Why Is Sportradar Stock Going Up?

Sportradar (NASDAQ:SRAD) should be on your radar for a stock to watch after soaring post earnings despite announcing mixed results for earnings versus revenue for Q4 of 2024.

The company surpassed consensus EPS estimates just once in the past four quarters but revenues have steadily increased and eclipsed consensus expectations. Sportradar saw record revenue in 2024 with an increase of 26% compared to 2023.

So it time to buy or sell this sports data firm after the recent pop?

What Exactly Does Sportradar Do?

Sportradar began trading with an IPO on the NASDAQ in September 2021, and was brought to the market by esteemed growth equity firm, TCV, among other top tier backers.

Back then it was valued at $8 billion and $27 a share. As late as November 2024, it traded around $12.50 a share but by Q1 this year, Sportradar had nearly doubled that $22.80 a share.

The stock has gained around 16% on the year, versus the S&P’s correction of -4.5%. With so few companies beating the major market by such a large degree, the question remains why exactly has Sportradar now come up trumps for shareholders after years of dismal price trends?

Why Is Sportradar Stock Going Up?

Two primary factors sparked the rise in Sportradar stock; a 22% hike in revenues versus last year to €307 million and a 53% spike in EBITDA to €61 million in addition to the acquisition of the IMG arena.

The sports betting technology firm has exclusive data provider contracts with several world-renowned professional leagues and recently announced it would acquire IMG Arena and its portfolio of global sports betting rights at no cost to Sportradar.

The acquisition means that the firm’s portfolio features 70 rights holders across 39,000 events in 14 global sports. The acquisition is not above the threshold for an antitrust review in the American market.

Which Sports Leagues Does Sportradar Support?

Sportradar partners with more than a dozen sports leagues in the world and its technology reaches nearly 1 million sporting events annually.

It is safe to say that Sportradar is everywhere. You probably just don’t know it. For example, among its partners are Major League Baseball (MLB) and the National Basketball Association (NBA).

In early February, Sportradar announced an 8-year extension of its 10-year partnership with MLB. The top-tier baseball league now owns an equity stake in the sports betting technology company. The expanded deal will fund Sportradar’s development of AI-powered products that will immerse fans in a hyper-personalized experience.

As the NBA’s official data provider for the league’s statistics, Sportradar’s API delivers real-time statistics and live advanced metrics. It also creates immersive, 3D views of basketball games using real-time data and generates animated overlays with actionable insights.

Other American partnerships include NHL and NASCAR. International ones range from UEFA, FIFA, and Bundesliga to ICC (cricket) and ITF tennis.

The purchase of IMG Arena expands Sportradar’s reach to include the PGA Tour, Wimbledon, the U.S. Open, and Major League Soccer (MLS).

Sports Betting a Growth Lever 

In 2023, people wagered $261.4 billion on sporting events. In the United States alone, bettors wagered $124.5 billion, or nearly 48% of the global total.

Super Bowl LIX was the single-biggest betting event in BetMGM’s history. Bettors are expected to make $3.1 billion in wagers for the 2025 edition of March Madness.

With record numbers of sports betting activity, Sportradar has a solid position to capitalize on wagering thanks to its data analytics capabilities.

Personalization To Drive Sports Broadcast Market

Sports leagues are becoming increasingly personalized to capture the attention of viewers who use technology.

A survey from Deloitte in 2023 noted that nearly two-thirds (58%) of sports fans wish they had access to the same data at live sporting events as they do if they watch the event from home. Nearly 70% of Gen Z and Millennials want this experience.

AI-driven platforms, like those being innovated by Sportradar and its competitors, stand to grow in the coming years. Virtual reality (VR) and augmented reality (AR) can help viewers get closer to the action. The NFL is experimenting with AR apps that allow fans to point their phone at the field to see detailed player information.

Sportradar, if it develops this technology properly, can deliver these kinds of experiences. The NBA uses AI to deliver real-time updates to fans. VR can make it possible for viewers to seem as if they are watching Lebron James and Kevin Durant courtside at floor level.

What Challenges Does Sportradar Face?

Sportradar is a leader in its industry but hot on its heels is Genius Sports, a SPAC originally brought to market by Niccolo deMasi’s firm.

One major loss occurred in April 2021 when the NFL signed a deal worth $120 million a year for six years with British-based Genius Sports.

The world’s richest sports league replaced its previous partnership with Sportradar, dating back to 2015, and went with a main rival instead. The NFL became an equity owner of Genius Sports.

Rapid Changes in Technology

Ten years ago, not many people might have predicted that some NFL games would be carried exclusively on streaming services. Televisions feature 4K HD resolution. People love consuming video content on their phones. Consumers want tailored and customized experiences that make their lives easier to enjoy.

What technology could render Sportradar’s proprietary platforms less desirable?

Seamless commerce occurs when fans watching at home or at a live event see a player’s jersey they want to purchase. Technology can allow people to purchase that jersey with a single click.

Can Sportradar integrate with existing shopping apps? Should the company purchase its own e-commerce app?

Sportradar’s closest approach to e-commerce comes from its sports betting arm. It might miss an opportunity for additional market share if it doesn’t invest in a seamless commerce platform or partnership.

Should I Buy Sportradar Stock?

Yes, according to experts. Analysts have a target of $26 to $27 for this value stock. It was upgraded to buy back in January.

Sportradar is in a strong position to improve its reach to more fans all over the world. The rise of sports betting also favors its technology platform.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.