Genius Sports Reports Second Quarter Results Ahead of Expectations and Raises Full-Year Revenue and Group Adj. EBITDA Guidance

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Last update:

  • Group Revenue of $87m, exceeding second quarter guidance of $80m
  • Group Net Loss of ($10m) and Group Adj. EBITDA of $16m, exceeding second quarter guidance of $14m
  • Year-to-date Group Adj. EBITDA more than quadrupled year-on-year to $24m
  • Raising 2023 Group Revenue and Adj. EBITDA guidance for the second consecutive quarter to $410m and $52m, respectively, up from prior guidance of $400m and $49m
  • Genius expects to expand Group Adj. EBITDA Margins from 5% in 2022 to 13% in 2023

LONDON & NEW YORK–(BUSINESS WIRE)–Genius Sports Limited (NYSE:GENI) (“Genius Sports” or the “Group”), the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media, today announced financial results for its fiscal second quarter ended June 30, 2023.


“We enter the second half of 2023 having reached a significant inflection point in our business,“ said Mark Locke, Genius Sports Co-Founder and CEO. “Following the financial outperformance in the first half of the year and the recently renewed partnerships with FDC and the NFL, we have validated our core strategy, differentiated our technology stack, and proven our sustainable business model. The ongoing success through the second quarter perfectly demonstrates our balanced approach in delivering near-term results, while accelerating Genius towards our long-term growth and profit targets.”

$ in thousands

Q223

Q222

%

Group Revenue

86,847

71,117

22.1%

Betting Technology, Content & Services

56,862

44,831

26.8%

Media Technology, Content & Services

18,357

14,999

22.4%

Sports Technology & Services

11,628

11,287

3.0%

Group Net loss

(10,298)

(4,755)

(116.6%)

Group Adjusted EBITDA

15,650

8,362

87.2%

Group Adjusted EBITDA Margin

18.0%

11.8%

6.2%

$ in thousands

1H23

1H22

%

Group Revenue

184,076

157,040

17.2%

Betting Technology, Content & Services

121,602

94,552

28.6%

Media Technology, Content & Services

40,121

39,128

2.5%

Sports Technology & Services

22,353

23,360

(4.3%)

Group Net loss

(35,466)

(44,953)

21.1%

Group Adjusted EBITDA

23,692

5,469

333.2%

Group Adjusted EBITDA Margin

12.9%

3.5%

9.4%

Q2 2023 Financial Highlights

  • Group Revenue: Group revenue increased 22% year-over-year to $86.8 million. On a constant currency basis, revenue increased $16.1 million, or 23% year-over-year.

    • Betting Technology, Content & Services: Revenue increased 27% (28% on a constant currency basis) year-over-year to $56.9 million, driven by increased customer utilization of available event content and growth in business with existing customers.
    • Media Technology, Content & Services: Revenue increased by 22% (23% on a constant currency basis) year-over-year to $18.4 million, driven by growth in the Americas region, primarily for programmatic advertising services.
    • Sports Technology & Services: Revenue increased 3% (3% on a constant currency basis) year-over-year to $11.6 million, primarily due to higher revenues from non-cash consideration contracts.
  • Group Net Loss: Loss from operations narrowed from ($39.7 million) in the second quarter ended June 30, 2022, to ($7.8 million) in the second quarter this year, driven by improved underlying performance. This improvement was offset by a $29 million reduction in gain on foreign currency compared to the prior year, resulting in Group net loss of ($10.3 million) in the second quarter ended June 30, 2023.
  • Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $15.7 million in the quarter vs. $14.0 million guidance. This represents an 87% increase compared to the $8.4 million reported in the second quarter ended June 30, 2022.

Q2 2023 Business Highlights

  • After the reporting period, Genius extended its strategic partnership with the NFL

    • Long-term partnership now continues through the end of the 2027-28 season
    • Genius remains the exclusive distributor of official live game data and Next Gen Stats to the global media and betting markets
    • Extended agreement also includes exclusive right to distribute digital advertising inventory and marks and logos to global sportsbooks;
    • Low latency Watch & Bet video feeds to international sportsbooks, now including U.S. sportsbooks;
    • Integrity monitoring services for all NFL games
  • Extended official data partnership with Football DataCo, the data rights holder of UK football, covering over 4,000 events per season across EPL, EFL and SPFL
  • Secured AI-powered tracking technology expansion with the English Premier League and English Football League through best-in-class Second Spectrum technology
  • After the reporting period, Genius launched innovative digital features for the FIFA Women’s World Cup Australia & New Zealand 2023™, leveraging Second Spectrum technology to enrich the game-viewing experience
  • Expanded integrity program with The German Football Association, utilizing a leading intelligence system to combat threats of match-fixing and betting-related corruption
  • Awarded ‘Best Technology for College Sports’ at the Sports Technology Awards 2023 and the ‘Sports Betting Supplier’ prize at the EGR North America Awards 2023

Financial Outlook

Genius expects to generate Group Revenue of approximately $410 million and Group Adjusted EBITDA of approximately $52 million in 2023. The Company also expects to reach an important inflection point as it begins generating sustainable free-cash-flow in the second half of 2023 and beyond.

$ in millions

Q1 2023A

Q2 2023A

Q3 2023E

Q4 2023E

FY 2023E

Group Revenue

$97

$87

$100

$126

$410

Betting Technology, Content & Services

$65

$57

$64

$80

$266

Media Technology, Content & Services

$22

$18

$24

$31

$95

Sports Technology & Services

$11

$12

$12

$15

$50

Group Adjusted EBITDA

$8

$16

$17

$11

$52

Note: values may not add up due to rounding

Financial Statements & Reconciliation Tables

Genius Sports Limited

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue

 

$ 86,847

 

$ 71,117

 

$ 184,076

 

$ 157,040

Cost of revenue

 

62,173

 

61,817

 

149,870

 

163,192

Gross profit (loss)

 

24,674

 

9,300

 

34,206

 

(6,152)

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

6,589

 

8,973

 

13,980

 

18,205

Research and development

 

5,812

 

7,734

 

12,081

 

15,125

General and administrative

 

19,618

 

32,282

 

37,692

 

65,086

Transaction expenses

 

496

 

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