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Sportradar Group AG (SRAD)
NASDAQ:SRAD
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Sportradar Group AG
(NASDAQ:SRAD)
Rating:75Outperform
Price Target:
$27.00
▼(-3.74%Downside)
Positive Factors
Acquisitions
The IMG ARENA acquisition adds incremental cash margin upside and is expected to be accretive.
Earnings
Sportradar delivered above-consensus results, with revenue and adjusted EBITDA beating expectations and margin expanding.
Strategic Positioning
Sportradar offers durable top-line growth with a scalable platform, exclusive content rights, and global reach across betting, media, and sports technology.
Negative Factors
Currency Fluctuations
Management noted that underlying growth trends have exceeded expectations and it would have raised its outlook had it not been for recent FX headwinds.
Growth Challenges
The growth of core Betting Tech revenue came in below expectations.
Sportradar Group AG (SRAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.72B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)132.5
Beta (1Y)1.23
Revenue Growth21.75%
EPS Growth116.24%
CountryUS
Employees4,582
SectorTechnology
Sector Strength86
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.08
Shares Outstanding220,584,600
10 Day Avg. Volume2,069,939
30 Day Avg. Volume1,763,832
Financial Highlights & Ratios
PEG Ratio-10.69
Price to Book (P/B)3.67
Price to Sales (P/S)0.00
P/FCF Ratio500.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.17Price Target Upside0.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Sportradar Group AG Business Overview & Revenue Model
Company DescriptionSportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues, betting operators, and media companies. In addition, the company provides sports entertainment, gaming solution, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. Further, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was incorporated in 2001 and is headquartered in St. Gallen, Switzerland.
How the Company Makes MoneySportradar Group AG generates revenue primarily through a subscription-based model and data licensing agreements with a diverse range of clients, including sports leagues, media outlets, and betting operators. The company earns substantial income by providing real-time sports data and analytics to its clients, enabling them to offer enhanced betting and viewing experiences. Furthermore, Sportradar monetizes its services by offering integrity services to sports organizations, helping them detect and prevent match-fixing and other unethical practices. Significant strategic partnerships with major sports leagues and organizations, such as the NBA and FIFA, bolster Sportradar's revenue streams by expanding its reach and enhancing its product offerings.
Sportradar Group AG Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 21.59%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
Sportradar's first quarter performance was marked by record revenue, strong market growth, particularly in the U.S., and significant gains in adjusted EBITDA. Strategic initiatives, such as the acquisition of IMG Arena and successful share repurchases, further highlight the company's positive trajectory. However, challenges remain with foreign currency impacts and market adaptation in the U.S. Despite these issues, the overall sentiment is positive due to the substantial achievements and growth potential.Q1-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Sportradar achieved its highest-ever quarterly revenue of €311 million, marking a 17% year-over-year increase.
Strong U.S. Market Growth
U.S. revenue grew by 31% and now represents 28% of Sportradar's total company revenues.
Adjusted EBITDA Growth
Adjusted EBITDA increased by 25% year-over-year, showcasing strong operating leverage and financial performance.
Broad-Based Product Growth
Significant growth across the product portfolio, including Betting Technology and Solutions revenue growth of 14% and Sports Content, Technology and Services growth of 33%.
Strategic Acquisition of IMG Arena
Proposed acquisition of IMG Arena's portfolio of sports rights expected to be margin accretive and cash accretive upon closing.
Successful Share Repurchase
Repurchased $65 million worth of shares under the existing $200 million share repurchase program, demonstrating confidence in shareholder value.
Innovative Product Expansion
Continued innovation with new products like 4Sight Streaming and enhanced NBA player markets, contributing to increased fan engagement.
Negative Updates
Foreign Currency Impact
Adverse foreign currency movements, primarily related to the U.S. dollar versus the euro, created a €10 million headwind for the full year 2025 expectations.
Dependency on Market Adaptation
The U.S. market's adaptation to live betting trends is slower compared to international markets, requiring prolonged education and marketing efforts.
Company Guidance
During the Sportradar First Quarter 2025 Earnings Conference Call, the company reported a record quarterly revenue of €311 million, marking a 17% year-over-year increase. This robust growth was attributed to their diverse product suite and global reach, with U.S. revenue rising by 31%, now constituting 28% of total company revenues. Adjusted EBITDA also saw a 25% increase, highlighting their operational leverage. With a customer net retention rate of 122%, Sportradar continues expanding its product adoption and global market presence, particularly in the sports betting sector. The company's growth strategy is driven by a projected 11% CAGR in the global sports betting market through 2027, and they anticipate further revenue and margin expansion, supported by their €2 billion contractual revenue commitments over the next two years.Sportradar Group AG Financial Statement Overview
Summary
Sportradar Group AG demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a prudent balance sheet with low leverage, ensuring financial stability. Cash flow generation is strong, supporting operational and strategic flexibility. While some areas like operating margins and equity funding can be improved, the overall financial position remains solid and supportive of future growth.Income Statement
Sportradar Group AG has shown consistent revenue growth, with a notable increase of 13.91% in the most recent period. The gross profit margin stands strong at 62.42% TTM, reflecting efficient cost management. Net profit margin also improved to 5.11% TTM, showcasing enhanced profitability. However, EBIT margin decreased to 10.79% TTM compared to the previous year, indicating a need to manage operating expenses effectively.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.05 TTM, indicating minimal leverage and reduced financial risk. Return on equity is relatively stable at 6.05% TTM, suggesting decent returns for shareholders. However, the equity ratio of 38.32% TTM indicates room for improvement in asset funding through equity.78
Positive
Cash Flow
Sportradar exhibits strong cash flow generation with a significant increase in free cash flow by 25.53% TTM. The operating cash flow to net income ratio is robust at 6.58 TTM, indicating effective cash conversion from profits. However, the free cash flow to net income ratio of 2.67 TTM shows potential for better free cash flow generation relative to net income.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.15B | 1.11B | 877.62M | 730.19M | 561.20M | 404.92M |
| Gross Profit | 719.09M | 280.50M | 700.05M | 571.92M | 453.57M | 321.71M |
| EBITDA | 464.65M | 418.59M | 285.01M | 242.64M | 180.98M | 171.20M |
| Net Income | 58.93M | 34.15M | 34.66M | 10.89M | 12.57M | 15.24M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.29B | 2.25B | 1.39B | 1.77B | 957.02M |
| Cash, Cash Equivalents and Short-Term Investments | 357.82M | 348.36M | 277.17M | 243.76M | 742.77M | 385.54M |
| Total Debt | 51.40M | 46.72M | 50.15M | 22.84M | 435.35M | 438.68M |
| Total Liabilities | 1.56B | 1.36B | 1.37B | 631.63M | 1.04B | 792.88M |
| Stockholders Equity | 974.67M | 925.15M | 867.79M | 751.59M | 738.82M | 167.28M |
Cash Flow | ||||||
| Free Cash Flow | 157.34M | 125.36M | 58.37M | 5.52M | 1.47M | 57.31M |
| Operating Cash Flow | 388.08M | 353.01M | 258.64M | 168.08M | 132.22M | 151.26M |
| Investing Cash Flow | -254.81M | -254.88M | -202.09M | -246.57M | -333.77M | -98.14M |
| Financing Cash Flow | -47.77M | -36.75M | -17.63M | -459.85M | 539.77M | 274.54M |
Sportradar Group AG Technical Analysis
Positive
28.05
Price Trends
24.08
Positive
22.81
Positive
19.22
Positive
Market Momentum
0.95
Negative
78.24
Negative
89.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRAD, the sentiment is Positive. The current price of 28.05 is above the 20-day moving average (MA) of 25.05, above the 50-day MA of 24.08, and above the 200-day MA of 19.22, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 78.24 is Negative, neither overbought nor oversold. The STOCH value of 89.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRAD.
Sportradar Group AG Risk Analysis
Sportradar Group AG disclosed 60 risk factors in its most recent earnings report. Sportradar Group AG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The requirements of being a public company may strain our resources and divert management's attention, and additional legal, accounting and compliance expenses may be greater than we anticipate. Q4, 2023
Sportradar Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.72B | 132.50 | 6.40% | ― | 21.75% | 116.24% | |
73 Outperform | $4.35B | ― | -63.52% | ― | 30.08% | -196.62% | |
68 Neutral | $10.11B | ― | -14.15% | ― | -16.74% | 49.75% | |
68 Neutral | $3.56B | ― | -11.93% | ― | 40.36% | 73.68% | |
63 Neutral | $4.69B | 482.28 | 0.97% | ― | 14.52% | ― | |
52 Neutral | $3.63B | ― | -33.09% | ― | 13.85% | 3.47% | |
49 Neutral | C$2.90B | 2.14 | -80.91% | 2.95% | 6.62% | -18.96% |
* Technology Sector Average
Performance Comparison
SRAD
Sportradar Group AG
28.08
17.01
153.66%
BILL
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46.26
-6.55
-12.40%
KC
Kingsoft Cloud Holdings
12.52
10.04
404.84%
U
Unity Software
24.20
8.39
53.07%
GRND
Grindr
22.70
10.84
91.40%
ZETA
Zeta Global Holdings Corp
15.49
-2.71
-14.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.