- Group Revenue of $102m, exceeding third quarter guidance of $100m and representing 29% year-on-year growth
- Group Net Loss of ($12m) and Group Adj. EBITDA of $18m, exceeding third quarter guidance of $17m and representing 131% year-on-year growth
- Third quarter Group Adj. EBITDA margins improved by 770 basis points year-on-year
- Raising 2023 Group Revenue and Adj. EBITDA guidance for the third consecutive quarter to $412m and $53m, respectively
- Reaffirming expectation for positive free-cash-flow in the second half of 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 third quarter ended September 30, 2023.
“Our consistent outperformance reflects the execution of our core strategy as we continue to develop and distribute innovative technology across the sports ecosystem, enabling success for our partners, and further solidifying our long-term strategic position,” said Mark Locke, Genius Sports Co-Founder and CEO. Nick Taylor, Genius Sports CFO, added, “We have reached a critical turning point in our business as we have realized consistent margin expansion in each quarter this year and now have much higher visibility into our long-term model following the renewals and extensions of key rights partnerships.”
|
$ in thousands |
Q323 |
Q322 |
% |
|
Group Revenue |
101,729 |
78,650 |
29.3% |
|
Betting Technology, Content & Services |
65,927 |
49,156 |
34.1% |
|
Media Technology, Content & Services |
22,938 |
17,931 |
27.9% |
|
Sports Technology & Services |
12,864 |
11,563 |
11.3% |
|
Group Net loss |
(11,616) |
(8,967) |
(29.5%) |
|
Group Adjusted EBITDA |
17,695 |
7,658 |
131.1% |
|
Group Adjusted EBITDA Margin |
17.4% |
9.7% |
7.7% |
|
$ in thousands |
YTD23 |
YTD22 |
% |
|
Group Revenue |
285,805 |
235,690 |
21.3% |
|
Betting Technology, Content & Services |
187,529 |
143,708 |
30.5% |
|
Media Technology, Content & Services |
63,059 |
57,059 |
10.5% |
|
Sports Technology & Services |
35,217 |
34,923 |
0.8% |
|
Group Net loss |
(47,082) |
(53,920) |
12.7% |
|
Group Adjusted EBITDA |
41,387 |
13,127 |
215.3% |
|
Group Adjusted EBITDA Margin |
14.5% |
5.6% |
8.9% |
Q3 2023 Financial Highlights
-
Group Revenue: Group revenue increased 29% year-over-year to $101.7 million.
- Betting Technology, Content & Services: Revenue increased 34% year-over-year to $65.9 million, driven by new customer acquisitions, increased customer utilization of available content, and growth in business with existing customers due to price increases on contract renewals and renegotiations alongside the expansion of value-add services, and new service offerings.
- Media Technology, Content & Services: Revenue increased by 28% year-over-year to $22.9 million, driven by growth in the Americas region, primarily for programmatic advertising services.
- Sports Technology & Services: Revenue increased 11% year-over-year to $12.9 million.
- Group Net Loss: Loss from operations narrowed from ($33.4 million) in the third quarter ended September 30, 2022, to ($8.9 million) in the third quarter of this year, driven by improved underlying performance. This improvement was offset by a $29.8 million reduction in gain on foreign currency compared to the prior year, resulting in Group net loss of ($11.6 million) in the third quarter ended September 30, 2023.
- Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $17.7 million in the quarter vs. $17.0 million guidance. This represents a 131% increase compared to the $7.7 million reported in the third quarter ended September 30, 2022.
Q3 2023 Business Highlights
-
After the reporting period:
- Expanded partnership with the NFL to power NFL+ with data-driven on-screen graphic overlays and visualizations
- Signed new partnership with Premier League Productions to deliver an enhanced live broadcast with rich tracking data insights and data-driven augmentations
- Launched BetVision, an immersive sports betting experience including NFL live game video
- Announced new partnership with Snap to power immersive AR experiences with NFL data on Verizon’s 5G network
- Developed the first official Rugby World Cup Fantasy game in partnership with World Rugby
- Awarded a provisional gaming license by the Nebraska Racing and Gaming Commission.
- Extended official data & integrity partnership with Brazil’s National Basketball League
- Partnered with Ryder Cup to launch the Ryder Cup Game Zone, an interactive gamification hub for fans
- Appointed former MediaMath CTO, Manny Puentes as GM, Advertising
Financial Outlook
Genius expects to generate Group Revenue of approximately $412 million and Group Adjusted EBITDA of approximately $53 million in 2023. The Company is also reaffirming its expectation to generate positive free-cash-flow in the second half of 2023.
|
$ in millions |
Q1 2023A |
Q2 2023A |
Q3 2023A |
Q4 2023E |
FY 2023E |
|
Group Revenue |
97 |
87 |
102 |
126 |
412 |
|
Betting Technology, Content & Services |
65 |
57 |
66 |
80 |
268 |
|
Media Technology, Content & Services |
22 |
18 |
23 |
31 |
94 |
|
Sports Technology & Services |
11 |
12 |
13 |
15 |
50 |
|
Group Adjusted EBITDA |
8 |
16 |
18 |
11 |
53 |
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 |
|
Nine Months Ended |
||||
|
|
|
September 30, |
|
September 30, |
||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Revenue |
|
$ 101,729 |
|
$ 78,650 |
|
$ 285,805 |
|
$ 235,690 |
|
Cost of revenue |
|
77,446 |
|
72,821 |
|
227,316 |
|
236,013 |
|
Gross profit (loss) |
|
24,283 |
|
5,829 |
|
58,489 |
|
(323) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
5,827 |
|
6,207 |
|
19,807 |
|
24,412 |
|
Research and development |
|
6,115 |
|
8,105 |
|
18,196 |
|
23,230 |
|
General and administrative |
|
20,399 |
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