Genius Sports reports first quarter results ahead of expectations

Genius Sports, the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media, announced financial results for its fiscal first quarter ended March 31, 2023.

In its report, the company highlights:

• Group Revenue of US$97.2m, exceeding first quarter guidance of US$92.0m
   
• Group Net Loss of (US$25.2m) and Group Adj. EBITDA of $8.0m, exceeding first quarter guidance of US$3.0m
   
• 2023 Group Revenue and Adj. EBITDA outlook increased to US$400m and US$49m, respectively, up from prior outlook of US$391m and US$41m
   
• Genius expects to expand Group Adj. EBITDA Margins from 5% in 2022 to 12% in 2023

“Following a strong year of execution in 2022, we are pleased to continue our momentum to start the new year, with the first quarter of 2023 marking another period of outperformance relative to our guidance,” said Mark Locke, Genius Sports Co-Founder and CEO.

"2023 is the year in which Genius expects to significantly accelerate Group Adj. EBITDA profitability and rapidly expand margins. Our first quarter results demonstrate the operating leverage of our business model, built to benefit from positive industry trends and support sustainable, profitable growth.”

The business’s Betting Technology, Content & Services division entirely drove the increased revenue, with the segment rising 30.2% to US$64.7m versus the US$49.7m reported in 2022.

The organisation said the increased revenue for its Betting segment was a result of the impact of both new customer acquisitions and growth among existing customers. Genius said that this was due to price hikes on contract renewals and renegotiations.

“I have a greater sense of confidence in our ability to achieve full-year financial targets beyond our initial expectations, leading us to raise our 2023 outlook," Locke concluded.

Source: GMB