Sportradar Bullish on Annual Revenue of $1.8B for 2027

Sports data and tech firm Sportradar has disclosed its long-term financial targets, saying that it hopes to generate at least $1.84 billion in revenue for 2027. The company also targets continued EBITDA growth, hoping to retain its existing momentum.

Sportradar Targets Significant Growth for the Next Three Years

On April 1’s investor day, company executives shared some of their projections for the business, hoping to deliver a 15% compound annual growth rate (CAGR) over the next three years.

The company also targets adjusted EBITDA of at least $492.5 million, which would represent a CAGR of 27%. Sportradar likewise hopes to expand its adjusted EBITDA margin by 700 basic points.

In terms of cash flow, the leading sports technology company seeks $297.7 million and targets a conversion rate of 60% or more by 2027.

Sportradar’s Recent Report Emboldened the Company

So, how does this compare with Sportradar’s recent FY 2024 report? The company’s latest financials outlined full-year revenue of $1.2 billion, representing a growth of 26% year-on-year. Additionally, the company posted adjusted EBITDA of $241.6 million, up 33% YOY. The EBITDA margin expanded to 20.1%.

Net cash from operating activities in 2024 increased 36% to $384.3 million. In the meantime, the company’s free cash flow more than doubled to $128.5 million, up 133% YOY.  

These incredible financials, paired with Sportradar’s impressive net retention rate of 127% and robust track record further increased its confidence in its long-term results.

Sportradar’s 2025 Guidance Is Similarly Optimistic

In addition to the recent publication of Sportradar’s FY 2024 report, the company also published its guidance for 2025, which was consistent with its growth plans. The company said that it expects its revenue for 2025 to reach $1.38 billion, which would represent growth of at least 15%.

Sportradar also said that it expects adjusted EBITDA to increase by at least $305.9 million, which would mark a growth of 26%. The company added that it targets adjusted EBITDA margin expansion of at least 200 basic points.

In its earlier release, the company added that these projections do not include any potential impact, favorable or otherwise, from its acquisition of IMG Arena.  

Analysts Trust Sportradar to Meet Its Targets

Sportradar justified its ambitious targets with its ongoing growth and the continued expansion of the sports betting market. Its leadership remained confident in Sportradar’s ability to continue growing and generate value for its clients, partners, and shareholders.

Analysts were likewise convinced that Sportradar could pull its ambitious 2027 targets off. JMP Securities experts admitted that there are always some risks involved when predicting the future but added that Sportradar, as things stand now, is poised for growth.

At the same time, Sportradar’s shares continue to grow in value, underpinned by the company’s strong business. The Sportradar stock is worth $22.03 apiece as of the time of this writing but JMP Securities values it at $25.