Q1 2024 Genius Sports Ltd Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. Today's conference call will begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. At this time, I would like to welcome everyone to the Genius Sports first quarter 2024 earnings results. All lines have been placed on mute to prevent any background noise.

Ladies and gentlemen, thank you for standing by today's conference call will begin momentarily until that time your lines will again be placed on music hold thank you for your patience.

[music].

Pam: Thank you for standing by my name is Pam and I will be your conference operator today at this time I would like to welcome everyone to the genius sports first quarter 'twenty 'twenty four earnings results.

Pam: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to the company. You may begin.

Pam: He would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again.

I would now like to turn the conference over to the company you may begin.

Unknown Executive: 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 statements 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.

Speaker Change: 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.

Speaker Change: We assume no responsibility for updating forward looking statements.

Speaker Change: Such statements 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 15th 2024.

Unknown Executive: During the call, management will also discuss certain non-gap 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 U.S. GAAP. A reconciliation of these non-GAAP measures to the most directly comparable U.S. 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.

Speaker Change: During the call management will also discuss certain non-GAAP measures that we believe may be useful in evaluating the operating performance.

Speaker Change: Measures should not be considered in isolation or as a substitute for G&A for financial results prepared in accordance with U S. GAAP.

Speaker Change: A reconciliation of these non-GAAP measures to the most directly comparable U S. GAAP measures available in our earnings press release and earnings presentation, which can be found on our website at investors that genius sports Darko.

Speaker Change: With that I'll now turn the call over to our CEO Mark <unk>.

Mark Locke: Hello, good morning, and thank you for joining us today as we begin another year on a positive note with strong momentum across the business. Before we dive into the results, we'd like to begin by thanking our partners at Apex for their support and investment over the last six years. You may have seen last month that Apex reduced their holdings in Genius to a level where they now step down from our board of directors.

Mark: Hello, Good morning, and thank you for joining us today as we begin another year on a positive note with strong momentum across the business.

Mark: Before we dive into the results, we'd like to begin by thanking our partners. The APAC. So that's important investment over the last six years you may have seen last month, the APAC to reduce their holdings ingenious to a level, where they now stepped down from our board of directors. The board Representatives from eight patchy provided valuable insight and expertise as we go.

Mark Locke: The board representatives from APEX provided valuable insight and expertise as we went through a period of transformative growth, expanding from $88 million in revenue in 2018 to half a billion dollars forecasted in 2024. We have spent the last three years as a public company working very hard to cultivate a great group of public equity investors who we are proud to call shareholders in Genius Sports, and we look forward to working with them and many others over the years ahead.

Mark: Went through a period of transformative growth expanding from $88 million of revenue in 2018 to half a billion dollars forecast in 2024.

Mark: We have spent the last three years as a public company working very hard to cultivate great group of public equity investors should we are proud to call shareholders ingenious sports and we look forward to working with them on many others over the years ahead.

Mark Locke: And with that, we are very happy to report on our ninth consecutive quarter of outperformance relative to our guidance, once again demonstrating our consistent and predictable business model and strong execution. In the first quarter, we grew revenue by 23% year on year to $120 million, beating our guidance of $117 million. Our group-adjusted EBITDA was $7 million in the quarter, also exceeding our guidance of $6 million.

Mark: And with that we are very happy to report our ninth consecutive quarter of outperformance relative to our guidance once again, demonstrating our consistent and predictable business model and strong execution.

Mark: In the first quarter, we grew revenue by 23% year on year to 120 million, beating our guidance of $117 million.

Mark: Our group adjusted EBITDA was $7 million in the quarter also exceeding our guidance of $6 million.

Mark Locke: We remain focused on consistently outperforming financial targets whilst delivering on our core strategic objective of becoming the must-have digital partner for leagues, sports content distributors, sports books, and brands. The first quarter was an excellent example to highlight each of these areas as we continue our wide-scale distribution of technology and value-enhancing products across the sports ecosystem. This is exactly how we have retained key league partnerships over the years and positioned our commercial model for sustainable growth, profitability, and cash flow.

Mark: We remain focused on consistently outperforming financial targets, whilst delivering on our core strategic objective of becoming the most top digital partner for leaks sports content distribute sports books and your brands.

Mark: The first quarter was an excellent example to highlight each of these areas as we continue a wide scale distribution of technology and value enhancing products across sports ecosystem.

Mark: This is exactly how we have retained key league partnerships and positioned our commercial model for sustainable growth and profitability and cash flow.

Mark Locke: Our strong start to the year makes us even more confident in our outlook, so we're raising our 2024 group revenue and adjusted EBITDA guidance to $500 million and $82 million, respectively, from $480 million and $75 million to begin the year.

Mark: Our strong start to the year makes us even more confident in our outlook. So we are raising our 2020 full group revenue and adjusted EBITDA guidance to $500 million and $82 million respectively.

Mark: From $480 million and $75 million to begin the year.

Mark Locke: This implies year-on-year group revenue and adjusted EBITDA growth of 21% and 54%, respectively, and raises our group adjusted EBITDA margin to 16.4%, representing 350 basis points of improvement. We are also reaffirming our cash flow positivity for the full year, which will continue to strengthen into 2025. As we reach this important annualized milestone, we may be more proactive in deploying capital across a range of potential initiatives, such as M&A, share repurchase, or otherwise.

Mark: This implies year on year group revenue and adjusted EBITDA growth of 21% and 54%, respectively and raises our group adjusted EBITDA margin to 16, 4%, representing 350 basis points of improvement.

Mark: We are also reaffirming our cash flow positivity for the full year, which will continue to strengthen into 2025.

Mark: As we reach these important annualized modeled side, we may be more proactive in deploying capital across a range of potential initiatives such as M&A.

Mark: Share repurchases or otherwise.

Mark Locke: Therefore, we want to position ourselves for any opportunity that may arise in the future as we continue to mature as a public company. As such, we are carrying out a few steps to optimize our overall financial flexibility with relatively low-cost capital. Thirdly, we have closed a $90 million revolving credit agreement with Citibank and Deutsche Bank, which, combined with our cash on balance, gives us greater flexibility to access additional capital if necessary.

Mark: Therefore, we want to position ourselves to any opportunity that may arise in the future as we continue to mature as a public company.

Mark: As such we are carrying out a few steps to optimize our overall financial flexibility with relatively low cost capital.

Mark: Firstly, we are close to $90 million revolving credit agreement with Citibank, and Deutsche Bank, which combined with our cash on balance sheet gives us greater flexibility to access additional capital if avid necessary.

Mark Locke: Second, as a matter of general corporate housekeeping, Genius Sports is now Wixie eligible following our three-year anniversary listing. Therefore, in accordance with customary market practice, we intend to file an F3 shelf registration statement this week.

Mark: Second as a matter of general corporate housekeeping genius sports is now wix eligible following our three year anniversary of listing therefore in accordance with customary market practice, we intend to file an S. Three shelf registration statement. This week our intention with this filing is simply to follow ordinary best.

Mark Locke: Our intention with this filing is simply to follow ordinary best practice and SEC housekeeping now that Genius is Wixie shelf eligible. We are taking these steps towards greater financial flexibility because we want to be nimble when potential opportunities arise in the near to medium term, particularly as our business fundamentals continue to improve, and we gain further clarity on our long-term growth and profitability prospects. Our confidence in the underlying business fundamentals is reinforced not just by our financial results but by the successful execution of our core strategic objectives.

Mark: Practice in the FCC housekeeping now the genius is wppsi shelf eligible.

Mark: We are taking these steps towards greater financial flexibility, because we want to be nimble when the potential opportunities arise in the near to medium term.

Mark: Clearly as our business fundamentals continue to improve and we gain further clarity on our long term growth and profitability prospects.

Mark: Our confidence in the underlying business fundamentals is reinforced not just file financial results, but from the successful execution of our core strategic objectives for example.

Mark Locke: We continue to reach wide scale distribution of our computer vision and AI technology with leagues and federations around the globe. The wider our reach, the more we establish Genius Sports technology as the standard for next-gen data collection. The foundation with leagues across the globe is strong and continuing to expand, and we've successfully launched several new betting and media products on that basis. Most notably, in the last few months, we've struck long-term technology partnerships with the likes of FIBA, the Lithuanian Basketball League, and the WNBA, which is the first women's professional sports league in the U.S. to utilize league-wide optical tracking. We also deployed optical tracking technology for the NCAA Women's Final Four last month, further empowering the explosive growth in women's sports.

Mark: We continue to reach wide scale distribution of our computer vision, and AI technology with leagues and federations around the globe.

Mark: The broader all reach the more we established genius sports technology at the standard is the Nextgen data collection.

Mark: The foundation with leagues across the globe is strong and continuing to expand and we successfully launched several new betting and media products on that basis.

Mark: Most notably in the last few months, we struck long term technology partnerships with the likes of fever, Lithuanian Basketball League and the W. N B, a which is the first women's professional sports league in the U S to utilize leaguewide optical tracking well.

Mark: We also deployed optical tracking technology for the MTA a womens final four last month further empowering the explosive growth in women's sports.

Mark Locke: Each new deal marks an important proof point for how leagues are increasingly focusing on capturing rich data and enabling new forms of analytical insights for broadcasters, media outlets, and fans, all built on genius sports technology. This then becomes the foundation on which we are launching new products, such as BetVision and real-time broadcast augmentation solutions, which are being monetised today. One really exciting example of how we've taken this as a step forward is our new partnership with Premier League team Brentford Football Club and one of its sponsors, GTech, to power augmented highlights for fans in stadiums and on social media.

Mark: Each new deal marks important proof points of how leagues are increasingly focusing on capturing rich data and enabling new forms of analytical insights of broadcasters media outlets and fans all built on a genius sports technology.

Mark: This then becomes the foundation on which we are launching new products, such as that vision and real time broadcast augmentation solutions, which are being monetized today.

Mark: One really exciting example of how we've taken this as a step forward is our new partnership with Premier League team Brent.

Mark: Cloud I'm one of its sponsors GE.

Mark: Back to power augmented highlights to fan in stadia and on social media.

Mark Locke: We have now combined our player tracking and broadcast augmentation tools with our advertising technology to create an entirely new sponsorship inventory for Brentford Stadium's naming partner. Now an interesting data point, like shot speed, becomes a new revenue asset for Brentford, and for G-Tech, it represents an opportunity to associate their brand with the most engaging moments of the match, shots on goal.

Mark: We have now combined our player tracking and broadcast augmentation tools with our advertising technology to create entirely new sponsorship inventory, so Brent stadiums naming partner.

Mark: Now an interesting data point like short state becomes a new sponsor asset to Brent says and for GTECH. It represents an opportunity to associate their brand with the most engaging moments of the match shots on goal.

Mark Locke: Our ability to automatically capture this data through computer vision and AI and to transform it into a creative graphical overlay, all in real time, is completely unique to Genius Sports technology, creating another level of connectivity for leagues, sponsors, and fans. In summary, the greater our distribution, the more product we can monetize at scale, and the more integral we become to the leagues themselves. This is how we have successfully retained key league partners like the NFL and English Premier League over time.

Mark: Our ability to automatically capture this data through computer vision, and AI and to transform it into a creative graphical overlay all in real time is completely unique to genius sports technology, creating another level of connectivity for leaks sponsors and fans.

Mark: In summary, the greater our distributions the more product, we can monetize it scale and more integral we become to leaks themselves.

Mark: This is how we have successfully retained key league partners like the NFL and English Premier League over time.

Mark Locke: Technology is increasingly front and center in our league relationships, and this is the type of differentiated value that we provide. For instance, last summer, we extended our two most important data rights, the NFL and Football Data Co, which governs all of UK football, including the English Premier League. In March, we also announced that we were now in exclusive discussions to extend our Football Data Co agreement through the 28-29 season. While this agreement is still under final negotiations, we are delighted that they have chosen to work with us for another four years.

Mark: Technology is increasingly front and center in our league relationships and this is the type of differentiated value that we provide.

Mark: For instance, last summer we extended our two most important data rights agreements, the NFL and footwear data cut which governs all of UK football, including the English Premier League.

Mark: In March we also announced that we're now in exclusive discussions to extend our football guys co agreement through 2008 2009 season.

Mark: While this agreement is still undefined new negotiations we are delighted that they have chosen to work with us for another four years, given the massive importance of UK football on a global basis. This relationships has materially improved our commercial offering in the global sports betting market over the years looking ahead, we expect that this will.

Mark Locke: Given the massive importance of UK football on a global basis, this relationship has materially improved our commercial offering in the global sports betting market over the years. Looking ahead, we expect that this will continue to be a key pillar of our growth strategy through the end of the decade. While we obviously cannot disclose the specific terms of the deal, we want to address head-on what we expect from our business over the length of this relationship.

Mark: <unk> to be a key pillar of our growth strategy through the end of the decade, while we obviously cannot disclose specific terms of the deal we want to address head on what we expect from our business over the late this relationship.

Mark Locke: Like what we have proven with our NFL partnership, a strong and long-term relationship with FDC will enable us to continue expanding margins and increasing cash flows on the trajectory that we had always envisaged. We are now more confident than ever in our ability to sustain strong revenue growth for the foreseeable future and don't envisage this growth slowing in the near term, given the positive structural tailwinds and the momentum in our business.

Mark: What we have proven with our NFL partnership our strong and long term relationship with FTC will enable us to continue expanding margins and increasing cash flows with the trajectory that we had was envisaged.

Mark: We are now more confident than ever in our ability to sustain strong revenue growth for this to seeable future.

Mark: And don't envisage this growth slowing in the near term given the positive structural tailwind and the momentum in our business.

Mark Locke: In fact, now having our two largest data rights deals secured for the next four or five years gives us even greater visibility of our cost base and a higher degree of confidence in the trajectory and the pace at which we reach our long-term EBITDA margin target of at least 30%, ultimately converting to increased cash flow. The increased guidance we announced for the remainder of 2024 should be indicative of our momentum into 2025.

Mark: In fact, now having our two largest data rights deals secured for the next four or five years gives us an even greater visibility of our cost base and a higher degree of confidence in the trajectory and the pace at which we reach our long term EBITDA margin target of at least 30% ultimately.

Mark: Investing to increase cash flow.

Mark: The increased guidance, we announced for the remainder of 2024 should be indicative of our momentum into 2025.

Mark Locke: Not to mention, this also affords us four to five years more to become even more deeply integrated with the digital infrastructure of the leagues. This enables more ways for leagues to access next-gen data and apply it in many different ways, spanning broadcasts, fan engagement, advertising, sponsor activation, and sports betting. Ultimately, access to this data enables us to continue fueling growth in our core business model. These rights agreements give us access not just to live data feeds to power sports betting markets but to the broader sports ecosystem, where we can leverage data and technology to activate audiences with data-driven content, marketing services, and an immersive viewing experience.

Mark: Not to mention this also affords us four to five years more to become even more deeply integrated with the digital infrastructure of the leagues. This enables more ways the leagues to access nextgen data and apply it in many different ways since founding broadcast span engagement advertising sponsor activation.

Mark: And sports betting.

Mark: Yeah.

Mark: Ultimately the access to this data enables us to continue fueling growth in our core business model.

Mark: These rights agreements gives us access not just to live data feeds to power sports betting market, but to the broader sports ecosystem, where we can leverage data and technology to activate audiences with data driven content marketing services and immersive viewing experiences.

Mark Locke: Year after year, we are proving how our commercial model is built to benefit from the multiple tailwinds that exist in the world of sports. Whether it's growth in the online sports betting market, growth in its in-play betting, growth in sports digital advertising spend, and increased engagement in sports as a whole, we are poised to benefit in many different ways. This is how we've been able to achieve our strong results over the years. I'll now turn the call over to Nick to discuss the Q1 results in Mauditon.

Mark: Year after year, we are proving how our commercial model is built to benefit from the multiple tailwind as they exist in the world of sports.

Mark: It's growth in the online sports betting market growth in play betting growth in sports digital advertising spend and increased engagement in sports as a whole we are poised to benefit in many different ways.

Mark: This is how we've been able to achieve a strong results over the years.

Mark: I'll now turn the call to Nick to discuss the Q1 results in more detail.

Nick: Thank you Mark.

Nicholas Taylor: We are very happy to report another quarter of our performance relative to our expectations. Each quarter, we discussed the many ways in which we can outperform, whether that's from a growing sports betting tam, High Employed Betting, including wind margins, Cost Seller additional products and content, or High Demand for Digital Advertising Services.

Nick: We are very happy to report another quarter of outperformance relative to our expectations.

Nick: Each quarter we.

Nick: We just got the many ways in which we cannot perform.

Nick: Whether that's from a growing sports betting Tom.

Nick: Hi in play betting.

Nick: Proving win margins.

Nick: Well sell of additional products and content for.

Nick: For high demand for digital advertising services.

Nicholas Taylor: This quarter, our app performance was primarily driven by our media, which increased by 63% year on year, marking a significant reacceleration of growth and our strongest quarter in nearly two years. This was driven by meaningful spend from major U.S. sportsbook operators around the key sporting events, namely the NFL playoffs, the Super Bowl, and March Madness, as well as the launch of online sports betting in North Carolina during the course. And as you've just seen on slide eight.

Nick: This quarter our.

Nick: Performance was primarily driven by our media business.

Nick: Which increased by 63% year on year.

Marking a significant re acceleration of growth.

Nick: And our strongest quarter in nearly two years.

Nick: This was driven by meaningful spend from major U S sports book operators around the key sporting events, namely the NFL playoffs, the Super Bowl and March Madness.

Nick: As well as the launch of online sports betting in North Carolina in the quarter.

Nick: And as you've just seen on slide eight.

Nicholas Taylor: We are executing digital advertising campaigns for many non-gambling brands around these key sporting events as well, ranging anywhere from food and beverage brands to individual leagues and teams themselves. Betting revenue also increased year-on-year by 14%, largely driven by strong revenue share performance in the US, albeit a relatively small contributor to overall betting revenue in the quarter. We also reported group-adjusted EBITDA of approximately $7 million, slightly ahead of our $6 million guide.

Nick: We are executing digital advertising campaign for <unk>.

Nick: Any non betting brands around these key sporting events as well ranging anywhere from student Brad Lidge brands, the individual leagues and teams themselves.

Nick: Betting revenue also increased year on year by 14%.

Nick: Largely driven by strong revenue share performance in the U S.

Nick: Albeit a relatively small contributor to overall packaging revenue in the quarter.

Nick: We also reported adjusted EBITDA of approximately $7 million.

Nick: Yes.

Nick: $6 million guide.

Nicholas Taylor: As it relates to our adjusted UBIT data this quarter, there are two points worth noting. First, as I mentioned last quarter, we expanded our NFL partnership last summer to include domestic streaming rights, which powers our BetVision product for sports books and was entirely new for the 2023-2024 NFL season. These rights are expensed equally in each month during the season, including January and February.

Nick: As it relates to our adjusted EBITDA. This quarter there are two points worth noting.

Nick: As I mentioned last quarter.

Nick: We expanded our NFL partnership last summer to include domestic streaming rights.

Nick: Which powers that that patient product disposable.

Nick: Entirely new in the 2023 2024 NFL season.

Nick: These two expense equally in each month during the season, including January and February.

Nicholas Taylor: As a result, this has an outsized effect on our Q1 2024 profitability, simply because there are fewer NFL games to generate revenue, despite this new set of rights being accreted over the course of the fall season. Our adjusted EBITDA is largely a function of the mix between betting and media revenue, with betting outperforms typically contributing to profitability, to higher incremental margin. Media significantly outperformed in Q1, and therefore the incremental flow-through of this outperformance was approximately 32%. (Inaudible) We finished the quarter with $93 million on the balance sheet, roughly in line with where we expected to finish the quarter.

Nick: As a result.

Nick: This has an outsized effect on our Q1 2020 for profitability.

Nick: Simply because there are fewer NFL games to generate revenue.

Nick: Despite this new set of rights being accreted over the course of the full season.

Nick: Second.

Nick: Our adjusted EBITDA is largely a function of the mix between banking and media revenue.

Nick: With besting outperformed typically contributing to profitability.

Nick: The higher incremental margin.

Nick: Media significantly outperformed in Q1.

Nick: And therefore, the incremental flow through of this outperformance was approximately 32%.

Nick: Turning to cash.

Nick: We finished the quarter with $93 million on the balance sheet.

Nick: Roughly in line with where we expected to finish the quarter.

Operator: And we're confidently reaffirming our expectation to be cash flow positive in H2 and for the fall of 2024. To conclude, our results from the quarter and our increased revenue and EBITDA guidance to $500 million and $82 million, respectively, set us on a steady path to our long-term adjusted EBITDA target of 30% plus, and we are more confident than ever about our trajectory. We continue to execute on our core strategic objectives, and as a result, we're working to extend our relationship with arguably the most important sports asset globally.

Nick: We are confidently reaffirming our expectation to be cash flow positive in H, two and for the full year 2024.

Speaker Change: To conclude.

Speaker Change: Our results from the quarter, and our increased revenue and EBITDA guidance to $500 million and $82 million respectively.

Speaker Change: Just on a steady path.

Speaker Change: Our long term adjusted EBITDA target of 30% plus.

Speaker Change: We are more confident than ever about our trajectory, we continue to execute on our core strategic objectives.

And as a result.

Speaker Change: We're working to extend our relationship with arguably the most important sports asset globally.

Speaker Change: Therefore, we are feeling very optimistic about 2025 as well.

Speaker Change: While we are not issuing formal guidance just yet.

Speaker Change: We believe our increase in 2020 for guidance.

Speaker Change: Broadly representative of a structural momentum into 2025.

Speaker Change: We expect continued revenue growth margin expansion and increasing cash flow.

Speaker Change: With the strong momentum and additional financial flexibility.

Speaker Change: We have a heightened sense of excitement.

Speaker Change: Business.

Speaker Change: And we look forward to sharing future updates.

Speaker Change: With that.

Operator: Therefore, we are feeling very optimistic about 2025 as well, and while we are not issuing formal guidance just yet. We believe our increase in 2024, guys, should be broadly representative of our structural momentum into 2025, as we expect continued revenue growth, margin expansion, and increasing cash flow with this strong momentum and additional financial flexibility. We have a heightened sense of excitement across the business, and we look forward to sharing future updates. With that, we now conclude our prepared remarks and open the line to Q&A.

Speaker Change: We now conclude our prepared remarks and open the line for Q&A.

Operator: If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the call. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. And your first question comes from the line Jed Kelly made with Oppenheimer. Please go ahead.

Speaker Change: Mr session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.

Speaker Change: He would like to withdraw your question simply press Star one again.

Speaker Change: Called upon to ask a question in our listening via loud speaker on your device. Please pickup your handset and ensure that your phone is not on mute when asking a question.

Speaker Change: Press Star one to join the queue and your first question comes from the line of Jed Kelly with Oppenheimer. Please go ahead.

Jed Kelly: Hey, great, great. Thanks for taking my questions. Just two, if I may.

Jed Kelly: Great great. Thanks, Thanks for taking my questions. Just two if I may just on the increase in the back half guidance is that under is that implying confidence around some of the contract renewals coming up or more momentum in the betting tech services or in the <unk>.

Jed Kelly: Media Tech and media.

Jed Kelly: Media Tech and content services, and then Mark I appreciate the opening comments on potentially raising capital where do you actually see the most opportunity and your technology portfolio or where is the most opportunity for growth that you would potentially do an acquisition. Thank you.

Jed Kelly: Just on the increase in the back half guidance, is that undercut, you know, is that implying confidence around some of the contract renewals coming up or more momentum in the betting tech services or in the media tech and content services? And then, Mark, I appreciate the opening comments on potentially raising capital. Where do you actually see the most opportunity in your technology portfolio, or where is the most opportunity for growth that you would potentially do an acquisition?

Mark Locke: Hey Jed, good to hear from you. On your first question, the increase in the back half, I mean, it's what we're seeing in the business at the moment. We've got an awful lot of momentum, you know; things are going extremely well. You know, we're not really focusing too much on contract renewals as part of it. This is about general momentum in the business. And it's not really stuff that we're taking into account in the back half.

Mark Locke: Thank you. Hey Jed,

Speaker Change: Hey, Jeff.

Good to hear from you.

Speaker Change: Your first question the increase in the back half.

Mark: What we are seeing in the business that we've got an awful lot of momentum things that things are going extremely well.

Speaker Change: Not really focusing too much on them.

Speaker Change: <unk> is part of it is about general momentum in the business and it is not really stuff that we're taking into account the back half.

Mark Locke: In terms of capital, look, business, as I said, is in a strong place. And I think businesses that are performing well want to have, you know, optionality and firepower, which is, which is why we progressed with the revolver. I mean, the two main areas that we see as potentially big are really M&A and, you know, potentially sort of share buybacks in the future, but we're taking this one step at a time.

Speaker Change: In terms of capital look business as I said, it's in a strong place nothing Kevin businesses.

Speaker Change: You know that are performing well want to have optionality and firepower, which is which is why we've progressed through the revolver I mean, the two main areas that we see as potentially is really M&A.

Speaker Change: Potentially sort of share buybacks in the future. We're taking this one step at a time.

Thank you.

Operator: Your next question comes from the line of Bernie McTernan with Needham. Please go ahead.

Speaker Change: Your next question comes from the line of Bernie Mcternan with Needham. Please go ahead.

Bernard Jerome McTernan: Great, thanks for taking the questions. Just wanted to talk about data rights and get a sense, maybe to start, how competitive it was to get the exclusive negotiating rights for Football Data Co. And then Mark, just giving your comments on, you know, long-term profitability and getting to 30% plus EBITDA margins, just any insights into the rights costs and commentary on the impact on cashflow and profitability. Basically, I want to ask if these contracts generally have large year-one step-ups, and should we expect EBITDA to be going backwards for a given year when those step-ups occur, if they do happen.

Bernard Jerome McTernan: Great. Thanks for taking the questions just wanted to talk about the data rights and get a sense maybe to start how competitive it was to get the exclusive negotiating rates for football data co and then Mark just given your comments on.

Bernard Jerome McTernan: Thanks.

Bernard Jerome McTernan: Long term profitability and getting to 30% plus EBITDA margins.

Speaker Change: Just any insights into the rights costs and commentary on the impact on cash flow and profitability basically wanted to ask if these contracts generally have larger one step ups and should we expect EBITDA to be going backwards for a given year.

Speaker Change: When those step ups, if those step ups occur if they do happen.

Speaker Change: Thanks.

Mark Locke: Yeah, thanks, Bernie. I mean, look, you know, we said along that we're in a really strong position with ASCO. And, you know, that's, you know, that's been proven on the basis that we've won it. And we're absolutely delighted. We're very, very happy with the deal that we've done. So, you know, we're feeling good about the impact on the business. I mean, one thing that, you know, is sort of becoming clear as we listen to the market and talk to people is that people, you know, I guess don't totally appreciate that the deal and the relationship we have with ASCO is a lot more, is a lot broader than just the data, the data rights relationship.

Speaker Change: Yes, Thanks, Benny I mean look.

Speaker Change: We set alone.

Speaker Change: We're in a really strong position with <unk>.

Speaker Change: So that's the improvement on the basis, we'd want it and we are absolutely delighted we're very very happy with the deal that we've done so.

Speaker Change: We're feeling good about the impact on the business I mean, one thing that.

Speaker Change: It is becoming clear as we listen to the market and talk to people is is it people.

Speaker Change: Yes.

Speaker Change: Totally appreciate the deal.

Mark Locke: You know, we, you know, we're a technology-driven business; we've said all along that technology deployment and the use of that technology strengthens our position in the market. And that has become a really key part of these negotiations. And, you know, again, we're feeling really good about that technology deployment and a lot of the opportunity and a lot of the sort of partnership-driven drivers that are coming from that.

Speaker Change: And the relationship we have with <unk> is a lot more is a lot broader than just the data the data rights relationship. We know we're a technology led business. We've said all along that technology deployment and the use of that technology strengthens our position in the market and that has become a really key part of these negotiations and.

Speaker Change: So again, we're feeling really good about that technology deployment and a lot of the opportunity.

Speaker Change: And a lot of the sort of partnership allege new drivers coming from that.

Nicholas Taylor: Yeah, hey Ben, it's Nick. I'll just pick up that second part, I think. I think we said in the prepared remarks, Bernie, that, you know, we're feeling very optimistic, not just about 24, but actually about 25 and 26. And the great thing about the deal, the FTC deal, although, albeit it's obviously still in negotiations, I can't comment specifically on those terms, is it gives us really strong visibility now all the way out to kind of 2029, 2020, 2030 on our major rights.

Speaker Change: Hey, Ben it's Nick I'll, just pick up that second pillar.

Speaker Change: Hi.

Nick: I think we said in prepared remarks that Nathan.

Nick: We're feeling very optimistic not just about 24 was actually about 25% 26, and the great thing about the deal the FTC deal, although albeit it's obviously still negotiations I cant comment specifically on those terms is it gives us really strong visibility now all the way out to 2029 2000 2030 on a major rights deals and as I said.

Nicholas Taylor: And as I said, the repaired mark is, you know, what we did in 2022 to 2024 is expected to continue through 2025 and 2026, which is continued double-digit revenue growth, continued margin expansion, and continued increased cash flow throughout this year but in the following years as well. I mean, what one other thing I guess is worth adding is that when we did the NFL deal, we were

Nick: Padma because.

Nick: What we've done in 2022 to 2024, we expect it to continue through 25% and 26, which is continued double digit revenue growth continued margin expansion and continued increased cash flow throughout the process.

Nick: Each year, but then the following years as well.

Nicholas Taylor: I mean, one other thing I guess is worth adding is that when we did the NFL deal, we were pretty clear about the opportunities that the NFL gave us all those years ago. And off the back of that, I think we've, you know, categorically proven that that was a very, very strong deal. And that's allowed us, as Nick said, to continue our profitability and margin expansion. And, you know, we see DataCo in exactly the same way; we're delighted with it. And I'm really excited about the future.

Speaker Change: I mean, one other thing I guess is worth adding is that when we did the NFL deal we were pretty clear about the opportunities that the NFL gave to US all those years ago off the back of that I think categorically proven that that was a very strong deal.

Speaker Change: Allowed us as Nick said.

Speaker Change: Our profitability and margin expansion and we see data come in exactly the same way.

Speaker Change: The launch with it and I'm really excited.

Speaker Change: Talking about the future.

Operator: Your next question comes from the line of Ryan Sigdahl on Craig Hallum. Please go ahead. Hey, good day, Marknick.

Speaker Change: Your next question comes from the line of Brian Ticked off of Craig Hallum. Please go ahead.

Ryan Ronald Sigdahl: Hey, good day, Mark Nick. Maybe just a direct follow-up to Bernie on that last question, but with the new data rights contract with Data Football Co., do you expect to get operating leverage on data rights as a percent of revenue next year?

Brian: Hey, Good day Mark MC.

Brian: Maybe just a direct follow up to Bernie that last question, but with the new data rights contract with Delta football coal do you expect to get operating leverage on data rights as a percent of revenue next year.

Nicholas Taylor: Hey, I guess the first thing just to remind everybody is that any new data rights deal that we're currently in an exclusive relationship impacts the second half of 2025. The current deal obviously runs until 2025. But to some extent, I'm going to slightly repeat myself. What I said to Bernie is that the three key things that I'm concentrating on, Ryan, and we as a business financially are concentrating on are double-digit revenue growth, continued margin expansion, and cash profitability increases. And as you know, we've had some success with that over the last couple of years, and we continue to expect all those three to continue to expand through 2025, 2026, and beyond.

Speaker Change: Hey, Ron I guess, just to just to remind everybody.

Speaker Change: Any new data rights deal that we're currently executing.

Speaker Change: Relationship.

Speaker Change: <unk> the second half of 2025, the current deal obviously run through some of the 25, but there are some extent Ron I'm going to slightly repeat myself, what I said to Bernie.

Speaker Change: Sure.

Speaker Change: The three key things that I'm concentrating on Ryan and we as a business financially concentrating on this double digit revenue growth continued margin expansion and cash profitability increases and as you know we've had some.

Speaker Change: Some success in that over the last couple of years and we continue to expect <unk> to continue to expand through 'twenty five 'twenty six and beyond.

Mark Locke: Also, I think just to add to that as well, I mean, winning DataCo on a long-term basis, from a commercial point of view, is a really strong position for us to be in. We've got the two largest sports in the world in our in our stable. And, you know, that that gives us a really good basis for long-term partnership conversations with our clients and really puts us in a sort of, you know, leading position there.

Speaker Change: Also I think just to add to that as well.

Speaker Change: Winning data kind of on a long term basis.

Speaker Change: From a from a commercial point of view is a really strong position for us to be and we've got the two largest sports.

Speaker Change: And the world in our in our stable and.

Speaker Change: That gives us a really good basis for long term partnership conversations with with our clients and really puts us in a leading position there.

Mark Locke: Very good. Just for my follow-up, Second Spectrum, a lot of great products and innovation coming kind of in partnership with leagues, NFL, EPL, so on. You had an exploratory partnership with Bet365. So, switching to kind of the operator side, but any update there and the potentials to really accelerate Second Spectrum and some unique stuff you can do more so from an operator customer standpoint?

Speaker Change: Very good just for my follow up second spectrum, a lot of great products and innovation coming kind of partnership with leagues NFL EPL. So on yet in exploratory partnership with about 365, so switching to kind of the operator side, but any update there and kind of the potential to really.

Speaker Change: Accelerate second spectrum and some unique stuff you can do more so from an operator customer standpoint.

Mark Locke: Yeah, great question. Yeah, I mean, the operator side of this is a big part of our focus at the moment. We're spending an awful lot of time and investment on BetVision, and that's really proven, I mean, it's actually, you know, delivered results that were ahead of what we, I guess, initially anticipated initially. I think I've said that before on one of these calls. So, you know, we're putting a lot of focus on that.

Speaker Change: Yes, great question, yes.

Speaker Change: The operator decided this is a big part of our focus at the moment, we're spending an awful lot of time and investment on that vision that I am really proven I mean, it's actually.

Speaker Change: It's delivered results that were ahead of what we I guess, what we had anticipated this year I think I've said that before in the one of these calls so.

Mark Locke: And, you know, I think the proof point of BetVision has been made. So our job now is just to focus on execution, focus on delivering additional products and rolling this out to the bookmaker community on a wider basis.

Speaker Change: We are putting a lot of focus on that and.

Speaker Change: I think yes.

Speaker Change: The proof point of that vision has been made so our job now is just to focus on execution focus on delivering additional product and rolling this out to the bookmaking community on a wider basis.

unknown: Really nice job. Good job guys. Good luck.

Speaker Change: Really nice job good job guys. Good luck.

Operator: Your next question comes from the line of Robin Farley with UBS. Please go ahead.

Speaker Change: Your next question comes from the line of Robin Farley with UBS. Please go ahead.

Robin Margaret Farley: We're coming back to ask about the football data co-agreement and maybe asking it in a slightly different way than the previous questions. When we think about the increase in revenue in the U.K., right, I generally expect it to be at a much lower rate of growth than U.S. revenues. So should we think about the increase in EPL sports rights expenses, which I realize have not been finalized yet, but that you would not be expecting to pay more of an increase in sports rights expenses that, you know, not faster than the revenue growth that you expect in the U.K.? Is that reasonable to conclude from your commentary about margin expansion that the sports cost rights wouldn't be increasing more than your expectation of what U.K. betting revenues would be growing at

Robin Margaret Farley: Thinking back to ask about the football data Coe agreement and maybe asking a slightly different way then.

Robin Margaret Farley: Previous questions.

Robin Margaret Farley: When we think about the increase in revenue in the U K right.

Robin Margaret Farley: Generally expect it to be at a much lower rate of growth than U S. Revenues. So should we think about the increase in EPL sports rights expense, which I realize that's not been finalized yet but.

Robin Margaret Farley: That you would not be expecting to pay more of an increase in sports rights expense.

Robin Margaret Farley: Not faster than the revenue growth that you expect in the U K is that is that reasonable to conclude from your commentary about.

Robin Margaret Farley: Margin expansion that the sports cost rates wouldn't be increasing more than your expectation of what U K.

Robin Margaret Farley: Betting revenue growing thanks.

Nicholas Taylor: Hey Robinson, let me start on that, and then I'll hand over to Mark to give you a bit more sort of color. I think I understand the question, Robert. You must remember that UK soccer rights is the largest betting sport in the world, and is not a UK-centric betting right; it is a global betting right. A great example of that, of course, as you know, LATAM is opening up, and the latest numbers that are coming out of Brazil, where we'll be earning revenues this year, the back half of the year, are significant, and UK soccer will be a major attraction and a major marque So I think that's perhaps the bit that's missing from your hypothesis.

Robin Margaret Farley: Hey, Robyn Thanks, let me start on that and then I'll hand over to Mark to give you a bit more sort of color I mean.

Mark: The thing that I guess.

Speaker Change: I think I understand the question.

Speaker Change: You must remember UK soccer items, the largest bedding sport in the world and is not a UK centric.

Mark: Betting right. It is a global betting Great example for that of course as you know is Latam is opening up and the latest numbers that are coming out in Brazil, where we'll be ending revenues. This year. The back half of the year was significant in UK soccer will be a major attraction in the major marquee event for that part of the world as well as many other parts of the world not just U K, So I think that.

Mark: The patch.

Speaker Change: Missing your hypothesis.

Robin Margaret Farley: Well, and maybe to phrase it more specifically, that your sports rights expense would not grow faster than you expect revenue growth from those rights, whether it's in the UK, or I should have been more clear that, obviously, you would get revenue from it in other countries, but that the increase in revenue in those other markets would not be, that your increase in sports rates would not be greater than that revenue increase globally. Is that a reasonable expectation?

Speaker Change: And maybe to maybe to phase it more.

Speaker Change: Where specifically is that your sports rights expense would not grow faster than you expected revenue growth from.

Speaker Change: Those rates, whether it's in the UK or I said that more clear that sort of obviously you would get revenue from it in other countries, but that the increase.

Speaker Change: In those other markets and revenue would not be.

Speaker Change: That your increase in sports rights would not be greater than that revenue increase globally is that is that a reasonable expectation.

Robin Margaret Farley: Yeah, I guess, first of all, just to be clear, obviously, we don't go to market with just one set of rights, which you know, we package those rights up and UK soccer in the same way NFL is, with no different to anything else. I don't envisage that changing over the course of the extended contract out to 2029.

Speaker Change: Yes, I guess I mean, because we wanted just to be clear. It's obviously, we don't go to market with just one set of rights, which you know we package those rights up and UK soccer in the same way NFL is no different to anything else I don't envisage that changing over the course of the.

Speaker Change: Extended contract out to 2020, <unk> UK Saka I mean, what I'd say is a little bit what I said to really to ride and Bernie is that now we've expanded.

Nicholas Taylor: I mean, what I'd say is a little bit of what I said to Ryan and Bernie is that, you know, we've expanded our margins through 22, 23, and 24. Indeed, our guidance says that we just iterated our games and moved our margins from 15.6 to 16.4 this year. And I'm fully expecting that margin to continue to increase in 25 and increase again in 26 and beyond. So, to that extent, then I'm expecting any new rights deals for FTC to be more than covered. And that shouldn't stop us from continuing to have a strengthening EBITDA margin across the life of the FTC.

Speaker Change: Margins through 'twenty, two 'twenty, three and 'twenty four and detailed guidance that we've just iterate.

Speaker Change: It's our guidance has moved our margins from 15, 6% to $16 four in this year and I am fully expecting that margin to continue to increasing 25, an increase again in 2006 and beyond so to that extent and therefore im expecting any new rights deal for FCC to be more than covered and that shouldnt stop is continuing to have a.

Speaker Change: <unk> EBITDA margin across the life of the FTC contract.

Operator: Okay, thank you. And then just one quick follow up. Can you give us a change in in play as a percent of total? Thanks.

Speaker Change: Okay. Thank you and then just one quick follow up can you give us the change in <unk>.

Speaker Change: <unk> as a percent of total thanks.

Nicholas Taylor: Yeah, hey, in terms of in play, I mean, I specifically can give you some NFL in play. I mean, if you look at it on a year-on-year basis, NFL in play, GGR was up 140% year on year. And if I look at the mix, which I think is probably what you're asking for is the NFL in play mix, GGR was 22%.

Speaker Change: Yeah, Hey.

Speaker Change: In terms of in play I mean.

Speaker Change: Bill can give you kind of NFL in play.

Bill: I mean, if you look at it on a year on year basis, NFL and <unk> was up 140%.

Bill: Year on year, and if I look at the mix, which I think is probably a loss control is the NFL in play mix GTR was 22%.

Bill: Okay.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: Yeah.

Operator: Your next question comes from the line of Ben Miller with Goldman Sachs. Please go ahead.

Speaker Change: Your next question comes from the line of Ben Miller with Goldman Goldman Sachs. Please go ahead.

Ben Miller: Thanks so much for taking the questions. With the football data code negotiations ongoing, I'm curious how you think more broadly about the data rights portfolio today and any other holes that you'd like to fill at an industry level. You know, how you see consolidation of data rights playing out over time, whether that's through organic wins or through inorganic consolidation. Thanks.

Ben Miller: Thanks, so much for taking the questions.

Ben Miller: With the football data co negotiations ongoing I'm curious, how you think more broadly about the data rights portfolio today than any other holes that you'd like to fill in an industry level. How you see consolidation of data rights playing out over time, whether that's through organic wins or through inorganic.

Speaker Change: <unk>. Thanks.

Mark Locke: Well, hi Ben. Yeah, I mean, in short, we've got everything we need. And if anything, you know, the number of rights that we sort of feel like we need to own and have on a long-term basis is actually decreasing, not increasing. You know, the more we distribute our technology, the more that we roll out the products of the second spectrum into other sports. And, you know, the position that we've got through the relationship that we have with the NFL and with Dataco means that actually, we sort of feel the opposite effect in that, you know, that we, I guess you've seen over the sort of previous years, in terms of the number of rights that we want to be going after, we feel in a really, really strong position on this stuff.

Speaker Change: Hi, Brad.

Brad Lidge: Yes, I mean ensure that we've got everything we need and if anything.

Brad Lidge: The number of rights that we sort of feel like we need to own and have on long term basis actually decreasing not increasing.

Speaker Change: The more we distribute our technology to more that we rollout the products the second spectrum into other sports.

Speaker Change: And.

Speaker Change: The position that we've got through the relationship we have with the NFL and with <unk> means the actually we sort of feel the opposite.

Speaker Change: In fact.

Speaker Change: I guess, you've seen over the previous years in terms of the number of rocks that we wanted to be going after we fairly niche hall, we feel in a really really strong position on this stuff.

Speaker Change: Sure.

unknown: Thanks. And just as a follow-up on BetVision, I'm curious. In terms of like how you're prioritizing, is it more to grow the number of sportsbooks that are adopting that product? Or do you see the larger opportunity of expanding to additional sports that utilize the BedVision product? Yeah, great question. The answer is both.

Speaker Change: Thanks, and then just as a follow up on that vision I'm curious.

Speaker Change: In terms of like how you're prioritizing.

Speaker Change: That.

Speaker Change: Is it more to grow the number of sports books that are adopting that product or.

Speaker Change: Do you see the larger opportunity of expanding to additional sports that.

Mark Locke: Yeah, great question. The answer's both.

Speaker Change: Utilizing the best vision product yes.

unknown: We are increasingly focused on rolling out new sportsbooks with the BetVision products, and if you watch this space, you'll see news on that in the coming months. But at the same time, it can't just be a one-trick pony, and therefore, what we're actively doing is adding additional content to BetVision and additional products. We've got to get it right, so we're being cautious about our execution. But again, that's a big focus for the BetVision team. Your next question.

Speaker Change: Yes, great question.

Speaker Change: You also size.

Speaker Change: We are increasingly focused on Raleigh any sports books.

Speaker Change: With that vision products, and if you watch the space Youll see youll see us over the over the coming months on that but at the same time, we can't it can't just be a one trick pony and therefore, what we're actively doing is adding additional content to that vision additional products, we've got to get it right. So.

Speaker Change: We're being cautious about our execution, but again.

Speaker Change: That's a big focus of the business.

Operator: Your next question comes from the line David Bain with Bee Riley. Please go ahead. Great. Thanks, everyone. I just had one question.

Speaker Change: Your next question comes from the line of David <unk> with B Riley. Please go ahead.

David: Thanks, everyone just had one question.

David: I'm not sure if I missed this but a nice beat in wake of what I believe was low <unk> OSB holds for the industry.

David: I'm wondering if you can quantify the impact of the quarter.

David: From that.

David: Yeah.

David R. Levy: Hey Dave, you're right. Obviously, we hear the same calls through the quarterly results that you'd be listening to. And I think some of you used the word underwhelming, I think, on a previous call. And you're right, Dave, that clearly does impact us because, as you know, we take a position on gaming revenue. Having said that, and I've said this many times, the great thing about Genius is the different levers of growth that we have in this business.

Speaker Change: Hey, Dave.

Dave: You are right, obviously, we hear the same course.

Dave: The quarterly results the ETP listing too and I think.

Dave: Some of the use the word underwhelming I think on a previous call you.

Dave: Youre right that clearly does impact us because as you know we take a position of gaming revenue, having said that.

Dave: I've said this many times.

Dave: The great thing about genius is the different levers of growth that we have in this business, obviously operating wind module is one.

David R. Levy: Obviously, Operating Win Margin is one. But as you know, In Play Mix, TAM, not just in the US but outside of the US, just name Brazil in one of the previous questions, as well as Media, which has allowed us to over-deliver on guidance for this quarter. So yeah, Operating Win Margin is helpful for us, but we've got a number of different levers that allow us to outperform on the guidance that we give.

Dave: But as you know in client mix time, not just in the U S without causing you just named check Brazil in one of the previous questions.

Dave: As well as <unk>, which has allowed us to over deliver on guidance for this quarter. So yes operating wind margins is helpful for us, but we've got a number of different levers that allow us to outperform on our guidance that we give.

Speaker Change: Okay perfect. Thank you.

Operator: Your next question comes from the line of Clark Lampin with BTIG. Please go ahead. Thanks for taking

Speaker Change: Your next question comes from the line of Clark Langton with BTG. Please go ahead.

Clark Lampin: Thanks for taking the question. I have one on the media business. And I guess specifically, as it relates to the outlook, a lot of the momentum that Mark talked about earlier in your prepared remarks seems to be showing up, I guess, from a numbers standpoint, in that business. Could you help us understand, I guess, maybe what you'd attribute that to, and how much this is sort of idiosyncratic rather than systematic?

Clark Langton: For taking the question.

Clark Langton: I have one on the media business and I guess, specifically as it relates to the outlook a lot of the momentum that Mark you talked about earlier in your prepared remarks seems to be showing up I guess from a numbers standpoint in that business could you help us understand I guess, maybe what you would attribute that to and how much. This is sort of idiosyncratic rather than systematic.

Clark Langton: And for my second question could you just remind us on renegotiations. It sounds like that's obviously not a focus right now, but remind us based on the past cycles. When exactly we could expect you to start to engage with your partners.

Clark Lampin: And for my second question, could you just remind us about renegotiations? It sounds like that's obviously not a focus right now. But remind us, based on the past cycles, when exactly we could expect you to start to engage with your partners in earnest to nail down a contract? Is that sort of late 3Q or in conjunction with the football season? And does that mean, with step-ups that eventually come, that most of that will be realized in 4Q, or is it later down the road? Thank you.

Clark Langton: As to nail down a contract is that.

Clark Langton: Late <unk> or in conjunction with the football season does that mean with step ups that eventually come that most of that will be realized in <unk> or later down the road. Thank you.

Nicholas Taylor: Thanks, Nick. I'll start and then I'll perhaps hand over to Mark on that second part of the question.

Speaker Change: Hey, Nick I'll start and then I'll hand over to Mark on that second part of the question.

Mark: Well you asked me to lie.

Mark: Acceleration of 63% growth in the media business year on year.

Nicholas Taylor: We're absolutely delighted at the re-acceleration of 63% growth in the media business year-on-year. There are a number of things that really have driven that. I think we've seen some really good, strong spend in Florida, for example. We've seen some great spend in places like launches in North Carolina, particularly during March Madness, as you know, there's a lot of college sports based in that state. And also, if you remember, when we talked in December, we said that there was some timing of spend that was moved from sort of the Christmas holiday season through into January and things like the Super Bowl playoffs.

Mark: There's a number of things really.

Mark: Have driven that I think we've seen some really good strong spend in Florida. For example, we've seen some great spend at places like launches of North Carolina, particularly during March Madness. As you know there's a lot of code spore based in that state.

Mark: And also if you remember when we talked in December we said that there was some timing of spend that was moved from sort of the Christmas holiday season through into January and things like the Super Bowl clouds, so very.

Mark: Very strong and definitely sustainable now I agree that I think probably 63% is running a bit hot.

Nicholas Taylor: So, very strong and definitely sustainable. Now, I agree that 63% is running a bit hot in terms of year-on-year growth, but if you look at the increasing guide, that's still guiding us to a north of 30% year-on-year growth in the media space. And really, as I said previously, the increased margin, the increased double-digit revenue growth, the increased cash generation through 2025 and 2026 that we've been talking about, clearly, media will continue to play a significant part in that. There's another, sort of, softer point on the meat.

Mark: In terms of year on year growth, but if you look at the the increase in guide that still guiding us to a north of 30% year on year on a media space.

Mark: Really is as I've said in previously you had increased margin increased double digit revenue growth increased cash gen.

Mark: Generation $2 25, and 26 that we've been talking about clearly media will continue to play a significant part of that.

Nicholas Taylor: There's another sort of softer point on the media side. The growth that we're getting and the revenue delivery that you're seeing is really from what I call the existing media business only. I mean, it's from the business that you guys are all aware of and you've seen. It won't have escaped you, and I think we've talked about it before, that we've been putting money into different areas in the media space.

Mark: Theres. Another also sort of items that are soft deployed on the media on the media side is.

Mark: The growth that we are getting in the revenue delivery that youll, saying is really from the what I call. The existing media business only I mean, it's from it is from the business you guys are.

Mark: Our wire oven.

Mark: C.

Mark: While we have one have escaped you and I think we've talked about it before.

Mark: We've been putting money into different areas in the media space, we've been building new products.

Nicholas Taylor: We've been building new products, one of which is literally in the launch phase at the moment. I think it's fair to say we've got no real revenue expectations for it at the moment. So we're feeling pretty good about that because that product is delivering really well. But again, that won't be showing up until H2 of this year in terms of revenue lines.

Mark: One of which is.

Mark: Literally in launch phase.

Mark: <unk>, which we have.

Mark: We've got no real revenue expectations in at the moment.

Mark: So we're feeling pretty good about that because that products, delivering really well, but again that won't be showing up until <unk> of this year in terms of in the revenue lines.

Nicholas Taylor: The other thing that's starting to look really quite promising and coming through really well, which again is also not in our view, is sort of some of the additional client split that we're getting. So historically, this business has been all about sports book revenue. And I've mentioned a number of times in these calls that we're looking at bringing in additional brands outside sports books and driving media revenue growth from that. And that's something that we're really starting to see come through more aggressively in the numbers. The split between sports book and non-sports book is looking quite attractive.

Mark: And.

Mark: The other thing Thats.

Mark: Im starting to look really quiet.

Mark: A promising and coming through really well, which again is also noted noting argue is.

Mark: In the view that we've given is is sort of some of the additional clients split that we're getting so historically this business has been all about.

Mark: Really sports, but revenue in.

Mark: I've mentioned a number of times in these calls that we're looking at bringing in a different additional brands outside sports books in driving revenue growth from media revenue growth from <unk>.

Mark: That and that's something that we're really starting to see them come through and more aggressively in the numbers split between sports book of non sports book is is looking quite attractive. So we feel like we're in a strong place in the media on the media side and we.

Mark Locke: So we feel like we're in a strong place on the media side, and we're excited about not only the new products but also the new clients that we've started to bring on board. Just on the renegotiations, look, there's not sort of a drop-dead date where we suddenly start conversations, and you know, our job is to be a good part of sport and to continually have those relationships and have those conversations. So we're always talking to our partners.

Mark: We're excited about not only the new products, but also the new clients that we've started to bring on board.

Mark: Just on the renegotiations.

Mark: There is not sort of a drop dead date, where we suddenly start conversations.

Mark: <unk> has to be a good partner spool and to continually to have those relationships and have those conversations. So we're always talking to our partners.

Mark Locke: And that's not really, really changed. Clearly, there are sort of dates around, you know, new seasons of sport, which you correctly identified, which will definitely feed into the numbers. You know, at some point, but again, at the moment, we're not putting, you know, too much weight on that in any of the forecasts that we've released to the market.

Mark: Not really really changed and clearly there are sort of.

Mark: Dates around new seasons of sport, which you've correctly identified which lab, which will definitely feed into the numbers.

Mark: At some point, but again at the moment.

Mark: We're not putting too.

Mark Locke: Too much weight on that in any of the any of the forecast that we've released to the market.

Mark: Yeah.

Operator: Your next question comes from the line of Jordan Bender with Citizens J&P Securities. Please go ahead.

Mark Locke: Your next question comes from the line of Jordan Bender with citizens JMP Securities. Please go ahead.

Jordan Maxwell Bender: Good morning, everyone. We have a lot of good data in terms of the performance of the US sports betting market. But the one missing piece we don't really have is hard rock in Florida. So you know, maybe without getting into the financials of that, can you just kind of talk about how you've built and helped them build that business? And does the improvement in guidance in the back half of the year have any meaning? Or does the state of Florida have any meaning within that?

Jordan Maxwell Bender: Good morning, everyone.

Jordan Maxwell Bender: Lot of good data in terms of the performance in the U S sports betting market, but the one missing piece. We don't really have is hard rock in Florida, So maybe without getting into the financials of that can you just kind of talk about how you've built help them build that business and the improvement in guidance in the back half of the year have any.

Jordan Maxwell Bender: Or does it.

Jordan Maxwell Bender: For it to have any play within that.

unknown: Yeah, hey Jordan, thanks. Um, look, I mean... Florida and Hard Rock are a great examples of the sort of underlying success of the business model of genius. Hard Rock just became a bigger customer of geniuses if they continue to have the dominance they have in that Floridian market. They obviously can't go into the specific details, but everything we're doing for DraftKings or FanDuel or Caesars is exactly what we're doing for Hard Rock as well.

Speaker Change: Yeah, Hey, Jordan is that.

Speaker Change: Amit.

unknown: Florida and hard work is a great example of the sort of the underlying success of the business model of genius.

unknown: Hum.

Speaker Change: Hardrock, just become a bigger customer of geniuses, if they continue to have the dominant as they have in that fluid in market.

unknown: <unk>.

unknown: Dave.

unknown: I, probably can't go into the specific details, but everything we're doing for draft Kings dual Caesars is exactly what we take for hardware because well within the Florida market. The events that were providing all the slate is the love of sports betting with more professional teams based in Florida and right now I think I called out one of the questions on media. There has also been significant amount of media spend in Florida, particularly.

unknown: Within the Florida market, the events that we're providing, obviously, there's a lot of sports betting, a lot of professional teams based in Florida. And right now, I think I called out one of the questions on media. There's also been a significant amount of media spend in Florida, particularly through social media, over the first quarter as Hard Rock solidified their position.

unknown: Through social media over the first quarter as hardrock solidify that position.

Jordan Maxwell Bender: And then on the follow-up, now that debt could be in the picture here, you know, where could you be comfortable taking leverage up to for the sake of growth?

Speaker Change: Great and then on the follow up now that that could be in the picture here, where could you be comfortable taking leverage up to for the sake of growth.

Nicholas Taylor: Yeah, I mean, I think Mark touched on this earlier, Jordan. You know, this is just another building block in our maturing as a business. Nothing changes in terms of our initial stance, what we want to do. You know, it just gives us firepower to be able to be opportunistic.

Jordan Maxwell Bender: Yes, I mean, I think mark touched on this earlier.

Nicholas Taylor: This is just another building block in our maturing as a business nothing changes in terms of our outlook, what we want to do.

Nicholas Taylor: You know, we've actually filed the exhibit today. So yeah, everyone can go and have a look. It's pretty straightforward. It's $90 million as it stands. And as I say, to be used as opportune as and when any circumstances could take.

Nicholas Taylor: It just gives us firepower to be able to be opportunistic we've actually filed the exhibit today. So you can go and have a look it's pretty straightforward as $90 million as it stands and.

Nicholas Taylor: Is it safe to be used as opportune as and when any circumstances dictate.

Operator: Okay, thank you very much.

Speaker Change: Okay. Thank you very much.

Chad C. Beynon: Your next question comes from the line of Chad Beynon with Macquarie. Please go ahead. Good morning.

Operator: Your next question comes from the line of Chad Beynon with Macquarie. Please go ahead.

Chad C. Beynon: Morning. Thanks for taking my question. Nice results. Wanted to drill into the in-play mix a little bit more.

Chad C. Beynon: Good morning, Thanks for taking my question Nice results wanted to drill into the employee mix a little bit more suits of 'twenty two.

Nicholas Taylor: So you said 22% was the number. Are you still seeing growth in older vintage states in terms of betting behaviors? I'm not sure if you have that detailed data at your fingertips. And, you know, states like North Carolina and some of the newer ones in 23, are you just seeing a higher starting point with in-play? I think we're all just trying to figure out what the ceiling is in the U.S. Thanks.

Chad C. Beynon: The percent was the number are you still seeing growth in older vintage states in terms of betting behaviors I'm not sure. If you have that the detailed data at your fingertips tips and <unk>.

Nicholas Taylor: States like North Carolina, and some of the newer ones and 23 are you just seeing a higher starting point within play I think we're all just trying to figure out what the ceiling is.

Nicholas Taylor: In the U S. Thanks.

Nicholas Taylor: Okay.

Nicholas Taylor: Yeah, hi, let me give you a couple. I mean, first of all, there's a couple of questions in there. The first one is around sort of more mature states. Yes, we continue to see significant growth in the states. I mean, the public is available.

Speaker Change: Yeah, Let me give you a color I mean first of all of those couple of questions and the first one around fluke.

Speaker Change: More mature states, yes, we continue to see significant growth in the states I mean, thats publicly available and you can see New Jersey, I think was the first state.

Nicholas Taylor: I mean, you can see New Jersey, I think it was the first state, wasn't it, that legalized marijuana in any meaningful way, and that continues to grow significantly. I think you look at things like Kansas that grow, I think, doubled year on year, and its second year to its first year. So yeah, absolutely, we continue to see the market can grow. We also continue to see customer behavior, I guess, become more sophisticated, which inevitably drives in-place sports betting.

Nicholas Taylor: The legal out with any meaningful way and that continues to grow significantly I think we look at things like Kansas that Greg I think doubled year on year in its second year to its first year. So yes, absolutely completely we continue to see can grow. We also continue to see customer behavior, I guess become more sophisticated which inevitably drives in play sports betting we're seeing that on.

Nicholas Taylor: We're seeing that on a state-by-state basis as well. As you know, product enhancement is the third leg of that in terms of growth, and we gave some very early statistics on BetVision, which is just our example, but a really good example of product evolution in this space. And we'll continue to see that, and Mark touched on earlier how BetVision is going to become more ubiquitous over the course of the next years.

Nicholas Taylor: State by state basis, as well as you know products and half of it is the third leg of that in terms of growing and we gave some very early statistics vision, which is just our example, but a really good example of product evolution in this space.

Nicholas Taylor: And we'll continue to see that Mark touched on earlier about how that business can become more ubiquitous over the course of the following years. So in terms of.

Nicholas Taylor: Where does this go in terms of U S market.

Nicholas Taylor: We've consistently said in mature markets and play sports betting is anywhere around that 60% to 70% kind of level of in play sports betting and <unk>.

Nicholas Taylor: So in terms of where this goes in terms of the U.S. market, we've consistently said in mature markets, in-place sports betting is anywhere around that sort of 60 to 70 percent kind of level of in-place sports betting, and we are absolutely confident and sure that we anticipate the U.S. will ultimately end up in that position.

Nicholas Taylor: We are absolutely confident to ensure that we anticipate the U S will ultimately end up in that position as well.

Nicholas Taylor: Thank you, Nick. And then on Brazil, you've touched on this a couple of times. I believe you've said that it is factored into the back half of the 24 guidance. Any details in terms of when the market is expected to launch and how meaningful this could be in the back half? Thank you.

Speaker Change: Thank you Barry.

Nicholas Taylor: And then on Brazil, you've touched on this a couple of times I believe you said that it is factored into the back half of the 24 guidance.

Nicholas Taylor: Any details in terms of when the market is expected to launch and how meaningful this could be in the back half. Thank you.

Nicholas Taylor: Yeah, I mean, yes, we have. We have a very small amount. In truth, it's not a material amount for 2024, so it's not going to change the dial there.

Nicholas Taylor: Yeah, I mean, yes, we have.

Nick: Yes, I mean, yes, we have we have a very small amount in truth is not a material amount for 2024, so it's not going to change the dial that the license we have is that.

Nicholas Taylor: Licenses are being awarded in the second half of this year, probably in the full with expected backing.

Nicholas Taylor: The latest we have is that their licenses are being awarded in the second half of this year, probably in the fall, with expected betting to be legalized and to be actually us earning revenues in really sort of the back end of Q3, Q4 for Brazil. As you know, there's an NFL game happening in Sao Paulo in September to help drive in-play sports betting. And we understand that there are a significant number of licenses that are going to be awarded.

Nicholas Taylor: To be legalized in the MTB actually us anything revenues in it really sort of back end of Q3 Q4 for Brazil as you know dozen NFL game hunting Sao Paolo in September to.

Nicholas Taylor: To help drive.

Nicholas Taylor: The in play sports betting and we understand that there are significant number of licenses are going to be awarded in terms of Tom some of the numbers on an annualized basis are really quite significantly coming out of Brazil 30, several billion dollars' worth of time, we're anticipating I wouldn't get carried away for that for 'twenty four but that's certainly something that.

Nicholas Taylor: But in terms of time, some of the numbers on an annualized basis are really quite significant coming out of Brazil, certainly several billion dollars worth of time we're anticipating. I wouldn't get carried away with that for 24. But that's certainly something that's a really significant opportunity 25, 26, and beyond.

Nicholas Taylor: Significant opportunity 25, 26 and beyond.

Speaker Change: Great. Thank you.

Operator: Your next question comes from the line of Eric Martinuzzi with Lake Street. Please go ahead.

Nicholas Taylor: Your next question comes from the line of Eric Martinez Chief with Lake Street. Please go ahead.

Eric Martinuzzi: Yeah, I wanted to go back and revisit the media strength that you had, just from a modeling perspective, looking out to 2025. Do you view this as kind of a new seasonality around the sports books, emphasizing that, you know, the Super Bowl, January, February, and the March band are just kind of something we should consider as a new normal, or was this, you know, there was more of a macro issue with customer acquisition, a one-off? Yeah, hey, I

Eric Martinuzzi: Yes, I wanted to go and revisit the media strength that you have just from a modeling perspective looking out to 2025 do you view this as kind of a new seasonality around the sports books emphasizing that.

Eric Martinuzzi: Super Bowl January February.

Eric Martinuzzi: The March madness, as this kind of stuff.

Eric Martinuzzi: We should consider.

Eric Martinuzzi: The new normal or is this there was more of a macro issue with the custom.

Eric Martinuzzi: Customer acquisition.

Eric Martinuzzi: One off so to speak.

Eric Martinuzzi: Yeah.

Nicholas Taylor: Yeah, hey, Q1 and Q4 have traditionally been our strongest media segments, really following the US sporting calendar. I think that's going to be the case for 2024. [inaudible] As I say, on an ongoing basis, we're not giving guidance yet for 2025, but on a number of questions, we talked about it in terms of the shape of 2025 and how we're expecting the tailwinds that we're seeing in 2024 to continue through 2025 and 2026, and that should drive those three key financial metrics that we talked about, which are the double-digit revenue growth, the expense in E The media will pay a not insignificant part.

Eric Martinuzzi: Yeah.

Eric Martinuzzi: In Q1, and Q4 have been traditionally our strongest major settlements really following the U S. Sporting calendar I think that's going to be the case for 2024.

Nicholas Taylor: As I said earlier, we're delighted with 63% year on year increase I think thats, probably a little bit hot to be sustainable, but we're still forecasting given the uptick in guidance that we've just given on this call we were expecting the major growth.

Nicholas Taylor: Annually for the year to be north of 30% so.

Nicholas Taylor: <unk>.

Nicholas Taylor: We're certainly seeing a re acceleration of that business.

Nicholas Taylor: Sales and ongoing basis, we're not giving guidance yet for 2025.

Nicholas Taylor: But on a number of questions we've talked about it in terms of the shape of 2025, and how we're expecting the tailwind that we're seeing in 2004 to continue through 'twenty five 'twenty six.

Nicholas Taylor: And that should drive those three key financial metrics that we talked about which is the double digit revenue growth.

Nicholas Taylor: In EBITDA margin and the continued cash.

Nicholas Taylor: Increase.

Nicholas Taylor: We will pay.

Nicholas Taylor: Not insignificant part of that.

Speaker Change: Got it thank you.

Operator: Your next question comes from the line of Brett Knoblauch. Please go ahead.

Nicholas Taylor: Your next question comes from the line of Brett Knoblauch. Please go ahead.

Operator: Okay.

Brett Anthony Knoblauch: Hi guys, thanks for taking my question. On the guidance revision, can you maybe parse out the growth that you're expecting between or, you know, was the revision mainly due to the media segment outperforming, or was it also some greater confidence in the embedding technology segment as well?

Brett Anthony Knoblauch: Hi, guys. Thanks for taking my question.

Brett Anthony Knoblauch: On the guidance revision.

Brett Anthony Knoblauch: Maybe you can parse out the growth that youre expecting between or.

Brett Anthony Knoblauch: What's the revision mainly due to the media segment outperforming or was it also some.

Brett Anthony Knoblauch: Greater confidence on the bedding technology segment as well.

Brett Anthony Knoblauch: Okay.

Nicholas Taylor: Hey, Brett, look, first of all, I mean, strength right across the whole business. We've got real confidence in what 2024 is looking like. In terms of the specific numbers, the majority of it is media based on obviously the Q1 media performance and therefore the confidence we have, particularly in Q3 and Q4, following on from Eric's question in terms of media position. That's the kind of makeup of 2024 as I see it.

Speaker Change: Hey, Brian.

Brett Anthony Knoblauch: It was strength across the whole business, we've got real competence in what 2021 is looking at in terms of the specific numbers. The majority of it is media based on obviously the Q1 major performance and therefore, the competence we have particularly in Q3 and Q4 holding on to my next question in terms of major position.

Nicholas Taylor: That's the kind of makeup of the 2024 with icon.

Brett Anthony Knoblauch: Perfect. Thank you. And then on. It's the floater of margin. Just, I guess, remind us again. I guess the incremental margins of the betting technology segment versus that of the media technology segment.

Speaker Change: Perfect. Thank you and then on.

Brett Anthony Knoblauch: The flow through of margins could you just remind us again.

Brett Anthony Knoblauch: Alright, I guess, the incremental margins of the battery technology segment versus that of the media and technology segment.

Nicholas Taylor: Yeah, I mean, Brett, it sounds like a very simple question that has lots of different layers and nuances. The headlines really are that for every extra dollar that we earn in betting, whether that's because operating margins go up, or time increases, or in-place sports betting makes, the extra dollar, the majority of that drops through, so it's close to 100%. Now, obviously, individual betting products will vary on that basis, but that's the sort of broad headline.

Brett Anthony Knoblauch: Yes.

Brett Anthony Knoblauch: Yes.

Brett Anthony Knoblauch: It sounds like a very simple question.

Nicholas Taylor: Lots of different nuances I mean, the headlines really or is the.

Nicholas Taylor: For every extra dollar that we earn impacting whether thats because we are.

Nicholas Taylor: Operating margin go up or Tom increases or in play sports, but it makes the extra dollar the majority of that drops to reset as close to a 100% now obviously individual betting products will vary on that basis, but that's the sort of broad headlines.

Brett Anthony Knoblauch: Thank you. And maybe just one last, I guess, US sports betting GR growth has decelerated over the past few quarters. I guess, what is included in your guide for the full year? Or what do you think, man? And on that, I guess, what percent of the US is the sports betting business now?

Speaker Change: Thank you and then maybe just one last.

Nicholas Taylor: I guess, the U S or LNG, our growth has decelerated over the past quarters.

Brett Anthony Knoblauch: I guess what is included into.

Brett Anthony Knoblauch: Your guide for the full year or what are you baking in.

Brett Anthony Knoblauch: And on that I guess what percent of the U S.

Brett Anthony Knoblauch: As the sports betting business now.

Nicholas Taylor: So it was the first question, Bradley, to say in terms of what we're baking in terms of the rest of the year and in terms of relation to GDR. Yeah.

Speaker Change: So it was the first question Bradley you say in terms of what we're taking in in terms of for the rest of the year relationship GTR.

Nicholas Taylor: Yeah.

Nicholas Taylor: Yeah, I mean, we don't give that that kind of level of detail. I mean, what I would say is, I've said it before, of course, in terms of our guidance philosophy, is that we're around about a kind of four out of 10 in terms of conservatism, i.e. when one is very conservative and 10 is very aggressive. So we're not anticipating any significant upturn in terms of things like in-play mix. GGR growth or TAM growth, certainly outside of the more conservative forecasts that are out in the market. So, you know, we're pretty confident of where we sit here today.

Nicholas Taylor: Yes.

Speaker Change: We don't give that kind of level of data.

Nicholas Taylor: Say is I've said it before in calls in terms of our guidance philosophy is around about four out of 10, our conservatism wont be very conservative and tend to be very aggressive. So we're not anticipating any significant upturn in terms of things like in place both in play mix GTR growth.

Nicholas Taylor: Or Tam growth certainly outside of the more conservative forecast of the routes into the market. So.

Nicholas Taylor: We're pretty confident with where we sit here today.

Operator: Awesome. Thank you so much. Congratulations on the quarter.

Speaker Change: Awesome. Thank you so much congrats on the quarter.

Operator: Your next question comes from the line of Clark Lampin of BTIG. Please go ahead.

Operator: Your next question comes from the line of Clark London.

Clark Lampin: Please go ahead, thanks for letting me back in.

Clark Lampin: I wanted to come back to this sort of point around like financial flexibility and I understand that.

Clark Lampin: With the balance sheet capacity and your and your free cash flow momentum picking up the priority would obviously be to acquire as many sort of really high ROI.

Operator: <unk> or take advantage of high ROI, M&A, where possible, but if that doesn't present itself and the universe for whatever reason.

Clark Lampin: But if that doesn't present itself and the universe, for whatever reason, is not as large or as available, I guess, as you might like, how should we think about your propensity to lean into buybacks, especially because we have this sort of increasing cash flow momentum over the balance of the year and into next year? Thank you.

Clark Lampin: Is not as large or.

Clark Lampin: As available I guess as you might like how should we think about your propensity to lean into buyback, especially because we have this sort of increasing cash flow momentum over the balance of the year and into next year. Thank you.

Mark Locke: Yeah, okay, good questions. I mean, I sort of mentioned this before, but just on the M&A, on the M&A, the two main reasons we want firepower are, as I said before, potential M&A and obviously buyback. So on the M&A front, there's an extremely high bar for M&A for us. You know, I've said it a lot of times, and I'll say it again, we've got all the technology that we really need.

Clark Lampin: Yes.

Clark Lampin: I mean, I sort of mentioned this just a little bit.

Mark Locke: The M&A on the M&A.

Mark Locke: The two the two main reasons, we won't thought.

Mark Locke: Said before it is a potential M&A and obviously buybacks. So on the M&A is an extremely high bar for M&A for us.

Mark Locke: And, you know, we're very happy with the level of investment that the business is making in the way that we operate. So, you know, in terms of M&A, it's got to be a bit, they've got to be businesses that are accretive, that really drive a lot of value for our shareholders. So, you know, from my point of view, the opportunities are quite vast, and, you know, we'll assess the buyback, you know, as appropriate.

Mark Locke: I've said it a lot of times I'll say it again, we've got for the technology that we that we really need and we're very happy with it.

Mark Locke: The level of investment that the businesses is making in the way that we operate so.

Mark Locke: In terms of M&A, it's got to be a bit they've got to be businesses that are accretive that really.

Mark Locke: Drive drive a lot of value.

Mark Locke: For our shareholders.

Mark Locke: In terms of buybacks again, this is going to be SaaS over.

Mark Locke: Over the coming time, we feel really good about the business as a ton of positive momentum, we're seeing a lot of that come through in our numbers.

Mark Locke: <unk> got a great technology distribution really good delivery, we've got new products in the pipeline the businesses like so from my point of view.

Mark Locke: The opportunities.

Mark Locke: All quiet, Boston and we'll assess the buyback.

Mark Locke: As appropriate.

Mark Locke: Okay.

Speaker Change: Thank you.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: Okay.

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