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Genius Sports Beats Financial Margins In Q3, Revenue Up 29%

Written By Tebearau Egbe on November 15, 2023 - Last Updated on February 16, 2024
Alabama’s James Burnip On Football Field with Genius Sports logo and Q3 2023

Sports data and technology company Genius Sports published its financial results for the third quarter, which ended on Sept. 30. The report indicates a year-over-year increase of 29% in Q3 revenue.

Genius Sports’ third quarter highlights

  • Generated $102 million in group revenue, representing a 29% year-on-year growth
  • Group net loss of approximately $12 million
  • Group Adjusted EBITDA reached $18 million, indicating a 131% growth.

Genius Sports sees double digit growth across three key segments

Genius Sports achieved group revenue of $102 million, surpassing the third-quarter guidance of $100 million, according to a news release.

The Betting Technology, Content, and Service segment contributed $65.9 million in revenue, indicating 34% year-over-year growth. The report highlights that this growth can be attributed significantly to the:

  • Acquisition of new customers
  • Renewal of contracts with existing customers (NFL contract renewal)
  • Introduction of new offerings
  • Expansion of value-added services

“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 Genius Sports Co-Founder and CEO, Mark Locke, in a company news release.

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.”

Media Technology, Content and Services revenue stood at $22.9 million, marking a 28% growth compared to the same period in the previous year. This upturn is primarily linked to the expansion observed in the Americas region, specifically in programmatic advertising services.

On the other hand, Sports Technology & Services, while contributing the lowest revenue, registered 11% growth from the third quarter of 2022, with its revenue contribution reaching $12.9 million.

Improved operations losses balances out company’s Group Net Loss

Genius Sports’ group net loss stood at approximately $12 million in the third quarter that ended Sept. 30, 2023. Operations losses went from $33.4 million in last year’s Q3 down to $8.9 million, which was a result of the improved performance of the company.

The progress made was counteracted by a decrease of $29.8 million in foreign currency gains compared to the previous year, leading to a group net loss of $11.6 million in the third quarter.

Adjusted EBITDA jumps 131%

In Q3, the Group Adjusted (non-GAAP) EBITDA reached $17.7 million, surpassing the $17.0 million guidance and reflecting a significant 131% increase from the reported $7.7 million in the third quarter concluded on Sept. 30, 2022.

Genius Sports hopes to close fiscal year with $412M in revenue

The unaudited report for assets shows a total of $772,199, while the audited report last year, which ended Dec. 31, 2022, shows total assets of $773,337. On the other hand, Genius Sports has total liabilities of $194,759, and the last-year period shows a total liability of $196,52.

In terms of its financial outlook, the company aims to achieve group revenue of approximately $412 million in 2023, coupled with an estimated group Adjusted EBITDA of around $53 million.

Additionally, the company anticipates generating positive free cash flow in the latter half of the year.

Photo by Charlie Riedel / AP Photo; illustrated by PlayUSA
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Tebearau Egbe

Tebearau Egbe has written about gambling for more than four years. She has a Master's degree in philosophy and possesses a unique ability to dissect complex industry developments, distilling them into insightful narratives for readers.

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