Sports data and tech company Genius Sports posted its financial results for the second quarter of the year informing that the company recorded high revenues, while its losses plummeted.
Total group revenue during H1 2022 amounted to US$157m, a 43% increase on the 2021 figures of US$109m, whilst income in the second quarter specifically rose by 27.3% to US$71m. The operator’s revenue exceeded its guidance for the quarter, which was set at US$68m.
Betting technology, content and services brought in US$44.8m, which was up by 10.4% year-on-year. Genius said about half of the increase was due to new customer additions, around US$1.5m from renewed or renegotiated contracts with existing clients at higher prices, and a further US$500,000 from “increased customer utilisation of existing Genius content.”
Revenue from media technology, content and services almost doubled to $15.0m. Sports technology content and services revenue was US$11.3m, up 56.9%.
Looking at revenue geographically, US$43.9m came from Europe, a 4.5% increase, US$21.4m from the Americas, more than double the total from a year earlier, and US$5.8m from the rest of the world, up by 34.9%.
Genius’ cost of revenue came to US$61.8m. This total was down by almost 75%, due mostly to the fact that 2021’s figure included 22.5 million warrants to purchase shares granted to the National Football League (NFL) in order to gain the rights to distribute NFL betting data.
Genius’ sales and marketing costs grew to US$9.0m and research and development costs grew to $7.7m, while general and administrative costs also fell sharply, again due to stock-based expenses, including more costs for the NFL deal as well as employee stock compensation.
As a result, Genius’ operating loss was slashed from US$429.1m a year ago to US$36.7m.
Genius also reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of US$8.4m, again ahead of guidance, which was US$8.0m.
“We remain highly focused on delivering profitable growth and have executed ahead of expectations through the first half of the year. We continue to utilise our partnerships and unique technology to yield strong results and build upon our commercial strategy,” said Mark Locke, Genius Sports co-founder and CEO.
“We have maintained steady EBITDA profitability globally and established a leading position within the US, all while achieving EBITDA profitability at the group level. Genius has strong momentum and we feel confident in the continued execution of our strategic plan,” Locke added.
Source: GMB / iGB
