Inspired Entertainment, Inc. (NASDAQ:INSE) Q3 2024 Earnings Conference Call November 8, 2024 8:00 AM ET
Company Participants
Lorne Weil - Executive Chairman
Brooks Pierce - President & Chief Executive Officer
Conference Call Participants
David Bain - B. Riley Securities
Barry Jonas - Truist Securities
Chad Beynon - Macquarie
Jordan Bender - Citizens JMP
Ryan Sigdahl - Craig-Hallum Capital Group
Operator
Good morning, everyone, and welcome to the Inspired Entertainment Third Quarter 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Please note, today's event is being recorded.
Please refer to the company's safe harbor statement that appears in the third quarter 2024 earnings press release, which is also available in the Investors section of the company's website at www.inseinc.com. These safe harbor statements also applied in today's conference call as the company's management will be making certain statements that will be considered forward-looking under securities laws and rules of SEC. These statements are based on management's current expectations or beliefs and are subject to risks, uncertainties and changes in circumstances.
In addition, please note that the company will discuss both GAAP and non-GAAP financial measures. A reconciliation is included in the earnings press release.
With that completed, I would now like to turn the call over to Lorne Weil, the company's Executive Chairman. Mr. Weil, please go ahead.
Lorne Weil
Thank you, operator. Good morning, everyone, and thank you for joining our call today.
We understand there's some pretty stiff conference call competition this morning. So, we definitely appreciate having you with us.
In a few minutes, Brooks will take us through the businesses in some detail, highlighting the primary growth drivers, our underlying plans to exploit them and the trends we're seeing, but from 30,000 feet, I would summarize things as follows. The Interactive business continues on a growth tier, where we're seeing the compound effect of accelerating revenues and expanding margins. Virtual Sports is maintaining extraordinary margins, while revenues continue to tread water. We think revenue is approaching an inflection point as the previously discussed customer concentration impact flattens out. The rest of the customer base experiences healthy growth, especially in the digital space. Brooks will talk about this more in a minute. And we see the impact of important new products. And lastly, our retail-oriented businesses are performing very nicely, benefiting from normal business as usual conditions in our various markets. Overall, year-to-year EBITDA growth in the third quarter was 13% and our EBITDA margins are reaching closer to our 40% target.