Inspired Reports Fourth Quarter and Full Year 2023 Results: Achieves Record Annual Revenue of $323 Million

Key Highlights:

• Annual revenue for 2023 reached a record-breaking $323 million, marking a 15% increase compared to the previous year.
• Full-year net income amounted to $7.6 million, equivalent to $0.27 per share.
• The Company achieved a record full-year adjusted EBITDA of $100.5 million.
• Fourth-quarter revenue stood at $81.2 million, driven by a notable 49% increase in the Interactive segment.

Lorne Weil, Executive Chairman of Inspired, commented, “We concluded 2023 with robust results, aligning with our expectations. Our strong fourth-quarter performance capped off a successful year, driven by our strategic focus on expanding our higher-margin digital verticals alongside steady growth in our land-based operations."

He continued, "Our digital business, particularly the Interactive segment, continued to lead in the fourth quarter, with revenue and Adjusted EBITDA increasing approximately 41% and 39% year-over-year on a constant currency basis, respectively. We anticipate continued growth as we expand our footprint through new customer launches and leverage the growth of our existing customer base."

Weil highlighted, "Our Virtual Sports business generated $12.9 million in revenue during the fourth quarter, consistent with third-quarter performance. Looking ahead, we see several growth opportunities, including the introduction of NBA and NFL-themed products to cater to an expanding customer base in North America and Latin America."

Regarding the Company's land-based operations, Weil noted, "We continue to benefit from the optimization of our land-based operations and the rollout of our new 'Vantage' terminals. Our land-based business recorded strong year-over-year revenue growth of 6% and 8% in our Gaming and Leisure segments, respectively."

He concluded, "As the global online betting and gaming landscape evolves, we see opportunities for continued growth. Our market-leading Virtual Sports products and innovative iGaming offerings position us well to capitalize on this digital transformation. We are excited about the future as we aim to capitalize on the expanding online betting and gaming markets globally."

Recent Business Highlights:

• Introduced Hybrid Dealer®, a unique iGaming product offering branded RNG-generated table and gameshow content, seamlessly blending physical and digital elements. Launched with BetMGM in New Jersey.
• Expected launch of NBA-themed Virtual Sports game in the second quarter of 2024.
• Agreement with Kambi Group plc to integrate Virtual Sports products into the Kambi sportsbook platform.
• Expanded partnership with FanDuel in North America to deliver iGaming content across Ontario, Pennsylvania, Michigan, and New Jersey.