Home > Finance > Full year results > Genius reports 30.6% revenue growth in first results after SPAC merger

Genius reports 30.6% revenue growth in first results after SPAC merger

| By Daniel O'Boyle
Genius Sports Group has published its first results as a publicly listed company, revealing the business cut losses to $30.4m (£21.2m/€25.2m) as revenue was up 30.6% to $149.7m.
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Betting technology, content and services made up most of Genius’ revenue, up 25.2% year-on-year to $110.6m. Genius said this growth mostly came from existing customers.

Sports technology and services revenue was up 11.8% to $16.1m, while media technology, content and services revenue almost doubled to $23.1m.

The supplier’s costs of revenue came to $114.1m, resulting in a gross profit of $35.7m, up 41.1%.

The business then incurred operating expenses of $56.7m, of which $31.6m came from general administrative expenses. A further $13.2m of these expenses were related to sales and marketing, with $11.2m from research and development.

Genius’ interest income was $7.9m, and after other income mostly related to currency exchange, this led to a pre-tax loss of $28.5m, down 37.5% from the loss it made in 2019. 

Genius paid an additional $1.8m in tax for a final loss of $30.4m, which was 24.7% less than 2019’s loss.

Genius founder and chief executive Mark Locke said the business’ performance was especially impressive given the effects of the novel coronavirus (Covid-19) pandemic in 2020.

“2020 was a landmark year for Genius, with outstanding performance amidst the challenges presented by the global pandemic,” said Locke. “We have entered 2021 with great momentum, bolstered by our recently-completed merger with dMY II and NYSE listing, as well as our exclusive partnership with the NFL. 

“I am more confident than ever about the opportunities ahead as we continue to leverage our unique technology and scale to grow alongside the rapidly expanding global sports, betting and media ecosystem.”

In the fourth quarter of 2020, the supplier saw revenue grow 27.6% to €47.0m.

Gross profit was up 11.2% to €10.0m, and after €17.1m in operating expenses, its operating loss was €7.1m.

After other costs and taxes, Genius reported a net loss for the quarter of €13.5m, which was 39.2% more than the loss it made in 2019.

The announcement of the results comes after Genius went public through a merger with special acquisition company (SPAC) dMY Technology Group Inc. II.

The details of the merger were first announced in October.

In January it was revealed that GSG would form a new holding company, Galileo NewCo, as part of of the dMY II merger. GSG also announced that DMY II would become a subsidiary of Galileo.

Ahead of the merger, Genius also signed a deal that will see it become the official betting data source for the National Football League (NFL).

As part of the deal, Genius issued 22.5 million warrants to the league, entitling the NFL to purchase one ordinary share of Genius for $0.01 each.

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