Good morning, and thank you for standing by. Welcome to the Sportradar's first quarter earnings conference call. All participants are in listen- only mode. After the speaker's presentation, there'll be a question- and- answer session. To ask a question during this session, you need to press star one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rima Hyder, Senior Vice President of Investor Relations. Please go ahead. Thank you, Catherine. Good morning and good afternoon, everyone, and thank you for joining us today for Sportradar's first quarter 2022 earnings call. Before we begin, I would like to point out that the slides we will reference during this presentation can be accessed via the webcast or on our website at investors.sportradar.com. A replay of today's call will be available via phone and on our website. After our prepared remarks, we will open the call to questions from investors. To be fair to everyone, please limit yourself to one question plus one follow-up. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors section. Please refer to the risk factors discussed in our annual report on Form 20-F and the Form 6-K furnished to the SEC today, along with associated earnings release. We assume no obligation to update any forward-looking statements or information which speak as of their respective dates. Also, during today's call, we will present both IFRS and non-IFRS financial measures. Additional disclosures regarding these non-IFRS measures, including a reconciliation of IFRS to non-IFRS measures, are included in the earnings release, supplemental slides and our filings with the SEC, each of which is posted to our investor relations website. Joining me today are Carsten Koerl, Chief Executive Officer, and Alex Gersh, Chief Financial Officer. I'd now like to turn the discussion over to Carsten Koerl. Thank you, Rima, and thank you all for joining today. I'm pleased to share that our fiscal 2022 is off to a very strong start. Coming now to slide four. Our revenue in the first quarter in 2022 increased 31% compared with the first quarter of 2021, driven by the U.S. and our growth in core betting products across all businesses. Our strong customer retention continued at 121%, and we have achieved many other successes, such as multiple partnerships for our integrity business, completion of a new acquisition, as well as increasing our licenses in the North American region. Slide number five. Our U.S. business delivered a revenue increase of 124% as we continue to increase revenues with our key betting customers as well as media companies. We also saw growth in the U.S. ad:s business at a rate of almost three times higher than our rest of the world's ad:s business. Globally, our ad:s revenues have grown over 70% year over year in the first quarter of 2022. In the rest of the world, we once again saw an increase in sales from our higher- value product such as MPS or the live data and odds services. Our MBS revenue, which is a combination of the MPS and the MTS products, increased 51% year over year. Our live odds live data services increased 16% as a result of selling more content to our existing clients. Our strategic priorities for 2022. I'd like to turn now to a brief discussion of the priorities for 2022. Before I get more specific, I want to stress that our overarching priorities continue to be accelerating our technology leadership and powerful data-driven networks with AI to process and analyze this data. For the first time in human history, we are living in a big data world. Every interaction any company, government, charity or academic institute has with an individual or entity, it can generate many recorded data points. At Sportradar, we have an especially deep understanding of this new data opportunity. We are source code of sport. With the experience and expertise in transforming 790,000 sporting events every year into granular numerical data that serves our B2B client base with deeper insights than any eye can see. Today, accelerating change more than ever is artificial intelligence. It is the mega trend of our times. It's crystal clear that one who has the most data delivered by powerful networks in sport, media, and betting has the most potential to generate alpha. Everything we are doing at Sportradar is aimed at maximizing this AI opportunity, ensuring that our clients can generate maximum alpha with our products. We have systems in place to analyze all the data at sport events all over the world, which we apply across our verticals to expand our product offering. For Sportradar, this adaptive approach has led us to develop commercial reliable synthetic data to serve our simulated reality programs, proprietary computer visualization technology, or our sports tracking and audiovisual product processes, and data-driven deep knowledge analytics of consumer behavior for targeting marketing purposes. In a nutshell, continuing and accelerating our technology leadership, harnessing data, and maximizing insights is the objective that extends across all our priorities, which I group in four categories. First is to grow core betting products. As our results indicated, our high- value- add offering products, such as MBS and live data and odds, are driving significant growth. MBS provides existing bookmakers and operators wishing to start a sportsbook with highly sophisticated and effective services for just trading or the full turnkey solutions. I will talk about our managed trading services in more detail in a few minutes. Our live odds service is one of the most popular in-play trading services in the world. We anticipate continuing growth for this service, especially in markets like the U.S., where in-play betting still accounts for a minority of the betting, unlike in other parts of the world where sports betting is more mature. If you ever bet during a match versus before it, you understand why it's so much more exciting and intense to bet on your favorite team or player while the match is in progress. Our second objective is to grow our U.S. business with targeted products and move up the value chain. I'll use our ad:s product as an example. With ad:s, Sportradar has built an omni-channel digital marketing agency focused on sports fan engagement and help sports books as well as leagues and teams to be more efficient and precise in their marketing spend and deliver ROI. ad:s industry-specific multi-channel marketing performance platforms help sports book to more effectively and efficiently engage, acquire, retain, and grow customer across paid social, connected TV, digital out of the home, and native publisher products. Another recent significant development is the opening up of the college landscape in the U.S. As many of you know, just last month, the NCAA gave guidance that their membership can provide competition data to support sports betting. As we began talking to conferences, we encouraged to not only that they want to have the best technology, but also the best integrity services are paramount for them. Founded in 2005, our integrity offering is deep and broad with more than 150 leagues, anti-doping, and law enforcement organizations, including stakeholders in the college landscapes, our customers. Based on our years of experience, we want to ensure our sports betting partners, athletes, are educated about the issue around match fixing and have information on healthy sport wagering behaviors. Now, turning to our third priority. It is the full integration of the Sports Solutions vertical, ensuring that the technology broadens the product set we can offer to our betting, media, and league partners. As a reminder, this is the business that we formed through the acquisition of Synergy Sports and InteractSport, and gives us incredible penetration in Division I and II college basketball and baseball, as well as cricket, one of the most popular sports worldwide. Computer vision and camera technologies are at the core of the technology that Sports Solutions uses to provide performance analytics, such as helping a player or team looking for competitive advantage. It goes without saying that the more information we have on teams and players feeds our betting and media and league partners with deep insights on everything from the reasons the team has formed to fans who can now experience what the coaches see. This is especially relevant in U.S. college space. Sports Solutions also enhances our AV solution, which is the visual content product to interest sports fans in sports betting events and give them a betting opportunity. We combine audiovisual content, which is to a great extent non-televised, and comprehensive content from our highly attractive media rights portfolio. We already have a diversified portfolio of close to 400,000 live events per year, and the addition of more content from Sports Solution further enhances the attractiveness of our AV solutions as seen in our first quarter AV segment results. It is an important content set for our top 20 betting operator customers. AV betting revenues make up more than 50% of the revenues from these top 20 customers. Last, but certainly not least, fourth priority is to invest in our people, values, and technology. As we scale rapidly, we are hiring in key areas of content and technology and investing in current talent. Prioritizing our people and giving them the tools they need to compete will always be one of our strategic priorities. We have also begun identifying environmental, social governance topics that have a significant impact to our business. Our approach is underpinned by our conviction that ethics and good governance matter to our future success. This is not a new approach. It's one that is integral to how Sportradar operates our business and as a central player in the sports ecosystem guiding it. Through our integrity business, we monitor over 800,000 matches across more than 70 sports annually. Since 2008, our UFDS, the Universal Fraud Detection System, has been instrumental in reporting over 7,000 matches as suspicious, and in helping authorities securing 514 sports sanctions and 50 criminal convictions. We believe so strongly in sport, and we want to win in whatever we do. We know that in order to have good competition, it must be fair competition and a level playing field. Our commitment to integrity and supporting the sustainability in sport around the globe is something that we will never change. Moving to seven, in our next section, I like to spend some time doing a deep dive into an area of our business that is key growth driver for us. Today, I want to talk about MTS, the Managed Trading Service product, which is sold as part of our Managed Betting Services. MTS is a sophisticated turnkey trading risk, odds, and liability management solution. Our rich set of tools allows our customer to manage betting activity, risk liability, trading margin performance across sports and markets. This is all executed in real time according to rules and thresholds set in collaboration with our customers, underpinned by our machine- learning technology. It's no surprise to us that over 200 organizations globally use MTS. As of the first quarter of 2022, we have processed close to EUR 4 billion in turnover, which is a year-over-year revenue growth rate of 55%. At this current run rate, we expect MTS turnover to be in the range of EUR 17 billion-EUR 20 billion in 2022. This is making us larger than any betting operator in the United States and is in the top five of the largest global bookmakers compared by the handle. The MTS service is highly modular, enabling operators to access a range of specialized trading services to suit their business needs. For example, they can ask us to trade all sports on their behalf, or they can elect to trade certain sports themselves while we trade the remainder. They can trade everything themselves, but access our AI-driven customer- managed services to give them a better understanding and insights of their consumer betting activities. For us, this modularity is critical in order to cater to all betting operators as they continue on their respective journey to modernize, right-size, improve their trading by integrating MTS superior trading capabilities and services, ensuring that we are able to support them every step on the way to a fully turnkey offering. MTS partners also have the option to access the entire Sportradar product portfolio, which includes products such as engagement tools, AV, and the turnkey sportsbook service. In addition to recruitment and retention marketing services through our ad:s product, our AI-driven behavioral marketing services through our recent acquisition of Vaix. We are essentially able to use MTS as upsell and cross-sell vehicle for the entire Sportradar product portfolio. Commercially, overall service provisions is underpinned by a revenue share model that is based upon a share of the gross gaming revenue or GGR generated through the MTS service, typical with a monthly minimum fee. Our current take rate on MTS is between 5%-7% versus the pure data products, which have a 2% take rate, making MTS a highly valuable product for us and one that is fueling our growth. MTS can be deployed quickly, allowing new markets entrants to increase speeds to market and drive turnover. We reduce operational risk for customers by leveraging our scalability, expertise in trading liquidity and financial risk by generating superior trading margins or even offering a margin guarantee. Perhaps most importantly, our content and technology help operators engage end users and sport fans. Next, I like to turn to the discussion about the capital allocation and the priorities. Last month, Sportradar acquired Vaix, a pioneer in developing solutions for the iGaming industry. Vaix innovative AI engine allows us to understand the likely profitability of players post-conversion inferred from their behavior over the last three days versus traditional business intelligence, which might give us the same data over two to three weeks. In turn, this helps us optimizing acquisition strategies with our ad:s advertising platform and much more quickly and accurately measure the efficiency of campaigns. The key with Vaix personalization services is that the fans receive a more targeted player-friendly experience, which in turn gives us the foundation data to build a player- personalized offer and front end for our future products. The Vaix acquisition shows the type of acquisition we might look into in the future to accelerate our technology transformation. We already had a strong existing partnership with the team, and they have a highly entrepreneurial culture and are technology innovators with products that fold into our existing product set and map to our strategic priorities. For the past two years, Sportradar has incorporated Vaix's technology into its managed trading services, offering with all the Vaix's products, the Vaix's artificial intelligence and algorithms enhance the data analytics, promotion systems, and player personalization in our Sportradar sportsbook platform. I'm coming to the closing, where I want to remind everyone that Sportradar is well-positioned to continue its proven record of consistent long-term growth, strong cash generation, as well as very strong customer retention. We have the experience and the insight and the technology leadership renowned for sports betting and entertainment industry, and we are investing in our business with an eye toward technology transformation and continuous growth. The strong first quarter sets us well for our fiscal year 2022. I like to end by reiterating our guidance that we gave in our fourth quarter call for both revenue growth of 18%-25% and adjusted EBITDA growth of 21%-30%. With that, I turn over to Alex to discuss our numbers in more depth. Alex. Thanks, Carsten. Hi, everybody. I'm gonna repeat a few things that Carsten just told you, but I'm a great believer that great news deserves to be repeated, so you'll hear some of the great news one more time. As Carsten already stated, we had a very strong first quarter with growth across all segments of our business. Revenue in the first quarter of 2022 increased 31% to EUR 168 million versus the first quarter of 2021. This was driven by strong growth across all of our segments with once again, the highest growth coming from the U.S., where we grew 124%. We reported adjusted EBITDA of EUR 27 million for the first quarter. While it's down 5% year-over-year, but in line with our expectations, this decrease was primarily due to higher costs associated with being a public company, which were approximately EUR 3 million for the quarter of 2022, and one-time temporary savings in Q1 of 2021 related to the COVID pandemic. As a reminder, we're still forecasting adjusted EBITDA growth for the full year in a range of 20%-30%. Importantly, our liquidity remains strong with cash and cash equivalents of EUR 716 million at the end of the first quarter. Let me now give you some details on our Q1 performance. Our rest of the world betting revenue is our largest segment. It represents 52% of our total revenue. The segment grew 25% in the quarter to EUR 87 million. Growth was primarily driven by an uptick in our higher value-added offerings, as Carsten just mentioned, included managed betting services, again, as Carsten said, including both our managed trading services and our managed platform services, and live data and live odds services. More specifically, managed betting services revenue grew 51% year-over-year to EUR 26 million due to increased turnover, while live data and odds grew 16% to EUR 47 million due to higher sales to our existing clients. In addition, we have successfully begun cross-selling newly acquired Synergy content to our customers. Rest of the world betting adjusted EBITDA increased 13% to EUR 45 million. The associated adjusted EBITDA margin declined to 51% versus 57%. Again, exactly as we expected in the prior period. I have mentioned previously, in the first quarter of 2021, we experienced some temporary savings on sports rights and scouting costs, which drove the adjusted EBITDA margin higher to 57%. In the first quarter of 2022, the sporting calendar has normalized. Rest of the world audiovisual segment grew 17% year-over-year to EUR 46 million. This growth was primarily due to increased content from Tennis Australia and the National Hockey League, as well as upselling content from our Synergy acquisition. The segment was impacted by a loss of revenue associated with the war in Ukraine, which was offset by higher sales to customers in other countries. Rest of the world audiovisual adjusted EBITDA was essentially flat at EUR 9 million, and its adjusted EBITDA margin declined to 19% from 23%, primarily due to higher sports costs rising as sports schedule returned to normal levels with the COVID pandemic easing. Turning to the United States, our highest growth segment. Revenue grew 124% year-over-year to EUR 26 million. This growth was primarily driven by three factors. First, increased sales of betting services as more states legalize betting. Second, increased sales to media clients. And third, a positive impact from Synergy. We increased revenue with all our major customers in the U.S. and continue to see strong growth in our ad:s and our audiovisual products, which grew over 300% and over 100% respectively. First quarter U.S. Adjusted EBITDA was EUR -6 million, a larger loss versus prior quarter due to our continued investment in the segment to drive growth. In line with past trends, however, we did see continued improvement in the adjusted EBITDA margin as a result of increased operating leverage. A few things on cost. Personnel costs for the quarter increased by EUR 14 million to EUR 52 million. New employees were added both organically and through our acquisitions, primarily in technology and product area. Other expenses were EUR 20 million, an increase of EUR 5 million over the prior year, mainly driven by higher costs associated with being a public company, and I mentioned them before, and temporary COVID-related savings in the prior year. Total sports rights costs increased EUR 13 million to EUR 54 million in the first quarter of 2022. Growth was driven by new 2022 rights for ICC, which is cricket, UEFA and ATP, and a return to normalized schedule for the NBA, NHL, and MLB. Excuse me. It's important to note that 11 major sports rights comprise approximately 70% of our sports rights expense. While we expect sports rights costs to continue increasing over the next few years, we are very confident in Sportradar's ability to achieve growth in EBITDA and cash flow conversion over that same period. Our liquidity remained strong at the end of the first quarter. Cash and cash equivalents plus our undrawn credit facility was EUR 826 million, a decrease from December 31, 2021 balance of EUR 853 million. This decrease in our cash balance was due to a non-recurring payment, payments of EUR 35 million related to a purchase of non-controlling interest in the Sportradar U.S. LLC subsidiary, as well as the final earn-out payment for an acquisition made in fiscal 2019. Versus the prior quarter, adjusted free cash flow approximately doubled to EUR 13 million. Our cash flow conversion increased to 48% from 23% last year. We believe that our free cash flow conversion will continue to improve. Over the next few years, we expect our unlevered free cash flow conversion to be in a range of 55%-60%. A key change in our cash conversion is a move from a subscription model to a revenue share model. The fastest- growing areas for Sportradar, namely managed betting services and a significant portion of our U.S. business, are based on the revenue share model. While this offers us fantastic opportunity for growth, it also has a timing effect on our working capital and cash collection. Back to annual guidance. Finally, let me reiterate our annual guidance for fiscal 2022, as Carsten already did. For the full year of 2022, we are maintaining our previously issued guidance. We expect the revenue to be in the range of EUR 665 million-EUR 700 million, reflecting annual growth of between 18%-25%. For adjusted EBITDA, we expect to be in a range of EUR 123 million-EUR 133 million, representing a year-on-year increase between 21%-30%. As we told you last quarter, we believe our revenue guidance range can withstand the impact from potential revenue losses as a result of the Russia-Ukraine conflict, as we do not rely on any one region for our growth. We also told you that we were not expecting a mini-meaningful adverse impact on our business for the first quarter of 2022. This is certainly the case this quarter. However, in Q2, we are seeing increased impact of this crisis. We continue to monitor these developments very, very closely. With that, we are now happy to open the call to questions. Operator, would you please open up the line for questions? Thank you. As a reminder, to ask a question, you'll need to press star one on your telephone. To withdraw your question, press the pound key. Our first question comes from Bernard McTernan with Needham & Company. Your line is open. Great. Thank you for taking the question. Carsten, thank you for all the detail and going in deep on MTS. Follow-up question, though. I'm assuming there are large operators who outsource a low percentage of their MTS services while smaller operators outsource a much larger percentage. Is that the right way to think about it? If so, which one is contributing more to revenue now, and which one is the larger opportunity to contribute to revenue growth over the next 12-24 months? Hi, Bernie, thanks for the question. At the moment, it's very clear tier three operators which are powering the growth of the MTS service. Tier one operators to a small degree because this is for them relative small sports from a liquidity perspective, which they trade with us, might be table tennis or cricket or something in this way. We are, as you know, heavy in the development here for liquidity trading. We see three different categories in the future, and we are working on this future. Saying for the tier one operators, it's high liquidity trading with ultra-low margins, which needs innovation in the product which we have now. We are, as we speak, putting all our forces into this to innovate here. You might see a mix into tier two and tier three trading systems. For tier three, I think we are perfect. We can very well trade also smaller sports with big bookmakers. For trading the full liquidity of a big bookmaker or a big operator, it needs improvement in the liquidity trading algorithms, a very fascinating area, high-speed trading. If you control on one side the latency, which we do, and deep data, and on the other side, aggregates the highest liquidity, that will lead them into trading alpha, and that is the future for the big liquidity trading. Understood. Then I was hoping if you could just talk about the Vaix acquisition a little bit, how differentiated that technology is and what the cross-sell opportunities with your sportsbook customers, and if this is kinda like the first step in a larger iGaming opportunity. Yes, it's a step into it. Look, as you know, a traditional BI system helps you probably to understand the impact of a marketing campaign in two to three weeks, depending on how much data and how big the campaign is. The AI from Vaix can do this within two to three days. I don't need to tell you that shortening this for more than two weeks, that's a massive impact, because you can optimize your cost significantly. That is one of the things where we see direct impact now. Looking to the sportsbook, of course, understanding the player and the player performance on what campaigns he reacts is key here. Vaix has all the products here, and the cross-selling then into the gaming space is very natural. Once you know the behavior of a sports bettor, cross-sell him into the gaming is in our plan, and Vaix is an enabler for this. So easy, you have a live bet, and if there is no live betting activity, you're gonna find quickly a simulation that you shift the channel into the gaming, and Vaix has a perfect toolset for this and perfect knowledge. Great. Thank you for taking the questions. Thank you. Thank you. Our next question comes from Michael Graham with Canaccord Genuity. Your line is open. Thanks. This is Jason on for Mike. On the rest of world betting segment, you talked about higher turnover and upselling driving the really strong growth there. I'm just wondering, are there any specific regions of the world or countries or operators that are notably strong and driving that performance? Anything to call out there? Well, the strong growth comes from the managed betting services and here mainly the MTS services. The reasons for this is in EMEA, but that's quite big. There are a couple of European countries where we see some stronger growth in here. There is Africa, there is Latin America, which we see with a very strong growth. For the odds and data services, which is growing 16%, as you see in the quarterlies, that is all over the place. That is a growth which we achieve was mainly upselling but also serving some of the new clients in those markets. Great. That's helpful. Then just you mentioned the impact from Ukraine on Q2 being a little more notable. Can you just drill down on that a bit and share a little more detail there? Yes. We gave you in the last quarter the worst case scenario with EUR 110 million EBITDA. If I'm looking now in the rearview mirror of the car, this number gets smaller. We get a distance from the worst case. We definitely see that a couple of bookmakers stopped ordering some of the services, or some of them have payment problems. That is why Alex hinted to you, we will see some impact in quarter two. We keep the guidance, and we are working very actively on mitigation. We see good opportunities popping up in Asia. As we speak and as we guided, we are looking to mitigate this best we can. Great. Thanks a lot. Thank you. Our next question comes from David Katz with JP Morgan. Your line is open. All right. Thank you. Carsten, you noted the percentage of live betting in the U.S. being, you know, still much lower than rest of world. Do you see anything within this that's structural and related to the way people consume the four major U.S. sports relative to soccer, which obviously drives a lot more betting internationally? You know, what underlines your confidence the U.S. market will continue to shift toward live wagering, and where do you think that push needs to come from in terms of the leagues or the media companies to partner with? As you know, I'm doing this already since a couple of years, and I saw many markets and many countries and regions having this kind of shift from a betting behavior from pre-match into live. Without any doubt, the United States was a pre-match betting market, very much driven by Vegas and Atlantic City, and the way how, sorry, people betting. I think with a younger population, with more digital channels here, that's very natural that you bet during the match. It's simply so much more exciting. We see these trends. We are coming from a zero live betting now into a range of 20%-30%. No doubt from all analysts, everybody is saying, there will be a predominant piece in live betting. The question is only the timing. What we can do to accelerate this is, of course, we are giving the stimulation tools for those things. Whatever we do with audiovisual is targeting into making live betting more appealing. The more penetration which we can achieve with the AV products, the better are the results in live betting. Of course, we are trying to push this with all our match centers and the scores. We are trying to accelerate and stimulate this best we can. Of course, if we can, we would love to offer more and more audiovisual live- streaming content to the U.S. marketplace. That is definitely an accelerator to shift this growth. The last word from a sports perspective, the fast-moving sports and soccer is the most interesting for live betting. We see a trend that soccer picks up more and more in the U.S., which hopefully also accelerates here. Okay. Maybe related, I know there's some negotiation right now in terms of the data that you could source from wearables. Assuming you're able to get buy-in from the player associations, you know, what are the sort of key commercial applications? What can you know, what data can you share with the teams versus the betting operators and media? Look, for us, that's We are in this perspective a technology company, and we are aggregating whatever data points we can get. That can be from computer vision and low- latency video stream from an arena with fiber optic, for example, or that can be from RFID chips. For the chips, there is a commitment necessary from the players and from the unions, and there must be agreements between the league and the unions to make that possible. Then the teams need to decide what kind of data do they really want to have in the public domain, what do they want to use for betting, and that's a constant area of discussion. Without any doubt, we will see RFID sensoric chip data also going into the betting market, probably always in a way that it is less intrusive for the player, not to personalize information coming into the public from those systems. There must be an agreement between the leagues and the unions how such data can be used. I see in some leagues there is a huge progress there. One commissioner told me, "Look, we overshare with the unions, and there is no difference in this case." In some other leagues around the globe, there are still discussions ongoing. Without any doubt, RFID chips is a valuable source for the data which we can put into our media and betting products. Okay. Thank you. Our next question comes from Robin Farley with UBS. Your line is open. Great. Thanks. I just wanted to get some clarification on, you know, you reiterated the adjusted EBITDA range of EUR 123 million-EUR 133 million, but a quarter ago, you had mentioned, you know, that potential EUR 13 million impact in the worst-case scenario. You don't mention that, you know, in the slides or release today. So, should we understand from that the downside case is now back to being the EUR 123 million of that range, and that sort of other EUR 13 million is not the worst-case scenario anymore? Hi, Robin. We expected this question from you. It is in a way, like I said before. If I'm looking into the back mirror of my car, I see that number of 110, which is the worst- case scenario, getting smaller. That means, hopefully you agree, we are having a distance to this number. The guidance is 123%-133%, and we keep that guidance. We see in quarter two, we are already in the quarter two impact from this fall. We are actively mitigating it with new markets, and we are working as we speak high speed on those kind of things. The guidance stays with the 123%-133%. The distance to the worst case is getting bigger. Now it's up to the mitigation, because, unfortunately, this terrible war situation might continue for a longer time, and that's the indication which I can give you. Robin, just a quick one. We will continue to look at this. Every quarter when we discuss it with you, if we have something new to say, we will. Okay. I thought that, you know, that it since it wasn't mentioned in the release, that meant that it was kind of off the table. That sounds like it's the odds are getting lower but maybe still potentially the situation. Okay. Great. Just in terms of a follow-up, I'm curious, some of the sports books in the U.S. have, you know, talked about that they, you know, overspent too much in Q1 for customer acquisition or that they have cut back on some of the promotional activity. Have you seen that in your ad:s business here so far in Q2, that there's been a change in what they're spending in the ad:s business, given that they, you know, feel like they may have overspent, not specifically on ad:s in Q1, but just on promotional and customer acquisition cost overall? Thanks. Yes, of course, we see that there is, I would not call it overspent, Robin. It is a significantly higher spend for customer acquisition in the United States than we observe in any other market in the rest of the world. This is a continuing trend. I think it is lengthily and broadly discussed in the industry. All the statements which I see, hear, and read are pointing in the direction that the industry is well aware that this is not a sustainable trend. We will see that some of those spendings are going down. It's mainly the bonuses, the TV campaigns, and that will lead, of course, into a better penetration acceptance of programmatic advertising. We see that in our ad:s. Alex mentioned we had a growth quarter to quarter by 300%. I think that speaks for itself, that those channels will be used for customer acquisition in a preferred way by the industry to reduce the costs in the U.S. You're actually seeing so far in Q2 an increase in the programmatic that it's actually benefiting from the. Of course. Mm-hmm. Okay. Yes. Great. Thank you. Of course. Thanks. Thank you. Our next question comes from Ryan Sigdahl with Craig-Hallum Capital. Your line is open. Thanks for taking our questions. I just wanna turn Robin's statement, I guess, into a question. Given Ukraine and Russia, is it now safe to say the odds are lower given guidance reaffirmation and the Q1 you just reported, but the magnitude is potentially bigger? Do you agree with that, yes or no? Alex, that is a typical question for the CFO. I hand over to you. Okay. The answer is no. The magnitude of what Carsten just said is that the magnitude of the impact on us is now smaller. We don't think we're gonna get to EUR 110. We think we'll do better than EUR 110 without a doubt. Our guidance tells you that we are trying to stay with our guidance, and we are going to mitigate, and we're working on mitigations in Q3 and Q4 as quickly as possible. However, I wanted to make sure that people understood that Q2, which is almost half through, will be impacted. However, we are working on the mitigation going forward. I guess maybe just a follow-up, just to be crystal clear, and maybe I misunderstood it earlier. I thought you said the gap between the base case and worst case has widened, that potentially the magnitude is worse. Now, Alex, I think you just said the gap has shrunk and that 110 is actually probably a higher worst case. Correct. That is correct. The second statement is correct. The 1-10 gap has shrunk. We didn't see a lot of impact in Q1. We're working on mitigating impact in Q2, Q3, and Q4, but there is going to be an impact in Q2. Got it. Helpful. Thank you. One more for me. Just with the big four U.S. sports leagues and the two largest soccer leagues locked up into multi-year exclusive contracts, notably you guys have four of those, how much opportunity do you see in the pipeline for new sports rights business going forward versus optimizing the existing portfolio? You know that our business growth does not only depend on sports rights deals. Our growth in the U.S., there is a huge opportunity with the shift from pre-match into live. I hope I highlighted this. For us, it means we can optimize, odds take rate from a 2% on average to a 5%-7% if it is the MTS product. If it is the odds product, it also goes significantly higher. With the existing rights which we have, we see already a huge growth potential. We see many states are opening up. We see some movements in California here. Growth will be also fueled from this, not only from a sports rights perspective. Sports rights are split into two pieces. It's audiovisual, which is very important for our top 20 clients, as you see in the report, and the data piece. If I'm looking now to opportunities in the U.S., that will be college. The best guess from my side here is that you will see a very mixed environment, and college is very much focused in the talks which we have around the integrity and a more holistic approach in tools for the players and for the coaches to optimize this. In all of these directions, we feel ourselves being perfectly placed, but we will not do any deals which are going away from our general strategy of saying, this is a highly high-growth company, but very profitable and high cash converting. This is the deals which you will see from us in this space, but there is a college opportunity. Thanks, guys. Good luck. Thank you. Thank you. Our next question comes from Steven Pizzella with Deutsche Bank. Your line is open. Hey. Just wanted to follow up on the college. Can you talk about your existing NCAA product you have currently and the benefits you could potentially foresee from having the data rights from the conferences? Look, we think that college is significantly different from a rights perspective than the big four sports which we have in the U.S. What is established there with the official data is a part of a strategy from those big players which have an enormous media power, which can limit the access of bookmakers in that acquisition channel. We don't think that college has not that kind of power which we see from the big leagues, and here, namely two of them which are popping out. We think for college, it's more important to have a partner who can satisfy all needs. That is in integrity. College doesn't want to have any problems with the young players. They need guidance here. They need the monitoring on this. It is very essential with every college which we have talks with now, that is key to central in their opinion. The training of the athletes is very important. The tools for this, it's not only the data collection, it's the tools, it's the video coaching, it's the sports analytics systems which are important. OTT transmission, how to do this, how to enable that the moms and the dads can see performance or the friends can see this is a part of it, the experience in the entertainment, and then of course, the revenues from sports betting. It's more a holistic picture which we see for college, if we compare to the big leagues. Okay, thanks. You mentioned you're now cross and upselling the Synergy Sports product to customers. Can you talk about how much that is contributing now and your outlook for the business? Alex, can you give us the numbers on it? Yeah. In Q3, between the two segments, and I'm not gonna break it out. Between audiovisual betting and sports betting, outside of the U.S. for the worldwide, it's contributed about EUR 3 million of revenue. We're expecting that to continue to grow, obviously, over this year and over the following years. Okay, great. Thank you. Thank you. Our next question comes from Jason Bazinet with Citi. Your line is open. Thanks. I just had a question for Alex. Thank you for you know, giving us the long-term targets for EBITDA free cash conversion. My question is, what do you think a reasonable range is this year? The reason I ask is your headline free cash conversion looked good at 48%, but if I back out the FX impact, it was closer to 12% or 13%, if I'm doing the math right this quarter. Maybe that points to the working capital dynamics that you talked about as you move to a rev share model that could sort of delay or tamper. Go ahead. That's exactly the case. It's definitely pointing and that's why I wanted to highlight the model because those are our fastest growing revenues, and they do. There is a delay in working capital and conversion to cash. You know, we'll continue to improve. I don't wanna give target for the year, for this year, but certainly over the next two to three years, this is the target, and we're gonna start marching towards that target this year. Can you just in rough terms, the sort of timing of the working capital impact, is that like a quarter or two, or is it longer than that? I mean, if you think about our subscription model, it worked on a prepayment basis, right? We got the money first effectively, right? Right. This is us getting the revenue share. First the customers have to figure out the revenue, then they tell us, then we bill them, then they pay. You've got a couple of months delay there. Understood. Okay. Thank you. Thank you. Our last question comes from Mike Hickey with the Benchmark Company. Your line is open. Hey, Carsten, Alex. Good morning, guys. Nice quarter. Congratulations. Just two questions from me. Carsten, obviously, you run a global business here, and you've run it for decades, so you're sort of a beacon of knowledge. I'm just sort of curious, your view on sort of the economic slowdown globally, I think we're sort of experiencing, and we're obviously seeing some pressure on consumer spend, which maybe eventually trickles through operators into you. Sort of just how your business has behaved historically in periods of stress within particular regions where you operate, and if that's a consideration that you originally baked into your guidance. I have a follow-up. Thank you for that question, Mike. It's refreshing that you see it's a strong first quarter that is indeed the case. Only to make it clear, we intend to perform exactly as we forecasted, and we always manage to keep our guidance and lie within the guidance. Only as a small side remark. Yes, I'm working since 25 years in that industry. I'm just at a conference where I had the pleasure to listen to the 34th President of the United States also on this topic. We see no impact from the current downturn and recession, and we expect no impact. In all the 25 years where I operated, I see one thing, sports betting and sports are resilient in this crisis and recessions. We see exactly the same thing now. We think we might even see some acceleration in some markets. From our business perspective, it has no impact. It probably, unfortunately for the consumer, has probably more a positive impact for us because if the crisis is getting bigger, people have the mentality to spend small money into winning big prizes. That's what you see in lotteries. You see the same in sports betting. Sport consumption generally in that period goes higher. That is what we see in the future and how we think we are able to hit our forecast and numbers. We see no impact from this downturn. Nice. Thank you. Second question for me. You highlighted the strength of your balance sheet and obviously you're driving profit here. Just sort of curious in this environment, you know, if you are, you know, sort of wanting to lean forward here, Carsten, and be opportunistic leveraging that capital for your growth and acquisitions or a buyback. Sort of I guess, what do you do with that cash and, you know, how do you leverage it to drive growth? Thanks. First of all, we are super happy to have cash on our balance sheet, and we are super happy to generate cash. In such a situation, I think that's key to center. Being cash strong and generating is very, very important in such a situation. Looking to opportunities, we are constantly monitoring the market around the technology space for our key eight sports. We made such an acquisition which we monitored for a long time, and came then to a conclusion that is improving our technology stack and can be implemented directly into our revenue-driving products. This is something which we continue to monitor and discuss very actively as we speak. The trouble here is that the private and the public market valuations are currently, let's say, a little bit detached. There is very soon, I guess, coming an opportunity for doing acquisitions on a different valuation level, and we will use these opportunities if this fits into our core technology stack and into the sports where we want to accelerate. We monitor this actively, but at the moment, it's a valuation question. Nice. Thanks for the color. Good luck. Thank you. Thank you. This concludes our Q&A session. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.