Genius Sports Ltd Q3 FY2024 Earnings Call

Thank you for standing by. My name is Jeanne and I will be your conference operator today. At this time, I would like to welcome everyone to the Genius Sports Third Quarter 2024 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. Thank you. I would now like to turn the conference over to Genius Sports. You may begin.

Thank you and good morning. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward-looking statements. Any such statement should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our Annual Report on Form 20-F filed with the SEC on March 15, 2024. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius's operating performance. These measures should not be considered in isolation or as a substitute for Genius's financial results prepared in accordance with the US GAAP. A reconciliation of these non-GAAP measures to the most directly comparable US GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com. With that, I'll now turn the call over to our CEO, Mark Locke.

Good morning, and thank you for joining us today. We are very pleased to report another quarter of financial results, once again exceeding our expectations and highlighting the strength and predictability of our business model and our consistent execution to date. To begin, we delivered group revenue of $120 million, representing an 18% year-on-year growth. This revenue growth contributed to our group adjusted EBITDA at a 43% incremental margin, as a result of our largely fixed cost base and disciplined control of operating expenses. This translated to group adjusted EBITDA of $26 million in the quarter representing 45% growth year-on-year and 400 basis points of margin expansion to 21%. Our consistent group adjusted EBITDA margin expansion over the last few years should demonstrate the operating leverage of our business model. This is also evident in our year-on-year gross margin expansion this quarter of nearly 950 basis points to 33%, which is our highest quarterly gross margin since our public listing. Given the momentum in our business and our successful commercial execution to date, we believe we are well-positioned to benefit from multiple growth drivers during the peak sporting calendar in Q4. As such, we are raising our 2024 guidance and expect to finish the year with $511 million in group revenue, up 24% year-on-year, and $86 million in group adjusted EBITDA up 61%, both significantly above our initial guidance of $480 million and $75 million respectively. Importantly, this also assumes no change to our Q4 guidance. This is despite the unfavorable game outcomes impacting the bookmakers in October. This further demonstrates the resilience and differentiation of our business model and means that we can confidently reaffirm our Q4 guidance of nearly 40% revenue growth and 900 basis points of adjusted EBITDA margin expansion. Putting beyond 2024, our commercial execution this year now sets a solid foundation for profitable growth in 2025 and beyond. We have extended our largest rights deals through the end of the decade, giving us certainty of our fixed costs for the foreseeable future. This, combined with our sportsbook renewals, now reinforces our medium-term expectations for sustained annual revenue growth of 20% and continued progress towards an adjusted EBITDA margin target of at least 30%. Nick will cover the financial results in more detail shortly. In the meantime, I would like to touch on three key topics from this quarter. First, as an update on our sportsbook renewals, we have agreed new commercial terms with every major US Sportsbook customer, along with many major sportsbooks outside of the US as well, who collectively represent most of our group revenue today and an important contributor to overall growth. Central to this was the distribution of our BetVision product and enhanced data feeds, along with a cross-sell of our advertising platform, both of which led to greater pricing uplift. Through the start of this season, BetVision has proven to be a tremendous engagement and in-play betting tool for sportsbooks, and I'm excited to share a brief update shortly. The second point I'd like to touch on is how these successful renewals positioned us to benefit from the positive trends in the US sports betting market through the start of the NFL season, including strong market growth and in-play betting mix. Third, I'd like to highlight the many ways we are leveraging our unique technology to monetize our rich data across the entire sports ecosystem. One area that's particularly exciting is the launch of our new fan activation platform called FANHub. Now let's review these topics, starting with an update on sports betting. As we discussed last quarter, we have a strong and improving commercial position in the global sports betting ecosystem, which enabled us to agree new commercial terms with major sports books over the summer and early autumn. Our strengthened suite of products amplifies the value of our data for the NFL, English Premier League, and hundreds of thousands of other events that we offer annually and enables us to grow alongside our partners. While every deal is different and I will not go into specific details, I can announce that we achieved the universal pricing uplift across all sportsbook renewals that we had previously committed to, while still maintaining upside in the form of market growth and in-play growth specifically. Additionally, our improved suite of media products, including our newly announced FANHub platform, was a core component of certain deals, allowing our customers to benefit from our increased scale and product offering. As for contract duration, we will have a variety of term lengths with US customers, meaning our contract renegotiations going forward will be staggered and characterized as business as usual, much like our contracts globally, which should lead to sustained growth rates over time. In sum, our sportsbook renewals are overwhelmingly positive, and we have delivered on every major objective we set out to achieve at the start of the year. This is exactly why I can confidently reaffirm our outlook for Q4, which is poised for multifaceted growth, despite the negative game outcomes to start the quarter. This brings me to early trends from the NFL season. First, we are encouraged by the strong start to the season, which continues to reach record highs in viewership, wagering, and overall engagement by nearly every measurable metric. For the third quarter, the broader US sports betting industry increased by approximately 30% on a handle basis and 40% on a gross gaming revenue basis. So we remain confident in the strength of our overall market. NFL wagering growth was largely in-line with the broader market. We have also seen a greater focus on in-play betting, which has been proven in the data points from the third quarter. Through the first four weeks of the NFL season captured in the quarter, we observed a nearly 80% increase in in-play gross gaming revenue and a nearly 50% increase in in-play handle. In-play wagering now represents 30% of total NFL handle, up from roughly 25% in the prior season, representing a meaningful step in the right direction, which we always expected and communicated as a key growth driver for our medium and long-term projections. Major driving force behind this trend is an improving breadth of product. In-play is becoming a crucial component of bookmakers' product offerings as a tool to keep customers engaged and complement their successful parlay products with additional high frequency and high margin bet types. One of the key additions to a bookmaker's toolkit this NFL season is BetVision, which, as a result of our successful renegotiations, is available on the leading sports betting apps, including FanDuel, DraftKings, Caesars, bet365, and many others. This brings me to my next topic. You may recall we first introduced BetVision last NFL season, which attracted millions of unique eyeballs and increased the mix of in-play wagering. For those less familiar, BetVision is a platform that, amongst other things, includes low latency streams of NFL games, which can be accessed directly on your sportsbook app. The stream itself integrates many of Genius's best technology and data assets into a single platform, including team and player statistics, betting markets, and a data-driven graphical augmentation layer enabling a full-scale watch and bet experience all in one platform. Since launching last year, we have developed new features and functionality, making this platform even more intelligent, interactive, and immersive. For instance, users can now enjoy an augmented version of the livestream with real-time graphical overlays of next-gen stats and other insights as part of the viewing experience. The experience is also becoming more personalized as we plan to launch a bet tracker, allowing users to monitor the progress of their bets directly within the video player. Additionally, we are utilizing our predictive technology to recommend contextually relevant bets based on the live action of the game. Another feature we're excited to launch is a touchscreen capability, allowing the user to touch a player directly in the video frame to access individual player markets. Many of these features will be widely introduced over the course of the season with the goal of further engaging and monetizing NFL fans. In the meantime, we are proving the value of this product through results. First, we have expanded the distribution to nearly every major US sportsbook. As a result, there has been a significant increase in total viewership, with unique weekly streamers increasing by 12 times since the initial launch last season. Even within the current NFL season, the number of unique weekly streamers has doubled since week one, and we continue to reach record-highs in viewership in recent weeks. Although it's still early in the season, the wagering data from BetVision's viewers in Q3 has also been encouraging. In-play betting represents 59% of the total handle through the BetVision platform, which is consistent with last season and compares favorably to the 30% mix across all NFL wagering. We're very pleased with the near-term success of BetVision, but we are most excited by the long-term opportunity that's still in front of us, especially as we continue to deliver additional enhancements and expand the product into new sports and new regions across the globe. This platform, which is completely unique to Genius Sports, is redefining the NFL betting experience and gradually becoming ubiquitous as it changes customer behavior and expectations. This ultimately sets a new standard of sports betting product, which strengthens our relationship with the NFL or any other league seeking a similar solution, whilst also contributing further value to our sportsbook partners. We have invested in this technology over the last few years, and BetVision is one of many outputs that are now paying off. However, our product offerings extend well beyond sports betting alone, which brings me to my third topic of how we're expanding our services across the entire sports ecosystem. Genius Sports has a rich source of valuable exclusive data. We also possess unique technology to enrich this data even further, activating a wide range of products well beyond the scope of sports betting alone. For instance, this quarter we announced an agreement with ESPN, allowing the network to access our real-time and player statistics to help transform their data-driven storytelling for live broadcasts of NCAA, NBA, and WNBA. Sticking with the WNBA, you may remember we announced a player tracking partnership earlier this year. This agreement includes a powerful insights platform where teams can access rich data to support analytical coaching decisions. Unsurprisingly, the two teams competing in the WNBA finals last month were among the most active users of this platform, proving this to be a valuable tool for teams to fundamentally improve the quality of sport. One more example I'll leave you with is our recent partnership with the LA Rams. Fans in SoFi Stadium will get to experience data-driven highlights on the big screen with augmentations displaying interesting and insightful next-gen stats. Not only does this provide fans with a unique way to experience team highlights, but it also unlocks dynamic advertising inventory for the Rams' longtime sponsor, Verizon. This empowers Verizon to seamlessly integrate their brand during key moments within the highlight in front of a highly engaged audience and, thus, strengthening their brand affinity with the Rams’ fans. As we expand our technology distribution and launch new products, we are continuing to unlock diversified revenue streams across the world of sports. One area that's particularly exciting to us is sports-specific digital advertising. The partnership with the LA Rams and Verizon is a perfect example of how we're enabling brands to reach engaged sports fans in a cost-effective and impactful way. But this is only scratching the surface. This leads me to our most recent launch and the one I'm most excited about, FANHub. FANHub is a full-scale fan activation platform helping brands connect with sports audiences. To put it simply, FANHub is not just a single product, but a completely verticalized, sport-focused platform, helping advertisers reach the right fans with the right message at the right time across multiple social and programmatic channels, including display, video, connected TV, and more. The reason we're so excited about this launch is that it will enable us to partner with a wide range of advertisers seeking to reach sports fans. Any brand that wants to be associated with sports will benefit from FANHub. Given the breadth and depth of the data we have exclusive access to, Genius Sports understands the behavior of sports fans better than anyone in the ad tech market. We believe this data combined with the FANHub platform makes us uniquely positioned to help brands manage and measure high-impact cost-effective campaigns. As we enter the new year, we expect to unlock new high-margin revenue in a large and growing addressable market of digital advertising. We believe that we will have a significant advantage in the sports vertical. Strategically, this also represents another example of how we're leveraging technology to further monetize our existing data set and ultimately achieve greater scale. To close, we are very excited about the momentum in our business and believe we are reaching a critical inflection point, both strategically and financially.

Thank you, Mark. We are pleased to have delivered another quarter of results ahead of expectations, characterized by continued growth and operating leverage to date. Much of the revenue outperformance in the quarter was driven by our betting product, which increased by 30% year-over-year and demonstrates the underlying strength in the core betting business. By now, you should appreciate the positive trends we've seen specifically in our US betting business to start the NFL season, which grew by 60% compared to Q3 of last year, far outpacing the growth of the broader US sports betting industry. This is a function of many growth drivers that exist in the model, including market-wide gross gaming revenue growth, increased in-play betting, improving in-play win margins, and of course, greater value from sportsbook renewals. Each of these played a factor this quarter, not just in the US but also across the globe. In the third quarter, approximately 70% of our revenue is generated outside of the US. So despite today's focus on the US and NFL season, our core business outside of the US continues to demonstrate strong profitable growth. Of note, our European revenue achieved year-on-year revenue growth of 22% in the quarter following the successful renegotiation of renewed commercial terms with non-US sportsbooks, which contributed meaningfully to our betting revenue growth and our group-level performance in the quarter. These renewals also set the foundation for the next phase of growth through the remainder of 2024 and beyond. Importantly, these growth drivers come with no incremental fixed costs, allowing much of this additional revenue to flow through to group adjusted EBITDA. This is evident in our consistent margin expansion over the last few years, as you can see on the slide, and we expect to continue expanding our adjusted EBITDA margins towards our long-term target of at least 30%. Based on our observations through the start of the NFL season and, of course, our sportsbook renewals across the globe, we are confident in our outlook through the end of the year despite US win margins coming under pressure to begin the fourth quarter. Given the multiple growth drivers across the business, we remain confident in our Q4 guidance of 38% revenue growth, over 2.5 times growth of adjusted EBITDA, 900 basis points of margin expansion, and significant cash flow, bringing us to a positive position for the full year. These growth drivers, combined with the high predictability of our business model and largely fixed cost base, underpin our confidence in the guidance. In fact, our predictability and multitude of revenue growth drivers are exactly the reasons we've consistently delivered or exceeded our guidance over the last several quarters, and we aim to continue on this path moving forward. We are also reaffirming our expectation to generate positive cash flow for the 2024 calendar year. Quickly on the topic of cash, I would like to address the decrease in cash compared to the last quarter. As you know, throughout the third quarter, we renegotiated commercial terms with our sportsbook customers, many of which were finalized close to the 30th of September, marking the quarter-end. Given the timing of these agreements, the cash inflow we would typically expect in Q3 is now expected in Q4. Consequently, this is purely a function of cash timing rather than anything fundamental. As a final matter of housekeeping relating to foreign exchange, it is also worth noting that we achieved our Q3 revenue and adjusted EBITDA targets even at the foreign exchange rate at the time we last updated our guidance, meaning currency had an immaterial impact on group revenue and adjusted EBITDA in the quarter. As we approach the end of the year, it is a good time for us to reflect on how the full 2024 year is shaping up. Assuming our current guidance, we expect 2024 to be characterized by accelerating revenue growth of 24%, adjusted EBITDA growth of 61%, 391 basis points of margin expansion, and an inflection to positive cash flow. As such, 2024 should mark our fourth consecutive year of 20% plus revenue growth. As we look ahead to 2025 and beyond, we remain confident in our ability to sustain this pace of growth while continuing to expand our margins and increase our annual cash flow for the foreseeable future. In fact, the extension of our largest rights deals on a fixed cost basis, along with improved commercial terms with sportsbooks, now reinforces our confidence and visibility for the next several years. To conclude, this quarter represents another successful period of strategic execution as we continue expanding our technology footprint and bolstering our product offering across the ecosystem of sports, betting, media, and broadcast. We are reaching a critical inflection point financially, strategically, and operationally, and we are excited to continue our execution through year-end and carry our momentum into the new year and beyond. But for now, we will conclude our prepared remarks and open the line to Q&A.

Thank you. The floor is now open for questions. Our first question comes from the line of Ben Miller with Goldman Sachs. Please go ahead.

Great. Thank you so much for taking the questions. I guess just on the sportsbook renegotiations, first, how should we think about the magnitude of change in blended commission rates relative to today and the timing of this flowing through the model? And then Mark, just on the media segment, you guys have made a number of recent product announcements around that. So when we think about the building blocks for 2025, just talk about how these product announcements feed into how you're thinking about the qualitative drivers from here within that segment around number of advertisers, share of budget, pricing, all those things would be helpful. Thank you.

Ben, it's Nick. Yes, I'll take the first part and I'll let Mark take the second part. On that first part, what I can say really, Ben, is that we've taken price on every deal, both in pre-match and in-play. And you can see that that's a material amount that we have taken. Now Ben, I'm not going to give any specific details of that because every contract looks very different. But what I can say is that you're already seeing the results of those new deals in our numbers. We talked today about US sports betting being up 60% year-on-year in Q3. And also, you can see that by us reiterating our Q4 guidance with revenue acceleration up to 37%.

And on the second thing - Ben, it's Mark. On the second question, yes, we've done a lot of work recently. We've been preparing for the last few years. And as you rightly say, there's a lot of product launches that have come down the line. Specifically on the media, the self-serve platform is providing a massive opportunity for us. And really, I guess we're sort of starting to position ourselves in the world of being the sort of trade desk for sports. That's probably the easiest way to think about it. We've got a lot of unique data, and obviously, we understand sports fans, but also we have a huge amount of sports data. And that's going to give us a real advantage in being able to drive some of the efficiencies of those products. So the coming period of time with our sportsbook renewals, I think the vast majority, if not all of those deals include - in fact, I think it is all of those deals include the requirement for - I'm getting nods around the table, requirement for the use of the marketing products. So we've got a really good launch pad for growth for not only the existing product set in media, but also the new product sets that are coming down the line and are still to come down the line. So we're feeling really good about it.

Great. Thanks so much.

Thank you for taking my questions. To start, could you quantify the impact of the negative sports results in October on the fourth quarter? Additionally, Europe is growing at 22%, up from 10% last quarter, which is impressive to see. Given that these deals are mostly fixed, should we think of the fourth quarter and 2025 as achieving growth of over 20%? Lastly, regarding the US sports renewals, could you provide insight into your priorities for those agreements? For example, last time there was a significant minimum advertising commitment and different take rates for pre-match and live betting. Any information on potential new revenue structures we should be aware of would be appreciated.

Thank you, Bernie. There is a lot to discuss. I'm going to address this in reverse order. The sportsbook renewals have been crucial for us. I previously committed to the market that we would work on revaluing data, which we believe has been undervalued. These renewals have played a significant role in balancing that perspective and aligning data to a value that reflects its worth to the sportsbooks. Overall, we have achieved considerable success in this area and are very pleased with the results. The deal structures have been quite detailed, focusing on what each agreement looks like on a case-by-case basis. We have been careful to collaborate with our partners and clients to ensure we are delivering value-added products that truly make a difference. This also included the requirement to implement BetVision throughout the term, which we have successfully accomplished across all deals. This was a commitment I made previously about ensuring product ubiquity across the industry, and we are very satisfied with this outcome. Additionally, in the media space, we are rolling out new media products along with our existing offerings to enhance value. To summarize, we have concentrated on BetVision, media enhancements, and increasing overall value. It's also important to note that we've listened to the market, resulting in a more balanced mix of term lengths. The renegotiation periods going forward are now more rounded, eliminating the previous cliff effect. I’ll let Nick address the other two points.

Yes. Hi Bernie, yes. So Q4, I mean, you have heard me say this before, Bernie, I mean, I think Mark used the phrase resilience in the business model, which I think is absolutely right in terms of what our Q4 position is. But the great thing about this company is the number of growth levers that we have. And yes, US sportsbook results are clearly a headwind for us, but it's certainly not a material headwind given the other tailwinds that work in our favor, whether that's in-play mix, whether that's media, whether that's price, whether that's just product. And therefore, although there has been a lot of noise in the market around October results for sportsbooks, we're very confident of reiterating our Q4 position, which is a 37% revenue growth year-on-year. That kind of plays slightly, I think, into your other question, which was on the European position. There is still 70% of our revenues in the quarter coming from Europe. Q4 will be a little bit more US slanted given just the seasonality of the sports. But yes, we're delighted with a 20% growth in the European market year-on-year. One of the things that perhaps got lost in some of the noise around some of the US sportsbooks is some of the renegotiations we've been doing with the European sportsbooks on the back of renewing our UK soccer deal out until 2029. And therefore, you're beginning to see that as well as the new products that will also continue to drive and upsell into the European market. So, yes, I've always said and continue to expect double-digit growth from the European sportsbooks going forward.

Great. Thanks, guys.

Hi, thank you for taking my questions. I have two inquiries. Regarding the Q4 guidance, will the anticipated reacceleration be more influenced by media or sports betting outcomes? Additionally, as we look ahead to next year and the shift towards self-service in media, should we expect a temporary slowdown in revenue recognition since it will be accounted for on a net basis, while gross profit increases due to improved margins? Thank you.

Yes. I think we might do the same and take them in reverse order again, if that's all right. On the media, the self-service, these are additional revenue pools that we're going after. So I mean, to remind you all, the existing revenue stack that we've got through the programmatic is the managed services. So we expect that to continue, although longer-term, that revenue will probably end up getting somewhat replaced. But a lot of the self-service is really new revenue that's going to be coming as a result of new products, new brand positioning, working with the agencies as well as obviously with the sportsbooks. So we don't see initially one cannibalizing the other, even though longer-term, we think that the managed services will fade out.

Jed, it's Nick. Just on your first question, which I think was in relation to Q4 growth and where that will be coming from. The answer is Jed, actually, it's coming from both what we anticipate in Q4. Clearly, we are set up well from a sportsbook perspective based on the deals that we have agreed with the sportsbooks that Mark's already talked about. So that positions us well together with a good tailwind in terms of gross gaming revenue and total addressable market growth. But we are also expecting media growth in Q4 as well and actually also anticipating some sports-tech growth as well, given the deals that we've announced over the last four, five months, things like the US deal and the UK soccer deals.

Can you provide a full-year free cash flow range number?

Hi, Jed, what I've done is I've just reiterated really in the prepared remarks, and I'll do it again here in terms of 2024 that we anticipate to be positive cash flow in the year. That's a very important moment for Genius Sports. As you know, we are expecting that dynamic to continue now on an ongoing basis, which is particularly important given the strength of our balance sheet. I'm not giving a specific guide because as you know, cash receipts and cash payments can have an impact as you get towards the year-end, but we are fully confident of getting that positive cash position and then letting the operating leverage in the business model work its magic through '25 and beyond.

Hi, guys. Congrats on all the business success and renewals here. I want to start with FANHub. You mentioned kind of expanding beyond the traditional sportsbooks for who this appeals to and where you can add value. But can you talk through that pipeline and how much you've seen versus maybe expect and where that can go from across more consumer and outside of the sportsbooks specifically?

Yes, certainly. As I mentioned before, the best way to conceptualize the FANHub product is as the trade desk for sports. It's important to recognize the competitive landscape in the US market. We have a right to compete here due to our unique advantages. Our primary differentiator is our deep understanding of sports and its key moments. We possess vast amounts of data, allowing us to deliver targeted advertisements and respond effectively to significant events during games, which influences viewer reactions. Additionally, we have extensive information on sports players, equipping us with insights into sports fans and their preferences. This combination enables us to engage with any brand looking to connect with sports audiences. Whether you're a company like Coca-Cola or Gatorade, or an agency with clients wanting to target sports fans on a national or local level, we can help you reach the right audience. Ultimately, we leverage our unique data and understanding to effectively target sports fans.

Then just bigger picture on the cost side. You have really strong momentum on the commercialization revenue side. But on the cost side, how do you feel about the structure, resources, people, everything to support kind of these multiple growth initiatives you have as you look into '25 and beyond?

Yes. Ryan, let me talk and then Mark, please come over the top of any more sort of directional comments. Yes, I mean, as you know, Ryan, the key to this business is the operating leverage that it drives. All the tailwinds that we've talked about, whether that's in-play sports betting, whether that's growth of total addressable market, whether that's price, whether that's additional product, most of that flows through at a pretty high margin. You've seen that this quarter. I think you've got a drop through in the quarter at around about 44% drop through. And I think the implicit guide for Q4 is also in the 40s. So we are feeling pretty good about the operating leverage.

So you guys obviously made a big commitment to the NFL a few years back. I would just be curious, is there anything that's going better than expected and anything that's going worse than expected as it relates to sort of NFL revenues and betting behavior?

Yes, regarding the NFL, our relationship is very strong. We renewed our agreement early and have a long runway ahead. We're collaborating with them on multiple products, and they are a significant stakeholder in our business, actively engaging with us. Our relationship spans the entire organization, and they are an excellent partner. We have access to valuable data, which is fueling our product innovation. For instance, BetVision, one of our biggest innovations, has emerged from our collaboration with the NFL and their low latency feed. Overall, our partnership is yielding successful results, and both parties are benefiting from it.

This is Sam on for Chad. Thanks for taking my question. I wanted to touch on the 30% EBITDA margin target. Any color on what needs to happen to get there? Is it dependent on new state launches or more in-play? Anything you could add there? Thanks.

Hi Sam, it's Nick. There's nothing specific to mention, but I believe it's more of the same. One of the key benefits of being Genius Sports is the predictability and visibility we have. As Ryan asked about the cost base, you can see that our costs haven't changed much over the last 36 months. Our rights are fixed, so I can point to the exact rights costs, such as those for the NFL or U.K. soccer, which are set until the end of the decade. This gives us significant visibility, and you've seen this trend over the past 12 to 16 quarters, with our EBITDA margin steadily improving. Currently, we are guiding for an EBITDA margin of around 16% to 17%, compared to about 12% last year. This indicates healthy margin growth, and we anticipate this will continue in the medium term as we move towards our 30% target.

We have recently launched many products, and we have made significant investments in various areas over the last few years. This includes our self-serve FANHub platform, Edge, which is our risk product, and Dragon, which is rolling out successfully on a global scale. We are heavily involved in UK football, basketball leagues, and UEFA, among others. Many of these products have not yet generated significant revenues, and the growth we have seen in the business historically comes from existing products. While there has been a strong focus on self-serve offerings, they have so far contributed very little revenue. However, we are still able to expand our margins and achieve growth. Nick often discusses growth levers, which really pertains to these product sets that will provide ample opportunity for revenue growth. Additionally, we are consolidating many disparate products. We have traditionally rolled out products individually and prefer incremental growth across each area. Now, with the completion of several products, we can leverage them collectively, which has been challenging in the past. The launch of Dragon, FANHub, Edge, and BetVision allows us to create a compounding effect that drives growth. We are excited about this potential. We are aiming for a 30% EBITDA margin and feel confident due to the strong visibility we have and the clear path towards achieving it. There is immense opportunity within this business, which fuels my excitement about our potential to integrate these products and deliver exceptional value to our shareholders.

Awesome. Thanks for that color. And then just as a follow-up, is it possible to get the in-play NFL hold rate so far this year and just the upside that you guys can get simply from, I guess, the sportsbooks improving the in-play hold and kind of how you see the time line of that evolving?

We're not going to disclose the hold rates, but I can tell you that they are improving. However, the more significant point to highlight is the growth in in-play betting. A few years ago, we were just above 20%, and last year we reached 25%. Now, we are at 30% of markets in-play. As many of you know, in-play betting has a much higher margin, and bookmakers are increasingly focused on it. There's a growing interest in live betting, largely driven by BetVision. Currently, 59% of all in-play betting handle is processed through BetVision, indicating a strong appetite for market growth. As BetVision becomes more widely adopted and our product offerings expand, we expect to see an increase in in-play share, potentially rising from the current 30% towards the European average of around 70%. This shift would enhance the margins for sportsbooks, increase our share, and ultimately offer significant growth opportunities. Therefore, if I were analyzing this business externally, I would focus on these developments.

Awesome. Thanks. Congrats on the quarter.

Thank you. The floor is now open for questions. Our first question comes from Ben Miller with Goldman Sachs. Please go ahead.