Genius reports second quarter results ahead of expectations

“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.”

Q2 2023 Financial Highlights:

- Group Revenue: Group revenue increased 22% year-over-year to US$86.8 million. On a constant currency basis, revenue increased US$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 US$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 US$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 US$11.6 million, primarily due to higher revenues from non-cash consideration contracts.

- Group Net Loss: Loss from operations narrowed from (US$39.7 million) in the second quarter ended June 30, 2022, to (US$7.8 million) in the second quarter this year, driven by improved underlying performance. This improvement was offset by a US$29 million reduction in gain on foreign currency compared to the prior year, resulting in Group net loss of (US$10.3 million) in the second quarter ended June 30, 2023.

- Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was US$15.7 million in the quarter vs. US$14.0 million guidance. This represents an 87% increase compared to the US$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 US$410 million and Group Adjusted EBITDA of approximately US$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.

Source: GMB