SharpLink Gaming Inc (SBET) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to SharpLink Gaming's Third Quarter 2023 Results Webcast. Please note that this event is being recorded and will be available for replay shortly after the conclusion of our live broadcast.

女士們、先生們，早安，歡迎收聽 SharpLink Gaming 2023 年第三季業績網路廣播。請注意，活動正在錄製中，直播結束後不久即可重播。

Joining us today from SharpLink is the company's Co-Founder and Chief Executive Officer, Rob Phythian; and Robert DeLucia, Chief Financial Officer.

今天與我們一起參加活動的是 SharpLink 的共同創辦人兼執行長 Rob Phythian；以及財務長羅伯特·德盧西亞（Robert DeLucia）。

Before I turn the floor over to them, I remind you that during today's call, statements that are not historical facts, including any projections, statements regarding future events or future financial performance or statements of intent or belief are forward-looking statements and are covered by the safe harbor disclaimers contained in the company's public filings with the SEC. Actual outcomes and results may differ materially from what is expressed in or implied by these forward-looking statements.

在我將發言權交給他們之前，我提醒你們，在今天的電話會議中，非歷史事實的陳述，包括任何預測、有關未來事件或未來財務表現的陳述或意向或信念的陳述都是前瞻性的陳述，並且受到公司向美國證券交易委員會提交的公開文件中的安全港免責聲明的保護。實際結果可能與這些前瞻性陳述所表達或暗示的內容有重大差異。

With that said, I would now like to introduce Rob Phythian, CEO of SharpLink. Please go ahead, Rob.

說了這麼多，現在我想介紹一下 SharpLink 的執行長 Rob Phythian。請繼續，羅布。

Thank you, Kat, and good morning, everybody. SharpLink posted another strong quarter marked by triple-digit percentage revenue growth for both the 3- and 9-month reporting periods. The revenue expansion that we achieved over the past 3 consecutive quarters is due in large measure to the successful execution of our M&A activities, which began in December 2021 with the acquisition of FourCubed, followed by our merger with SportsHub Games Network, just 1 year later in December 2022.

謝謝你，凱特，大家早安。 SharpLink 又取得了一個強勁的季度業績，在 3 個月和 9 個月的報告期內，收入均實現了三位數的百分比增長。我們在過去連續三個季度實現的營收成長，很大程度上歸功於我們成功執行的併購活動，該活動始於 2021 年 12 月收購 FourCubed，隨後在僅僅 1 年後的 2022 年 12 月與 SportsHub Games Network 合併。

Beyond the top line, our gross profit margin has been a clear positive story, showcasing the logic and strategy that's gone into strengthening our infrastructure and diversifying our technology solutions and service offerings. Our purpose of acquiring FourCubed was to take advantage of its team's many years of success, specialized expertise and experience in building a highly engaged affiliate marketing network for online poker stakeholders across the European continent.

除了營業收入之外，我們的毛利率也呈現明顯的正成長，反映了我們加強基礎設施、實現技術解決方案和服務產品多樣化的邏輯和策略。我們收購 FourCubed 的目的是利用其團隊多年的成功、專業知識和經驗，為整個歐洲大陸的線上撲克利益相關者建立高度參與的聯盟行銷網絡。

With FourCubed skill set and know-how on board at SharpLink, it's been our intention to apply and amplify these assets to build from the ground up in Affiliate Marketing Services business designed to suit the unique needs of the U.S. market.

借助 SharpLink 所擁有的 FourCubed 技能和專業知識，我們打算應用和擴大這些資產，從頭開始建立聯盟行銷服務業務，以滿足美國市場的獨特需求。

Today, SharpLink's Affiliate Marketing Services, U.S. business and international business remain hard at work to build an Affiliate Marketing platform that is not only a strong revenue channel but one that delivers SharpLink a broad, sticky audience of sports fans and provides our sportsbook partners with high-quality traffic of new sports betters.

如今，SharpLink 的聯盟行銷服務、美國業務和國際業務仍在努力建立聯盟行銷平台，該平台不僅是一個強大的收入管道，而且還為 SharpLink 帶來了廣泛、粘性的體育迷受眾，並為我們的體育博彩合作夥伴提供了新的體育博彩者的高品質流量。

In connection with the phased rollout of our affiliate marketing growth strategy, SharpLinkHQ was launched last month, providing a venue for us to unite and showcase SharpLink's advanced technologies, betting tools, and performance marketing capabilities. Moreover, we expect to leverage this new flagship website to benefit from cross-promotional opportunities between all of SharpLink's business units including promos and driving traffic to our proprietary fantasy sports and free-to-play properties with full betting integration built-in.

配合我們分階段推出的聯盟行銷成長策略，SharpLinkHQ 於上個月正式推出，為我們提供了一個團結和展示 SharpLink 先進技術、投注工具和績效行銷能力的場所。此外，我們希望利用這個新的旗艦網站，從 SharpLink 所有業務部門之間的交叉促銷機會中獲益，包括促銷和吸引流量到我們專有的夢幻體育和免費遊戲產品，並內建完整的投注整合。

SharpLink's merger with SportsHub was also approached and executed with the intent to own fantasy sports assets that will provide us with a growing proprietary audience of sports fans whose passion for fantasy sports games and contest will fuel their conversion to legal sports betters. After all, it was the rise of fantasy sports in this country that paved the way for legalized sports betting and advertising.

SharpLink 與 SportsHub 的合併也是出於擁有夢幻體育資產的目的而進行討論和執行的，這將為我們提供越來越多的專有體育迷受眾，他們對夢幻體育遊戲和比賽的熱情將推動他們轉變為合法體育博彩者。畢竟，正是這個國家夢幻體育的興起為體育博彩和廣告合法化鋪平了道路。

As Bob will share, SportsHub is playing a significant role in the growth of SharpLink despite the fact the market is yet to recognize the value this new business unit and its portfolio fantasy sports assets represent.

正如鮑伯所說，儘管市場尚未認識到這個新業務部門及其投資組合夢幻體育資產所代表的價值，但 SportsHub 在 SharpLink 的發展中發揮著重要作用。

For instance, LeagueSafe, our fantasy sports league management platform collected nearly $32 million in total entry fees from over 56,000 private fantasy football leagues for the 2023 and '24 season. This represents a 22% increase over the prior year season.

例如，我們的夢幻體育聯盟管理平台 LeagueSafe 從 56,000 多個私人夢幻足球聯盟收取了 2023 年和 2024 年賽季的總入場費近 3200 萬美元。這比去年同期增長了 22%。

While the broader Wall Street market has yet to recognize and reward SharpLink for the success we are achieving on executing our long-term growth plans, we'll nonetheless continue to remain focused on nailing our KPIs and forge ahead with the intent of optimizing enduring value creation for our shareholders.

儘管更廣泛的華爾街市場尚未認可和獎勵 SharpLink 在執行長期成長計畫方面所取得的成功，但我們仍將繼續專注於確定我們的關鍵績效指標，並致力於為股東創造持久的價值。

Before I provide an update on other corporate matters, Bob, let's take a moment to review the actual third quarter results.

鮑勃，在我提供其他公司事務的最新消息之前，讓我們花點時間來回顧一下第三季度的實際業績。

Thanks, Rob, and good morning. On Monday of this week, we filed our 10-Q with the SEC after the market closed and published a press release yesterday morning, providing some key highlights of the results for the 3- and 9-month reporting periods.

謝謝，羅布，早安。本週一，我們在市場收盤後向美國證券交易委員會提交了 10-Q 報告，並於昨天早上發布了一份新聞稿，提供了 3 個月和 9 個月報告期業績的一些關鍵亮點。

As Rob noted, revenues were strong, climbing 153% and 101% for the 3- and 9-month period ended September 30, 2023, respectively. More specifically, total revenues increased to $3.3 million in Q3 2023 compared to $1.3 million for Q3 of last year.

正如羅布所說，收入強勁，截至 2023 年 9 月 30 日的 3 個月和 9 個月期間收入分別增長了 153% 和 101%。更具體地說，2023 年第三季的總收入從去年第三季的 130 萬美元增加至 330 萬美元。

Looking at the performance of each of our 4 business units, SportsHub contributed $1.4 million to our total sales in Q3 of 2023, which compared to 0 last year due to the fact that our merger was completed in December of '22.

縱觀我們 4 個業務部門各自的表現，SportsHub 在 2023 年第三季為我們的總銷售額貢獻了 140 萬美元，而去年為 0，因為我們的合併於 22 年 12 月完成。

Affiliate Marketing Services U.S. contributed $232,000 for the 3 months ended September 30, 2023, up from $115,000 last year and Affiliate Marketing Services international achieved revenues of $1.2 million in Q3 compared to $761,000 in Q3 of '22.

截至 2023 年 9 月 30 日的 3 個月內，美國聯盟行銷服務部貢獻了 23​​2,000 美元，高於去年的 115,000 美元，國際聯盟行銷服務部在第三季的收入為 120 萬美元，而 22 年第三季為 761,000 美元。

Our Sports Gaming Client Services group, which produces free-to-play games for our marquee list of sports media operators, leagues, teams and sports books held steady at $420,000 in revenues for the 3 months ended September 30th of this year, which compared to $417,000 in Q3 of last year.

我們的體育遊戲客戶服務小組為我們的主要體育媒體運營商、聯盟、球隊和體育博彩公司製作免費遊戲，截至今年 9 月 30 日的三個月收入穩定在 420,000 美元，而去年第三季度的收入為 417,000 美元。

For the 9 months ended September 30, 2023, compared to the first 9 months of 2022, total revenues rose to $9.9 million from $4.9 million, respectively. Drilling down further, SportsHub represented $3.6 million of our total sales in 2023 for the 9-month period. Affiliate Marketing Services, U.S. generated $817,000 compared to $285,000. Affiliate Marketing Services, international revenues climbed to $3.3 million from $2.5 million. And the Sports Gaming Client Services increased revenues to $2.2 million compared to $2.1 million on a year-over-year basis.

截至 2023 年 9 月 30 日的 9 個月與 2022 年前 9 個月相比，總收入分別從 490 萬美元增至 990 萬美元。進一步深入研究後發現，SportsHub 在 2023 年前 9 個月的銷售額占我們總銷售額的 360 萬美元。美國聯盟行銷服務收入為 817,000 美元，而去年同期為 285,000 美元。聯盟行銷服務的國際收入從 250 萬美元攀升至 330 萬美元。體育博彩客戶服務收入從去年同期的 210 萬美元增至 220 萬美元。

As Rob mentioned, we saw a sharp expansion in our gross profit margin in both the 3- and 9-month reporting periods. Gross profit increased 505% to $1.1 million for the 3 months ended September 30, 2023, from gross profit of approximately $188,000 for the comparable 3 months in 2022. For the first 9 months of 2023, gross profit nearly tripled, rising 281% to $3.5 million from $905,000. Likewise, gross profit margin increased to 34.8% and 34.7% for the 3- and 9-months ended September 30, 2023. This compared to 14.5% and 18.3% for the 3- and 9-months ended September 30, 2022.

正如 Rob 所提到的，我們在 3 個月和 9 個月的報告期間內都看到了毛利率的大幅擴大。截至 2023 年 9 月 30 日的 3 個月，毛利從 2022 年同期的約 188,000 美元增長 505% 至 110 萬美元。同樣，截至 2023 年 9 月 30 日的 3 個月和 9 個月的毛利率也增加至 34.8% 和 34.7%。 而截至 2022 年 9 月 30 日的 3 個月和 9 個月的毛利率分別為 14.5% 和 18.3%。

Moving down to the income statement. For the 3 months ended September 30, 2023, total operating expenses increased 71% to $3.6 million, up from $2.1 million for the 3 months ended September 30, 2022. The increase was attributable solely to higher selling, general and administrative expenses attributable primarily to our December '22 merger with SportsHub as well as expansion initiatives associated with our Affiliate Marketing Services business units.

轉到損益表。截至 2023 年 9 月 30 日的 3 個月，總營運費用從截至 2022 年 9 月 30 日的 3 個月的 210 萬美元增加 71% 至 360 萬美元。

For the 9 months ended September 30, 2023, and '22, operating expenses declined 18% to $11 million from $13.4 million largely due to goodwill and intangible asset impairment of $4.7 million recorded in the 9-month period ended September 30, 2022. The total net loss attributable to ordinary shareholders increased 39% to $2.9 million or $0.99 loss per share, which compared to a net loss attributable to shareholders of $2.1 million or $0.86 loss per share for the same 3 months in 2022.

截至 2023 年 9 月 30 日和 22 年 9 月 30 日的 9 個月，營業費用從 1,340 萬美元下降 18% 至 1,100 萬美元，這主要是由於截至 2022 年 9 月 30 日的 9 個月期間記錄的屬於普通股淨股東和股東總額。每股虧損 0.99 美元，而 2022 年同期歸屬於股東的淨虧損為 210 萬美元或每股虧損 0.86 美元。

For the 9 months ended September 30, 2023, the total net loss available to ordinary shareholders was $9.2 million or $3.35 loss per share, reflecting a 34% decline when compared to the total net loss attributable to shareholders of $13.9 million or $5.89 loss per share, reported for the comparable 9-month period in the previous year.

截至 2023 年 9 月 30 日的 9 個月，普通股股東應佔淨虧損總額為 920 萬美元或每股虧損 3.35 美元，與去年同期報告的股東應佔淨虧損總額 1,390 萬美元或每股虧損 5.89 美元相比下降了 34%。

Now looking at our cash flows as of September 30, 2023, the company had $49.3 million in cash and $14.9 million in restricted cash as compared to cash of $39.3 million and restricted cash of $11.1 million as of December 31, 2022. For the 9-month period, ended September 30, 2023, cash provided by operations from continuing activities was $6.3 million, which compared to cash used in operations for continuing activities of $6.4 million for the 9 months ended September 30, 2022.

現在查看截至 2023 年 9 月 30 日的現金流，公司擁有 4,930 萬美元現金和 1,490 萬美元受限現金，而截至 2022 年 12 月 31 日的現金為 3,930 萬美元，受限現金為 1,110 萬美元，截至 2023 年 截至 2023 年 9 月為 300 萬美元的現金，而持續 2023 年至 2023 年 29 月的現金為 30 個月，而持續 2969729 月 300個月的現金。月 30 日的 9 個月期間持續活動使用的現金為 640 萬美元。

The increase in cash and in restricted cash was primarily attributable to fantasy sports league entry fees collected for the 2023, 2024 NFL season as well as entry fees for the 2023 MLB season. These were offset by payouts for fantasy sports prizes following the end of the 2022 and 2023 NFL season that occurred in January, along with our normal working capital spend.

現金和受限現金的增加主要歸因於 2023 年、2024 年 NFL 賽季收取的夢幻體育聯盟報名費以及 2023 年 MLB 賽季的報名費。這些支出被 1 月 NFL 2022 年和 2023 年賽季結束後的夢幻體育獎金以及我們的正常營運資本支出所抵消。

Rob, that concludes my review of the financial results. I would like to encourage everyone listening to review our actual 10-Q available on sec.gov and on SharpLink's Investor Relations page under SEC filings. Our 10-Q provides much more detailed information regarding our financial performance that is important to investors to read and understand.

羅布，這就是我對財務結果的審查。我想鼓勵所有聽眾查看我們在 sec.gov 和 SharpLink 的投資者關係頁面下的 SEC 文件上提供的實際 10-Q。我們的 10-Q 提供了有關我們財務業績的更詳細信息，這對投資者來說閱讀和理解很重要。

So with that, I turn the floor back over to Rob. Rob?

因此，我將發言權交還給 Rob。搶？

Thank you, Bob. In just a couple of weeks on November 29, 2023, to be precise, SharpLink will be hosting an extraordinary general meeting of our shareholders to vote on the redomestication of our company from Israel to Delaware. If you have not already voted, I'd like to ask that you take a few moments to do that.

謝謝你，鮑伯。確切地說，再過幾週，也就是 2023 年 11 月 29 日，SharpLink 將召開特別股東大會，投票決定是否將公司註冊地從以色列遷至德拉瓦州。如果您還沒有投票，我希望您花幾分鐘時間進行投票。

In the event you need assistance in getting your vote in, please contact us through our Investor Relations e-mail at ir@sharplink.com. The redomestication of SharpLink has been a long and expensive undertaking, but one that we believe is essential to our long-term growth strategy and overall cost reduction in corporate spend. We are also working towards regaining full compliance with Nasdaq and look forward to providing a more meaningful update on this front in the coming weeks.

如果您需要協助來投票，請透過我們的投資者關係電子郵件 ir@sharplink.com 與我們聯絡。 SharpLink 的重新本土化是一個漫長而昂貴的工程，但我們認為，這對於我們的長期成長策略和企業支出的整體成本削減至關重要。我們也正在努力重新完全遵守納斯達克的規定，並期待在未來幾週內在這方面提供更有意義的更新。

Overall, as we progress through the fourth quarter, we're pleased with our execution thus far this year. While we are certainly mindful of the ongoing uncertainties of the market challenges affecting the U.S. sports betting industry in general, we remain optimistic as we persist in our efforts to achieve our KPIs and continue to create long-term value for our shareholders.

總體而言，隨著第四季度的進展，我們對今年迄今為止的執行感到滿意。雖然我們當然意識到影響美國體育博彩業的市場挑戰的持續不確定性，但我們仍然保持樂觀，因為我們堅持努力實現我們的關鍵績效指標，並繼續為我們的股東創造長期價值。

With that, I'd like to thank you all for joining our webcast today, and thank you again for your continued support. We sincerely appreciate you for sticking with us throughout this journey, and we look forward to future calls with you to detail the many progressive milestones we expect to achieve in the coming months.

最後，我要感謝大家今天參加我們的網路直播，並再次感謝大家一直以來的支持。我們真誠地感謝您在整個旅程中對我們的支持，並期待在未來與您通話，詳細介紹我們期望在未來幾個月內實現的許多進步里程碑。

For those of you who'd like to listen to today's webcast again, a replay of this call will be available later today on our website found at sharplink.com. With that, I'd like to wish everyone a good day.

對於那些想要再次收聽今天的網路廣播的人來說，今天晚些時候我們將在我們的網站 sharplink.com 上提供本次通話的重播。最後，我祝大家有個美好的一天。

Operator, back to you.

接線員，回到你身邊。

Thank you for attending today's conference. We appreciate your participation. You may disconnect your lines at this time, and have a wonderful day.

感謝大家參加今天的會議。我們感謝您的參與。此時您可以斷開您的線路，並享受美好的一天。