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spk00: Thank you all for coming. Now presenting, we have Yaniv Filberg with Bragg Gaming.
spk01: Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Yaniv Filberg with Bragg Gaming. Bobo technology and cost of supply is rising in the industry. It went public in 2013. In the year 2019, the growth of revenues in the U.S. was negative 10%. In 2023, it was exactly the same. It's been a long way since we've been public. Most of the growth comes from . Talk about it. But a company that started with about 150,000 students, we get officers, we're over 400. Seven different officers, 140 different customers. ON THE NASDAQ AND ON THE CSX. THE OPERATIONAL LICENSE IN EUROPE. OUR EXECUTIVE TEAM COMES FROM VARIOUS BACKGROUNDS. I'm sorry. Before I go into telling you what we do and essentially who we are, I want to talk about the future system for online gambling, but that's really what this is. For a group of beings in the iGaming space, the online gambling future system is probably really a horrible system. iGaming, which is what you guys hear and see on Facebook and on Spotify, and focus. We're focused on the idea platform for online casinos. Both in success . Some of our already . And of course, we also offer our . What I do want you to take away from this slide before I get into what Brad does is that we're focused on . These platforms for vetting, we have integrated . But we're eye-gaming, and that's what we're focused on . What do we do? A lot of conservators are really divided into three buckets. I want to say that all of these services that we see are on a Redshare model, so we work on a staff model. All of our customers essentially are a Redshare operator for us, whether it's the content that we sell, the technology for the services. That puts us not as a supplier, but rather as a partner to our operators, customers. And with that in mind, our six, seven, eight, 75 services, we want to make sure that we provide fair content. The better they do, the better they do. On the conference side, we developed a five-day in front of a lot of table games. And five, five, seven studios. You'll get to talk about each one of them. We also provide exclusive games from some of our partners. And then finally, of course, the aggregated content from various seniors all around the world. All of that is complemented by the to build essentially an online . The content of the test is supplemented by services. We offer some of our customer-managed operational and marketing services, business intelligence, and then, of course, software development, branding, add-ons, things that may be required from various customers and various businesses. I want to break down the offering to the content and then the dashboard and explain why it's important. Our in-house studios are supported by on our grad RCS. So, you'll see that we have a five-size of studios . Well, . In addition to providing our own . We have the power by craft. It's part of the studio. It's a copy of all of our games. It's available to you. Some names are known from the land base. We take some of the land base content, we convert it online. There's a good tendency with online operators. And then, of course, as I said, . Our iGaming technology is the backbone of our . TPUs are now starting to make . Backbone of the technologies are . You'll see that it's a wrong kind of platform. I would need to know . We have a broad hub. You can think about it as a constant aggregation process, but essentially one single integration to our platform . And of course, our content is a partner-sponsored . This is our own provider . Customers . I want to take you guys to the content-first strategy, which is an important subject . Content strategy varies. We develop content for the different parts of the world . For one of the . We for the most part develop . to factor the volatility and so forth because there's different disparities and . Players? You can also see that we don't just develop the content and release it. Content that fits in our RDS goes through a lot of AI. We release, provide the data, and support for the next release, the next game to develop. And when we release a game, we learn from that release, give it feedback, and use it um develop other thoughts and different titles for departments UP UNTIL 2021, ALL OF THE CONCEPTS THAT WE WERE DEVELOPING WERE EITHER BOUGHT TO CERTAIN PARTIES OR DEPARTMENTS THAT DIDN'T HAVE OUR CONCEPTS. CERTAIN PARTIES OR DEPARTMENTS DIDN'T HAVE OUR CONCEPTS. And so following an acquisition and . Okay. And what you can see from this slide is that in 2022, we released 20 games from our studio. That was zero to 100 real quick . AS WE CONTINUE TO RAND BUMP OUR DEVELOPMENT AND OPERATIONS, WE'RE LOOKING TO DOUBLE THAT CAPACITY. AND SO WE HIRE, INTERNALLY, WE OUTSOURCE THOSE THIRD PARTIES INTO THE PARKS AND STAFF. AND YOU CAN SEE THAT FOR H-1, WE ALREADY HAVE 15 TITLES THAT CONTACT THE PARKS. which will be available . Difference in content in WIPA-Priority Bonds is the content they send is . Two videos of the roll-down is . So you can already see that on most of our content, we've got the Powered by God content. We've got some studios. 20.2, 30% of the gross profit target for the attributed studio. Content that was developed. And then you can see that the portion of the RDS profit went from five, you know, 30% of the revenue. The studio is also resonating really well with our players. We can see the growth, notably with the dollar market, 19% of the revenue for the five-year contract . And you can see, of course, the profitability of . Both of our business has been contributed to growing within our customers when we sell to our customers services. Sorry, guys. Our growth has been going both in terms of growing within our customers, so selling them more products and services, but also jurisdictionally. We continue to grow our footprint, obviously, in Europe and North America. Our most established markets are the Dutch market and the Swiss market. The Dutch market regulated online gaming in 2021, October of 2021. BRAG represents today about 30% of the iGaming market there. It's $1.2 billion of gross gaming revenue in the market. And then we continue to extend into new frontiers, including the UK, Pennsylvania, Michigan, Connecticut. It is worth it to mention that the North American market, in terms of iGaming, is just in its infancy. Unlike sport betting that is already legal in about 30 states, iGaming is only legal in six states. Really out of the six states, only four states matter. Michigan, Pennsylvania, New Jersey, and Connecticut. Delaware and West Virginia are legal, but doesn't represent anything in terms of not enough in terms of the growth in revenues for the North American market. But the four states, I guess the six states, in the U.S. where iGaining is legal are on track to do over $6 billion of gross gain revenue, which is going to become the fastest regulated market, well, iGaining market in the world. There's been some talk about extending the iGaining legislation in North America, which presents an immense opportunity for us. And I think today the numbers that I've seen last, there's only about 11 and 12% of Americans who live in states where iGaining is legal. There's been discussions in Illinois, Indiana, New York, New Hampshire, and others to legalize iGaming. And I'm sure you've all seen from score betting, it becomes a snowball effect. Once one state legalizes, other states follow suit because of course taxes, but then gambling tourism. Everybody knows that there's been a lot of movement from New York to New Jersey before, before betting legalization with people driving down to New Jersey on Sunday to play bets. Sending happens with iGaming. So the opportunity in the North American market is great for us to grow. But in addition to the North American market, Canada, Ontario legalized and privatized IBM last year in April. And so all of these markets actually continue to grow our SAM, which is now at about $20 billion. We're coming off of a low base. We just need to take small, single-digit percentage in every market that we operate in. We don't need to be as successful as we are in the Dutch markets to make a big impact on our revenues. And as we continue to look into New Horizons, we've gone live in Italy with a company called Nitro Gaming. We announced that we've gone live in Mexico with Caliente. So we have a lot of growth factors ahead of us in new markets that we're operating in. Our content roll-up in the U.S. has been very exciting for us only because of the operators that we partnered with. We're executing against our strategy to grow our footprint in the U.S. As I said, it was non-existent before 2022 when we closed on the SPIN acquisition. And so in 2022, we closed on the SPIN acquisition and received our last regulated, well, regulated the last regulator from Pennsylvania, the license to operate in Pennsylvania. And so with that in mind, we started rolling our content in the different jurisdictions. First, we gone live in New Jersey, and now we're live with Mohegan Sons Resorts, Winbet, Rush Street Interactive. And then of course, we grew our footprint into Pennsylvania with DraftKings, Michigan with BetMGM. You can see that some of the content launches, and I mean, you see that in these states, you see them on some of these platforms. And then of course, as I mentioned, for us, the most important thing is the content roadmap. And so in addition to our own proprietary content that we're rolling out with these big operators, we have some of our partner studios that are rolling out into all of the markets. Beauty in the North American market, especially in the United States, is that the top six operators account for about 80 to 85% of the market. Connecticut is a duopoly between Sandu and DraftKings. So once you have DraftKings and Sandu, you have them all. Unlike in Europe, when you have 10, sometimes hundreds of operators. In the US, the focus is on some of the big ones. Once you start rolling into the larger operators, then you kind of have most of the market under control. And then of course, the revenue and the growth in these markets follow suit. Our content deployment in the U.S. has been expedited by getting, of course, the licenses. And you can see from this slide, our intention and our effort is to be live with about 80% of the North American operators by the end of the year. We've done quite well so far, and I think we're somewhat ahead of the curve, but we're already live with a lot of the operators with all of our content and our partners' content in a market that is estimated to be at about $6.5 billion by the end of this year. And, of course, as more and more states legalize, it becomes a much larger market. Estimates have been growing at about $20, $30, $40 billion by the end of the century, depending on which analyst you listen to. That takes us to our financials. We talked about what we do and how we do it and why it's different. All of that is translated into numbers, and the numbers that we've done are quite remarkable, especially from the low base growth where we started when we went public on the Toronto Stock Exchange venture, which seems to have been light years ago. Our revenue for 22, so last year we reported about a month ago, was 84.7 million euros. We still report in euros because the majority of our revenue still comes from the European markets. One thing I guess I forgot to mention, and it is important, especially for us, we've been operational in the European market since 2014. The European iGaming market is a lot more mature than the North American market, and we've been profitable in the European market. We essentially take profits from the European market to grow our North American operations. So in that respect, we're self-funding our North American growth, which will be a growth factor into our future. Our adjusted EBITDA for last year was 12.1 million euros, and our cash flow from operations was 5.8 million. And then I mentioned in the beginning of the presentation, I'm nicely told that I have five minutes left, so I'll leave some time for questions, but we got it for 2393 to 97 million euros of revenue, 14.5 to 16.5 million guide of 2023 EBITDA, which at the midpoint represents 12% revenue growth and 28% EBITDA growth. The last thing I'm gonna say is you can see about seven sequential orders of growth and of course, profitability. This year will be a profitable year. we have a clean balance sheet with enough cash to support our operations moving forward. With that in mind and four minutes left, I'll open the floor for some questions. Brad Studios are studios that we have internally. They're studios that we build all the content in-house. We do the art, the math, the sound, and everything else that needs to go into a game internally. We have people that develop it, code it, front end, and back end. Powered by Brad are partner studios where we take, depending on the partnership, Either the mask and the art, or just the art, or the sound and the art, or the art package, and then we build it on our RGS, where then it's distributed through our distribution partners. We do capitalize. I mean, that's a better question for our CFO, but the short of the long is we do capitalize in line with other tech companies. I think that, I mean, I'll come back to it. I know we're meeting tomorrow, so I'll find out the answer for you. But the answer I have and what I know is that we've capitalized a lot with other tech companies. Anyone else? Competition. A lot of them have been acquired recently, so we have less and less competition. Some of the companies that I think some of you would know, White Hat, our scale. I mean, there's obviously the competition where Light and Wonder does something very similar to what we do, but at a much larger scale. But on our scale, there's some public companies that still remain, like White Hat. There's a private company called Evermatrix. Fired and Neogames are one of the same. Of course, again, on the B2B side, it's still a competitor of ours. And then in Europe, there's still some small names that are private companies. It's a good question. I mean, we ponder that, and I think it also depends on the state of the market and how rich some of our peers and competitors are versus how well we're doing as a standalone entity. We've done quite well. We've gone through that stage where we need to go and continue to raise money to fund our operations. So we're in a very comfortable position in terms of our growth prospects. But you never know. It's hard to say. I realize there's other companies that have said that they'll always stay as a standalone company and are now part of a bigger organization. But sometimes they said that they're going to sell. They're still in the selling process. So hard to answer. But the one thing I'll add to that is there has been a lot of consolidation in the space. A lot of the B2C guys, the large B2C guys like to own their tech stock. And I think we have a really good tech stock, represented by the growth and the customers that we have. It wouldn't surprise me one way or another. Yeah, we continue to keep our eyes open. I mean, it's difficult for us. The valuation that we're at, I mean, talks about the numbers that we're doing, but we never talked about our share price. We're trading at less than one time revenue, and it is about four times EBITDA. It'll be very hard for me to convince any of you if you're a shareholder that it makes sense to go and buy a company or a studio for 10 times EBITDA when I'm trading at four, or buy someone for three times revenue when I'm trading at less than one. So there's a lot of opportunities out there. We just need to.
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