INSE Earnings Prediction
The chart below shows how INSE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INSE sees a -0.44% change in stock price 10 days leading up to the earnings, and a +2.36% change 10 days following the report. On the earnings day itself, the stock moves by +0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
INSE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
78.00M
-20.00%
3.17%
Gross Margin
55.51%
38.43%
4.40%
Operating Margin
15.26%
21.98%
22.77%
Net Margin
4.36%
24.93%
64.53%
EPS
0.12
0.00%
71.43%
No Data Available
INSE Earnings Analysis
Inspired Entertainment, Inc. Corporation (INSE.O) Earnings Conference Call
Positive
Cash Balance Increase: 1. Strong Cash Position: The company ended Q3 2024 with a cash balance of $36.5 million, up from $23.5 million at the end of Q2 2024, reflecting improved cash performance post-accounting restatement.
EBITDA Margin Improvement: 2. EBITDA Growth: Year-over-year EBITDA growth in Q3 was 13%, with EBITDA margins reaching 38.6%, up 3 percentage points from Q3 of the previous year, moving closer to the company's 40% target.
Interactive Segment Growth: 3. Interactive Business Performance: Revenue in the Interactive segment increased by 40% year-over-year, with EBITDA rising by 47%, and an adjusted EBITDA margin of 67.6%.
Leisure Segment Performance: 4. Leisure Segment Growth: The Leisure segment reported a 5% increase in revenue year-over-year and a 17% increase in EBITDA, demonstrating effective operating leverage and efficiencies.
Product Innovation Impact: 5. New Product Launches: The company introduced new products, including the Valiant cabinet and enhancements to the Hybrid Dealer category, which received positive customer feedback and are expected to drive future growth.
Negative
Virtual Sports Revenue Decline: 1. Decline in Virtual Sports Revenue: The Virtual Sports segment continues to be negatively impacted by the decline of the largest customer, with overall revenue growth stalling despite a reported 11% increase in recurring revenue from other customers.
Integration Hurdles in Sports: 2. Customer Integration Challenges: The company faces significant challenges in integrating its Interactive content with Virtual Sports, particularly due to regulatory hurdles and the need for major operators like DraftKings and FanDuel to come onboard, which has delayed growth in this segment.
Stagnant Customer Base Growth: 3. Limited Customer Base Growth: The Virtual Sports customer base has remained flat at 57 customers over the past couple of years, contrasting sharply with the Interactive segment, which has seen substantial growth, indicating a stagnation in Virtual Sports expansion.
Product Launch Delays: 4. Delayed Product Launches: The launch of new products, such as the NFL game, has been delayed due to customer resource issues and regulatory approvals, pushing expected growth into late 2024 or early 2025, which hampers immediate revenue potential.
Manufacturing Facility Transition: 5. Manufacturing Facility Shutdown: The decision to shut down the manufacturing facility in Wales and transition to a fully outsourced model may lead to short-term disruptions and increased costs as the company adjusts to the new operational structure.
INSE FAQs
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INSE Earning Call Sentiment
Inspired Entertainment, Inc. (INSE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
INSE.O
4.23%Positive
The earnings call presents a mixed outlook. While financial performance shows strong growth in interactive and gaming segments, concerns arise from customer concentration, regulatory delays, and supply chain challenges. The Q&A section reveals management's vagueness on key issues like margin targets and bespoke pricing, raising uncertainty. Positive cash flow projections and potential uplift from product refreshes are offset by market expansion risks. Without clear guidance improvements or new partnerships, the stock is likely to remain stable. Neutral sentiment reflects balanced positives and negatives, suggesting limited short-term stock movement.
