Genius Sports has highlighted a maintained momentum on its full-year objectives, exceeding initial revenue and EBITDA predictions of $231m and $12m.
Chipping away at its net losses from 2021, the company detailed in its Q3 interim trading report that year-to-date (YTD) revenue had risen by 32% to $235.7m (2021: $178.7m), with losses reduced by 90% from $539.5m to $53.9m – 2021 results that accounted for the group’s NYSE IPO and subsequent shareholder rewards.
EBITDA slowed to some extent, however, falling by 6.6% to $13.1m ($14m), with a margin of 5.6% (7.9%), but quarterly results show an improved performance throughout the year, with EBITDA rising by over 2,000% from a loss of $392m in Q3 2021 to $7.6m this year.
Additionally, group revenue for Q3 increased by 14% from $69.1m to $78.5m – dominated by the Betting Technology, Content & Services division – coupled with an 87% reduction in net losses to $8.9m ($70m).
“We are pleased to deliver another quarter of growth and Group Adj. EBITDA profitability, and we remain on target to achieve our full-year goals set on our Investor Day at the start of 2022,” said Mark Locke, Genius Sports Co-Founder and CEO.
From a product perspective, the aforementioned Betting Technology division saw its revenue rise by 13% year-on-year during Q3 to $49.2m ($43.6m) and YTD by 17% to $143.7m ($123.2m).
This growth was attributed to heavier utilisation of available content and expansion of value-add services and new service offerings.
Throughout the quarter, Genius was able to secure terms to 27 sportsbook partnerships, with the likes of Bally’s Interactive, Maximbet and NorthStar Gaming, whilst also launching free-to-play games for NFL franchises such as the Los Angeles Rams and Indianapolis Colts, among others.
Meanwhile, an increased uptake in programmatic advertising services and new customer wins were cited as growth drivers for the Media Tech unit, which saw Q3 revenue rise 29% to $17.9m ($13.9m) and 82.5% to $57m ($31.2m).
Lastly, Q3 income rose 6% for Sports Technology and Services division to $11.6m year-on-year for Q3 and 44% YTD to $34.9m ($24.1m), driven by increased revenues from Second Spectrum.
Of note, the Second Spectrum business has become one of Genius’ core assets, and continues to make progress post-quarter after signing enhanced deals with bet365 and Football DataCo and new wide-ranging partnership with the Australian Pro Leagues.
Further key developments for the group as a whole moving into Q4 have included the launch of its In-Play MultiBet product for in-play parlay wagering.
Looking ahead to the year-end, Genius continues to project full year revenue of around $340m and Adjusted EBITDA of approximately $15m, predicting a further increase in 2023 to revenue of $430m-$440m and EBITDA of $40m-$50m.
Locke concluded: “This year has been characterised by strong execution as we continue to deploy innovative technology, win new customers, and strengthen our key partnerships across the sports, betting, media, and broadcasting ecosystem, all with an eye towards cost discipline and profitable growth.”
