Revenue
Revenue was $86.8 million for the three months ended June 30, 2023 compared to $71.1 million for the three months ended June 30, 2022.
Revenue increased $15.7 million, or 22%. On a constant currency basis, revenue would have increased $16.1 million, or 23% in the three months ended June 30, 2023.
Betting Technology, Content and Services revenue increased $12.0 million, or 27%, to $56.9 million for the three months ended June 30, 2023
from $44.8 million for the three months ended June 30, 2022. New customer acquisitions contributed $5.2 million to the increase, and $3.9 million was driven by increased customer utilization of Genius available event
content, while a further $2.9 million was driven by growth in business with existing customers as a result of price increases on contract renewals and renegotiations powered by Genius official data rights strategy, expansion of value-add services, and new service offerings. On a constant currency basis, Betting Technology, Content and Services revenue would have increased $12.3 million, or 28% in the three months ended June 30,
2023.
Media Technology, Content and Services revenue increased $3.4 million, or 22%, to $18.4 million for the three months ended June 30,
2023 from $15.0 million for the three months ended June 30, 2022, driven by growth in the Americas region, primarily for programmatic advertising services. On a constant currency basis, Media Technology, Content and Services revenue would
have increased $3.4 million, or 23% in the three months ended June 30, 2023.
Sports Technology and Services revenue increased
$0.3 million, or 3%, to $11.6 million for the three months ended June 30, 2023 from $11.3 million for the three months ended June 30, 2022, primarily due to higher revenues from
non-cash consideration contracts. Revenue for contracts where Genius receives non-cash consideration in the form of official sports data and streaming rights was
$4.4 million in the three months ended June 30, 2023 compared to $3.7 million in the three months ended June 30, 2022. On a constant currency basis, Sports Technology and Services revenue would have increased $0.4 million,
or 3% in the three months ended June 30, 2023.
Cost of revenue
Cost of revenue was $62.2 million for the three months ended June 30, 2023, compared to $61.8 million for the three months ended June 30,
2022. The $0.4 million increase in cost of revenue includes a $6.0 million decrease in stock-based compensation. Excluding the impact of stock-based compensation, cost of revenue would have increased by $6.4 million, which is
primarily driven by higher data rights costs.
Data and streaming rights costs were $19.5 million for the three months ended June 30, 2023,
compared to $15.9 million for the three months ended June 30, 2022. The $3.5 million increase is driven primarily by Geniuss official data rights strategy.
Media direct costs were $7.9 million for the three months ended June 30, 2023, compared to $6.9 million for the three months ended
June 30, 2022. The $0.9 million increase is driven primarily by higher programmatic advertising revenues.
Amortization of capitalized software
development costs was $6.3 million for the three months ended June 30, 2023, compared to $5.6 million for the three months ended June 30, 2022. This increase is driven primarily by Genius continued investment in new product
offerings which has resulted in increased capitalization of internally developed software costs. Other amortization and depreciation was $10.7 million for the three months ended June 30, 2023, compared to $10.8 million for the three
months ended June 30, 2022.
Sales and marketing
Sales and marketing expenses were $6.6 million for the three months ended June 30, 2023, compared to $9.0 million for the three months ended
June 30, 2022. The $2.4 million decrease includes a $0.9 million decrease in stock-based compensation related to equity awards issued to management and employees. Excluding the impact of stock-based compensation, the decrease would
have been $1.5 million, which is primarily driven by lower staff costs, including deferred consideration costs from historical acquisitions.
Research and development
Research and development
expenses were $5.8 million for the three months ended June 30, 2023, compared to $7.7 million for the three months ended June 30, 2022. The $1.9 million decrease includes a $0.8 million decrease in stock-based
compensation related to equity awards issued to management and employees. Excluding the impact of stock-based compensation, the decrease would have been $1.2 million, which was primarily due to lower staff costs, including deferred
consideration costs from historical acquisitions.
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