Jesper Søgaard, the CEO of Better Collective, addressed the company’s financial status following a round of layoffs completed ahead of its latest earnings report.
In Q3 2024, Better Collective lowered its full-year financial projections for the first time since the company became publicly listed on Nasdaq Stockholm. The Denmark-based company cited Brazil’s slow rollout of regulation and changes in U.S. markets as to why it lowered its financial targets. As a result, Better Collective projects full-year revenue in FY2024 to range between $375.2 million and $396.3 million. Its previous financial guidance estimated full-year revenue to range between $417.3 million and $449 million.
“Our audience across our sports media network has surged from 7 million to over 400 million visits since 2018, a testament to the impact we’ve made in the digital sports media arena,” said Søgaard in a letter to investors. “However, sometimes, in the pursuit of growth, it’s necessary to pause, reassess, and adapt, to prepare for the next chapter of growth.”
Better Collective has prepared for its next chapter of growth by undergoing a review of the company’s operational costs leading to the layoff of more than 300 employees last month. The company cited its 35 acquisitions as the reason to streamline its operations.
The 300 employees laid off by Better Collective represented 15% of its total workforce.
Despite lowering its financial targets, Better Collective reported quarterly revenue growth. In Q3, it generated $85.6 million in group revenue, an 8% increase year-over-year. Its adjusted EBITDA before special items reached $23.2 million, up 14% year-over-year.
Better Collective remains adamant that its business model will provide profitability.
“I have been asked whether the changes we have encountered represent a structural shift to our business model. I want to assure you that it does not,” continued Søgaard. “We operate in the sports media and sports betting industries which are sectors with bright futures and significant growth potential. In an expanding, growing and competitive industry, sportsbooks and other partners will continue to seek growth in new and existing markets.”
Better Collective joins the shift in the affiliate industry
Better Collective joins XLMedia and Catena Media in changing its affiliate businesses.
Last month, Catena laid off 29 employees ahead of its third-quarter earnings call in an attempt to streamline its content and marketing teams. The layoffs amounted to roughly 10% of the company’s workforce. Catena expects costs related to the job cuts to reach $423,000 but the company expects to save roughly $2.3 million annually from the layoffs.
Prior to the cuts, Catena had about 300 employees with one-third based in North America. It attributed the changes to relying too much on new market launches.
XLMedia made the decision in October to fully exit the affiliate business by selling its remaining North American domains to Sportradar in a deal valued at up to $30 million.
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