's we just it's So significant said, ads. very what have a

other Russian We high of reason into a negative is the margin, the That's significant current maintaining XXX% as included the impact we across the in have of while effectively margin And very business. it's which parts not are guidance - Russia and is, all it's have revenue the growth guidance. our right? why not as

Okay.

fully negative mitigate in to rightly, guidance, more mentioned, of committed all the things, perform in is the a are company of said round it deliver to things the in that Alex which results. we fully we world, is are excellent which need already guidance could might this. no I the and it deliver happens the fully there. no to there which the And Robin, aware and we This guidance what we what committed it, there. impact are in other hold to. impact if and what with and manage this the matter we're are kind Alex has So numbers, keep couple up, But matter That's

quick Great. clarification. you. one just And then Thank

was growth On versus the the - can of Synergy talk you from acquisition revenue Thanks. the Organic? much about how

this? on take you can Alex,

places. number Synergy different of the in acquisition Well, sits a

difficult are that of way. effectively about the €X of Synergy of million to then it the XXXX. in you to ‘XX other QX to Support we million million the grown last and in I has in rest separate can AV betting, so harder the there million to I tell our QX world, but kind of the quite growth tell - of that Synergy, very in can quarter specific indicate way, U.S. that you specific the quarter much a across for or about – €X such business business, from is Solutions to in it's there €X about the of much U.S But that of about million parts some harder and it's to quarter also in as instance, it's a it's - quarter which XXXX business, in talked is significantly comes specifically. from €X a So

buckets? revenue But that Synergy, the at if needing look different growth, much to I at aggregate, it how your mean, even not you total of was of looked in just

and don't cross-sell so that's - the a the can't something together, adds my… of number I other is all there units, right? So that's that - Synergy I have to from business that

Okay…

we successfully products, the and doing to it products our with can't customer we're other me I've it stuff. is but given part for biggest those bought their very cross-selling to cross-selling Synergy difficult now you give What base, it's The we're in I and pieces but out. break the U.S., those you, huge to is

Thank you. Understood. Okay.

Steven with from Deutsche question Bank. a Pizzella We have

Your open. line is

guys. morning, Good Hey.

do looks sports at are wanted business, part a KGR X% way get [ph] approximately on in that U.S. to I And X%? betting from the settling to? our revenue? to one, the U.S. you X.X% is it revenues Can X% up I do that's can like where to according of you at good other believe you given math. large guess, to Just U.S. think a revenue reach it, look two, think follow to of

Steven. Hi,

I you data-only not to And would made data media distributor not we it's good only for a I we way a are it betting that clear it look look U.S. no, So distribution. because and think into hope operators. the a into

product. We we going the and are with are into call probability services, Odds. trading which and services, going a be then we significantly platform that that the pure and we numbers [ph] start this with with And direction all data possible. it upsell trying not AV you into goes higher the the Then share. upsell mentioned. And would comes the to where into with cross-selling Live and you data that are margin we are a explains that the products, DASH journey But to

you the to client if value deliver from comes need that value, products. no and So additional these to there's

great. it… Thank Appreciate Okay, you.

Yeah…

Canaccord We question a from Genuity. Graham with Michael have

Your line is open.

wanted Thank deeper to you. a I your just ask about question ads business.

your for just in how ads for the what complete talk said that maybe mentioned You you U.S.? that remarks, and a the XX%. forward? business solution can prepared believe the that. about is And number ads your you think potential is I And you slides was over grew sort growth that XX% clarify in of then then just And going

by Well, ads with it the from looking to a now XX% growth programmatic year-over-year a DSP next future, the into SSP, continuous we players. ourselves a engine what advertising built is if years. And and self-developed for we we're with see That's XX%.

You can market and by algorithms buy the try some modify companies in them pieces of build the from yourself the those to and engine.

decided now business. are build this. together strength is control then ourselves, ads social, the this think years added we we campaigning things programmatic those paid the and a and elements can to have all that many off-line like building What by ago it's we We to now

revenue you We has less product or net is changed has where traditionally have margin. the added that year. is paid social that But gross a paid now during also social the So and the the same. gross because an impact

very is focusing to the was part over the the ads XX% And and I on new costs we recruit high XX%. we are because of question, States that with your demand. next we operators the continuing think see much years. Currently, for United punters. this very to here second the So that see acquisition see highest We

do we have ads market And that cheaper media. with is big we focus the significantly continuing to environment to working perfect here. Therefore, than So or an are broadcast a whatever optimized channel. with is

add If - just I can add. just sorry, I'd

the the So business so right? way But business XX%, about the U.S. ads XX%. grew total - in ads the globally grew

So it's it the growing XX%. in but at less in Europe, bit grew a little U.S.,

in you competitive you. Thank the landscape kind or business, as you to lens that, do amongst of the given intensity the competitive any increasing follow-up that of through the quick about sort is do operators have ads think U.S., And then comments your Okay. not? a

is Well, XX% somebody see that would years growth conservative competitive you've more got would a landscape, growth the with expecting a I forward, to for a XX% me make you that increase the say going growth bit who expectation. X little strong Would rate. in

a I specialized think very it's segment.

think we a this. that there for growth. expect strong specialized solution is we but very Yes, have competition, I

we So can that very competitive we expect means solutions. provide that

lot. Thanks a

have from We America. with question a Shaun Kelley of Bank

is Your open. line

you outlook taking question. Thank for I a revenue moment. to wanted for just my back the to Hi. go

confidence core down I it's strong guidance. you're just the U.S. that super But about kind was that in bit of that define Can more solid I gave world, help it outlook a the us you know what be seeing think healthier more seeing lot board? just trends continued are of little we've break trends the you of as think pretty across increase? exactly talked Or where a growth? specifically, able out on would is a we rest to the where you just revenue decomposing and we the EBITDA increase that. about to

the with continuing And the growth. in the XXX%. rest spoke client I we upselling most the That world the losing the from X% shown. to for us. betting about are clients. of important no a than is growing than and here, more We're quarter, NRR nearly we less comes Look, XX% see segment

of upsell are the Live good some we So for course, can which products, services, is and for moving our a of trading we and example higher-margin services growth. us. It's the the clients it driving this. scalable product, platform is, into see how Odds very And to increasing is

audio traditionally fast. that which our is to growing something Looking segment, that's not visual

the a to being in going in how XX%. prudent it's about much that optimizing of to around steward profitability. are of where And thing put growth that investors, our calculate question capital and to can the we rights, need we then of rights but audio here, of is the So we're segment and at drive a kind a portfolio you're there, visual be that

in more states of coming X not down. see online last a U.S. in with and like and we seeing not the XX% I satisfying. a where rest upsell I years, requests So also see can is the coming growth We're demonstrating companies you for this. growth trend, the we this see then are but of that for think, which the CAGR world strong a lot that of, you the to this are we betting, betting will segment, here. slowing pretty see We gave stable And media we

growth a platform stable growth market Strong mix. services States, stable, the very, betting in strong very and from driver, our that's business, trading very services growing So growing of increasing a visual the high-growth and strongly now XX% main business. total perspective the audio the United revenue then driver,

at you. just mean, market financials bit. drag the costs Thank like or through impact over consumer that of or it cash side anomalies most or most in for euros, impacts reported volatile - are there look the but in relative more But least things a in happen things to had doesn't it Sportradar? number it or that it it relates how accounting market how quarter. it can this you the little material had as results, play was as volatile does any in happen broadly a second period, Sportradar’s then outline to and years FX currency? costs business, speaking, and probably seen an are just as just And a I reported follow-up, are on a anomalies And obviously,

Alex, a perfect question the CFO. for

Yeah.

not the So you're obviously, a disclosed - euro so right? are We cash, company. right. we It's

of U.S. dollar dollar all that's is revalue cash, of is terms now And as euros. in and terms this cash us cash in we gain to significantly So that but obviously, our the strengthen. to very higher, disclosed continues clear dollar the

impact In balance in revenue really revenue material, our EBITDA there is because business, on zero the best million and actual of translates. impact terms cost the of a U.S. it as - at of of on the and the in is dollars couple

see the the become P&L we there at any end revenue. in or bigger and of point, bigger the would cash revenue and certainly is if this terms end no material of impact FX than U.S. at impact don't on And balance to of any I the bigger the the of of the So valuation really all. guess - I the on impact obviously other But volatility - for terms - point, year, of the the continues. in this for EBITDA. become the at time, in Over

you Thank very much

Thank our from And comes question you. with Jefferies. David last Katz

is line open. Your

Carsten, taking [ph] do see what you penetration Cassandra David. Can term? behalf Thank a longer bit And for of Christy is questions. you little asking This U.S. is the could live Hi. us my it on tell betting more on today? where expand today? you the you

Yes.

to same hello quarters. - Cassandra. are I of see to such the on better difficult at say example. is XX%. a a that moment, in the ballpark bit operator So a there Basketball to received. the up some XX% what give bets different, sports proportion Very one that operate both that's That's and parts the the same from - That's live. ends that you current last from said a are We all but here in picking

fun it betting might growing everything a still for NFL. sports, direction, live So and or segment. are all in bit It's into example simply little enjoyable. much more much are There NASCAR more betting less is shows a such live the minority. But it's be a strongly the which

America you and bet, U.S. this if more and have That to do can we what is trends. the a it only fans the same it's to emotional of How have worldwide the a time the us to you the you In And are XX% Asia, a started. sport emotional. markets, if of in do you very XX% a a live and adapted And we trend saturated But betting. of of so reverse play. It much think? emotional If our the much you event has core it's and betting of expect into place element. is question in which all and in is And bets it, emotion, bet, live in very, driving is our take? rational be can't Africa, range live, watch which connected place XX% also the is more enjoyable. in because U.S. Europe, you that's good undoubtfully, what if all much and takes betting accepted trend bets you long emotional more in In there clear both has the is is during and but are very Latin all that markets which that's it level and to a we live. see this XX% will

kind Or Great. look up. Thank or pretty may holidays and you into much. the U.S. of pricing products developing [indiscernible] feel will that? popular the [ph] this offering very like today I And single on or follow in game company if has like become I whether offering? is

or trading a our part platform and are we offering services, of are programs. integrating we bonus parlays Well, the And or with this our Yeah. only [ph] with betting for offering engine. this, buyback calculators services, even is

if back you to parlays a have we cert, bet two a can do the picks buy have this, and you have those there your already and of and you things. If winning algorithms are are

very a normal trend. it's think I So

with $X. bet, you win want $X,XXX a So to you a want $X and to with go

multiples combine high you're and there. parlay So getting with a

with So getting you're that's high and there. multiples something

picking in on something the which under factor, moves that very U.S. his many we've $XX,XXX are one from which to way in the seen that's promoting Vegas So specific happy punter with over see entertainment more lot. in only we a That popular, I'm places, going traditional this the is also into up and the pocket

it. Got Thank much. very you

you. Thank

there's Thank you. closing no back Koerl turn the questions queue. other like Carsten I'd in for call the And to remarks. to

So our exceed years. expectation, leverage customers thanks business I build our in, I eye the personally want Russian, to and drive cash our for into today, in joining in our the businesses. today. commitment out position for accretive to opportunities meet the you the I confident acquisitions. for we I continue Thank what U.S. ability everyone despite to to for the and and in our future. our their face incredibly to towards we revenue from be a prospectus persistent over growth built want Ukraine capital thank day the ongoing for conflict reiterate will remain couldn't prouder challenges and call day of our unease. and we joining especially the economic smaller have XX Sportradar team general will past the flow And the With to look we model, to the relentlessly call. serve stronger

you Thank you. This for conference conclude today's Thank participating. call.

disconnect. may now You