Adveritas (AV1) Q2 2025 TU earnings summary

Executive summary

• Achieved strong quarterly cash receipts of $1.89 million, up 28% year-over-year despite seasonal holiday impacts.

• Annualised recurring revenue (ARR) reached a record $7.8 million, a 79% increase from the prior year.

• Significant expansion in the sports betting sector with new and renewed contracts, including major clients LeoVegas, FanDuel, and Bally's.

• Progressed strategic partnerships with leading agency holding groups and expanded into the eCommerce vertical with trials in the US and Europe.

• Anticipates a record March quarter driven by new pricing, multi-year contracts, and eCommerce client growth.

Financial highlights

• Quarterly cash receipts grew 28% year-over-year to $1.89 million, and 113% over two years.

• ARR increased by $1.69 million during the quarter, mainly from sports betting and online gaming contracts.

• Total operating expenditure for the quarter was $3.64 million, down 15% from the prior year.

• Net cash used in operating activities was $(891)k for the quarter.

• Cash and cash equivalents at quarter end were $2.8 million.

Outlook and guidance

• Focused on expanding share in global sports betting, entering eCommerce, and securing long-term agency partnerships.

• Expects record receipts and revenue in the March 2025 quarter, supported by new pricing and multi-year contracts.

• First revenues from eCommerce vertical already received in March 2025 quarter, with adoption accelerating in the US and Europe.