Genius Sports ups estimates, beats early 2024 outlook
In Genius Sports’ results for Q1, the data, technology and broadcast services supplier said it now expects group revenue to hit $500m, while adjusted EBITDA will be $82m. This compares to initial estimates of $480m and $75m.
London-headquartered Genius Sports, whose partners include the NFL and English Premier League, issued the updated guidance after announcing group revenue of $120m during the three months to 31 March 2024. This was up 23.1% on the first quarter of 2023 and 2.5% greater than prior estimates.
Betting technology, content & services revenue was up 14% year-on-year to $73.9m. The group’s largest segment’s success was driven by new customer acquisitions and growth in business with existing customers as a result of price increases on contract renewals and renegotiations.
Media technology, content & services revenue was up by 63% year-on-year to $35.5m. This was driven by growth in the Americas region, with programmatic advertising services playing a major part.
Genius costs rise in line with growth
Cost of revenue growth of 21.8% to €106.9m was in line with the revenue increase. Total operating expenses were up just over 15% year-on-year to $37.1m.
Group net loss of $25.5m was relatively level from $25.2m in the first quarter of 2023.
Group adjusted EBITDA of $7m was down 14.5% year-on-year, but exceeded guidance of $6m. This year-on-year change was primarily driven by a new NFL domestic streaming rights to power Genius’ BetVision product. These rights are expensed equally in each month during the NFL season, uniquely affecting Q1 2024 profitability, due to the lower number of NFL games to boost revenue in the quarter.
Mark Locke, Genius Sports’ co-founder and CEO, welcomed the results as well as some operational highlights in early 2024. These included a new and exclusive betting rights deal with Football DataCo which runs through 2029.
“Following a strong year of execution in 2023, we are pleased to continue our momentum to start the new year, with the first quarter of 2024 marking another period of outperformance relative to expectations,” Locke said.
“As we expand our technology footprint and work to extend one of our most important data partnerships with Football DataCo, we feel an enhanced sense of excitement and confidence in our outlook for 2024 and beyond.”
Promising start to 2024 for Genius Sports
Genius saw full-year revenue grow by 21.0% to $413.0m in 2023, beating the its prior guidance of $391m. Cost of revenue for Genius’ FY23 rose by 1.7% to $343.9m. This left the gross profit at $69m – a $66.1m rise compared to full-year 2022. Adjusted EBITDA more than tripled, up 238.3% year-on-year to $53.3m. This also beat the initial guidance of $41m.
The start of 2024 saw Genius named as the successful bidder for the official betting data partnership with Football DataCo. The company holds data rights to the English Premier League.
Genius has now entered into an exclusive period of negotiation with DataCo. The renewed agreement is still subject to contract and the agreement of the leagues and their clubs.