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Genius Sports Reports Third Quarter Results Above Expectations and Raises Full-Year 2024 Group Revenue and Adj. EBITDA Growth Outlook to 24% and 61%, Respectively

  • 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

 

  1. 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).
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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