Shares fell 6.7% as investors reacted negatively to a cautious outlook signaled by a softer-than-expected customer engagement trajectory, highlighted by a sequential decline in monthly active users (MAUs) despite World Cup-driven revenue growth and raised full-year guidance.
- Revenue rose 18% year-over-year to a record $684 million, driven notably by a 36% increase in African markets and strong World Cup-related wagering.
- Adjusted EBITDA grew 30% to $204 million, with margin expansion to 30%, aided by improved sports margins and disciplined cost management.
- Average monthly active customers increased 13% year-over-year to 6.2 million but showed a sequential decline and a 2% year-over-year decrease in marketing spend, raising concerns about sustained engagement.
- The U.K. segment experienced margin pressure from tax impacts and elevated short-term promotional costs, offsetting some underlying growth.
- Despite a raised full-year revenue and EBITDA guidance, investor skepticism over the quality and durability of customer metrics and marketing strategy likely pressured shares.
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