The leading global sports technology company creating experiences for sports fans and bettors, Sportradar, released its financial results for the three months ended March 31, 2022. On Wednesday, the company said that its revenue in Q1, 2022 hit €167.9 million ($186.4 million).
When compared to the first quarter of the prior year, this result marked a strong 31% increase. Moreover, Sportradar explained that in the first quarter of this year, it has seen strong growth across all of its business segments.
The company revealed that adjusted EBITDA for Q1, 2022 halted at €26.7 million ($29.6 million), marking a 5% decrease, when compared to the same period in 2021. Sportradar explained that the decrease was the result of "higher costs associated with being a public company as well as reversal of certain temporary COVID-19 related cost savings versus the first quarter of 2021."
Additionally, Sportradar revealed that its adjusted EBITDA margin for the first quarter of 2022 was 16%. This marked another slight decrease when compared to the 22% from the same period in 2021.
Not unexpectedly, Sportradar said that it has seen a strong net retention rate. Until the end of the first quarter of 2022, the net retention rate increased by 121%, when compared to the 107% from the same period the prior year. This result, according to Sportradar, reaffirms its successful upsell and cross-sell strategy.
Overall, Sportradar reported €715.5 million as cash and cash equivalents as of March 31, 2022. On the other hand, the total liquidity available for use hit €825.5 million for the period until March 31 this year.
Focusing on expenses, Sportradar's personnel expenses for the first quarter marked an increase to €52.3 million. The €13.7 million increase when compared to Q1, 2021 was the result of new hires. The number of employees increased by 620 and reached 3,075 full-time workers as of the end of Q1, 2022.
In Q1, 2022, the company's revenue from US-facing operations soared. The revenue from the segment in the first quarter this year hit €25.7 million, marking a 124% increase when compared to the same period in 2021.
One of the main reasons for the significant growth of Sportradar's US-facing operations is the expansion of sports betting. "We also experienced growth from increased sales to media companies and a positive impact from the acquisition of Synergy Sports," the company explained.
On the other hand, revenue from RoW (Rest of the World) in terms of betting increased to €86.7 million during the first quarter of this year. When compared to the first quarter of 2021, this marked a 25% increase.
In a statement released Wednesday, Sportradar's CEO, Carsten Koerl, commented: "Our fiscal 2022 is off to a fast start, with core, high-margin betting products driving growth around the world."
He explained that the company's US-facing operations continue to grow with more states legalizing sports betting and launching the activity. "As the market leader, our technology and data-driven insights continue to transform the converging media, entertainment and sports industries and fuel our consistent and long-term profitable growth story," said Koerl in conclusion.
Image credit: GlobeNewswire