logo
Bragg Gaming Group Inc (BRAG) Q4 2024 Earnings Call Highlights: Record Revenue Growth and ...

Bragg Gaming Group Inc (BRAG) Q4 2024 Earnings Call Highlights: Record Revenue Growth and ...

Yahoo21-03-2025

Total Revenue (Q4 2024): EUR27.2 million, up 16% year-over-year.
Gross Profit (Q4 2024): EUR15.8 million, a 31% increase.
Gross Profit Margin (Q4 2024): 58%, up 650 basis points.
Adjusted EBITDA (Q4 2024): EUR4.7 million, a 68% increase.
Adjusted EBITDA Margin (Q4 2024): 17%, up 530 basis points.
Total Revenue (Full Year 2024): EUR102 million, up 9% year-over-year.
Gross Profit (Full Year 2024): EUR54 million, an 8% increase.
Gross Margin (Full Year 2024): 53%, a decrease of 40 basis points.
Adjusted EBITDA (Full Year 2024): EUR15.8 million, a 4% increase.
Adjusted EBITDA Margin (Full Year 2024): 15.5%, down 80 basis points.
Cash and Cash Equivalents (End of 2024): EUR10.5 million.
Net Working Capital (End of 2024): EUR11.9 million.
Revenue Guidance (2025): EUR117.5 million to EUR123 million.
Adjusted EBITDA Guidance (2025): EUR19 million to EUR21.5 million.
Warning! GuruFocus has detected 3 Warning Signs with BRAG.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Bragg Gaming Group Inc (NASDAQ:BRAG) achieved a record high total revenue of EUR27.2 million in Q4 2024, marking a 16% increase compared to Q4 2023.
The company expanded its market penetration in North America, launching in Delaware and partnering with major operators like MGM, DraftKings, and Fanatics.
Bragg's proprietary content reached 90% of the US iGaming market, with significant growth in proprietary content revenue, which enhances margins.
The company launched its proprietary iGaming content in Brazil on the first day of the regulated market, establishing a strong position in this emerging market.
Bragg Gaming Group Inc (NASDAQ:BRAG) strengthened its executive team with experienced industry experts, supporting its growth trajectory.
Despite revenue growth, the full-year 2024 gross margin decreased slightly by 40 basis points to 53%.
The company faces potential regulatory challenges in the Netherlands, which could impact market dynamics and advertising strategies.
Bragg Gaming Group Inc (NASDAQ:BRAG) has a negative free cash flow, partly due to significant spending on PP&E and intangibles.
The company's adjusted EBITDA margin for the full year 2024 declined by 80 basis points compared to the previous year.
There is uncertainty regarding the rollout of the PAM in Brazil, as the current focus is primarily on content.
Q: Can you confirm if the US market was about 5% of revenue in 2024 and if the deal with Caesars will be the primary driver for growth in 2025? A: Yes, the US market was about 5% of revenue in 2024. While the deal with Caesars is significant, a major part of our growth will come from exclusive and proprietary content, such as our slot game Dragon Power Triple Gold. - Robbie Bressler, CFO
Q: Regarding Brazil, you mentioned having more than 30% of licensed operators using your content. Do you expect this to increase to 50% by the end of Q2? A: Yes, we expect to reach 50% by the end of Q2. Our current focus in Brazil is on content, and we are seeing promising results from our proprietary and exclusive content rollouts. - Robbie Bressler, CFO
Q: Can you provide an update on the regulatory environment in the Netherlands and its impact on the market? A: The regulatory environment is still in flux, particularly regarding sports betting advertising. Our business is primarily focused on iCasino, so any impact from sports betting advertising changes would be minimal. We expect the market to decrease slightly in 2025, but our strong market share should provide opportunities to increase it as smaller operators exit. - Robbie Bressler, CFO
Q: What are your short-term and long-term targets for gross margin, given the shift to proprietary content? A: Q4 was exceptional with a 58% gross margin. While we don't expect this to be the run rate for the full year, we are moving in that direction. Our proprietary content, like Dragon Power Triple Gold, is performing well, and we anticipate reaching similar levels by Q4 2025. - Robbie Bressler, CFO
Q: Can you provide an update on your pipeline and any significant opportunities you are working on? A: We have a strong pipeline across different regions, focusing on onboarding operators in Brazil and distributing content in the US. We are also exploring opportunities in Europe and the Americas. Any developments in our pipeline would be accretive to our 2025 guidance. - Matevz Mazij, CEO
Q: Does your pipeline include both organic growth and M&A opportunities? A: Our pipeline is focused on organic growth opportunities. We are actively involved in processes to solidify deals and are well-positioned to capitalize on the expanding US iCasino market. M&A is not a core focus right now, but we remain open to opportunities that increase shareholder value. - Robbie Bressler, CFO
Q: How should we think about seasonality for 2025? A: We expect business as usual, with Q4 typically being the strongest quarter. There are no unusual seasonal impacts anticipated beyond the regular cycle of sports and iCasino play. - Robbie Bressler, CFO
Q: Are there any plans for new US states to go live in 2025? A: While not specifically baked into our pipeline, we are focused on positioning ourselves to capitalize on new opportunities as US states open up. We aim to be well-prepared with strong products and partnerships to capture market share in the expanding US iCasino market. - Robbie Bressler, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Disney and Comcast Just Declared War on AI -- And They're Starting with Midjourney
Disney and Comcast Just Declared War on AI -- And They're Starting with Midjourney

Yahoo

time3 hours ago

  • Yahoo

Disney and Comcast Just Declared War on AI -- And They're Starting with Midjourney

Walt Disney Co. (NYSE:DIS) and Comcast Corp. (NASDAQ:CMCSA) are stepping into the legal ring togetherand this time, their opponent isn't another studio, it's artificial intelligence. The two media giants have filed a joint lawsuit against AI image generator Midjourney, accusing the startup of infringing on copyrights by producing unauthorized images of iconic characters like Darth Vader, Shrek, and Homer Simpson. Filed in California federal court, the suit seeks damages of up to $150,000 per violation. According to the complaint, both companies had previously asked Midjourney to stop using their content, but received no meaningful response. Warning! GuruFocus has detected 1 Warning Sign with CMCSA. Midjourney, launched publicly in 2022 by CEO David Holz, has quickly gained influence with its viral AI-generated imagesfrom the Pope in a white puffer jacket to fake scenes of Donald Trump being arrested. The platform, which operates primarily through Discord and its website, trains its models using a massive trove of online imagessome of which belong to companies like Disney and Comcast. The AI community argues this practice falls under fair use, but the lawsuit highlights a growing backlash from content owners who believe their IP is being exploited without consent or compensation. What makes this moment especially complicated is that Disney and Comcast aren't anti-AIthey're experimenting with it too. In fact, Disney recently used AI to replicate Darth Vader's voice in Fortnite through a partnership with Epic Games. But they're drawing a line when it comes to copyright control. With Midjourney's Discord server now topping 21 million users, this case could reshape the rules of how AI companies train modelsand whether copyright holders finally get a seat at the table when it comes to monetization. This article first appeared on GuruFocus.

Altman-Backed Coco Robotics Raises $80 Million for Delivery Bots
Altman-Backed Coco Robotics Raises $80 Million for Delivery Bots

Yahoo

time6 hours ago

  • Yahoo

Altman-Backed Coco Robotics Raises $80 Million for Delivery Bots

Coco Robotics, an urban delivery startup using small autonomous robots, has secured $80 million in new funding from OpenAI CEO Sam Altman and other investors, Bloomberg reported Wednesday. The financing round was led by venture capital firm SNR, with participation from Pelion Venture Partners, Offline Ventures, and Max Altman, Sam's brother. The latest investment brings Coco's total raised capital to over $110 million. The company did not disclose a new valuation. Warning! GuruFocus has detected 7 Warning Sign with DASH. Founded in 2020 and formally known as Cyan Robotics Inc., the Santa Monica-based startup deploys about 1,300 cooler-sized electric robots across cities including Miami, Chicago, Los Angeles and Helsinki. The devices deliver food and small packages and are integrated into logistics platforms from Uber Technologies Inc. (UBER) and DoorDash Inc. (DASH, Financials). Coco also works directly with merchants and recently deepened its partnership with OpenAI. Under a March agreement, the company uses OpenAI's language and vision models alongside its own software stack to help its robots navigate obstacles and make real-time decisions. The two firms also share data from delivery routes to train AI systems. However, CEO Zach Rash said Sam Altman was not involved in structuring that collaboration. Coco is one of several startups racing to bring robotics to last-mile delivery logistics, a segment where cost-cutting and speed remain key challenges. Despite the sector's volatility, investors are betting that Coco's full-stack software and early commercial traction can differentiate it in a growing market. This article first appeared on GuruFocus.

Nvidia (NVDA) to Build First Industrial AI Cloud in Germany
Nvidia (NVDA) to Build First Industrial AI Cloud in Germany

Yahoo

time6 hours ago

  • Yahoo

Nvidia (NVDA) to Build First Industrial AI Cloud in Germany

Nvidia (NVDA, Financials) will develop its first industrial AI cloud in Germany to support applications ranging from automotive design to logistics optimization, CEO Jensen Huang said Wednesday at the VivaTech conference in Paris. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The platform will help industrial firms such as BMW and Mercedes-Benz simulate production processes and integrate robotics with artificial intelligence. Biotech companies like Novo Nordisk (NVO, Financials) are also expected to benefit, using Nvidia's tools for drug discovery. Huang said Nvidia will multiply its AI computing capacity in Europe tenfold over the next two years and will open 20 AI factorieslarge-scale infrastructure facilities for building and deploying AI models. He described Europe as newly "awakened" to the importance of sovereign AI development. Nvidia will also expand its technology centers across seven countries, launch a European compute marketplace, and partner with AI startups such as France-based Mistral to run models on 18,000 Nvidia chips. The project aligns with the European Commission's own investment initiative, which earmarked $20 billion in March for building AI factories. Huang emphasized that no country or company can afford to "outsource its intelligence." Separately, Huang reiterated his recent comments that quantum computing is reaching an inflection point and could solve real-world problems within a few years, reversing his prior view that useful quantum systems remain decades away. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store