NorthStar Gaming (BET) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with 57% annual revenue growth and a 91% increase in gross margin, driven by strong Q4 performance and product innovation.

• Ontario remains the primary revenue source, but managed services outside Ontario are growing rapidly.

• Operating leverage improved as marketing expenses rose only 10% and G&A expenses declined, leading to positive profit before marketing and other expenses in Q4.

• Completed CAD 43.4 million long-term debt financing, providing funding to reach profitability and support future growth.

• Focused on operational excellence, product innovation, and customer retention to drive future growth.

Financial highlights

• FY 2024 revenue reached $29.6 million, up 57% from $18.8 million in FY 2023; Q4 revenue was $9.5 million, up 51% year-over-year.

• Gross margin for FY 2024 was $10.5 million (35.7% margin), a 91% increase from $5.5 million (29.3% margin) in FY 2023.

• Total wagers for FY 2024 were $980 million, up 51% year-over-year; Q4 wagers were $303 million, up 42%.

• Managed services revenue rose to CAD 2.3 million in 2024, up from CAD 0.5 million in 2023.

• Operating expenses remained relatively flat; marketing up 10%, G&A down 15%.

Outlook and guidance

• Management expects continued year-over-year revenue growth in 2025, with a focus on cost discipline and operational excellence to drive profitability.

• Sufficient capital is available to support growth and reach profitability based on the current business platform.

• Expect continued growth in managed services and further expansion outside Ontario, especially as Alberta and other provinces regulate online betting.

• Focus on narrowing operating losses and approaching breakeven as gross margin covers overhead.

• Ongoing product innovation and customer retention strategies to drive future performance.