NASDAQ$INSE

Inspired Entertainment Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported financial results for the three-month period ended September 30, 2023.

Inspired Entertainment reported its Q3 2023 results, with a focus on the growth of its digital business and the impact of one-time sales and a ransomware attack on Adjusted EBITDA. The company saw significant growth in its Interactive segment and is optimistic about future growth, particularly in North America and Latin America.

  • Adjusted EBITDA margin for the third quarter was 27%, but excluding Low Margin Gaming Hardware sales, the margin was 36 %.
  • Aggregate digital business Adjusted EBITDA grew 9% to $16.4 million.
  • Interactive segment revenue and Adjusted EBITDA increased 28% and 55% year-over-year on a constant currency basis, respectively.
  • The company repurchased $1.5 million of its stock during the third quarter.

Headline financials

Total Revenue

$97.5M

Previous: $74.9M+30.2%
EPS

$0.12

Previous: $0.35-65.7%
Adjusted EBITDA Margin

27.0%

No prior period
Capital Expenditures

-$20.1M

Previous: -$16.6M-21.1%
Free Cash Flow

-$16.7M

Previous: -$6.4M-160.9%
Net Income

$3.4M

Previous: $10.2M-66.7%
Operating Income

$12.2M

Previous: $16.2M-24.7%
Gross Profit

$76.1M

Previous: $60.7M+25.4%
Cash & Equivalents

$26.4M

Previous: $37.4M-29.4%
Total Assets

$305M

Previous: $287M+6.3%
Stock-Based Comp

$3.2M

Previous: $2.5M+28.0%

Revenue & EPS history

Inspired · Revenue · Quarterly

$97.5M

Q3 2023+30.2%vs Q3 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

The company expects its fourth quarter Adjusted EBITDA to be in-line with consensus.

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 Q3 2023

Historical avgQ3 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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