Sports data provider SportRadar is expected to bring in over $1b in revenue in 2024

SportRadar (NASDAQ: SRAD) started the year by setting the groundwork for a new growth strategy that prioritizes focus on clients, built on the foundation of six business functions: 

• Product Delivery and Operations

• Growth and Innovation

• Commercial 

• Legal, Risk, and Administrative Services

• People

• Finance

“By centralizing our key business functions, we will foster greater collaboration and faster decision-making, enabling us to drive further operating efficiencies and increased innovation across our business,” said Carsten Koerl, the company’s CEO. 

By Q2 of this year, the aggressive strategy proved to be working with the company’s second-quarter results bringing in of $309 million in revenue and upward adjustment in the annual fiscal projections, expecting to deliver 22% annual growth in revenue and adjusted EBITDA.

SportRadar analyzes real-time sports data from thousands of major leagues around the world employing an army of 6,000 data journalist in over 90 countries who collect live data points from 38 different sports.

Founded in Norway in 2001, SportRadar started as a software program that collected sports betting data from other companies around the early days of the internet. 20 years later, the company went public at an $8 billion valuation, with Michael Jordan onboard as a special advisor and partnerships with all the leading sports organizations such as like the NBA, MLB, FIFA, NASCAR.

“I’m blessed to have a passion for what I’m doing,” Koerl said in an interview with The CEO Magazine. “I would say Sportradar is driven by a young, passionate team of technicians insports excellence. This is what unites us.” 

The core of its product isn’t merely founded on sports betting; many of the broadcasters you hear every game use insights from SportRadar to make their commentating as engaging and accurate as possible. The company depends on harnessing the boundless potential of sports data. 

US Revenue grows by 59%YOY

SportRadar’s prioritization of its customers has allowed it to thrive in the American market, where revenue has increased 59% year-over-year. 

“When the U.S. sports betting market legalized in 2018, Sportradar supported building up their online betting product,” Carsten said in the 2024 Q2 earnings call. “As their business expanded, we continually adapted to meet our customers' involving needs, covering additional sports, and developing tailored product features… This client-centric focus and innovation in product development highlights why we are strategic partners to many of the leading operators.”

Earlier this year, SportRadar announced a continuation of its partnership with the NBA by incorporating its emBET tool into League Pass, allowing fans to view betting options while watching live games. Since the announcement, its Streaming & Betting department has been up nearly $30 million in annual revenue, a 41% increase. 

Stock yet to recover to IPO levels

Despite strong growth and continued expansion, the stock has yet to recover to its IPO levels. And yet, Carsten has made it clear that SportRadar’s ability to innovate remains the backbone of his company’s long-term growth outlook.

“We are like a sailing ship — the wind is blowing heavily into the sail but we are not struggling; we are moving very fast and the wind is carrying us forward,” Carsten said. “This is in our DNA. The company grows 30 to 40 percent every year, and I try to keep that growth speed. The market is there and the underlying growth is there. You need to be very flexible, and if you’re not static, you’re ready for innovation — and this is what is driving us.” 

By securing a diverse range of clients, from sports federations to media companies, SportRadar has found a way to leverage its proprietary data in almost every way possible, delivering to both fans and businesses. Whether this forward momentum will push the company above its IPO valuation remains to be seen.