Genius Sports continues to make revenue gains year-over-year, with the London headquartered sportstech and data group still confident of generating positive cash flow this year.
The NYSE-listed company reported group revenue of $95m in Q2 2023, 10% more than $86.8m the year prior. Genius’ net loss for the quarter remains at $21.8m, 111.6% more than $10.3m in Q2 2023 – this has not deterred its ambitions, however.
Similarly, Genius’ net loss for the full first half of 2024 also rose, by 33.5% from $35.5m to $47.3m. Group adjusted EBITDA, however, for Q2 and H1 rose by 32.9% and 16.8% respectively to $20.8m (2023: $15.6m) and $27.7m ($23.7m).
Per segment, Genius’ betting, content and services was the only department to report positive revenue growth this quarter, making a substantial contribution to group-wide revenue. The segment recorded growth of 18% year-over-year from $56.9m to $67.1m.
The media technology, content and services segment and sorts technology and services segments, on the other hand, faced some challenges. Revenue for the former fell 2.2% from $18.4m to $18m, and for the latter by 10.8% from $11.6m to $10.4m.
H1 segment revenue, on the other hand, saw media technology, content and services revenue rise 33.2% to £53.4m ($40.1m). Betting technology, content and services revenue rose 16% from $121.6m to £141m, and sports technology and content revenue dropped 7.3% from $22.4m to $20.7m.
Mark Locke, Genius Sports Co-Founder and CEO, said: “This quarter validates our strategic execution as we continue to deepen our league relationships, having extended one of our key data rights agreements, expanded our technology footprint and bolstered our product offering across the sports ecosystem.
“We are excited for the remainder of the year and expect to reaccelerate Group Revenue growth, continue our adjusted EBITDA margin expansion and generate positive cash flow.”
The widening of Genius’ financial loss this quarter marks the first time it has risen for several quarters, with the group having been cutting down its loss for some time. However, the increase in revenue marks a continuation of many successive quarters of growth.
Regardless of the increase in losses, Genius remains confident that it can achieve positive cash flow by the end of the year. The company has built up a strong foothold in the global sports data and technology sector, maintaining partnerships with the likes of the NBA, as well as the English Premier League via its deal with FootballDataCo.
Sharing end-of-year projections, Genius expects group revenue of around $510m and group adjusted EBITDA of approximately £85m, implying growth of 23% and 59% respectively.
