Genius Sports has increased its full-year revenue and adjusted EBITDA guidance after posting a 29.3% increase in revenue to US$101.7m in Q3. The data, technology and broadcast business reported growth across all segments in Q3 but remained at a net loss. However, such was this growth that, coupled with success earlier in 2023, this was enough for Genius to raise guidance.
Q3 2023 Financial Highlights:
- Group Revenue increased 29% year-over-year to US$101.7 million.
Betting Technology, Content & Services: Revenue increased 34% year-over-year to US$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 US$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 US$12.9 million.
- Group Net Loss: Loss from operations narrowed from (US$33.4 million) in the third quarter ended September 30, 2022, to (US$8.9 million) in the third quarter of this year, driven by improved underlying performance. This improvement was offset by a US$29.8 million reduction in gain on foreign currency compared to the prior year, resulting in Group net loss of (US$11.6 million) in the third quarter ended September 30, 2023.
Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was US$17.7 million in the quarter vs. US$17.0 million guidance. This represents a 131% increase compared to the US$7.7 million reported in the third quarter ended September 30, 2022.
Q3 2023 Business Highlights:
- 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
“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.”
Financial Outlook:
Genius expects to generate Group Revenue of approximately US$412 million and Group Adjusted EBITDA of approximately US$53 million in 2023. The Company is also reaffirming its expectation to generate positive free-cash-flow in the second half of 2023.
Source: GMB
