Genius Sports is continuing to go from strength-to-strength, according to the British sportstech firm’s latest quarterly and full year earnings report.
Updating investors this week, the London-based, NYSE-listed multinational declared full year revenue of $412m in 2023, a 21% increase on $341m the year prior, and surpassing projected revenue of $391m.
Although this marked the fourth consecutive quarter in which Genius has exceeded its expectations, Q4 2023 did see a 16% slip in revenue year-on-year from $14m to $12m for its Sports Tech unit.
This division closed the year with revenue of $47m, a 4% dip on $44m in 2022. Genius attributed this to difficult reading as a result of reduced income from non-cash considerations such as official sports data and streaming rights.
Regardless of the difficulties faced by this one division, Genius outperformed its earnings target of $41m with year-end EBITDA of $53m, more than triple the corresponding 2022 results of $16m and concluding Q4 with group-wide revenue of $127m, up 17% from $105m the year prior.
Mark Locke, Genius Sports CEO and Co-Founder, said: “We are excited to report our eighth consecutive quarter of financial results above expectations, while demonstrating the increasing profitability of our business model and our ability to consistently execute on our strategic objectives.”
Whilst sports tech faced difficulties, Genius’ remaining segments performed strongly during the quarter, with the ‘Betting Technology and Content’ division recording the strongest growth at 32% in Q4 to $87m ($59m) and 31% for the full year to $274m ($209m).
The unit’s growth is attributed to factors including new client acquisitions, expanded services with existing customers, improved price adjustments, introduction of value-added services, and increased customer utilisation of tech and media services.
Likewise, Genius’ Media Technology unit reported a Q4 revenue increase to $28.5m, generating a FY2023 revenue contribution of $92m, benefiting from increased demand for its North American data rights and programmatic advertising services.
Genius closed 2023 trading by halving its corporate losses to $83m, compared to FY2022 operating losses of $183m, with the accounts detailing a $42m reduction in corporate expenses.
The firm expects positive cash flow for 2024, and sets its FY2024 corporate guidance off approximately $480m in group revenue as well as adjusted EBITDA of around $75m.
Central to Genius’ ambitions is the rollout of the BetVision platform with Caesars Sportsbook, Fanatics, and BetRivers in North America and its expanded partnership with FanDuel to launch the NFL BetVision streaming solution.
Locke concluded: “The business is now better positioned than ever to benefit from multiple structural growth drivers across the digital sports ecosystem, and we’re excited to continue our momentum into 2024.”
