Intralot SA (FRA:9IL) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst US Market ...
Revenue Growth: Increased by 10.9% year-over-year.
Operating Cash Flow: Approximately EUR49 million, EUR22 million higher than the previous year.
Cash Balance: EUR76 million, EUR11.5 million higher than 2024 year-end.
Adjusted Net Debt: EUR316.5 million, improved by EUR40 million from 2024 year-end.
Adjusted Net Leverage Ratio: Improved to 2.4 times from 2.7 times at year-end 2024.
Free Cash Flow Generation: EUR38.4 million.
Earnings Before Tax: EUR3.6 million, compared to EUR5.4 million in Q1 2024.
Principal Debt Repayments: EUR12.9 million.
Net Interest Payments: EUR10 million.
Regional Performance: North America stable in revenue, EUR2.3 million lower in EBITDA.
Warning! GuruFocus has detected 5 Warning Signs with FRA:9IL.
Release Date: May 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Intralot SA (FRA:9IL) experienced growth in revenues and stable EBITDA performance in the first quarter of 2025 compared to the previous year.
The company generated strong operating and free cash flow, with operating cash flow approximately EUR49 million, EUR22 million higher than the previous year.
Cash balance at the end of the quarter increased by EUR11.5 million compared to the end of 2024, reaching EUR76 million.
Adjusted net debt improved by around EUR40 million compared to the end of 2024, reflecting a stronger credit profile.
Revenue growth was supported by strong performances in Turkey, Argentina, and Croatia, despite challenges in the US market.
The absence of significant jackpots in the US market impacted revenue and EBITDA, with North America experiencing a EUR2.3 million decrease in EBITDA.
The growth in revenue came from jurisdictions with lower margins, such as Argentina and Turkey, affecting overall profitability.
Inflationary pressures in North America led to increased costs, contributing to lower EBITDA despite stable revenue.
The company faced a negative variance in earnings before tax due to hyperinflation indexation and higher depreciation.
The lack of multistate jackpots in the US market is a concern, as it directly affects revenue and EBITDA generation.
Q: Could you provide some color on potential uses of capital? Is the company considering any asset transactions or acquisitions? A: Nikolaos I. Nikolakopoulos, Group CEO: Currently, we are focused on executing our operational plan and deploying CapEx in projects like New Hampshire and New Zealand. Our primary focus is on generating cash and deleveraging, with no current plans for acquisitions.
Q: Regarding your refinancing strategy, is the company considering a broader refinance of the whole structure or extending maturities for a better profile? A: Andreas Chrysos, CFO: We are exploring various options to unify the capital structure and will announce plans once finalized to refinance the existing debt.
Q: Has anything changed in your outlook for the year given the stable first quarter performance and recent macro events? A: Andreas Chrysos, CFO: No changes have been made. We remain focused on executing our plan and are positive about this year's performance.
Q: In North America, revenue was stable, but EBITDA was down. Could you elaborate on the cost pressures? A: Nikolaos I. Nikolakopoulos, Group CEO: The absence of significant jackpots affected revenue, which was compensated by selling equipment and solutions. The costs associated with these sales impacted EBITDA. We believe this is a seasonal issue and expect normalization with future jackpots.
Q: For the rest of the world, revenue and EBITDA increased equally. Could you explain the cost dynamics? A: Andreas Chrysos, CFO: The growth came from jurisdictions with lower margins, such as Argentina and Turkey. It's not about increased costs but rather the mix of jurisdictions contributing to revenue growth.
Q: Can you discuss the macro environment in Argentina and its impact on growth? A: Nikolaos I. Nikolakopoulos, Group CEO: In Argentina, we provide technology and share revenue with states. The improved macro environment has led to increased player spending, benefiting our operations without additional marketing efforts from our side.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) Three Months Ended April 30, 2025 2024 Revenue $ 162,059 $ 135,459 Cost of revenue (1)(2) 50,857 44,548 Gross Profit 111,202 90,911 Operating expenses: Sales and marketing (1)(2) 74,127 69,827 Research and development (1)(2) 36,797 34,373 General and administrative (1)(2)(3)(4)(5)(6) 40,500 26,791 Total operating expenses 151,424 130,991 Loss from operations (40,222 ) (40,080 ) Other income, net 5,652 5,171 Loss before provision for income taxes (34,570 ) (34,909 ) Provision for income taxes 1,071 798 Net loss (35,641 ) (35,707 ) Net income (loss) attributable to redeemable non-controlling interest 145 (66 ) Net loss attributable to Braze, Inc. $ (35,786 ) $ (35,641 ) Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted $ (0.34 ) $ (0.35 ) Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted 104,572 100,788 (1) Includes stock-based compensation as follows: Three Months Ended April 30, 2025 2024 Cost of revenue $ 1,077 $ 964 Sales and marketing 10,011 9,445 Research and development 11,336 10,832 General and administrative 7,975 7,037 Total stock-based compensation expense $ 30,399 $ 28,278 (2) Includes employer taxes related to stock-based compensation as follows: Three Months Ended April 30, 2025 2024 Cost of revenue $ 60 $ 68 Sales and marketing 413 541 Research and development 744 836 General and administrative 213 297 Total employer taxes related to stock-based compensation expense $ 1,430 $ 1,742 (3) Includes 1% Pledge charitable donation expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 1,109 $ — (4) Includes acquisition related expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 10,020 $ — (5) Includes amortization of intangible assets acquired in the acquisition expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 101 $ 218 (6) Includes adjustment to the fair value of the contingent consideration liability as follows: Three Months Ended April 30, 2025 2024 General and administrative $ — $ (137 ) BRAZE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts) April 30, 2025 January 31, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 231,499 $ 83,062 Accounts receivable, net of allowance of $3,231 and $2,563 at April 30, 2025 and January 31, 2025, respectively 86,093 95,234 Marketable securities 307,795 430,457 Prepaid expenses and other current assets 33,752 35,273 Total current assets 659,139 644,026 Restricted cash, noncurrent 530 530 Property and equipment, net 38,803 38,550 Operating lease right-of-use assets 76,060 76,147 Deferred contract costs 79,320 76,766 Goodwill 28,448 28,448 Intangible assets, net 3,029 3,130 Other assets 3,805 3,401 TOTAL ASSETS $ 889,134 $ 870,998 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,304 $ 2,150 Accrued expenses and other current liabilities 58,269 64,189 Deferred revenue 265,015 239,976 Operating lease liabilities, current 19,275 18,162 Total current liabilities 343,863 324,477 Operating lease liabilities, noncurrent 68,036 69,278 Other long-term liabilities 2,776 2,494 TOTAL LIABILITIES 414,675 396,249 COMMITMENTS AND CONTINGENCIES (Note 13) Redeemable non-controlling interest (Note 4) 33 (112 ) STOCKHOLDERS' EQUITY Class A common stock, $0.0001 par value; 2,000,000,000 and 2,000,000,000 shares authorized as of April 30, 2025 and January 31, 2025, respectively; 91,844,313 and 87,934,059 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively 9 8 Class B common stock, $0.0001 par value; 110,000,000 and 110,000,000 shares authorized as of April 30, 2025 and January 31, 2025, respectively; 13,022,634 and 16,017,314 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively 1 2 Additional paid-in capital 1,095,070 1,062,613 Accumulated other comprehensive income (loss) 1,968 (926 ) Accumulated deficit (622,622 ) (586,836 ) TOTAL STOCKHOLDERS' EQUITY 474,426 474,861 TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY $ 889,134 $ 870,998 BRAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended April 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss (including amounts attributable to redeemable non-controlling interests) $ (35,641 ) $ (35,707 ) Adjustments to reconcile net loss to net cash provided by operating activities: Stock-based compensation 30,643 28,620 Amortization of deferred contract costs 9,421 8,313 Depreciation and amortization 2,606 2,126 Provision for credit losses 232 668 Value of common stock donated to charity 1,109 — (Accretion) amortization of (discount) premium on marketable securities (399 ) (487 ) Non-cash foreign exchange (gain) loss 227 (295 ) Fair value adjustments to contingent consideration — (137 ) Other 9 280 Changes in operating assets and liabilities: Accounts receivable 9,108 9,876 Prepaid expenses and other current assets 3,147 (984 ) Deferred contract costs (11,870 ) (10,730 ) ROU assets and liabilities (410 ) 1,522 Other assets (403 ) 277 Accounts payable (978 ) (1,800 ) Accrued expenses and other current liabilities (7,203 ) (7,351 ) Deferred revenue 24,547 25,285 Other long-term liabilities (1 ) (81 ) Net cash provided by operating activities 24,144 19,395 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (217 ) (6,915 ) Capitalized internal-use software costs (1,055 ) (1,039 ) Purchases of marketable securities (52,364 ) (59,650 ) Maturities of marketable securities 63,215 57,000 Return of principal on marketable securities 113,258 — Net cash provided by/(used in) investing activities 122,837 (10,604 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of common stock options 605 1,035 Payments of deferred purchase consideration — (2,916 ) Net cash provided by/(used in) financing activities 605 (1,881 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash 851 (337 ) Net change in cash, cash equivalents, and restricted cash 148,437 6,573 Cash, cash equivalents, and restricted cash, beginning of period 83,592 72,131 Cash, cash equivalents, and restricted cash, end of period $ 232,029 $ 78,704 BRAZE, INC. U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (in thousands, except per share amounts) The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure: Reconciliation of GAAP to Non-GAAP Gross Margin Three Months Ended April 30, 2025 2024 Gross profit $ 111,202 $ 90,911 Plus: Stock-based compensation expense 1,077 964 Employer taxes related to stock-based compensation expense 60 68 Non-GAAP gross profit $ 112,339 $ 91,943 GAAP gross margin 68.6 % 67.1 % Non-GAAP gross margin 69.3 % 67.9 % Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended April 30, 2025 2024 GAAP sales and marketing expense $ 74,127 $ 69,827 Less: Stock-based compensation expense 10,011 9,445 Employer taxes related to stock-based compensation expense 413 541 Non-GAAP sales and marketing expense $ 63,703 $ 59,841 GAAP research and development expense $ 36,797 $ 34,373 Less: Stock-based compensation expense 11,336 10,832 Employer taxes related to stock-based compensation expense 744 836 Non-GAAP research and development expense $ 24,717 $ 22,705 GAAP general and administrative expense $ 40,500 $ 26,791 Less: Stock-based compensation expense 7,975 7,037 Employer taxes related to stock-based compensation expense 213 297 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP general and administrative expense $ 21,082 $ 19,376 Reconciliation of GAAP to Non-GAAP Operating Income (Loss) Three Months Ended April 30, 2025 2024 Loss from operations $ (40,222 ) $ (40,080 ) Plus: Stock-based compensation expense 30,399 28,278 Employer taxes related to stock-based compensation expense 1,430 1,742 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP income (loss) from operations $ 2,837 $ (9,979 ) GAAP operating margin (24.8 )% (29.6 )% Non-GAAP operating margin 1.8 % (7.4 )% Reconciliation of GAAP to Non-GAAP Net Income (Loss) Three Months Ended April 30, 2025 2024 Net loss attributable to Braze, Inc. $ (35,786 ) $ (35,641 ) Plus: Stock-based compensation expense 30,399 28,278 Employer taxes related to stock-based compensation expense 1,430 1,742 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP net income (loss) attributable to Braze, Inc. (1) $ 7,273 $ (5,540 ) Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, basic $ 0.07 $ (0.05 ) Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, diluted $ 0.07 $ (0.05 ) Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, basic 104,572 100,788 Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, diluted 107,977 100,788 (1) Assumes no non-GAAP tax expenses associated with the non-GAAP adjustment due to the Company's historical non-GAAP net loss position and available deferred tax assets sufficient to offset such non-GAAP tax expense. Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow Three Months Ended April 30, 2025 2024 Net cash provided by operating activities $ 24,144 $ 19,395 Less: Purchases of property and equipment (217 ) (6,915 ) Capitalized internal-use software costs (1,055 ) (1,039 ) Non-GAAP free cash flow $ 22,872 $ 11,441 Braze is a registered trademark of Braze, product and company names herein may be trademarks of their registered owners. View source version on Contacts Investors:Christopher FerrisIR@ (609) 964-0585 Media:Katelyn BryantPress@
