Better Collective will use a "prudent" cost-cutting strategy to slow US investment.

 Superaffiliate Better Collective intends to be "prudent" and "pragmatic" with regard to costs, hence it will be reducing its initial investment in the US market due to macroeconomic concerns.

 Fleming Pedersen, the chief financial officer of Better Collective, stated in the company's Q3 results report that it was difficult to identify any detrimental effects of macroeconomic conditions on the affiliate's operations.

 He stated, "Even so, it is nearly impossible to estimate whether we could have grown even faster; the general business cycle still hasn't had any noticeable impact on our business."  "Sports betting is still at an all-time high, and we are able to keep up with any changes because of our tenacious efforts and astute business acumen. 

 He did, however, anticipate that there would be an effect later on and stated that Better Collective will reduce its US investment to take a more "prudent" and "pragmatic" approach to expenses.  The company had previously invested heavily in expanding in the United States through acquisitions like RotoGrinders and The Action Network.

 We anticipate remaining robust but not immune to the current macroeconomic instability, therefore we will take advantage of this opportunity to examine our entire cost base more carefully. 

 As a result, we anticipate future cost base growth to moderate, particularly in the US.  Our US investments have increased during the last few years.  As we continue to grow, the emphasis will be on scalability, which will be advanced by a practical cost focus and our operational leverage.

 Better Collective reported a 31.4% increase in revenue to €59.7 million in its Q3 results.

 When revenue was broken down geographically, the majority of the growth was driven by the Europe and rest-of-world category, which includes everything outside of the US. Operations in this region generated €42.9 million, up from €31.0 million the previous year.

 Meanwhile, income increased by 16.7% to €16.8 million in the US.

 The increase in the US revenue share
 Revenue-share agreements now account for the majority of Better Collective's total revenue, which increased by 73.6% year over year to €25.0 million.

 CEO of Better Collective  Søgaard Jesper 
 Jesper Søgaard, CEO of Better Collective
 However, cost-per-acquisition transactions generated €23.4 million, which was nearly identical to the amount earned the previous year.

 While other revenue increased by 72.1% to €7.4 million, subscription revenue increased to €4.0 million.

 Chief executive Jesper Søgaard claimed that many sceptics had already been disproved by the increase in US revenue-share.

 "In the US, the ongoing transition from CPA to revenue share is looking very promising," he stated.  Few people in the US thought operating on revenue share was feasible last year.

 "I think the change we're going through in the US is comparable to tech companies switching from license-based to Software-as-a-Service (SaaS) models.  Since Better Collective constantly makes long-term investments, we have always preferred revenue-share agreements.  This implies that our solutions are already designed to accommodate these kinds of contracts.

 According to Søgaard, the change had an effect on Better Collective's financial results in Q3 because revenue-share agreements pay out over a longer period of time than the upfront cost-per-acquisition model.

 The switch to revenue share was predicted to have a full-year impact on US profitability of over €5 million last quarter, he stated.  We now project that the full-year impact will exceed €10 million due to the ongoing contract closings in Q3.  Better Collective will undergo a radical change as a result of these agreements, which will fortify our relationship with the sportsbooks and guarantee more consistent future revenue.  In addition to being happy that we were able to meet our short-term goals, I am personally really enthusiastic to watch this development.

 The expenses for Better Collective increase rapidly.
 But expenses increased faster than income.  The company spent €17.3 million on labour expenses, up 46.6%, and €21.7 million on direct revenue costs, up 39.1%.  Other external costs increased by 44.7% to €6.1 million, while depreciation increased to €623,000.

 According to Better Collective, the incorporation of the FIFA Ultimate Team brand Futbin, increased expenditure on paid marketing to increase traffic, and a greater number of media partnerships were the causes of the higher expenses.

 Better Collective consequently recorded an operational profit of €13.9 million, up 6.1%, before amortisation and other items.

 Better Collective had an operational profit before exceptional items of €10.3 million after amortisation and impairment of €3.7 million, which was an 8.0% decrease from the previous year.

 In Q3 2021, the company's exceptional costs totalled €11.6 million, up from €621,000 in the previous year.  Earn-out costs associated with the purchase of Action Network were the primary cause of these expenditures.

 Consequently, the company generated an operational profit of €9.6 million, as opposed to an operating loss of €362,000 in the previous year.

 Better Collective reported a €6.9 million profit after financial items and taxes, compared to a €3.5 million loss in the third quarter of 2021.