Month: November 2024

CHICAGO, Nov. 07, 2024 (GLOBE NEWSWIRE) — GoHealth, Inc. GOCO (“GoHealth” or the “Company”), a leading health insurance marketplace and Medicare-focused digital health company, today announced financial results for the three and nine months ended September 30, 2024.

Third Quarter Highlights

• Third quarter 2024 net revenues of $118.3 million, a $13.7 million decrease compared to $132.0 million in the prior year period.
• Third quarter 2024 Submissions were 166,195, a 2.9% increase compared to 161,550 Submissions in the prior year period, with strong contributions from GoHealth’s internal captive agents, partially offset by a decline in Submissions from the external GoPartner Solutions (“GPS”) agents.
• Third quarter 2024 net income of $15.4 million, an improvement of $71.6 million compared to a net loss of $56.2 million in the prior year period.
• Third quarter 2024 Adjusted EBITDA⁽¹⁾ of negative $12.1 million, a decrease of $0.6 million compared to negative $11.5 million in the prior year period.
• Third quarter 2024 trailing twelve months (“TTM”) positive cash flow from operations of $35.1 million, an increase of $38.3 million compared to TTM negative cash flow from operations of $3.2 million in the prior year period.
• Refinanced Credit Facility, establishing new five-year term with new lender group.
• Completed the strategic acquisition of e-TeleQuote Insurance, Inc. (“e-TeleQuote”), adding approximately $90.5 million in contract assets and $22.5 million in cash (inclusive of the Company’s initial $5.0 million investment), and recording a $77.4 million gain on bargain purchase, reinforcing GoHealth’s aspirations to expand its market leadership and operational capacity.
• Achieved an 11.0% improvement in Direct Operating Cost per Submission⁽²⁾ in the third quarter of 2024 compared to the prior year period, through advancements in artificial intelligence (“AI”), automation, and marketing efficiencies, along with targeted operational improvements.
• Appointed Brendan Shanahan as Chief Financial Officer, who brings over 30 years of healthcare and financial strategy expertise to GoHealth.

“Our third-quarter results underscore the strength of our ongoing transformation into a Medicare engagement company. We’ve helped over 650,000 consumers navigate Medicare options through tools like PlanFit CheckUp, and with the addition of e-TeleQuote’s 400 agents, we’re prepared to efficiently serve the demand surge we are seeing in this year’s Medicare Annual Enrollment Period (“AEP”). We believe these developments reinforce GoHealth’s leadership in the eBroker space, positioning us for sustained growth and profitability,” said Vijay Kotte, CEO of GoHealth.

“The acquisition of e-TeleQuote not only added $90.5 million in contract assets and $22.5 million in cash (inclusive of our initial $5.0 million investment), but also provided a substantial gain on bargain purchase of $77.4 million, boosting our financial position,” Kotte continued. “This strategic move expanded our agent capacity ahead of a pivotal AEP, which we believe will enable us to capitalize on market demand. As the competitive landscape shifts, GoHealth aims to stand out, ready to support the millions of consumers facing benefit reductions or coverage losses.”

“GoHealth’s third-quarter results reflect disciplined cost management, as we reduced our Direct Operating Cost per Submission⁽²⁾ by 11.0%, despite broader market challenges. These efficiency gains and a focus on high-quality lead generation underscore our commitment to driving profitable growth, especially as we progress through AEP,” said Brendan Shanahan, CFO of GoHealth. “With over $77 million gained through the e-TeleQuote acquisition, we believe we’re positioned with the liquidity and flexibility needed to drive long-term value, even as we expand our agent base during this critical AEP.”

“This AEP, we’re seeing unprecedented disruption, with over two million consumers losing coverage and more than six million experiencing reduced benefits. We believe GoHealth’s investments in AI-driven technology, an expanded agent network, and our focus on consumer engagement uniquely position us to lead through these market changes, delivering both growth and improved customer experience,” said Kotte.

(1)	Adjusted EBITDA is a non-GAAP measure. For a definition of Adjusted EBITDA and a reconciliation to the most comparable GAAP measure, please see below.
(2)	Direct Operating Cost per Submission is an operating metric. For a definition of Direct Operating Cost per Submission and an explanation of its calculation, please see below.

Conference Call Details

The Company will host a conference call today, Thursday, November 7, 2024 at 8:00 a.m. (ET) to discuss its financial results. A live audio webcast of the conference call will be available via GoHealth’s Investor Relations website, https://investors.gohealth.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call.

About GoHealth, Inc.

GoHealth is a leading health insurance marketplace and Medicare-focused digital health company whose purpose is to compassionately ensure consumers’ peace of mind when making healthcare decisions so they can focus on living life. For many of these consumers, enrolling in a health insurance plan is confusing and difficult, and seemingly small differences between health plans may lead to significant out-of-pocket costs or lack of access to critical providers and medicines. GoHealth’s proprietary technology platform leverages modern machine-learning algorithms, powered by over two decades of insurance purchasing behavior, to reimagine the process of matching a health plan to a consumer’s specific needs. Its unbiased, technology-driven marketplace coupled with highly skilled licensed agents has facilitated the enrollment of millions of consumers in Medicare plans since GoHealth’s inception. For more information, visit https://www.gohealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are made in reliance upon the safe harbor provision of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding our expected growth, future capital expenditures, debt service obligations, adoption and use of artificial intelligence technologies, the impact on our business from the acquisition of e-TeleQuote Insurance, Inc. (“e-TeleQuote”) and our ability to successfully integrate e-TeleQuote’s operations, technologies and employees into our business, are forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “aims,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “likely,” “future” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions, projections and other statements about future events that are based on current expectations and assumptions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

These forward-looking statements speak only as of the date of this press release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the factors described in the sections titled “Summary Risk Factors,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“2023 Annual Report on Form 10-K”) and in our other filings with the Securities and Exchange Commission. The factors described in our 2023 Annual Report on Form 10-K should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release, as well as the cautionary statements and other risk factors set forth in the Quarterly Report on Form 10-Q for the first fiscal quarter ended March 31, 2024, the Quarterly Report on Form 10-Q for the second fiscal quarter ended June 30, 2024, the forthcoming Quarterly Report on Form 10-Q for the third quarter ended September 30, 2024 and in our other filings with the Securities and Exchange Commission.

You should read this press release and the documents that we reference in this press release completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

Non-GAAP Financial Measures

Throughout this press release, we use a number of non-GAAP financial measures. Non-GAAP financial measures are supplemental measures of our performance that are derived from our consolidated financial information, but which are not presented in our Condensed Consolidated Financial Statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). We define these non-GAAP financial measures as follows:

• “Adjusted EBITDA” represents, as applicable for the period, EBITDA as further adjusted for certain items summarized in the table furnished below in this press release.
   
• “Adjusted EBITDA Margin” refers to Adjusted EBITDA divided by net revenues.
   
• “EBITDA” represents net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization expense.

We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. Adjusted EBITDA is the primary financial performance measure used by management to evaluate the business and monitor the results of operations, as well as a basis for certain compensation programs sponsored by the Company. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

The non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of each of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to its most directly comparable GAAP financial measure are presented in the tables furnished below in this press release. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-routine items.

Key Performance Indicators

In addition to traditional financial metrics, we rely upon certain business and operating metrics to evaluate our business performance and facilitate our operations. The most relevant business and operating metrics are as follows:

• “Direct Operating Cost of Submission” is an operating metric that represents costs directly attributable to Submissions generated during a particular period and excludes costs that are indirect or fixed. Direct Operating Cost of Submission is comprised of the portion of the respective operating expenses for revenue share, marketing and advertising and consumer care and enrollment that are directly related to the Submissions generated in the particular period. Direct Operating Cost of Submission, most recently referred to as “Direct Cost of Submission,” reflects a name change only.
   
• “Direct Operating Cost per Submission” is an operating metric that represents the average performance of Submissions generated during a particular period. Direct Operating Cost per Submission refers to (x) Direct Operating Cost of Submission for a particular period divided by (y) the number of Submissions generated for such period. Direct Operating Cost per Submission, most recently referred to as “Direct Cost per Submission” reflects a name change only.
   
• “Sales/Direct Operating Cost of Submission” represents (x) the numerator of Sales per Submission, as defined below, divided by (y) Direct Operating Cost of Submission. Sales/Direct Operating Cost of Submission, most recently referred to as “Sales/Direct Cost of Submission” reflects a name change only.
   
• “Sales per Submission” is an operating metric that represents the average performance of Submissions generated during a particular period. Sales per Submission measures revenues only from the Submissions generated in the period and excludes items that are unrelated to such Submissions, including any impact of revenue adjustments recorded in the period, but relating to performance obligations satisfied in prior periods. Sales per Submission equals (x) the sum of (i) agency revenues, comprised of the expected amount of initial commission revenue and any renewal commissions to be paid from the health plan partners on such placement as long as the policyholder remains with the same insurance product, as well as partner marketing and other revenue and (ii) non-agency revenues, comprised of the enrollment and engagement services for which cash is collected in advance or in close proximity to the point in time revenue is recognized, divided by (y) the number of Submissions generated for such period.
   
• “Submission” refers to either (i) a completed application with our licensed agent that is submitted to the health plan partner and subsequently approved by the health plan partner during the indicated period, excluding applications through our Non-Encompass BPO Services or (ii) a transfer by our agent to the health plan partner through the Encompass operating model during the indicated period.

Direct Operating Cost of Submission, Direct Operating Cost per Submission, Sales/Direct Operating Cost of Submission, Sales per Submission and Submissions are key operating metrics we use to understand our underlying financial performance and trends.

Certain Definitions and Key Terms

As used in this press release, unless the context otherwise requires:

• “LTV” refers to the Lifetime Value of Commissions, which we define as aggregate commissions estimated to be collected over the estimated life of all commissionable Submissions for the relevant period based on multiple factors, including but not limited to, contracted commission rates, health plan partner mix and expected policy persistency with applied constraints.
   
• “Non-Encompass BPO Services” refer to programs in which GoHealth-employed agents are dedicated to certain health plans and agencies we partner with outside of the Encompass operating model.

The following tables set forth the components of our results of operations for the periods indicated (unaudited):

			Three months ended Sep. 30,
				2024							2023
(in thousands, except percentages and per share amounts)			Dollars				% of Net Revenues			Dollars				% of Net Revenues			$ Change				% Change
Net revenues			$	118,292			100.0	%		$	132,037			100.0	%		$	(13,745	)		(10.4) %
Operating expenses:
Revenue share				19,683			16.6	%			35,992			27.3	%			(16,309	)		(45.3) %
Marketing and advertising				45,270			38.3	%			39,416			29.9	%			5,854			14.9	%
Consumer care and enrollment				45,556			38.5	%			46,472			35.2	%			(916	)		(2.0) %
Technology				9,801			8.3	%			11,652			8.8	%			(1,851	)		(15.9) %
General and administrative				17,140			14.5	%			12,967			9.8	%			4,173			32.2	%
Amortization of intangible assets				23,514			19.9	%			23,514			17.8	%			—			—	%
Total operating expenses				160,964			136.1	%			170,013			128.8	%			(9,049	)		(5.3) %
Income (loss) from operations				(42,672	)		(36.1) %				(37,976	)		(28.8) %				(4,696	)		12.4	%
Interest expense				19,086			16.1	%			17,565			13.3	%			1,521			8.7	%
Gain on bargain purchase				(77,363	)		(65.4) %				—			—	%			(77,363	)		NM
Other (income) expense, net				250			0.2	%			771			0.6	%			(521	)		(67.6) %
Income (loss) before income taxes				15,355			13.0	%			(56,312	)		(42.6) %				71,667			(127.3) %
Income tax (benefit) expense				(11	)		—	%			(108	)		(0.1) %				97			(89.8) %
Net income (loss)			$	15,366			13.0	%		$	(56,204	)		(42.6) %			$	71,570			(127.3) %
Net income (loss) attributable to non-controlling interests				8,591			7.3	%			(32,294	)		(24.5) %				40,885			(126.6) %
Net income (loss) attributable to GoHealth, Inc.			$	6,775			5.7	%		$	(23,910	)		(18.1) %			$	30,685			(128.3) %
Net Income (Loss) Margin				13.0	%					(42.6) %
Net income (loss) per share:
Net income (loss) per share of Class A common stock — basic			$	0.58						$	(2.61	)
Net income (loss) per share of Class A common stock — diluted			$	0.46						$	(2.61	)
Weighted-average shares of Class A common stock outstanding — basic				10,077							9,489
Weighted-average shares of Class A common stock outstanding — diluted				14,580							9,489
Non-GAAP financial measures:
EBITDA			$	60,860						$	(12,482	)
Adjusted EBITDA			$	(12,106	)					$	(11,475	)
Adjusted EBITDA Margin			(10.2) %							(8.7) %

NM = Not meaningful

			Nine months ended Sep. 30,
				2024							2023
(in thousands, except percentages and per share amounts)			Dollars				% of Net Revenues			Dollars				% of Net Revenues			$ Change				% Change
Net revenues			$	409,762			100.0	%		$	457,974			100.0	%		$	(48,212	)		(10.5) %
Operating expenses:
Revenue share				78,376			19.1	%			117,876			25.7	%			(39,500	)		(33.5) %
Marketing and advertising				136,049			33.2	%			124,428			27.2	%			11,621			9.3	%
Consumer care and enrollment				132,731			32.4	%			134,035			29.3	%			(1,304	)		(1.0) %
Technology				28,921			7.1	%			31,706			6.9	%			(2,785	)		(8.8) %
General and administrative				50,457			12.3	%			73,440			16.0	%			(22,983	)		(31.3) %
Amortization of intangible assets				70,542			17.2	%			70,543			15.4	%			(1	)		—	%
Operating lease impairment charges				—			—	%			2,687			0.6	%			(2,687	)		(100.0) %
Total operating expenses				497,076			121.3	%			554,715			121.1	%			(57,639	)		(10.4) %
Income (loss) from operations				(87,314	)		(21.3) %				(96,741	)		(21.1) %				9,427			(9.7) %
Interest expense				55,133			13.5	%			51,721			11.3	%			3,412			6.6	%
Gain on bargain purchase				(77,363	)		(18.9) %				—			—	%			(77,363	)		NM
Other (income) expense, net				332			0.1	%			739			0.2	%			(407	)		(55.1) %
Income (loss) before income taxes				(65,416	)		(16.0) %				(149,201	)		(32.6) %				83,785			(56.2) %
Income tax (benefit) expense				(122	)		—	%			(225	)		—	%			103			(45.8) %
Net income (loss)			$	(65,294	)		(15.9) %			$	(148,976	)		(32.5) %			$	83,682			(56.2) %
Net income (loss) attributable to non-controlling interests				(36,857	)		(9.0) %				(86,945	)		(19.0) %				50,088			(57.6) %
Net income (loss) attributable to GoHealth, Inc.			$	(28,437	)		(6.9) %			$	(62,031	)		(13.5) %			$	33,594			(54.2) %
Net Income (Loss) Margin			(15.9) %							(32.5) %
Net income (loss) per share:
Net income (loss) per share of Class A common stock — basic			$	(3.14	)					$	(7.04	)
Net income (loss) per share of Class A common stock — diluted			$	(3.14	)					$	(7.04	)
Weighted-average shares of Class A common stock outstanding — basic				9,922							9,194
Weighted-average shares of Class A common stock outstanding — diluted				9,922							9,194
Non-GAAP financial measures:
EBITDA			$	68,679						$	(18,580	)
Adjusted EBITDA			$	2,479						$	18,091
Adjusted EBITDA Margin				0.6	%						4.0	%

NM = Not meaningful

The following tables set forth the reconciliations of GAAP net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated (unaudited):

			Three months ended Sep. 30,								Nine months ended Sep. 30,
(in thousands)				2024				2023				2024				2023
Net revenues			$	118,292			$	132,037			$	409,762			$	457,974
Net income (loss)				15,366				(56,204	)			(65,294	)			(148,976	)
Interest expense				19,086				17,565				55,133				51,721
Income tax expense (benefit)				(11	)			(108	)			(122	)			(225	)
Depreciation and amortization expense				26,419				26,265				78,962				78,900
EBITDA				60,860				(12,482	)			68,679				(18,580	)
Gain on bargain purchase(1)				(77,363	)			—				(77,363	)			—
Share-based compensation expense (benefit)(2)				2,859				(545	)			6,534				16,159
Professional services(3)				818				1,213				818				1,213
Legal fees(4)				654				339				1,331				14,692
Severance costs(5)				66				—				2,480				1,920
Operating lease impairment charges(6)				—				—				—				2,687
Adjusted EBITDA			$	(12,106	)		$	(11,475	)		$	2,479			$	18,091
Net Income (Loss) Margin				13.0	%		(42.6) %				(15.9) %				(32.5) %
Adjusted EBITDA Margin			(10.2) %				(8.7) %					0.6	%			4.0	%

(1)	Represents the excess of the acquisition-date fair value of the net assets acquired over the acquisition-date fair value of the consideration transferred related to the acquisition of e-TeleQuote.
(2)	Represents non-cash share-based compensation expense (benefit) relating to equity awards as well as share-based compensation expense (benefit) relating to liability classified awards that will be settled in cash.
(3)	Represents costs primarily associated with non-recurring consulting fees and other professional services.
(4)	Represents legal fees, settlement accruals and other expenses related to certain acquisitions, litigation, Credit Agreement amendments and other non-routine legal or regulatory matters.
(5)	Represents severance costs and other fees associated with a reduction in workforce unrelated to restructuring activities.
(6)	Represents operating lease impairment charges, reducing the carrying value of the associated right-of-use (“ROU”) assets and leasehold improvements to the estimated fair values.

The table below depicts the disaggregation of revenue and is consistent with how the Company evaluates its financial performance (unaudited):

			Three months ended Sep. 30,						Nine months ended Sep. 30,
(in thousands)				2024			2023			2024			2023
Medicare Revenue
Agency Revenue
Commission Revenue(1)			$	77,868		$	76,579		$	228,154		$	261,513
Partner Marketing and Other Revenue				14,408			21,300			47,926			71,619
Total Agency Revenue				92,276			97,879			276,080			333,132
Non-Agency Revenue				24,377			33,510			130,723			106,586
Total Medicare Revenue				116,653			131,389			406,803			439,718
Other Revenue
Non-Encompass BPO Services Revenue				—			—			—			9,322
Other Revenue				1,639			648			2,959			8,934
Total Other Revenue				1,639			648			2,959			18,256
Total Net Revenues			$	118,292		$	132,037		$	409,762		$	457,974

(1)	Commission revenue excludes commissions generated through the Company’s Non-Encompass BPO Services as well as from the sale of individual and family plan insurance products.

The following table summarizes share-based compensation expense (benefit) by operating function for the periods indicated (unaudited):

			Three months ended Sep. 30,							Nine months ended Sep. 30,
(in thousands)				2024			2023				2024			2023
Marketing and advertising			$	75		$	149			$	203		$	378
Customer care and enrollment				189			519				841			1,847
Technology				293			676				780			2,365
General and administrative(1)				2,302			(1,889	)			4,710			11,569
Total share-based compensation expense (benefit)			$	2,859		$	(545	)		$	6,534		$	16,159

(1)	For the three and nine months ended September 30, 2024 and 2023, share-based compensation expense (benefit) includes expense (benefit) related to the stock appreciation rights (“SARs”), which are liability classified awards.

The following table sets forth our balance sheets for the periods indicated (unaudited):

(in thousands, except per share amounts)			Sep. 30, 2024				Dec. 31, 2023
Assets
Current assets:
Cash and cash equivalents			$	35,527			$	90,809
Accounts receivable, net of allowance for doubtful accounts of $2 in 2024 and $27 in 2023				6,862				250
Commissions receivable – current				270,383				336,215
Prepaid expense and other current assets				21,271				49,166
Total current assets				334,043				476,440
Commissions receivable – non-current				627,341				575,482
Operating lease ROU asset				20,449				21,995
Property, equipment, and capitalized software, net				30,418				26,843
Intangible assets, net				326,011				396,554
Other long-term assets				2,891				2,256
Total assets			$	1,341,153			$	1,499,570
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable			$	15,285			$	17,705
Accrued liabilities				49,475				86,254
Commissions payable – current				80,899				118,732
Short-term operating lease liability				5,541				5,797
Deferred revenue				42,696				52,403
Current portion of long-term debt				65,000				75,000
Other current liabilities				23,075				14,122
Total current liabilities				281,971				370,013
Non-current liabilities:
Commissions payable – non-current				177,023				203,255
Long-term operating lease liability				36,187				39,547
Deferred tax liabilities				24,995				—
Long-term debt, net of current portion				416,332				422,705
Other non-current liabilities				7,363				9,095
Total non-current liabilities				661,900				674,602
Commitments and Contingencies
Series A redeemable convertible preferred stock — $0.0001 par value; 50 shares authorized; 50 shares issued and outstanding as of both September 30, 2024 and December 31, 2023. Liquidation preference of $53.7 million and $50.9 million as of September 30, 2024 and December 31, 2023, respectively.				52,023				49,302
Stockholders’ equity:
Class A common stock – $0.0001 par value; 1,100,000 shares authorized; 10,440 and 9,823 shares issued; 10,121 and 9,651 shares outstanding as of September 30, 2024 and December 31, 2023, respectively.				1				1
Class B common stock – $0.0001 par value; 615,980 and 616,018 shares authorized; 12,775 and 12,814 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.				1				1
Preferred stock – $0.0001 par value; 20,000 shares authorized (including 50 shares of Series A redeemable convertible preferred stock authorized and 200 shares of Series A-1 convertible preferred stock authorized); 50 shares issued and outstanding as of both September 30, 2024 and December 31, 2023.				—				—
Series A-1 convertible preferred stock— $0.0001 par value; 200 shares authorized; no shares issued and outstanding as of both September 30, 2024 and December 31, 2023.				—				—
Treasury stock – at cost; 319 and 173 shares of Class A common stock as of September 30, 2024 and December 31, 2023, respectively.				(4,124	)			(2,640	)
Additional paid-in capital				665,020				654,059
Accumulated other comprehensive income (loss)				(141	)			(127	)
Accumulated deficit				(448,717	)			(420,280	)
Total stockholders’ equity attributable to GoHealth, Inc.				212,040				231,014
Non-controlling interests				133,219				174,639
Total stockholders’ equity				345,259				405,653
Total liabilities, redeemable convertible preferred stock and stockholders’ equity			$	1,341,153			$	1,499,570

The following table sets forth the net cash provided by (used in) operating activities for the periods presented (unaudited):

Net cash provided by (used in) operating activities		Nine months ended Sep. 30,							Trailing Twelve Months ended Sep. 30,
			2024				2023			2024			2023
		$	(36,211	)		$	37,840		$	35,091		$	(3,159	)

In addition to traditional financial metrics, we rely upon certain business and operating metrics to evaluate our business performance and facilitate our operations. Below are the most relevant business and operating metrics for our single operating and reportable segment.

The following table presents the number of Submissions for the periods presented:

Submissions		Three months ended Sep. 30,
		2024		2023		Change			% Change
		166,195		161,550		4,645			2.9%
		Nine months ended Sep. 30,
		2024		2023		Change			% Change
		534,737		538,032		(3,295	)		(0.6)%

The following table presents the Sales per Submission for the periods presented:

Sales Per Submission		Three months ended Sep. 30,
			2024			2023		$ Change				% Change
		$	702		$	813		$	(111	)		(13.7)%
		Nine months ended Sep. 30,
			2024			2023		$ Change				% Change
		$	761		$	817		$	(56	)		(6.9)%

The following table presents the Direct Operating Cost per Submission for the periods presented:

Direct Operating Cost Per Submission		Three months ended Sep. 30,
			2024			2023		$ Change				% Change
		$	663		$	745		$	(82	)		(11.0)%
		Nine months ended Sep. 30,
			2024			2023		$ Change				% Change
		$	647		$	679		$	(32	)		(4.7)%

The following are our Direct Operating Cost of Submission (in thousands) and Sales/Direct Operating Cost of Submission for the periods presented:

			Three months ended Sep. 30,						Nine months ended Sep. 30,
				2024			2023			2024			2023
Direct Operating Cost of Submission			$	110,245		$	120,362		$	346,112		$	365,612
Sales/Direct Operating Cost of Submission				1.1			1.1			1.2			1.2

Third Quarter 2024 Highlights

• Revenue increased 27% to €255 million
• Profit for the period increased €33 million to €37 million and expanded to 14.5% as a percentage of revenue
• Adjusted EBITDA¹ increased 30% to €66 million and Adjusted EBITDA margin¹ expanded to 25.8%
• Net cash generated from operating activities increased 55% to €118 million and Free cash flow¹ increased 192% to €62 million
• Customer Net Retention Rate¹ increased to 126%
• Repurchased $8.3 million of shares
• Further raised full year guidance to revenue growth of at least 24% to €1,090 million and Adjusted EBITDA growth of at least 29% to €216 million

ST. GALLEN, Switzerland, Nov. 07, 2024 (GLOBE NEWSWIRE) — Sportradar Group AG SRAD (“Sportradar” or the “Company”), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its third quarter ended September 30, 2024.

Carsten Koerl, Chief Executive Officer of Sportradar, said: “Our competitive advantages within the sports ecosystem, coupled with our growth-oriented strategy, is driving broad-based outperformance. We continue to deliver more value to our clients and partners, building shareholder value. We are at an important inflection point to drive operational leverage and cash generation, demonstrated by our expanding EBITDA margin and strong cash flow this past quarter. The significant cash flow has further strengthened our balance sheet and we are deploying our capital to execute on our growth strategy while returning capital to shareholders. Additionally, we continue to show strong momentum in the US, which we expect to be further bolstered by the growth of in-game betting and with the start of the NBA and NHL seasons.”

THIRD QUARTER AND YEAR TO DATE FINANCIAL RESULTS

Revenue

		Three-Month Period Ended September 30,									Nine-Month Period Ended September 30,
in € thousands (unaudited)		2024		2023		Change		%			2024		2023		Change		%
Revenue by product
Betting & Gaming Content		162,769		118,994		43,775		37	%		515,337		382,352		132,985		35	%
Managed Betting Services		47,295		40,190		7,105		18	%		144,726		117,521		27,205		23	%
Betting Technology & Solutions		210,064		159,184		50,880		32	%		660,063		499,873		160,190		32	%
Marketing & Media Services		32,944		30,080		2,864		10	%		102,637		90,185		12,452		14	%
Sports Performance		10,116		9,949		167		2	%		29,314		29,150		164		1	%
Integrity Services		2,048		1,824		224		12	%		7,472		5,827		1,645		28	%
Sports Content, Technology & Services		45,108		41,853		3,255		8	%		139,423		125,162		14,261		11	%
Total Revenue		255,172		201,037		54,135		27	%		799,486		625,035		174,451		28	%
Revenue by geography
Rest of World		204,076		165,960		38,116		23	%		622,340		512,263		110,077		21	%
United States		51,096		35,077		16,019		46	%		177,146		112,772		64,374		57	%
Total Revenue		255,172		201,037							799,486		625,035

Total revenue for the third quarter was €255 million, up €54 million, or 27% year-over-year driven by 32% growth in Betting Technology & Solutions and 8% growth in Sports Content, Technology & Services.

Betting Technology & Solutions revenues of €210 million were up 32% year-over-year primarily driven by a 37% increase in Betting & Gaming Content benefiting from existing and new customer uptake of our products and premium pricing, as well as from the strong U.S. market growth. Additionally, Managed Betting Services grew 18% year-over-year, primarily driven by strong growth in Managed Trading Services from higher trading margins and increased betting activity from existing and new customers.

Sports Content, Technology & Services revenues of €45 million, increased 8% year-over-year primarily driven by 10% growth in Marketing & Media Services with strong growth in both European and North America ad:s revenue as several sportsbooks launched marketing campaigns.

The Company generated strong revenue growth globally with Rest of World up 23% and the United States up 46%. As a percentage of total Company revenues, United States revenue represented 20% of total Company revenue in the third quarter as compared to 17% in the prior year quarter due to market growth, additional customer uptake of our products and premium pricing.

Customer Net Retention Rate of 126% increased sequentially and from the prior year quarter demonstrating the strength in cross selling and upselling to clients most notably due to the new ATP rights deal and market growth in the United States.

Profit for the period from continuing operations

Profit for the period from continuing operations in the third quarter was €37 million, up €32 million, compared to €5 million in the same quarter a year ago. The increase was primarily driven by the strong operating results as well as €21 million in net foreign currency gains due to strengthening of the Euro against the U.S. dollar and €15 million of prior year one-time losses related to impairment on goodwill and intangible assets related to the impact of changes related to our business strategy and disposal of an equity-accounted investee. These increases were partially offset by higher financing costs of €14 million driven by the new ATP, NBA, and Bundesliga partnership deals.

Adjusted EBITDA

Third quarter Adjusted EBITDA was €66 million, up €15 million, compared to €50 million in the same quarter a year ago. The increase was primarily driven by the 27% revenue growth, partially offset by increased sport rights costs primarily related to the ATP partnership deal, higher purchased services driven by investments in developing our product portfolio, increased personnel expenses due to headcount growth and a higher bonus accrual in the current year.

Additional Business Highlights

• In conjunction with our partnership with the NBA, Sportradar has launched a suite of next generation products and solutions for the 2024 – 2025 season. Leveraging products such as 4Sight Streaming, emBET, Live Match Tracker and advanced visualizations, Sportradar can harness hundreds of thousands of data points per game to redefine the standards of fan engagement.
• Sportradar introduced micro markets for ATP tennis matches in collaboration with Tennis Data Innovations, expanding this cutting-edge product to tennis from other popular sports such as soccer and table tennis. The eight distinct micro markets are expected to generate approximately 1,500 new betting opportunities per match, opening fresh revenue streams for operators.
• Sportradar added paid search to its ad:s marketing service, allowing operators to more effectively reach and acquire customers searching betting and gaming-related topics online.
• Sportradar received several industry awards, including the Best Live Betting Product at SBC Summit 2024. In addition, Sportradar was recognized in two prestigious categories at the 2024 American Gambling Awards, winning Betting Product of the Year for its 4Sight technology and the Data Service Provider of the Year.

Balance Sheet and Liquidity

The Company’s cash and cash equivalents were €368 million as of September 30, 2024 as compared with €277 million as of December 31, 2023. The increase was primarily driven by net cash generated from operating activities of €271 million due to the strong operating performance, partially offset by net cash used in investing activities of €152 million, primarily from the acquisition of additional sports rights, most notably our new NBA and ATP deals, and from net cash used in financing activities of €26 million, due primarily to share repurchases. Free cash flow for the nine-months ended September 30, 2024 was €122 million, an increase of €71 million from the €51 million in the same period a year ago.

Including the undrawn credit facility, the Company had total liquidity of €588 million at September 30, 2024 as compared to €510 million as of September 30, 2023, and no debt outstanding.

2024 Annual Financial Outlook

Sportradar is further raising its fiscal 2024 outlook for revenue and Adjusted EBITDA as follows:

• Revenue of at least €1,090 million, up 24% year-over-year, compared with prior outlook of €1,070 million.
• Adjusted EBITDA of at least €216 million, up 29% year-over-year, compared with prior outlook of €204 million.
• Adjusted EBITDA margin of approximately 20%.

Share Repurchase Program

In March of this year the Board of Directors approved a $200 million share repurchase program and commenced purchases during the second quarter. During the current quarter, the Company repurchased approximately 721,000 shares for a total of $8.3 million. Year to date through November 1, 2024, the Company has repurchased 1.7 million shares under the plan for a total of approximately $20 million.

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the third quarter 2024 results today, November 7, 2024, at 8:00 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event.

About Sportradar

Sportradar Group AG SRAD, founded in 2001, is a leading global sports technology company creating immersive experiences for sports fans and bettors. Positioned at the intersection of the sports, media and betting industries, the Company provides sports federations, news media, consumer platforms and sports betting operators with a best-in-class range of solutions to help grow their business. As the trusted partner of organizations like the ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA, and Bundesliga, Sportradar covers close to a million events annually across all major sports. With deep industry relationships and expertise, Sportradar is not just redefining the sports fan experience, it also safeguards sports through its Integrity Services division and advocacy for an integrity-driven environment for all involved.

For more information about Sportradar, please visit www.sportradar.com

_______________________________________________________________________

¹ Non-IFRS measure. See the sections captioned “Non-IFRS Financial Measures and Operating Metric” and “IFRS to Non-IFRS reconciliations” for more details.

CONTACT:

Investor Relations:
Jim Bombassei
j.bombassei@sportradar.com

Media:
Sandra Lee
press@sportradar.com

Non-IFRS Financial Measures and Operating Metric

We have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted purchased services, Adjusted personnel expenses, Adjusted other operating expenses, and Free cash flow, as well as our operating metric, Customer Net Retention Rate. We use these non-IFRS financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to IFRS measures, in evaluating our ongoing operational performance. We believe that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-IFRS financial measures to investors.

Non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures provided in the financial statement tables included below in this press release.

• “Adjusted EBITDA” represents earnings for the period from continuing operations adjusted for finance income and finance costs, income tax expense or benefit, depreciation and amortization (excluding amortization of capitalized sport rights licenses), foreign currency gains or losses, and other items that are non-recurring or not related to the Company’s revenue-generating operations, including share-based compensation, impairment charges or income, management restructuring costs, non-routine litigation costs, losses related to equity-accounted investee (SportTech AG), and professional fees for the Sarbanes-Oxley Act of 2002 and enterprise resource planning implementations.
  License fees relating to sport rights are a key component of how we generate revenue and one of our main operating expenses. Only licenses that meet the recognition criteria of IAS 38 are capitalized. The primary distinction for whether a license is capitalized or not capitalized is the contracted length of the applicable license. Therefore, the type of license we enter into can have a significant impact on our results of operations depending on whether we are able to capitalize the relevant license. As such, our presentation of Adjusted EBITDA reflects the full costs of our sport right’s licenses. Management believes that, by including amortization of sport rights in its calculation of Adjusted EBITDA, the result is a financial metric that is both more meaningful and comparable for management and our investors while also being more indicative of our ongoing operating performance.
  We present Adjusted EBITDA because management believes that some items excluded are non-recurring in nature and this information is relevant in evaluating the results relative to other entities that operate in the same industry. Management believes Adjusted EBITDA is useful to investors for evaluating Sportradar’s operating performance against competitors, which commonly disclose similar performance measures. However, Sportradar’s calculation of Adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Adjusted EBITDA is not intended to be a substitute for any IFRS financial measure.
  Items excluded from Adjusted EBITDA include significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for, profit for the period, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. We compensate for these limitations by relying primarily on our IFRS results and using Adjusted EBITDA only as a supplemental measure.

• “Adjusted EBITDA margin” is the ratio of Adjusted EBITDA to revenue.
  The Company is unable to provide a reconciliation of Adjusted EBITDA guidance to profit (loss) for the period, its most directly comparable IFRS financial measure, on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include but are not limited to foreign exchange gains and losses. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.

We present Adjusted purchased services, Adjusted personnel expenses, and Adjusted other operating expenses (“Non-IFRS expenses”) because management utilizes these financial measures to manage its business on a day-to-day basis and believes that they are the most relevant measures of expenses. Management believes these adjusted expense measures provide expanded insight to assess revenue and cost performance, in addition to the standard IFRS-based financial measures. Management believes these adjusted expense measures are useful to investors for evaluating Sportradar’s operating performance against competitors. However, Sportradar’s calculation of adjusted expense measures may not be comparable to other similarly titled performance measures of other companies. These adjusted expense measures are not intended to be a substitute for any IFRS financial measure.

• “Adjusted purchased services” represents purchased services less capitalized external development costs.
• “Adjusted personnel expenses” represents personnel expenses less share-based compensation awarded to employees, management restructuring costs, and capitalized personnel compensation.
• “Adjusted other operating expenses” represents other operating expenses plus impairment loss on trade receivables, less non-routine litigation, share-based compensation awarded to third parties, and certain professional fees.

We consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchase of property and equipment, the purchase of intangible assets and payment of lease liabilities, which can then be used, among other things, to invest in our business and make strategic acquisitions. A limitation of the utility of Free cash flow as a measure of liquidity is that it does not represent the total increase or decrease in our cash balance for the year.

• “Free cash flow” represents net cash from operating activities adjusted for payments for lease liabilities, acquisition of property and equipment, and acquisition of intangible assets.

In addition, we define the following operating metric as follows:

• “Customer Net Retention Rate” is calculated for a given period by starting with the reported Trailing Twelve Month revenue from our top 200 customers as of twelve months prior to such period end, or prior period revenue. We then calculate the reported trailing twelve-month revenue from the same customer cohort as of the current period end, or current period revenue. Current period revenue includes any upsells and is net of contraction and attrition over the trailing twelve months but excludes revenue from new customers in the current period. We then divide the total current period revenue by the total prior period revenue to arrive at our Net Retention Rate.

Safe Harbor for Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events, including, without limitation, statements regarding future financial or operating performance, planned activities and objectives, anticipated growth resulting therefrom, market opportunities, strategies and other expectations, and our guidance and outlook, including expected performance for the full year 2024. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “projects”, “continue,” “contemplate,” “confident,” “possible” or similar words. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: economy downturns and political and market conditions beyond our control, including the impact of the Russia/Ukraine and other military conflicts and foreign exchange rate fluctuations; pandemics, such as the global COVID-19 pandemic, could have an adverse effect on our business; dependence on our strategic relationships with our sports league partners; effect of social responsibility concerns and public opinion on responsible gaming requirements on our reputation; potential adverse changes in public and consumer tastes and preferences and industry trends; potential changes in competitive landscape, including new market entrants or disintermediation; potential inability to anticipate and adopt new technology; potential errors, failures or bugs in our products; inability to protect our systems and data from continually evolving cybersecurity risks, security breaches or other technological risks; potential interruptions and failures in our systems or infrastructure; our ability to comply with governmental laws, rules, regulations, and other legal obligations, related to data privacy, protection and security; ability to comply with the variety of unsettled and developing U.S. and foreign laws on sports betting; dependence on jurisdictions with uncertain regulatory frameworks for our revenue; changes in the legal and regulatory status of real money gambling and betting legislation on us and our customers; our inability to maintain or obtain regulatory compliance in the jurisdictions in which we conduct our business; our ability to obtain, maintain, protect, enforce and defend our intellectual property rights; our ability to obtain and maintain sufficient data rights from major sports leagues, including exclusive rights; any material weaknesses identified in our internal control over financial reporting; inability to secure additional financing in a timely manner, or at all, to meet our long-term future capital needs; risks related to future acquisitions; and other risk factors set forth in the section titled “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, and other documents filed with or furnished to the SEC, accessible on the SEC’s website at www.sec.gov and on our website at https://investors.sportradar.com. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. One should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SPORTRADAR GROUP AG
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
(Unaudited)

		Three-Month Period Ended						Nine-Month Period Ended
		September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
in €’000 and in thousands of shares					(restated)						(restated)
Continuing operations
Revenue		255,172			201,037			799,486			625,035
Personnel expenses		(87,966	)		(75,359	)		(256,668	)		(237,223	)
Sport rights expenses (including amortization of capitalized sport rights licenses)		(63,002	)		(35,544	)		(249,861	)		(139,077	)
Purchased services		(42,770	)		(36,088	)		(125,565	)		(103,650	)
Other operating expenses		(23,391	)		(22,817	)		(67,388	)		(65,000	)
Impairment gain (loss) on trade receivables, contract assets and other financial assets		397			(626	)		(3,473	)		(4,527	)
Internally-developed software cost capitalized		13,269			8,415			36,186			19,665
Depreciation and amortization (excluding amortization of capitalized sport rights licenses)		(12,970	)		(11,812	)		(37,600	)		(33,465	)
Share of loss of equity-accounted investee		—			—			—			(3,699	)
Loss on disposal of equity-accounted investee		—			(5,600	)		—			(13,618	)
Impairment loss on goodwill and intangible assets		—			(9,854	)		—			(9,854	)
Foreign currency gain (loss), net		22,380			1,187			88			(3,714	)
Finance income		2,738			3,179			6,687			9,781
Finance costs		(19,969	)		(5,554	)		(57,986	)		(17,672	)
Net income before tax from continuing operations		43,888			10,564			43,906			22,982
Income tax expense		(6,786	)		(5,949	)		(8,988	)		(11,524	)
Profit for the period from continuing operations		37,102			4,615			34,918			11,458
Discontinued operations
Loss from discontinued operations		—			(495	)		—			(451	)
Profit for the period		37,102			4,120			34,918			11,007
Other comprehensive income
Items that will not be reclassified subsequently to profit or (loss)
Remeasurement of defined benefit liability		—			1			(2	)		(88	)
Related deferred tax expense (benefit)		—			—			(2	)		11
		—			1			(4	)		(77	)
Items that may be reclassified subsequently to profit or (loss)
Foreign currency translation adjustment attributable to the owners of the company		(4,163	)		3,420			2,321			3,062
Foreign currency translation adjustment attributable to non-controlling interests		(3	)		(25	)		(5	)		(17	)
		(4,166	)		3,395			2,316			3,045
Other comprehensive (loss) income for the period, net of tax		(4,166	)		3,396			2,312			2,968
Total comprehensive income for the period		32,936			7,516			37,230			13,975
Profit (loss) attributable to:
Owners of the Company		37,261			4,335			35,239			11,246
Non-controlling interests		(159	)		(215	)		(321	)		(239	)
		37,102			4,120			34,918			11,007
Total comprehensive income (loss) attributable to:
Owners of the Company		33,098			7,756			37,556			14,230
Non-controlling interests		(162	)		(240	)		(326	)		(255	)
		32,936			7,516			37,230			13,975
Profit per Class A share attributable to owners of the Company
Basic		0.12			0.02			0.12			0.04
Diluted		0.11			0.01			0.11			0.04
Profit per Class B share attributable to owners of the Company
Basic		0.01			0.00			0.01			0.00
Diluted		0.01			0.00			0.01			0.00
Weighted-average number of shares
Weighted-average number of Class A shares (basic)		210,467			207,600			210,202			207,283
Weighted-average number of Class A shares (diluted)		227,805			220,834			226,284			219,676
Weighted-average number of Class B shares (basic and diluted)		903,671			903,671			903,671			903,671

SPORTRADAR GROUP AG
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)

in €’000		September 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents		368,379			277,174
Trade receivables		66,240			71,246
Contract assets		94,950			60,869
Other assets and prepayments		27,189			33,252
Income tax receivables		6,470			6,527
Total current assets		563,228			449,068
Non-current assets
Property and equipment		66,273			72,762
Intangible assets and goodwill		1,618,722			1,697,331
Other financial assets and other non-current assets		11,491			11,806
Deferred tax assets		17,566			16,383
Total non-current assets		1,714,052			1,798,282
Total assets		2,277,280			2,247,350
Liabilities and equity
Current liabilities
Loans and borrowings		10,050			9,586
Trade payables		246,887			259,667
Other liabilities		60,703			55,724
Contract liabilities		42,594			26,595
Income tax liabilities		8,978			4,542
Total current liabilities		369,212			356,114
Non-current liabilities
Loans and borrowings		37,174			40,559
Trade payables		892,966			908,499
Contract liabilities		41,196			39,526
Other non-current liabilities		1,419			8,500
Deferred tax liabilities		19,081			21,315
Total non-current liabilities		991,836			1,018,399
Total liabilities		1,361,048			1,374,513
Equity
Ordinary shares		27,551			27,421
Treasury shares		(18,144	)		(2,322	)
Additional paid-in capital		669,795			653,840
Retained earnings		214,771			173,629
Other reserves		17,542			15,226
Equity attributable to owners of the Company		911,515			867,794
Non-controlling interest		4,717			5,043
Total equity		916,232			872,837
Total liabilities and equity		2,277,280			2,247,350

SPORTRADAR GROUP AG
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

		Nine-Month Period Ended
		September 30, 2024			September 30, 2023
in €’000					(restated)
OPERATING ACTIVITIES:
Profit for the period		34,918			11,007
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Income tax expense		8,988			11,524
Interest income		(6,818	)		(5,573	)
Interest expense		58,081			15,861
Foreign currency (gain) loss, net		(88	)		3,714
Depreciation and amortization (excluding amortization of capitalized sport rights licenses)		37,600			33,465
Amortization of capitalized sport rights licenses		166,603			97,330
Impairment losses on goodwill and intangible assets		—			9,854
Equity-settled share-based payments		26,052			31,107
Share of loss of equity-accounted investee		—			3,699
Loss on disposal of equity-accounted investee		—			13,618
Other		(8,048	)		389
Cash flow from operating activities before working capital changes, interest and income taxes		317,288			225,995
Increase in trade receivables, contract assets, other assets and prepayments		(24,555	)		(1,212	)
Increase in trade and other payables, contract and other liabilities		36,095			324
Changes in working capital		11,540			(888	)
Interest paid		(57,287	)		(15,009	)
Interest received		6,823			5,566
Income taxes paid, net		(7,510	)		(9,216	)
Net cash from operating activities		270,854			206,448
INVESTING ACTIVITIES:
Acquisition of intangible assets		(140,165	)		(145,085	)
Acquisition of property and equipment		(3,090	)		(5,638	)
Acquisition of subsidiaries, net of cash acquired		(8,240	)		(12,286	)
Acquisition of financial assets		—			(3,716	)
Proceeds from disposal of equity-accounted investee		—			15,172
Change in loans receivable and deposits		(187	)		(952	)
Net cash used in investing activities		(151,682	)		(152,505	)
FINANCING ACTIVITIES:
Payment of lease liabilities		(5,898	)		(4,933	)
Purchase of treasury shares		(19,795	)		(7,101	)
Principal payments on bank debt		(150	)		(510	)
Change in bank overdrafts		(47	)		17
Net cash used in financing activities		(25,890	)		(12,527	)
Net increase in cash		93,282			41,416
Cash and cash equivalents at beginning of period		277,174			243,757
Effects of movements in exchange rates		(2,077	)		4,528
Cash and cash equivalents at end of period		368,379			289,701

Change in presentation related to sport rights expenses

During the third quarter, the Company has changed the presentation of expenses related to sport rights in its Statement of profit or loss and other comprehensive income. Previously, these expenses were split between ‘Purchased services and licenses (excluding depreciation and amortization)’, representing the portion of related sport rights expenses which were not eligible for capitalization and ‘Depreciation and amortization’, representing the portion of related sport rights expenses which were capitalized. However, starting this quarter, the expenses are combined and presented under a new line item titled ‘Sport rights expenses (including amortization of capitalized licenses)’.

The change in presentation intends to provide more relevant and reliable information to the users of our financial statements. This reclassification aligns the presentation of sport rights expenses with the nature of the costs and the way they are managed internally.

There is no change to the Company’s disclosures, measurement or recognition of non-capitalized costs and capitalized sport rights licenses in accordance with IAS 38 Intangible Assets reported in its Annual Report on Form 20-F for the year ended December 31, 2023.

The following table shows the reclassification of sport rights expenses (unaudited):

		Three-Month Period Ended September 30, 2023								Nine-Month Period Ended September 30, 2023
in €’000		Previously reported			Reclassification1		Restated			Previously reported			Reclassification1		Restated
Purchased services and licenses (excluding depreciation and amortization)		(45,260	)		9,172		(36,088	)		(138,245	)		34,595		(103,650	)
Depreciation and amortization		(38,184	)		26,372		(11,812	)		(137,947	)		104,482		(33,465	)
Total sport rights expenses					35,544								139,077

¹ Approximately €1.2 million and €7.2 million of sport rights expenses has been reclassified from amortization to purchased services and licenses for the three-month and nine-month periods ended September 30, 2023 as previously reported in the Company’s Form 6-K dated November 1, 2023.

Additional disclosures related to sport rights expenses

The following table shows the composition of sport rights expenses (unaudited):

		Three-Month Period Ended				Nine-Month Period Ended
in €’000		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Non-capitalized sport right expenses		28,272		10,354		83,258		41,747
Amortization of capitalized sport rights		34,730		25,190		166,603		97,330
Total sport rights expenses		63,002		35,544		249,861		139,077

IFRS to Non-IFRS Reconciliations

The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, which is Profit for the period from continuing operations (unaudited):

		Three-Month Period Ended						Nine-Month Period Ended
in €’000		September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Profit for the period from continuing operations		37,102			4,615			34,918			11,458
Finance income		(2,738	)		(3,179	)		(6,687	)		(9,781	)
Finance costs		19,969			5,554			57,986			17,672
Depreciation and amortization (excluding amortization of capitalized sport rights licenses)		12,970			11,812			37,600			33,465
Foreign currency (gain) loss, net		(22,380	)		(1,187	)		(88	)		3,714
Share-based compensation		12,088			11,368			25,095			31,430
Management restructuring costs		—			—			1,620			—
Non-routine litigation costs		1,989			—			2,391			—
Share of loss of equity-accounted investee		—			—			—			3,699
Loss on disposal of equity-accounted investee		—			5,600			—			13,618
Impairment loss on goodwill and intangible assets		—			9,854			—			9,854
Impairment loss on other financial assets		—			—			—			202
Professional fees for SOX and ERP implementations		—			100			—			404
Income tax expense		6,786			5,949			8,988			11,524
Adjusted EBITDA		65,786			50,486			161,823			127,259

The most directly comparable IFRS measure of Adjusted EBITDA margin is Profit for the period from continuing operations as a percentage of revenue as disclosed below (unaudited):

		Three-Month Period Ended						Nine-Month Period Ended
in €’000		September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Profit for the period from continuing operations		37,102			4,615			34,918			11,458
Revenue		255,172			201,037			799,486			625,035
Profit for the period from continuing operations as a percentage of revenue		14.5	%		2.3	%		4.4	%		1.8	%

The most directly comparable IFRS measure of Free cash flow is Net cash from operating activities as disclosed below (unaudited):

		Three-Month Period Ended						Nine-Month Period Ended
in €’000		September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net cash from operating activities		118,222			76,248			270,854			206,448
Acquisition of intangible assets		(53,552	)		(50,878	)		(140,165	)		(145,085	)
Acquisition of property plant and equipment		(717	)		(2,392	)		(3,090	)		(5,638	)
Payment of lease liabilities		(1,741	)		(1,650	)		(5,898	)		(4,933	)
Free cash flow		62,212			21,328			121,701			50,792

The following tables show reconciliations of IFRS expenses included in profit for the period from continuing operations to expenses included in Adjusted EBITDA (unaudited):

		Three-Month Period Ended						Nine-Month Period Ended
in €’000		September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Purchased services		42,770			36,088			125,565			103,650
Less: capitalized external services		(6,490	)		(1,669	)		(15,758	)		(4,242	)
Adjusted purchased services		36,280			34,419			109,807			99,408
Personnel expenses		87,966			75,359			256,668			237,223
Less: share-based compensation		(12,767	)		(11,107	)		(27,076	)		(30,661	)
Less: management restructuring		—			—			(1,620	)		—
Less: capitalized personnel compensation		(5,865	)		(6,746	)		(17,741	)		(15,423	)
Adjusted personnel expenses		69,334			57,506			210,231			191,139
Other operating expenses		23,391			22,817			67,388			65,000
Less: non-routine litigation		(1,989	)		—			(2,391	)		—
Less: share-based compensation		(237	)		(261	)		(706	)		(769	)
Less: other		—			(100	)		—			(606	)
Add: impairment (gain) loss on trade receivables		(397	)		626			3,473			4,527
Adjusted other operating expenses		20,768			23,082			67,764			68,152

EDINBURG, Va., Nov. 07, 2024 (GLOBE NEWSWIRE) — Shenandoah Telecommunications Company (“Shentel” or the “Company”) SHEN announced third quarter 2024 financial and operating results.

Third Quarter 2024 Highlights

• Glo Fiber Expansion Markets¹ experienced growth in a number of key metrics:
  • Added approximately 6,000 subscribers in the third quarter of 2024, ending the quarter with over 59,000 subscribers.
  • Passings grew approximately 22,000 to a total of approximately 320,000.
  • Revenue grew $5.8 million or 62% to $15.1 million compared to the same period in 2023. Excluding Horizon markets, revenue grew 56% over the same period in 2023.
• Integration of Horizon ahead of schedule and on track to exceed synergy targets.

“We had a record quarter for Glo Fiber net additions and revenue driving top line revenue growth.” said President and CEO, Christopher E. French. “We made great progress with the integration of our Horizon acquisition, converting four of the six Horizon back-office systems to-date with clear line of sight to finish the integration in early 2025. We now expect to realize $11 million in annual synergy savings. We expect Glo Fiber and synergies will be key growth catalysts in 2025 and drivers of margin expansion.”

Shentel’s third-quarter earnings conference call will be webcast at 8:00 a.m. ET on Thursday, November 7, 2024. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.

Third Quarter 2024 Results

• Revenue in the third quarter of 2024 grew $20.2 million, or 30.0%, to $87.6 million, primarily driven by $16.9 million of revenue resulting from the acquisition of Horizon. Excluding Horizon, revenues grew $3.3 million or 4.9% primarily driven by Glo Fiber Expansion Markets Residential & SMB revenue growth of $5.3 million partially offset by declines in commercial fiber and Incumbent Broadband Markets² Residential & SMB revenue. Glo Fiber Expansion Markets revenue growth was driven by a 54% increase in broadband data subscribers and an 7% increase in broadband data Average Revenue per User (“ARPU”). Commercial Fiber revenue decreased, as expected, due to the previously disclosed decline in T-Mobile revenue from prior period backhaul circuit disconnects as part of decommissioning the former Sprint network. Incumbent Broadband Markets revenue declined 3% due to lower video and other revenue.

• Cost of services for the three months ended September 30, 2024, increased approximately $8.1 million, or 31.0%, compared with the three months ended September 30, 2023, primarily driven by $8.6 million of cost of services from Horizon partially offset by $0.4 million decline in the legacy Shentel markets due primarily to lower programming costs as customers continue to migrate to video service alternatives.

• Selling, general and administrative expense for the three months ended September 30, 2024, increased $5.1 million, or 22.0%, compared with the three months ended September 30, 2023, primarily driven by $3.7 million of selling, general and administrative costs from Horizon and higher advertising and sales headcount to support the Glo Fiber expansion.

• Integration and acquisition expense for the three months ended September 30, 2024 increased $0.5 million compared with the three months ended September 30, 2023, primarily driven by non-recurring acquisition-related costs related to the Horizon acquisition and integration.

• Depreciation and amortization for the three months ended September 30, 2024, increased $11.6 million, or 71.7%, compared with the three months ended September 30, 2023, primarily driven by $8.3 million of depreciation and amortization expense resulting from Horizon. The remaining increase in depreciation and amortization expense is attributable to the Company’s expansion of its Glo Fiber network.

• Net loss from continuing operations was $5.3 million in the third quarter of 2024 compared with net loss from continuing operations of $0.2 million in the third quarter of 2023. The increase in the net loss was due primarily to higher depreciation and amortization from Horizon and Glo Fiber network expansion and higher interest expense from higher borrowings.

• Adjusted EBITDA for the three months ended September 30, 2024 increased to $26.6 million, representing a $6.3 million, or 31.3%, increase compared with the three months ended September 30, 2023. The former Horizon markets contributed $4.7 million. Excluding the former Horizon markets, Adjusted EBITDA grew $1.7 million, or 8.3%, driven by the previously disclosed revenue growth partially offset by higher sales and marketing expenses to support new Glo Fiber markets. Adjusted EBITDA margins grew sequentially from 27% in the second quarter to 30% in the third quarter.

• Total homes passed grew 23,800 to approximately 554,000 including 320,000 Glo Fiber Expansion Market passings and 234,000 Incumbent Broadband Markets passings. Glo Fiber Expansion Markets broadband data subscriber net additions was approximately 6,000. Incumbent Broadband Markets data subscriber net additions were flat in the third quarter 2024.

______________________________________________________

¹ _{Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets in the Shentel and former Horizon markets.}
² _{Incumbent Broadband Markets consists of Shentel Incumbent Cable Markets and Horizon Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”) passings.}

Other Information

• Capital expenditures were $226.5 million for the nine months ended September 30, 2024 compared with $189.3 million in the comparable 2023 period. The $37.1 million increase in capital expenditures was primarily driven by $20.8 million of capital expenditures in the former Horizon markets and expansion of the networks in Glo Fiber Expansion Markets and government-subsidized markets.

• As of September 30, 2024, our cash and cash equivalents totaled $43.1 million.

Earnings Call Webcast

Date: Thursday, November 7, 2024
Time: 8:00 a.m. ET
Listen via Internet: https://investor.shentel.com/
For Analysts, please register to dial-in at this link.

A replay of the call will be available for a limited time on the Investor Relations page of the Company’s website.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art fiber optic and cable networks to residential and commercial customers in eight contiguous states in the eastern United States. The Company’s services include: broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 16,300 route miles of fiber. For more information, please visit www.shentel.com.

This release contains forward-looking statements about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Reports on Form 10-Q. Those factors may include, among others, the expected savings and synergies from the Horizon Transaction may not be realized or may take longer or cost more than expected to realize, changes in overall economic conditions including rising inflation, regulatory requirements, changes in technologies, changes in competition, demand for our products and services, availability of labor resources and capital, natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, and other conditions. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law.

CONTACTS:
Shenandoah Telecommunications Company
Jim Volk
Senior Vice President and Chief Financial Officer
540-984-5168
Jim.Volk@emp.shentel.com

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Service revenue and other	$	87,599			$	67,409			$	242,646			$	201,218
Operating expenses:
Cost of services exclusive of depreciation and amortization		34,415				26,268				94,941				76,451
Selling, general and administrative		28,006				22,952				86,223				74,021
Integration and acquisition		1,673				1,146				13,616				1,578
Impairment expense		—				1,532				—				2,552
Depreciation and amortization		27,681				16,121				70,703				47,037
Total operating expenses		91,775				68,019				265,483				201,639
Operating loss		(4,176	)			(610	)			(22,837	)			(421	)
Other (expense) income:
Interest expense		(3,668	)			(1,198	)			(11,740	)			(2,495	)
Other income, net		998				2,024				4,642				4,615
(Loss) income from continuing operations before income taxes		(6,846	)			216				(29,935	)			1,699
Income tax (benefit) expense		(1,542	)			399				(7,768	)			2,540
Loss from continuing operations		(5,304	)			(183	)			(22,167	)			(841	)
Discontinued operations:
Income from discontinued operations, net of tax		41				1,776				1,923				6,290
Gain on the sale of discontinued operations, net of tax		—				—				216,805				—
Total income from discontinued operations, net of tax		41				1,776				218,728				6,290
Net (loss) income		(5,263	)			1,593				196,561				5,449
Net income attributable to redeemable noncontrolling interest		1,638				—				1,638				—
Net (loss) income attributable to common shareholders	$	(6,901	)		$	1,593			$	194,923			$	5,449
Net (loss) income per share attributable to common shareholders, basic and diluted:
Loss from continuing operations	$	(0.13	)		$	—			$	(0.45	)		$	(0.02	)
Income from discontinued operations, net of tax		—				0.03				4.10				0.13
Net (loss) income per share	$	(0.13	)		$	0.03			$	3.65			$	0.11
Weighted average shares outstanding, basic and diluted		54,781				50,379				53,370				50,346

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)	September 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	43,099			$	139,255
Accounts receivable, net of allowance for credit losses of $1,574 and $886, respectively		32,526				19,782
Income taxes receivable		4,700				4,691
Prepaid expenses and other		17,189				11,782
Current assets held for sale		—				561
Total current assets		97,514				176,071
Investments		15,369				13,198
Property, plant and equipment, net		1,385,355				850,337
Goodwill and intangible assets, net		162,822				81,123
Operating lease right-of-use assets		20,738				13,024
Deferred charges and other assets		13,011				11,561
Non-current assets held for sale		—				68,915
Total assets	$	1,694,809			$	1,214,229
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt, net of unamortized loan fees	$	8,628			$	7,095
Accounts payable		65,952				53,546
Advanced billings and customer deposits		15,212				12,394
Accrued compensation		16,030				11,749
Current operating lease liabilities		3,317				2,222
Accrued liabilities and other		13,994				7,747
Current liabilities held for sale		—				3,602
Total current liabilities		123,133				98,355
Long-term debt, less current maturities, net of unamortized loan fees		335,931				292,804
Other long-term liabilities:
Deferred income taxes		181,613				85,664
Benefit plan obligations		5,091				3,943
Non-current operating lease liabilities		11,657				7,185
Other liabilities		31,008				16,912
Non-current liabilities held for sale		—				56,696
Total other long-term liabilities		229,369				170,400
Commitments and contingencies (Note 15)
Temporary equity:
Redeemable noncontrolling interest		81,018				—
Shareholders’ equity:
Common stock, no par value, authorized 96,000; 54,573 and 50,272 issued and outstanding at June 30, 2024 and December 31, 2023, respectively		—				—
Additional paid in capital		145,363				66,933
Retained earnings		778,992				584,069
Accumulated other comprehensive income, net of taxes		1,003				1,668
Total shareholders’ equity		925,358				652,670
Total liabilities, temporary equity and shareholders’ equity	$	1,694,809			$	1,214,229

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)	Nine Months Ended September 30,
		2024				2023
Cash flows from operating activities:
Net income	$	196,561			$	5,449
Income from discontinued operations, net of tax		218,728				6,290
Loss from continuing operations		(22,167	)			(841	)
Adjustments to reconcile net income to net cash provided by operating activities, net of effects of business acquisition
Depreciation and amortization		70,703				47,037
Stock-based compensation expense, net of amount capitalized		7,620				8,364
Impairment expense		—				2,552
Deferred income taxes		(7,768	)			3,211
Provision for credit losses		1,748				1,837
Gain on sale of FCC spectrum licenses		—				(1,328	)
Other, net		903				5
Changes in assets and liabilities:
Accounts receivable		(630	)			1,257
Current income taxes		1,154				25,108
Operating lease assets and liabilities, net		(123	)			(156	)
Other assets		(3,045	)			2,914
Accounts payable		(583	)			(3,458	)
Other deferrals and accruals		564				(4,220	)
Net cash provided by operating activities – continuing operations		48,376				82,282
Net cash (used in) provided by operating activities – discontinued operations		(6,405	)			9,407
Net cash provided by operating activities		41,971				91,689
Cash flows from investing activities:
Capital expenditures		(226,452	)			(189,343	)
Government grants received		11,094				448
Cash disbursed for acquisition, net of cash acquired		(347,411	)			—
Proceeds from the sale of FCC spectrum licenses		—				17,300
Proceeds from sale of assets and other		1,846				566
Net cash used in investing activities – continuing operations		(560,923	)			(171,029	)
Net cash provided by (used in) investing activities – discontinued operations		305,827				(1,459	)
Net cash used in investing activities		(255,096	)			(172,488	)
Cash flows from financing activities:
Principal payments on long-term debt		(4,843	)			—
Proceeds from credit facility borrowings		50,000				75,000
Payments for debt amendment costs		(4,570	)			(300	)
Proceeds from the issuance of redeemable noncontrolling interest, net of financing fees paid		79,380				—
Taxes paid for equity award issuances		(1,671	)			(1,317	)
Payments for financing arrangements and other		(1,327	)			(679	)
Net cash provided by financing activities – continuing operations		116,969				72,704
Net decrease in cash and cash equivalents		(96,156	)			(8,095	)
Cash and cash equivalents, beginning of period		139,255				44,061
Cash and cash equivalents, end of period	$	43,099			$	35,966
Supplemental Disclosures of Cash Flow Information
Interest paid, net of amounts capitalized	$	(8,935	)		$	(1,633	)
Income tax (paid) refunds received, net	$	(6,657	)		$	25,481

Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin

The Company defines Adjusted EBITDA as net (loss) income from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment expense, other income (expense), net, interest income, interest expense, income tax expense (benefit), stock compensation expense, transaction costs related to acquisition and disposition events (including professional advisory fees, integration costs, and related compensatory matters), restructuring expense, tax on equity award vesting and exercise events, and other non-comparable items. A reconciliation of net (loss) income from continuing operations, which is the most directly comparable GAAP financial measure, to Adjusted EBITDA is provided below herein.

Adjusted EBITDA margin is the Company’s calculation of Adjusted EBITDA, divided by revenue calculated in accordance with GAAP.

The Company uses Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of performance to evaluate operating effectiveness and assess its ability to increase revenues while controlling expense growth and the scalability of the Company’s business growth strategy. Adjusted EBITDA is also a significant performance measure used by the Company in its incentive compensation programs. The Company believes that the exclusion of the expense and income items eliminated in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors a useful measure for period-to-period comparisons of the Company’s core operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operations. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating the Company’s operating results. However, use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations, and investors and others should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies may calculate Adjusted EBITDA and Adjusted EBITDA margin or similarly titled measures differently, which may reduce their usefulness as comparative measures.

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2024				2023				2024				2023
Loss from continuing operations	$	(5,304	)		$	(183	)		$	(22,167	)		$	(841	)
Depreciation and amortization		27,681				16,121				70,703				47,037
Impairment expense		—				1,532				—				2,552
Other expense (income), net		2,670				(826	)			7,098				(2,120	)
Income tax (benefit) expense		(1,542	)			399				(7,768	)			2,540
Stock-based compensation		1,384				2,044				7,620				8,364
Integration and acquisition		1,673				1,146				13,616				1,578
Adjusted EBITDA	$	26,562			$	20,233			$	69,102			$	59,110
Adjusted EBITDA margin		30	%			30	%			28	%			29	%

Supplemental Information

Operating Statistics

	Three Months Ended September 30,
		2024				2023
Homes and businesses passed (1)		553,877				415,971
Incumbent Broadband Markets (4)		234,366				213,317
Glo Fiber Expansion Markets (5)		319,511				202,654
Residential & Small and Medium Business (“SMB”) Revenue Generating Units (“RGUs”):
Broadband Data		170,586				146,797
Incumbent Broadband Markets (4)		111,320				109,404
Glo Fiber Expansion Markets (5)		59,266				37,393
Video		41,192				44,050
Voice		44,389				40,699
Total Residential & SMB RGUs (excludes RLEC)		256,167				231,546
Residential & SMB Penetration (2)
Broadband Data		30.8	%			35.3	%
Incumbent Broadband Markets (4)		47.5	%			51.3	%
Glo Fiber Expansion Markets (5)		18.5	%			18.5	%
Video		7.4	%			10.6	%
Voice		8.3	%			10.2	%
Fiber route miles		16,357				9,387
Total fiber miles (3)		1,825,122				813,273

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(1) Homes and businesses are considered passed (“passings”) if we can connect them to our network without further extending the distribution system. Passings is an estimate based upon the best available information. Passings will vary among video, broadband data and voice services.
(2) Penetration is calculated by dividing the number of users by the number of passings or available homes, as appropriate.
(3) Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.
(4) Incumbent Broadband Markets consists of Shentel Incumbent Cable Markets and Horizon Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”) passings.
(5) Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets in the Shentel and former Horizon markets.

Residential & SMB ARPU
	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Residential & SMB Revenue:
Broadband Data	$	42,038			$	35,096			$	121,442			$	102,422
Incumbent Broadband Markets		28,241				26,977				84,363				81,422
Glo Fiber Expansion Markets		13,797				8,119				37,079				21,000
Video		14,520				14,077				43,827				43,133
Voice		3,275				3,062				9,580				9,146
Discounts, adjustments and other		(508	)			769				17				2,629
Total Residential & SMB Revenue	$	59,325			$	53,004			$	174,866			$	157,330
Average RGUs:
Broadband Data		167,514				144,510				161,169				140,420
Incumbent Broadband Markets		111,224				109,364				110,722				109,612
Glo Fiber Expansion Markets		56,290				35,146				50,447				30,808
Video		41,630				44,385				41,789				45,294
Voice		44,214				40,605				42,923				40,254
ARPU: (1)
Broadband Data	$	83.65			$	80.95			$	83.72			$	81.02
Incumbent Broadband Markets	$	84.64			$	82.22			$	84.66			$	82.54
Glo Fiber Expansion Markets	$	81.70			$	77.00			$	81.67			$	75.74
Video	$	116.26			$	105.72			$	116.53			$	105.81
Voice	$	24.69			$	25.14			$	24.80			$	25.24

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^{(1) Average Revenue Per RGU calculation = (Residential & SMB Revenue) / average RGUs / 3 months.}