Why Sportradar Group Stock Soared Today

Shares of Sportradar Group (SRAD 11.30%) are up 11.2% as of 3:40 p.m. ET Friday after the Switzerland-based sports-betting technology company announced stronger-than-expected fourth-quarter 2023 results and a new stock-repurchase program.

Sportradar ends 2023 on a high note

Sportradar’s fourth-quarter 2023 revenue grew 22% year over year to 252.6 million euros ($278 million), translating to earnings of 0.11 euros (.12 dollars) per share. Analysts, on average, were only expecting earnings of 0.05 euros (.05 dollars) per share on revenue closer to 249.3 million euros ($270 million).

Trending toward the bottom line, Sportradar’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 13% year over year to 39.5 million euros ($43 million), and its customer net-retention rate remained healthy at 111%.

Sportradar CEO Carsten Koerl called it “another dynamic and successful year,” crediting growth across all segments thanks to the company’s “best-in-class content portfolio, innovative product roadmap and technology capabilities.”

Sportradar also announced a new $200 million share-buyback program — a significant sum considering its entire market cap stands at just $3.35 billion as of this writing.

What’s next for Sportradar investors?

Looking ahead to the full-year 2024, Sportradar expects year-over-year growth in revenue and adjusted EBITDA of at least 20% — comparing favorably to Wall Street’s consensus estimates for revenue growth to be just under 20%.

In the end, this was a solid quarterly beat punctuated by slightly better-than-expected guidance and a buyback program that should help meaningfully bolster Sportradar’s per-share earnings in the coming year. With shares down nearly 40% from their 52-week high last summer, it’s hardly surprising to see the stock rebounding in response today.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sportradar Group Ag. The Motley Fool has a disclosure policy.

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