Sportradar Group (SRAD) Q3 2024 earnings summary

Executive summary

• Achieved 27% year-over-year revenue growth to €255 million in Q3 2024, with Adjusted EBITDA up 30% to €66 million and margin expanding to 25.8%.

• Free cash flow year-to-date reached €122 million, up 140% versus last year, and total liquidity at €588 million with no debt.

• U.S. revenue grew 46% year-over-year, now representing 20% of total revenue.

• Growth driven by broad sports content, innovative products, and global distribution, with customer net retention rate at 126%.

• Raised full-year guidance, now expecting margin expansion and continued growth.

Financial highlights

• Q3 2024 revenue: €255 million (+27% YoY); Adjusted EBITDA: €66 million (+30% YoY); margin: 25.8%.

• Profit for Q3 from continuing operations: €37 million (14.5% of revenue), up from €4.6 million (2.3%) in Q3 2023.

• Free cash flow for the first nine months: €122 million, up from €51 million a year ago.

• U.S. revenue grew 46% year-over-year, now 20% of total revenue.

• Adjusted EBITDA for Q3 was €66 million, up €15 million from Q3 2023, with margin expanding to 25.8%.

Outlook and guidance

• Full-year 2024 revenue guidance raised to at least €1,090 million, up 24% year-over-year.

• Adjusted EBITDA guidance raised to at least €216 million, up 29% year-over-year.

• Margin expansion expected to continue multi-year, targeting 25%-30% range.

• Expecting significant margin expansion in Q4 2024 and into 2025, with leverage across all cost categories.

• Adjusted EBITDA margin expected at ~20% for the full year.