30% EBITDA Margin Target
Q: What needs to happen to achieve the 30% EBITDA margin target?
A: Nicholas Taylor expressed confidence in reaching the 30% EBITDA margin target through continued operating leverage and "more of the same." He highlighted consistent margin expansion and operating leverage in their business model. Mark Locke added that new products like FanHub, Edge, and BetVision will contribute to growth, offering significant opportunities as they integrate these products. They have clear visibility and are excited about delivering exceptional value to shareholders.

Sportsbook Renewals and Pricing
Q: How should we think about changes from sportsbook renewals?
A: Nicholas Taylor indicated they've taken price increases on every deal, both in pre-match and in-play, describing it as a material amount. This is already reflected in their numbers, with U.S. sports betting up 60% year-on-year in Q3. They confidently reaffirm their Q4 guidance with 37% revenue growth, demonstrating the positive impact of the renewals.

Q4 Guidance Drivers
Q: Is Q4 growth driven more by media or sports betting?
A: Nicholas Taylor explained that Q4 growth is coming from both sports betting and media. They are well-positioned with sportsbook deals and expect media growth, along with sports tech growth from recent deals like the U.S. and U.K. soccer agreements.

Legalization Assumptions for Growth
Q: What's the legalization assumption in the 20% medium-term revenue growth target?
A: Mark Locke stated their model is based on market consensus, incorporating expected legalization like Brazil. He takes a conservative view on Brazil's timing but feels confident in their growth estimates without heavily relying on new legalization, focusing instead on product and pricing.

Cost Structure and Growth Initiatives
Q: Can the cost structure support growth initiatives into '25 and beyond?
A: Nicholas Taylor expressed confidence in their operating leverage. Their cost base hasn't moved much over the last 36 months, and fixed rights costs provide significant visibility. They anticipate continued margin expansion, with Q3 adjusted EBITDA margin increasing by 400 basis points to 21%.

Impact of Negative Sports Results on Q4
Q: What's the impact of negative sports results in October on Q4?
A: Nicholas Taylor acknowledged U.S. sportsbook results are a headwind but not material due to other growth drivers like in-play mix, media, and product. They confidently reaffirm their Q4 guidance of 37% revenue growth year-on-year, demonstrating the resilience of their business model.

NFL Partnership Progress
Q: How is the NFL partnership performing compared to expectations?
A: Mark Locke stated the relationship with the NFL is very strong, driving product innovation like BetVision. The NFL is an active and supportive shareholder, and they are delivering strong results based on this partnership, with access to rich data fueling new products.

European Growth Outlook
Q: Is 20%+ European growth expected to continue in Q4 and 2025?
A: Nicholas Taylor is pleased with 22% year-on-year revenue growth in Europe in Q3 and expects double-digit growth to continue. Renewed commercial terms with European sportsbooks and new products will drive further growth and upsell opportunities in the European market.

FanHub and Media Products
Q: How do recent media product announcements affect 2025?
A: Mark Locke highlighted the launch of their self-serve FanHub platform, positioning them as the "trade desk for sports." With unique data and understanding of sports fans, they can help brands reach the right audience at the right time, providing new high-margin revenue streams and significant growth opportunities in digital advertising.

Staggering Sportsbook Renewals
Q: How did you achieve staggering of sportsbook renewal terms?
A: Mark Locke confirmed they led the effort to stagger contract terms, aiming to de-risk the business. They've signed over 500 new contracts recently, achieving a balanced renewal schedule and a strong position for future growth.

In-Play NFL Hold Rate
Q: Can you share the in-play NFL hold rate and its outlook?
A: Mark Locke declined to provide specific hold rates but noted it's improving. In-play betting now accounts for 30% of NFL handle, up from 25% last season. BetVision is driving this trend, and they expect the in-play share to continue increasing, offering significant growth potential.

Brazil Legalization Timing
Q: Should we assume Brazil's market opens January 1, 2025?
A: Mark Locke took a conservative view, believing Brazil will happen in '25 but likely not early in the year. He advises not to bank on it happening too early but would be pleasantly surprised if it does.