NASDAQ$INSE

Inspired Entertainment Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Inspired Entertainment reported second quarter 2023 results, showing revenue growth across all business lines.

Inspired Entertainment reported revenue growth in all business lines during the second quarter, with the digital businesses achieving record quarterly revenue. The company is also benefiting from sales of new Vantage terminals and anticipates additional sales of 'low margin' terminals. They are on track to deliver their new National Football League (NFL) product for the upcoming season.

  • Revenue grew in each business line, reflecting solid fundamentals.
  • Digital businesses generated record quarterly revenue and contribute a greater proportion of earnings and cash flow.
  • Interactive revenue increased 28% year-over-year, posting a quarterly record.
  • Virtual Sports produced record reported quarterly revenue of $15.0 million with high conversion to earnings and cash flow.

Headline financials

Total Revenue

$80.4M

Previous: $71.3M+12.8%
EPS (adj)

$0.18

Previous: $0.26-30.8%
Capital Expenditures

-$9.3M

Previous: -$11.5M+19.1%
Free Cash Flow

-$5.2M

Previous: -$4M-30.0%
Net Income

$4.1M

Previous: $7.5M-45.3%
Operating Income

$12.4M

Previous: $13.4M-7.5%
Gross Profit

$67M

Previous: $59.6M+12.4%
Cash & Equivalents

$42.1M

Previous: $31.8M+32.4%
Total Assets

$354M

Previous: $300M+17.7%
Stock-Based Comp

$3.1M

Previous: $2.6M+19.2%

Revenue & EPS history

Inspired · Revenue · Quarterly

$80.4M

Q2 2023+12.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Inspired · $72.5M total across 4 segments · Q4 2022

  • Gaming
    $31.9M
  • Leisure
    $19.4M
  • Virtual Sports
    $14.9M
  • Interactive
    $6.3M

Forward guidance

Inspired Entertainment is optimistic about growth in digital markets and a resilient land-based business, which will enable them to deliver further progress against their omni-channel strategy.

Tailwinds

  • Exciting pipeline of new products and further enhancements across businesses.
  • On target to deliver new National Football League (NFL) product in time for the start of the upcoming season.
  • Compelling growth dynamics in digital markets as a wider audience engages with online betting and gaming.
  • New jurisdictions continue to open up.
  • Diversification and proven ability to expand business will enable further progress against omni-channel strategy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.8%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.6%

Avg return

30 days after

45%

20 / 44 earnings

Positive

+23.3%

Q1 2022

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.2%+1.9%+3.6%
Q4 2025-4.4%-21.1%-18.0%
Q3 2025+12.8%+9.9%+15.7%
Q1 2025+4.6%+13.7%+8.4%
Q4 2024+9.6%+5.6%-12.4%
Q3 2024+4.6%+6.6%-4.3%
Q2 2024+5.1%+2.9%+7.0%
Q1 2024-6.5%-7.2%-3.1%
Q4 2023-3.9%-7.1%-8.5%
Q3 2023-7.6%-6.9%-4.8%
Q2 2023-4.5%-2.4%-6.0%
Q1 2023+11.1%+12.3%+19.9%
Q4 2022-11.8%-17.8%-23.7%
Q3 2022+16.5%+21.5%+25.3%
Q2 2022+14.8%+11.8%+1.0%
Q1 2022+23.3%+25.2%+35.2%
Q4 2021+10.7%+18.1%-16.9%
Q3 2021+6.0%-0.2%-19.3%
Q2 2021+4.1%+2.1%+3.4%
Q1 2021-0.9%-7.0%+37.7%
Q4 2020+23.2%+29.4%+19.8%
Q3 2020+18.0%+12.0%+32.0%
Q2 2020-3.6%+3.9%-10.9%
Q1 2020+7.6%+16.1%+60.2%
Q4 2019-11.8%-17.9%-51.8%
Q3 2019+0.2%-3.3%-6.9%
Q2 2019+14.3%+7.5%+7.5%
Q1 2019-5.1%-3.0%-2.1%
Q4 2018-3.4%-5.6%+5.1%
Q3 2018-6.9%-7.9%-17.1%
Q2 2018+22.1%+22.1%+9.6%
Q1 2018-7.6%-14.5%-19.1%
Q4 2017-8.4%-5.8%+2.9%
Q3 2017-0.5%+0.5%+22.3%
Q1 2017-2.8%+1.9%+18.0%
Q4 2016-5.3%-5.7%-9.5%
Q3 2016+0.0%-1.5%+0.5%
Q2 2016+0.0%+3.2%+0.0%
Q1 2016+0.0%
Q4 2015+0.1%
Q3 2015+0.0%
Q2 2015+0.0%
Q1 2015-0.4%
Q4 2014+0.0%
Q3 2014

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