QPD In Action – 4Q24

QPD In Action – 4Q24

This quarter we feature a global leader in sports data and analytics.

Sportradar (SRAD)

Global leader in sports data and analytics, delivering real-time data and content to media companies, sports leagues, and betting operators.

Key Facts

  • Exclusive partnerships across major leagues (NBA, MLB, NHL) and innovative data-driven solutions, Sportradar has established itself as an essential partner for sports organizations looking to drive fan engagement and monetize sports data.
  • SRAD benefits from the massive growth of legalized sports betting, particularly in the U.S. market, where the demand for real-time sports data is soaring. The company’s scalable, high-margin business model is built on long-term contracts with reliable revenue streams.

Why We Like Sportradar

  • Anticipated margin expansion, continued revenue growth, and strong sports betting tailwinds provide a favorable setup for further valuation gains over the coming years.

 

QUALITY

PRICE

DISCIPLINE
  • Market leader with exclusive partnerships builds a strong competitive advantage while positioning as an essential service.
  • “Picks and shovels” approach: ability to participate in sports betting boom without the volatility of betting operators.
  • High-margin, recurring revenue: Long-term contracts with leagues and media companies drive predictable cash flow and profitability.
  • SRAD was trading ~13x EBITDA at the time of purchase.
  • This valuation is 50% less than comparable information services companies, presenting a skewed risk/reward set-up.
  • Valuation at the time of purchase did not reflect anticipated growth in margins and free cash flow.

 
  • Sportradar’s data-centric model offers a disciplined way to capture sports betting growth without direct gambling risk, balancing high growth potential with risk management.
  • Cambiar has been monitoring Sportradar since its 2021 IPO. While appreciating the market opportunity, we waited until the company extended contracts with major sports leagues – alleviating a key uncertainty for investors.

 

SECURITY FOUND IN FOLLOWING PORTFOLIO(s): SMID Value, Small Cap Value
SPONSORING ANALYST: Colin Dunn

 

 

Disclosures

Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar.  Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. The information provided is not intended to be, and should not be construed as, investment, legal or tax advice.  Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation.  Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook and are not intended to represent the performance or be an indicator for how the accounts have performed or may perform in the future. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time.

Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts may be based upon third-party sources that are deemed to be reliable; however, Cambiar does not guarantee its accuracy or completeness.  Past performance is no indication of future results.  All material is provided for informational purposes only, and there is no guarantee that the opinions expressed herein will be valid beyond the date of this communication.

Source: Cambiar Analysis & Sportradar company disclosure