Sportradar stock delivers record revenue in Q1

The sports betting technology stock is up 33% YTD.

Sportradar Group (NASDAQ:SRAD) delivered a strong first quarter, beating revenue and earnings estimates and maintaining its fiscal 2025 outlook.

The Switzerland-based firm, which provides technology, analytics, and content for the sports betting industry, generated €311 million in the quarter, a 17% increase year-over-year. This was a record for the company and topped analysts’ estimates.

The company saw 14% growth within its Betting Technology & Solutions business to €250 million and 33% growth in Sports Content, Technology & Services arm to €61 million.

Revenue surged 31% in the U.S. year-over-year to €86 million, and 12% in the rest of the world to €225 million. As a percentage of total revenues, U.S. revenue now represents 28% compared to 25% in the prior year quarter.

Further, the company posted a net profit of €24.3 million, or 7 cents per share, up from a €649K net loss in the same quarter a year ago and a €22 million net loss in Q4. These results also bested earnings estimates.

Investors were mostly unfazed by the solid earnings report, as the stock was up less than 1% on Friday.

Sportradar stock has performed extremely well this year, up 33% year-to-date and roughly 149% over the past 12 months.

Sky high valuation

The strong success of the stock is probably why the gains were muted on Monday, as the meteoric rise of the stock has sent the valuation soaring. The P/E ratio has skyrocketed to up over 200, well over the S&P 500 and Nasdaq averages, which hover around the mid-20s to mid-30s range.

Investors may have seen the stock as too overvalued already and didn’t want to pile in further. But certainly, a dip may provide a decent opportunity to jump in.

“The continued momentum we are generating builds upon our success from last year, demonstrating the durability of our business and our mission critical role in the expanding sports ecosystem. During the quarter we also further bolstered our leading content portfolio with the extension and expansion of our partnership with Major League Baseball and we signed an agreement to acquire IMG ARENA’s sports betting rights portfolio,” Sportradar CEO Carsten Koerl said.

Sportradar provides data, betting odds, streaming, content and other technology and analytics services for sportsbooks, leagues and federations, and media companies. Among its long list of clients are FanDuel, DraftKings, Caesars, the NBA, NASCAR, Major League Baseball, and the NHL, among others.

Sportradar retained its outlook for fiscal year 2025, calling for revenue of at least €1,273 million, which would be at least 15% year-over-year growth. Further, it expects adjusted EBITDA of at least €281 million, up at least 26%, and adjusted EBITDA margin expansion of at least 200 basis points. Also, it anticipates a free cash flow conversion rate that is above the 2024 rate of 53%.

The company notes that the guidance does not include the impact from the pending acquisition of IMG ARENA. Guidance will be updated to incorporate the anticipated impact after the deal closes.

Sportradar stock has a median price target of about $28 per share, which suggests a 22% return.