Grandstand (GRSD) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $32.1 million, up 37% year-over-year, with adjusted EBITDA more than doubling to $12.6 million and net income rising 70% to $8.5 million, reflecting strong iGaming performance and market share gains.

• Over 116,000 new depositing customers delivered in Q3, a 35% increase year-over-year, with robust iGaming growth across all regions and resilience in North America.

• Growth driven by successful integration of Freebets.com and strong international performance, while North America revenue held flat amid challenging comps.

• Raised full-year 2024 guidance for both revenue and adjusted EBITDA, reflecting confidence in continued momentum and expectations for North American growth in 2025.

Financial highlights

• Q3 revenue reached $32.1 million, a 37% year-over-year increase, with over 116,000 NDCs delivered (up 35%).

• Gross profit rose 43% to $30.4 million; gross margin improved to 95% from 91% last year.

• Adjusted EBITDA hit $12.6 million (up 108%); margin expanded to 39% from 26% year-over-year.

• Adjusted net income grew 65% to $8.9 million; adjusted diluted EPS up 79% to $0.25.

• Free cash flow set a new record at $14.2 million, up from $1.6 million in Q3 2023.

Outlook and guidance

• Raised 2024 revenue guidance to $125–$127 million (midpoint: 16% year-over-year growth); adjusted EBITDA guidance increased to $46.5–$48.5 million (midpoint: 29% year-over-year growth).

• Guidance assumes no new North American markets or acquisitions beyond Freebets.com in 2024, and full-year cost of sales of ~$7.5 million.

• Q4 guidance excludes new acquisitions or market launches; expects continued strong Adjusted EBITDA growth.

• Anticipates North America revenue to be down for full year 2024 due to tough comps, but expects growth to resume in 2025.