ahira@soleburytrout.com<\/a><\/p>\nNon-IFRS Financial Measures and Operating Metrics<\/strong>
\nWe have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow and Cash Flow Conversion (together, the \u201cNon-IFRS financial measures\u201d), as well as operating metrics, including Dollar-Based Net Retention Rate.\u00a0We use these non-IFRS financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to IFRS measures, in evaluating our ongoing operational performance.\u00a0We believe that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-IFRS financial measures to investors.
\nNon-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS.\u00a0Investors are encouraged to review the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures provided in the financial statement tables included below in this press release.<\/p>\n\n- \u201cAdjusted EBITDA\u201d <\/em>represents profit (loss) for the period adjusted for share based compensation, depreciation and amortization (excluding amortization of sports rights), impairment of intangible assets, other financial assets and equity-accounted investee, loss from loss of control of subsidiary, finance income and finance costs, and income tax (expense) benefit.
\nLicense fees relating to sport rights are a key component of how we generate revenue and one of our main operating expenses. Such license fees are presented either under purchased services and licenses or under depreciation and amortization, depending on the accounting treatment of each relevant license. Only licenses that meet the recognition criteria of IAS 38 are capitalized. The primary distinction for whether a license is capitalized or not capitalized is the contracted length of the applicable license. Therefore, the type of license we enter into can have a significant impact on our results of operations depending on whether we are able to capitalize the relevant license. Our presentation of Adjusted EBITDA removes this difference in classification by decreasing our EBITDA by our amortization of sports rights. As such, our presentation of Adjusted EBITDA reflects the full costs of our sports rights licenses. Management believes that, by deducting the full amount of amortization of sport rights in its calculation of Adjusted EBITDA, the result is a financial metric that is both more meaningful and comparable for management and our investors while also being more indicative of our ongoing operating performance.
\nWe present Adjusted EBITDA because management believes that some items excluded are non-recurring in nature and this information is relevant in evaluating the results of the respective segments relative to other entities that operate in the same industry. Management believes Adjusted EBITDA is useful to investors for evaluating Sportradar\u2019s operating performance against competitors, which commonly disclose similar performance measures. However, Sportradar\u2019s calculation of Adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Adjusted EBITDA is not intended to be a substitute for any IFRS financial measure.
\nItems excluded from Adjusted EBITDA include significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitutes for, profit for the period, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. We compensate for these limitations by relying primarily on our IFRS results and using Adjusted EBITDA only as a supplemental measure.<\/li>\n- \u201cAdjusted EBITDA margin\u201d<\/em> is the ratio of Adjusted EBITDA to revenue.<\/li>\n
- \u201cAdjusted Free Cash Flow\u201d<\/em> represents net cash from operating activities adjusted for payments for lease liabilities, acquisition of property and equipment, acquisition of intangible assets (excluding certain intangible assets required to further support an acquired business). We consider Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchase of property and equipment, of intangible assets and payment of lease liabilities, which can then be used to, among other things, to invest in our business and make strategic acquisitions. A limitation of the utility of Adjusted Free Cash Flow as a measure of liquidity is that it does not represent the total increase or decrease in our cash balance for the year.<\/li>\n
- \u201cCash Flow Conversion\u201d<\/em> is the ratio of Adjusted Free Cash Flow to Adjusted EBITDA.<\/li>\n<\/ul>\n
In addition, we define our operating metrics as follows:<\/p>\n
\n- \u201cDollar-Based Net Retention Rate\u201d <\/em>is calculated for a given period by starting with the reported Trailing Twelve Month revenue, which includes both subscription-based and revenue sharing revenue, from our top 200 customers as of twelve months prior to such period end, or Prior Period revenue. We then calculate the reported Trailing Twelve Month revenue from the same customer cohort as of the current period end, or Current Period revenue. Current Period revenue includes any upsells and is net of contraction and attrition over the trailing twelve months, but excludes revenue from new customers in the current period. We then divide the total Current Period revenue by the total Prior Period revenue to arrive at our Dollar-Based Net Retention Rate.<\/li>\n<\/ul>\n
The Company is unable to provide a reconciliation of Adjusted EBITDA to profit (loss) for the period, its most directly comparable IFRS financial measure, on a forward- looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company\u2019s control and\/or cannot be reasonably predicted. These items may include, but are not limited to foreign exchange gains and losses. Such information may have a significant, and potentially unpredictable, impact on the Company\u2019s future financial results.<\/p>\n
Safe Harbor for Forward-Looking Statements
\n<\/strong>Certain statements in this press release may constitute \u201cforward-looking\u201d statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events, including, without limitation, statements regarding future financial or operating performance, planned activities and objectives, anticipated growth resulting therefrom, market opportunities, strategies and other expectations, and expected performance for the full year 2021. In some cases, these forward-looking statements can be identified by words or phrases such as \u201cmay,\u201d \u201cmight,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201cexpect,\u201d \u201cplan,\u201d \u201canticipate,\u201d \u201cintend,\u201d \u201cseek,\u201d \u201cbelieve,\u201d \u201cestimate,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d \u201ccontemplate,\u201d \u201cpossible\u201d or similar words. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: economy downturns and political and market conditions beyond our control; the global COVID-19 pandemic and its adverse effects on our business; dependence on our strategic relationships with our sports league partners; effect of social responsibility concerns and public opinion on responsible gaming requirements on our reputation; potential adverse changes in public and consumer tastes and preferences and industry trends; potential changes in competitive landscape, including new market entrants or disintermediation; potential inability to anticipate and adopt new technology; potential errors, failures or bugs in our products; inability to protect our systems and data from continually evolving cybersecurity risks, security breaches or other technological risks; potential interruptions and failures in our systems or infrastructure; our ability to comply with governmental laws, rules, regulations, and other legal obligations, related to data privacy, protection and security; ability to comply with the variety of unsettled and developing U.S. and foreign laws on sports betting; dependence on jurisdictions with uncertain regulatory frameworks for our revenue; changes in the legal and regulatory status of real money gambling and betting legislation for our customers; our inability to maintain or obtain regulatory compliance in the jurisdictions in which we conduct our business; our ability to obtain, maintain, protect, enforce and defend our intellectual property rights; our ability to obtain and maintain sufficient data rights from major sports leagues, including exclusive rights; material weaknesses identified in our internal control over financial reporting; inability to secure additional financing in a timely manner, or at all, to meet our long-term future capital needs; risks related to future acquisitions; and other risk factors set forth in the section titled \u201cRisk Factors\u201d in our prospectus pursuant to Rule 424(b) filed with the Securities and Exchange Commission on September 15, 2021, and other documents filed with or furnished to the SEC, accessible on the SEC\u2019s website at www.sec.gov<\/a> and on our website at https:\/\/investors.sportradar.com<\/a>. These statements reflect management\u2019s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.<\/p>\n <\/p>\n
\n\n\n<\/td>\n<\/tr>\n |
\nSPORTRADAR GROUP AG<\/strong> \nINTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME<\/strong> \n(Expressed in thousands of Euros \u2013 except for per share data)<\/td>\n<\/tr>\n\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | <\/td>\n | Three Months Ended \nSeptember 30,<\/strong><\/td>\n<\/td>\n | Nine Months Ended \nSeptember 30,<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | <\/td>\n | 2020<\/strong><\/td>\n<\/td>\n | <\/td>\n | 2021<\/strong><\/td>\n<\/td>\n | <\/td>\n | 2020<\/strong><\/td>\n<\/td>\n | <\/td>\n | 2021<\/strong><\/td>\n<\/td>\n<\/tr>\n | \nRevenue<\/td>\n | <\/td>\n | 105,294<\/td>\n | <\/td>\n | <\/td>\n | 136,765<\/td>\n | <\/td>\n | <\/td>\n | 296,894<\/td>\n | <\/td>\n | <\/td>\n | 408,837<\/td>\n | <\/td>\n<\/tr>\n | \nPurchased services and licenses (excluding depreciation and amortization)<\/td>\n | <\/td>\n | (26,220<\/td>\n | )<\/td>\n | <\/td>\n | (29,413<\/td>\n | )<\/td>\n | <\/td>\n | (63,476<\/td>\n | )<\/td>\n | <\/td>\n | (85,977<\/td>\n | )<\/td>\n<\/tr>\n | \nInternally-developed software cost capitalized<\/td>\n | <\/td>\n | 1,433<\/td>\n | <\/td>\n | <\/td>\n | 3,219<\/td>\n | <\/td>\n | <\/td>\n | 4,588<\/td>\n | <\/td>\n | <\/td>\n | 9,136<\/td>\n | <\/td>\n<\/tr>\n | \nPersonnel expenses<\/td>\n | <\/td>\n | (31,366<\/td>\n | )<\/td>\n | <\/td>\n | (51,333<\/td>\n | )<\/td>\n | <\/td>\n | (86,985<\/td>\n | )<\/td>\n | <\/td>\n | (136,777<\/td>\n | )<\/td>\n<\/tr>\n | \nOther operating expenses<\/td>\n | <\/td>\n | (9,561<\/td>\n | )<\/td>\n | <\/td>\n | (25,176<\/td>\n | )<\/td>\n | <\/td>\n | (27,486<\/td>\n | )<\/td>\n | <\/td>\n | (60,117<\/td>\n | )<\/td>\n<\/tr>\n | \nDepreciation and amortization<\/td>\n | <\/td>\n | (27,962<\/td>\n | )<\/td>\n | <\/td>\n | (27,182<\/td>\n | )<\/td>\n | <\/td>\n | (80,870<\/td>\n | )<\/td>\n | <\/td>\n | (91,271<\/td>\n | )<\/td>\n<\/tr>\n | \nImpairment of intangibles assets<\/td>\n | <\/td>\n | (26,184<\/td>\n | )<\/td>\n | <\/td>\n | –<\/td>\n | <\/td>\n | <\/td>\n | (26,184<\/td>\n | )<\/td>\n | <\/td>\n | –<\/td>\n | <\/td>\n<\/tr>\n | \nImpairment of equity-accounted investee<\/td>\n | <\/td>\n | (4,578<\/td>\n | )<\/td>\n | <\/td>\n | –<\/td>\n | <\/td>\n | <\/td>\n | (4,578<\/td>\n | )<\/td>\n | <\/td>\n | –<\/td>\n | <\/td>\n<\/tr>\n | \nImpairment loss on trade receivables, contract assets and other financial assets<\/td>\n | <\/td>\n | (984<\/td>\n | )<\/td>\n | <\/td>\n | (657<\/td>\n | )<\/td>\n | <\/td>\n | (3,031<\/td>\n | )<\/td>\n | <\/td>\n | (759<\/td>\n | )<\/td>\n<\/tr>\n | \nShare of income (loss) of equity-accounted investees<\/td>\n | <\/td>\n | 167<\/td>\n | <\/td>\n | <\/td>\n | (397<\/td>\n | )<\/td>\n | <\/td>\n | (876<\/td>\n | )<\/td>\n | <\/td>\n | (1,487<\/td>\n | )<\/td>\n<\/tr>\n | \nFinance income<\/td>\n | <\/td>\n | 12,705<\/td>\n | <\/td>\n | <\/td>\n | 1,574<\/td>\n | <\/td>\n | <\/td>\n | 22,140<\/td>\n | <\/td>\n | <\/td>\n | 14,592<\/td>\n | <\/td>\n<\/tr>\n | \nFinance costs<\/td>\n | <\/td>\n | (8,739<\/td>\n | )<\/td>\n | <\/td>\n | (13,390<\/td>\n | )<\/td>\n | <\/td>\n | (21,437<\/td>\n | )<\/td>\n | <\/td>\n | (36,839<\/td>\n | )<\/td>\n<\/tr>\n | \nNet income (loss) before tax<\/strong><\/td>\n<\/td>\n | (15,995<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | (5,990<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | 8,699<\/strong><\/td>\n<\/td>\n | <\/td>\n | 19,338 <\/strong><\/td>\n<\/td>\n<\/tr>\n | \nIncome tax (expense) benefit<\/td>\n | <\/td>\n | 1,012<\/td>\n | <\/td>\n | <\/td>\n | (3,047<\/td>\n | )<\/td>\n | <\/td>\n | (3,451<\/td>\n | )<\/td>\n | <\/td>\n | (10,724<\/td>\n | )<\/td>\n<\/tr>\n | \nProfit (loss) for the period<\/strong><\/td>\n<\/td>\n | (14,983<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | (9,037<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | 5,248 <\/strong><\/td>\n<\/td>\n | <\/td>\n | 8,614 <\/strong><\/td>\n<\/td>\n<\/tr>\n | \nOther Comprehensive Income \/ (loss)<\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nItems that will not be reclassified subsequently to profit or loss<\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nRemeasurement of defined benefit liability<\/td>\n | <\/td>\n | 17<\/td>\n | <\/td>\n | <\/td>\n | 18<\/td>\n | <\/td>\n | <\/td>\n | 52<\/td>\n | <\/td>\n | <\/td>\n | 54<\/td>\n | <\/td>\n<\/tr>\n | \nRelated deferred tax income<\/td>\n | <\/td>\n | (2<\/td>\n | )<\/td>\n | <\/td>\n | (3<\/td>\n | )<\/td>\n | <\/td>\n | (8<\/td>\n | )<\/td>\n | <\/td>\n | (9<\/td>\n | )<\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | 15<\/strong><\/td>\n<\/td>\n | <\/td>\n | 15<\/strong><\/td>\n<\/td>\n | <\/td>\n | 44 <\/strong><\/td>\n<\/td>\n | <\/td>\n | 45 <\/strong><\/td>\n<\/td>\n<\/tr>\n | \nItems that may be reclassified subsequently to profit or loss<\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nForeign currency translation adjustment<\/td>\n | <\/td>\n | 1,736<\/td>\n | <\/td>\n | <\/td>\n | (1,207<\/td>\n | )<\/td>\n | <\/td>\n | 1,813<\/td>\n | <\/td>\n | <\/td>\n | (590<\/td>\n | )<\/td>\n<\/tr>\n | \nForeign currency translation adjustment attributable to non-controlling interests<\/td>\n | <\/td>\n | 124<\/td>\n | <\/td>\n | <\/td>\n | (85<\/td>\n | )<\/td>\n | <\/td>\n | 130<\/td>\n | <\/td>\n | <\/td>\n | (183<\/td>\n | )<\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | 1,860<\/strong><\/td>\n<\/td>\n | <\/td>\n | (1,292<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | 1,943<\/strong><\/td>\n<\/td>\n | <\/td>\n | (773<\/strong><\/td>\n)<\/strong><\/td>\n<\/tr>\n\nOther comprehensive income (loss) for the period, net of tax<\/strong><\/td>\n<\/td>\n | 1,874<\/td>\n | <\/td>\n | <\/td>\n | (1,276<\/td>\n | )<\/td>\n | <\/td>\n | 1,987<\/td>\n | <\/td>\n | <\/td>\n | (728<\/td>\n | )<\/td>\n<\/tr>\n | \nTotal comprehensive income (loss) for the period<\/strong><\/td>\n<\/td>\n | (13,108<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | (10,313<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | 7,235<\/strong><\/td>\n<\/td>\n | <\/td>\n | 7,886<\/strong><\/td>\n<\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nProfit (loss) attributable to:<\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOwners of the Company<\/td>\n | <\/td>\n | (14,334<\/td>\n | )<\/td>\n | <\/td>\n | (8,829<\/td>\n | )<\/td>\n | <\/td>\n | 5,907<\/td>\n | <\/td>\n | <\/td>\n | 8,607<\/td>\n | <\/td>\n<\/tr>\n | \nNon-controlling interests<\/td>\n | <\/td>\n | (649<\/td>\n | )<\/td>\n | <\/td>\n | (208<\/td>\n | )<\/td>\n | <\/td>\n | (659<\/td>\n | )<\/td>\n | <\/td>\n | 7<\/td>\n | <\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | (14,983<\/strong><\/td>\n)<\/strong><\/td>\n<\/td>\n | (9,037<\/strong><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |