Genius Sports has outlined ambitions to achieve positive cash flow as the second half of the year approaches.
Group wide quarterly revenue rose 13% to $97.2m (Q1 2022: $86.9m), alongside adjusted EBITDA of $8m, a substantial increase of 378% on a corresponding Q1 2022 loss of $3m, whilst the margin stood at 8%.
Most significantly for the sportstech and data firm, its group-wide net loss has been further cut down to $25.2m, a decrease of 37% from $40.2m the year prior, and another step towards full profitability.
This has prompted the company to reevaluate its expectations for the remainder of the year, according to the Group’s CEO Mark Locke, projecting positive free-cash flow by H2 and FY23 revenue of $400m and Adjusted EBITDA of around $49m.
Locke further said: “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.
“2023 is the year in which Genius expects to significantly accelerate Group Adj. EBITDA profitability and rapidly expanding margins.”
Genius explained that the net loss consists chiefly of internet income, the loss of disposal assets (which increased from $6m to $11m), loss on fair value remeasurement of contingent consideration, and changes in fair value of warrant liabilities.