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Inspired
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Dec 31, 2022

Inspired Q4 2022 Earnings Report

Achieved double-digit, year-over-year top and bottom-line growth and reached a record annual revenue and a milestone $100 million in Adjusted EBITDA.

Key Takeaways

Inspired Entertainment reported strong Q4 2022 results, reflecting growth in the digital business and resilience in land-based businesses. Total Revenue was $78.6 million, compared to $67.0 million in the prior-year period. Net Income during the quarter was $3.1 million, compared to a loss of $1.2 million in the prior-year period.

Total Revenue was $78.6 million, compared to $67.0 million in the prior-year period, with an adverse $11.3 million attributable to currency movement.

Virtual Sports Revenue was a record $14.9 million compared to $11.0 million in the prior-year period, with an adverse $2.1 million attributable to currency movement.

Interactive Revenue was $6.3 million compared to $5.7 million in the prior-year period, with an adverse $0.9 million attributable to currency movement, driven by growth in the U.S. and Canada.

Net Income during the quarter was $3.1 million, compared to a loss of $1.2 million in the prior-year period, which included a $2.9 million loss in fair value of warrant liability.

Total Revenue
$78.6M
Previous year: $67M
+17.3%
EPS
$0.11
Previous year: -$0.05
-320.0%
Gross Profit
$54.7M
Previous year: $50.8M
+7.7%
Cash and Equivalents
$25M
Previous year: $74.8M
-66.6%
Free Cash Flow
-$9.8M
Previous year: -$3.9M
+151.3%
Total Assets
$287M
Previous year: $309M
-7.0%

Inspired

Inspired

Inspired Revenue by Segment

Forward Guidance

Inspired Entertainment is focusing on significant growth opportunities in the future, which it intends to capture by using its best-in-class differentiated content to grow its presence in core markets, expand into new markets and extend into additional verticals.

Positive Outlook

  • Continued growth in the digital business.
  • Stability in the Gaming and Leisure segments.
  • Strong Gaming machines sales.
  • Impressive growth trajectory in Virtual Sports.
  • Solid quarter for Interactive with double-digit growth in revenue.

Challenges Ahead

  • Adverse currency movements.
  • Decrease in Leisure revenue.
  • Increase in Total Company Selling, General and Administrative Expenses.
  • Large working capital outflow, particularly in accounts receivable and inventory.
  • Higher costs of parts and prizes as well as increased wages impacting Leisure Adjusted EBITDA margin.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Inspired