Better Collective upgrades financial targets for 2022 after a record breaking quarter

Better Collective reported financial data for the fourth quarter and the whole 2022. It must be admitted that it was highly successful for the company.

Significant increase

Better Collective’s revenues in the fourth quarter amounted to 86.1 million euros, an increase of 63% year-on-year. 44% of the revenue growth was organic. For the United States, meanwhile, revenues amounted to €33.9 million. This is a significant increase of 71% in comparison with the fourth quarter of 2021.

EBITDA before special items reached €35.2 million, thus increasing by 115%. The margin was 41%.

Successful for Better Collective was not only the fourth quarter, but also the entire 2022. It brought revenues of €269.3 million, an increase of 52% in comparison to 2021, of which 34% is organic growth. In the U.S., revenues reached $100.3 million, an increase of 102% year-on-year.

EBITDA before special items amounted to 85.1 million euros in 2022 (up 53% year-on-year), pushing the margin to 32%.

Record breaking quarter

Q4 proved to be a record breaking quarter for Better Collective driven by a strong and broadly based performance combined with an extraordinarily well performing men’s soccer World Cup and a solid launch of regulated sports betting in the US state, Maryland. Following a record breaking Q4, Better Collective upgrades its organic revenue target from 20-30% to 34%.

Upon releasing the original 2022 financial targets, it was assumed that the US would only consist of upfront payments (CPA). During Q4, Better Collective has continued the push towards revenue share in the US market and has seen a full year impact of €14.7 million, which is up from >€10 million as guided in Q3. Better Collective is reporting EBITDA before special items of 85.1 in line with the financial guidance and is thereby absorbing this larger than expected shift towards future revenue share income. The Group remains excited about this shift from one-time payments to recurring revenue as it implies future growth, less seasonality, and better long term sportsbook partnerships.

In connection with the 2021 acquisition of Action Network in the US, Better Collective indicated a revenue estimate of “exceeding $100.0 million” in 2022. During Q4, US revenue grew 71% and for the full year US revenues grew 102%, which ends full year revenue at $100.3 million. It is worth noting that the US growth came on top of very strong revenue growth of 370% from 2020 to 2021. Further, reaching the estimate was done even after absorbing €14.7 million moved from upfront payments (CPA) to future recurring revenue share income.