- Group Revenue of $120m, exceeding third quarter guidance of
$119m, representing 18% growth year-over-year
- Group Net Income of $13m and Group Adj. EBITDA of $26m,
exceeding guidance of $25m and increasing 45% year-over-year
- Raised 2024 Group Revenue and Adj. EBITDA guidance to $511m and
$86m, respectively, representing growth of 24% and 61% and nearly
400bps of margin expansion
- Reaffirming expectation to generate positive cash flow in
2024
- Agreed improved commercial terms with all major U.S. sportsbook
customers and many others across the globe
Genius Sports Limited (NYSE:GENI) (“Genius Sports” or the
“Group”), the official data, technology and broadcast partner that
powers the global ecosystem connecting sports, betting and media,
today announced financial results for its fiscal third quarter
ended September 30, 2024.
“Our strong results are underpinned by our successful commercial
execution, positioning us to capture profitable growth alongside
our partners as the sports betting industry continues to evolve and
expand,” said Mark Locke, Genius Sports Co-Founder and CEO. “We are
empowering partners across the sports ecosystem to better reach,
engage, and monetize fans using our innovative technology and
unique data-driven insights.”
$ in thousands
Q324
Q323
%
Group Revenue
120,198
101,729
18.2
%
Betting Technology, Content &
Services
85,625
65,927
29.9
%
Media Technology, Content &
Services
22,126
22,938
(3.5
%)
Sports Technology & Services
12,447
12,864
(3.2
%)
Group Net Income (Loss)
12,505
(11,616
)
nm
Group Adjusted EBITDA
25,691
17,695
45.2
%
Group Adjusted EBITDA Margin
21.4
%
17.4
%
400
bps
$ in thousands
YTD24
YTD23
%
Group Revenue
335,363
285,805
17.3
%
Betting Technology, Content &
Services
226,646
187,529
20.9
%
Media Technology, Content &
Services
75,554
63,059
19.8
%
Sports Technology & Services
33,163
35,217
(5.8
%)
Group Net Loss
(34,828
)
(47,082
)
26.0
%
Group Adjusted EBITDA
53,366
41,387
28.9
%
Group Adjusted EBITDA Margin
15.9
%
14.5
%
140
bps
nm = not meaningful
Q3 2024 Financial Highlights
- Group Revenue: Group revenue increased 18%
year-over-year to $120.2 million.
- Betting Technology, Content & Services: Revenue increased
30% year-over-year to $85.6 million, driven primarily by higher
customer utilization of Genius’ available content, combined with
growth in business with existing customers as a result of price
increases on contract renewals and renegotiations.
- Media Technology, Content & Services: Revenue decreased 4%
year-over-year to $22.1 million.
- Sports Technology & Services: Revenue decreased 3%
year-over-year to $12.4 million.
- Group Net Income: Group net income was $12.5 million in
the third quarter ended September 30, 2024, representing a $24.1
million increase compared to the ($11.6 million) loss in the third
quarter ended September 30, 2023.
- Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA
was $25.7 million in the quarter, exceeding guidance of $25.0
million. This represents a 45% increase compared to the $17.7
million reported in the third quarter ended September 30, 2023 and
400 basis points of margin expansion.
Q3 2024 Business Highlights
- Announced new long-term deal with ESPN to help transform live,
data-driven storytelling for NCAA sports and enhance broadcasts for
the NBA and WNBA
- Partnered with Reddit to power new sports scores feature with
official NFL data, bringing the power of live game data to
real-time fan conversations
- Appointed Mark Kropf as Group Chief Technology Officer, joining
from Google's Office of the Chief Technology Officer
- After the reporting period:
- Agreed improved commercial terms with all major U.S. sportsbook
customers and many others across the globe
- Launched FANHub, the world’s first advertising and activation
platform custom-built to reach and engage sports fans
- Partnered with The Los Angeles Rams to provide fans with
augmented, data-driven in-game highlights within SoFi Stadium
- Appointed former President of Microsoft's Entertainment &
Devices Division, Robert J. Bach, as an Independent Director
Financial Outlook
Genius Sports expects to generate Group Revenue of approximately
$511 million and Group Adjusted EBITDA of approximately $86 million
in 2024. This implies year-over-year Group Revenue and Adj. EBITDA
growth of 24% and 61%, respectively. Genius Sports also expects to
generate positive cash flow in the full year of 2024.
$ in millions
Q1 2024A
Q2 2024A
Q3 2024A
Q4 2024E
FY 2024E
Group Revenue
120
95
120
176
511
Group Adjusted EBITDA
7
21
26
32
86
Genius Sports Limited
Condensed Consolidated
Statements of Operations
(Unaudited)
(Amounts in thousands, except
share and per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenue
$
120,198
$
101,729
$
335,363
$
285,805
Cost of revenue
80,116
77,446
254,106
227,316
Gross profit
40,082
24,283
81,257
58,489
Operating expenses:
Sales and marketing
9,455
5,827
27,531
19,807
Research and development
5,848
6,115
19,683
18,196
General and administrative
30,403
20,399
82,855
58,091
Transaction expenses
432
832
2,524
2,156
Total operating expense
46,138
33,173
132,593
98,250
Loss from operations
(6,056
)
(8,890
)
(51,336
)
(39,761
)
Interest (expense) income, net
(13
)
1,157
1,001
1,373
Gain (loss) on disposal of assets
1
(10
)
(18
)
(32
)
Gain (loss) on fair value remeasurement of
contingent consideration
—
—
—
(2,809
)
Change in fair value of derivative warrant
liabilities
—
—
—
(534
)
Gain (loss) on foreign currency
21,099
(4,210
)
17,190
(1,913
)
Total other income (expense)
21,087
(3,063
)
18,173
(3,915
)
Income (loss) before income taxes
15,031
(11,953
)
(33,163
)
(43,676
)
Income tax expense
(4,618
)
(1,163
)
(4,404
)
(5,763
)
Gain from equity method investment
2,092
1,500
2,739
2,357
Net income (loss)
$
12,505
$
(11,616
)
$
(34,828
)
$
(47,082
)
Earnings (loss) per share attributable to
common stockholders:
Basic
$
0.05
$
(0.05
)
$
(0.15
)
$
(0.21
)
Diluted
$
0.05
$
(0.05
)
$
(0.15
)
$
(0.21
)
Weighted average common stock
outstanding:
Basic
229,588,604
227,257,564
229,460,263
225,343,728
Diluted
233,730,434
227,257,564
229,460,263
225,343,728
Genius Sports Limited
Condensed Consolidated Balance
Sheets
(Amounts in thousands, except
share and per share data)
(Unaudited)
September 30,
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
42,314
$
100,331
Restricted cash, current
26,761
—
Accounts receivable, net
73,033
71,088
Contract assets
49,924
38,802
Prepaid expenses
25,998
27,231
Other current assets
6,351
7,329
Total current assets
224,381
244,781
Property and equipment, net
16,857
11,552
Intangible assets, net
115,131
129,670
Operating lease right of use assets
8,075
7,011
Goodwill
326,011
326,011
Investments
30,736
26,399
Restricted cash, non-current
—
25,462
Other assets
3,687
4,838
Total assets
$
724,878
$
775,724
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
26,409
$
57,379
Accrued expenses
67,813
56,331
Deferred revenue
40,299
44,345
Current debt
23
7,573
Operating lease liabilities, current
3,238
3,610
Other current liabilities
11,312
13,676
Total current liabilities
149,094
182,914
Long-term debt – less current portion
4
19
Deferred tax liability
15,623
15,335
Operating lease liabilities,
non-current
4,892
3,501
Other liabilities
—
936
Total liabilities
169,613
202,705
Shareholders’ equity
Common stock, $0.01 par value, unlimited
shares authorized, 215,245,703 shares issued and 211,139,755 shares
outstanding at September 30, 2024; unlimited shares authorized,
213,224,868 shares issued and 209,118,920 shares outstanding at
December 31, 2023
2,152
2,132
B Shares, $0.0001 par value, 22,500,000
shares authorized, 18,500,000 shares issued and outstanding at
September 30, 2024 and December 31, 2023
2
2
Additional paid-in capital
1,678,736
1,646,082
Treasury stock, at cost, 4,105,948 shares
at September 30, 2024 and December 31, 2023
(17,653
)
(17,653
)
Accumulated deficit
(1,059,315
)
(1,024,487
)
Accumulated other comprehensive loss
(48,657
)
(33,057
)
Total shareholders’ equity
555,265
573,019
Total liabilities and shareholders’
equity
$
724,878
$
775,724
Genius Sports Limited
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(Amounts in thousands)
Nine Months Ended September
30,
2024
2023
Cash Flows from operating
activities:
Net loss
$
(34,828
)
$
(47,082
)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization
57,208
53,025
Loss on disposal of assets
18
32
Loss on fair value remeasurement of
contingent consideration
—
2,809
Stock-based compensation
32,955
19,248
Change in fair value of derivative warrant
liabilities
—
534
Non-cash interest expense, net
—
187
Non-cash lease expense
3,431
2,941
Amortization of contract cost
939
743
Deferred income taxes
—
710
Allowance for expected credit losses
(122
)
1,441
Gain from equity method investment
(2,739
)
(2,357
)
(Gain) loss on foreign currency
remeasurement
(16,940
)
1,224
Changes in operating assets and
liabilities
Accounts receivable
(3,933
)
(32,285
)
Contract assets
(11,122
)
(4,555
)
Prepaid expenses
1,233
(22,056
)
Other current assets
2,480
562
Other assets
(1,287
)
1,547
Accounts payable
(30,970
)
10,529
Accrued expenses
11,482
8,767
Deferred revenue
(5,485
)
(268
)
Other current liabilities
(3,579
)
(1,865
)
Operating lease liabilities
(3,516
)
(2,982
)
Net cash used in operating
activities
(4,775
)
(9,151
)
Cash flows from investing
activities:
Purchases of property and equipment
(9,446
)
(2,480
)
Capitalization of internally developed
software costs
(38,110
)
(33,004
)
Distributions from equity method
investments
1,561
1,555
Purchases of intangible assets
—
(240
)
Proceeds from disposal of assets
10
53
Net cash used in investing
activities
(45,985
)
(34,116
)
Cash flows from financing
activities:
Repayment of loans and mortgage
(16
)
(16
)
Proceeds from exercise of Public
Warrants
—
6,812
Repayment of promissory notes
(7,575
)
(7,387
)
Net cash used in financing
activities
(7,591
)
(591
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
1,633
1,229
Net decrease in cash, cash equivalents
and restricted cash
(56,718
)
(42,629
)
Cash, cash equivalents and restricted cash
at beginning of period
125,793
159,020
Cash, cash equivalents and restricted cash
at end of period
$
69,075
$
116,391
Supplemental disclosure of cash
activities:
Cash paid during the period for
interest
$
579
$
3
Cash paid during the period for income
taxes
$
1,596
$
4,132
Supplemental disclosure of noncash
investing and financing activities:
Acquisition of common shares by subsidiary
in connection with warrant redemptions
$
—
$
17,653
Issuance of common stock in connection
with business combinations
$
—
$
10,157
Genius Sports Limited
Reconciliation of U.S. GAAP
Net loss to Adjusted EBITDA (Unaudited)
(Amounts in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(dollars, in thousands)
Consolidated net income (loss)
$
12,505
$
(11,616
)
$
(34,828
)
$
(47,082
)
Adjusted for:
Net, interest expense (income)
13
(1,157
)
(1,001
)
(1,373
)
Income tax expense
4,618
1,163
4,404
5,763
Amortization of acquired intangibles
(1)
2,725
10,321
21,953
30,171
Other depreciation and amortization
(2)
12,946
7,942
36,194
23,597
Stock-based compensation (3)
9,322
5,063
34,559
19,392
Transaction expenses
432
832
2,524
2,156
Litigation and related costs (4)
3,295
21
5,643
1,413
Change in fair value of derivative warrant
liabilities
—
—
—
534
Loss on fair value remeasurement of
contingent consideration
—
—
—
2,809
(Gain) loss on foreign currency
(21,099
)
4,210
(17,190
)
1,913
Other (5)
934
916
1,108
2,094
Adjusted EBITDA
$
25,691
$
17,695
$
53,366
$
41,387
- Includes amortization of intangible assets generated through
business acquisitions (inclusive of amortization for marketing
products, acquired technology, and historical data rights related
to the acquisition of a majority interest in Genius in 2018).
- Includes depreciation of Genius’ property and equipment,
amortization of contract costs, and amortization of internally
developed software and other intangible assets. Excludes
amortization of intangible assets generated through business
acquisitions.
- Includes restricted shares, stock options, equity-settled
restricted share units, cash-settled restricted share units and
equity-settled performance-based restricted share units granted to
employees and directors (including related employer payroll taxes)
and equity-classified non-employee awards issued to suppliers.
- Includes litigation and related costs incurred by the Company
relating to discrete and non-routine legal proceedings that are not
part of the normal operations of the Company’s business. For the
three and nine months ended September 30, 2024 and 2023, legal
proceedings included Sportscastr litigation and dMY litigation (see
Note 16 "Commitments and Contingencies" to the Company's condensed
consolidated financial statements included in the Company's Current
Report on Form 6-K filed with the U.S. Securities and Exchange
Commission (the "SEC") on November 12, 2024, and Spirable
litigation (see Item 3.D "Risks Related to Legal Matters and
Regulations" in the Company's Annual Report on Form 20-F filed on
March 15, 2024 for further details). All other legal proceedings
are expensed as part of our on-going operations and included in
general and administrative expenses.
- Includes professional fees for finance transformation project,
expenses incurred related to earn-out payments on historical
acquisitions, gain/loss on disposal of assets, severance costs and
non-recurring compensation payments.
Webcast and Conference Call Details
Genius Sports management will host a conference call and webcast
today at 8:00AM ET to discuss the Group’s third quarter
results.
The live conference call and webcast may be accessed on the
Genius Sports investor relations website at
investors.geniussports.com along with Genius’ earnings press
release and related materials. A replay of the webcast will be
available on the website within 24 hours after the call.
About Genius Sports
Genius Sports is the official data, technology and broadcast
partner that powers the global ecosystem connecting sports, betting
and media. Our technology is used in over 150 countries worldwide,
creating highly immersive products that enrich fan experiences for
the entire sports industry.
We are the trusted partner to over 400 sports organizations,
including many of the world’s largest leagues and federations such
as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.
Genius Sports is uniquely positioned through cutting-edge
technology, scale and global reach to support our partners. Our
innovative use of big data, computer vision, machine learning, and
augmented reality, connects the entire sports ecosystem from the
rights holder all the way through to the fan.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures not
presented in accordance with U.S. GAAP. A reconciliation of the
most comparable GAAP measure to its non-GAAP measure is included
above.
Adjusted EBITDA
We present Group adjusted EBITDA and Group adjusted EBITDA
margin, non-GAAP performance measures, to supplement our results
presented in accordance with U.S. GAAP. Group Adjusted EBITDA is
defined as earnings before interest, income tax, depreciation and
amortization and other items that are unusual or not related to
Genius’ revenue-generating operations, including stock-based
compensation expense (including related employer payroll taxes),
litigation and related costs, transaction expenses and gain or loss
on foreign currency.
Group Adjusted EBITDA is used by management to evaluate Genius’
core operating performance on a comparable basis and to make
strategic decisions. Genius believes Group Adjusted EBITDA is
useful to investors for the same reasons as well as in evaluating
Genius’ operating performance against competitors, which commonly
disclose similar performance measures. However, Genius’ calculation
of Group Adjusted EBITDA may not be comparable to other similarly
titled performance measures of other companies. Group Adjusted
EBITDA and Group Adjusted EBITDA margin are not intended to be a
substitute for any US GAAP financial measure.
We do not provide a reconciliation of Group adjusted EBITDA to
consolidated net income/(loss) on a forward-looking basis because
we are unable to forecast certain items required to develop
meaningful comparable GAAP financial measures without unreasonable
efforts. These items are difficult to predict and estimate and are
primarily dependent on future events. The impact of these items
could be significant to our projections.
Forward-Looking Statements
This press release contains forward-looking statements as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
that involve significant risks and uncertainties. All statements
other than statements of historical facts are forward-looking
statements. These forward-looking statements include information
about our possible or assumed future results of operations or our
performance. Words such as “expects,” “intends,” “plans,”
“believes,” “anticipates,” “estimates,” and variations of such
words and similar expressions are intended to identify such forward
looking statements. Although we believe that the forward-looking
statements contained in this press release are based on reasonable
assumptions, you should be aware that many factors could affect our
actual financial results or results of operations and could cause
actual results to differ materially from those in such
forward-looking statements, including but not limited to: risks
related to our reliance on relationships with sports organizations
and the potential loss of such relationships or failure to renew or
expand existing relationships; fraud, corruption or negligence
related to sports events, or by our employees or contracted
statisticians; risks related to changes in domestic and foreign
laws and regulations or their interpretation; compliance with
applicable data protection and privacy laws; pending litigation and
investigations; the failure to protect or enforce our proprietary
and intellectual property rights; claims for intellectual property
infringement; our reliance on information technology; elevated
interest rates and inflationary pressures, including fluctuating
foreign currency and exchange rates; risks related to domestic and
international political and macroeconomic uncertainty; and other
factors included under the heading “Risk Factors” in our Annual
Report on Form 20-F filed with the SEC on March 15, 2024.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Although we believe that the expectations reflected
in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. These
statements involve known and unknown risks and are based upon a
number of assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond our control. Actual results may differ materially from those
expressed or implied by such forward-looking statements. We
undertake no obligation to publicly update or revise any
forward-looking statements contained in this press release, or the
documents to which we refer readers in this press release, to
reflect any change in our expectations with respect to such
statements or any change in events, conditions or circumstances
upon which any statement is based.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112208245/en/
Media Chris Dougan, Chief Communications Officer +1 (202)
766-4430 chris.dougan@geniussports.com Investors Brandon Bukstel ,
Investor Relations Manager +1 (954)-554-7932
brandon.bukstel@geniussports.com
Genius Sports (NYSE:GENI)
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