Grandstand (GRSD) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $30.5 million, up 18% year-over-year, with net income rising to $6.9 million from $0.3 million and Adjusted EBITDA of $11.2 million, up 19% year-over-year, driven by strong NDC growth and international diversification.

• Over 108,000 new depositing customers delivered, a 19% increase, despite a tough U.S. sports betting comparison.

• iGaming growth in Europe, especially UK and Ireland, was robust, while North America remained resilient despite a tough comparison period.

• Raised full-year 2024 guidance for both revenue and Adjusted EBITDA, reflecting confidence in continued growth and operational execution.

• Completed acquisition of Freebets.com and repurchased over 1.6 million shares in 2024, reflecting confidence in future growth.

Financial highlights

• Revenue reached $30.5 million, a Q2 record, with over 108,000 NDCs delivered, up 19% year-over-year.

• Gross profit increased 16% to $29.1 million; gross margin rose to 95% from 92% in Q1.

• Adjusted EBITDA grew 19% to $11.2 million, with a margin of 37%.

• Adjusted net income rose 13% to $7.4 million; adjusted diluted EPS increased 18% to $0.20.

• Free cash flow was $6 million, down from $8.7 million year-over-year due to working capital and capex for new US offices.

Outlook and guidance

• Raised 2024 revenue guidance to $123–$127 million (midpoint: 15% growth) and Adjusted EBITDA to $44–$47 million (midpoint: 24% growth).

• Guidance assumes no new acquisitions or additional US state launches beyond North Carolina and Freebets.com.

• Full-year cost of sales expected at $6.5 million; average EUR/USD rate of 1.09 assumed.