Genius Sports bolsters 2022 commercial vision as NYSE status is settled

By | March 11, 2022

Genius Sports has reported positive financial results across all commercial verticals, as it ended  a transformative 2021 with a revenue increase of 75% year-on-year, albeit with a substantial EBITDA decline.

Publishing its Q4 and full year 2021 trading update, the London-based, NYSE-listed sports technology and data rights firm revealed year end revenue of $262.7 million (2020:$149.7m), as Q4 earnings stood at $84 million ($47m), a 74% year-on-year increase. 

However, the group’s  full-year EBITDA declined  by 91% to $1.6 million from FY2020 results of $17.5 million, corresponding to an EBITDA loss of $12,507 million recorded in the final quarter of year trading ($4,034m).

The bottom-line decline was attributed by the group to “accelerated investment in Q3 and Q4 to fund growth initiatives”, particularly in the US market which the firm underscored required “high-tech” business. 

Despite Genius’ revenue growth, the company’s increased expenses throughout the year saw the firm post a year end loss of $213,433 – with a reported Q4 loss of $25,410. 

These expenses were incurred over a number of areas, with notable developments including the firm’s NYSE listing (23 April) – with associated SPAC costs – and its $200 million acquisition of sports data tracking and innovation studio Second Spectrum.

Genius remains confident in its commercial prospects for 2022 following new data, streaming and engagement partnerships with bet365, Betfair and the Canadian Football League (CFL), coupled with substantial revenue increases across a range of verticals.

Mark Locke, Genius Co-Founder and CEO remarked. “2021 was a transformational year that saw Genius form innovative new relationships with leagues, sportsbooks and brands alike, which allowed us to deliver record group revenue in the fourth quarter.”

Of significance, the aforementioned takeover of Second Spectrum in addition to its acquisition of Sportzcast contributed to its Sports Technology & Services’ full year revenue rising by 131.7% year-over-year to $37.2 million ($16.1m) and Q4 income triple to $13 million ($4.3m).

Meanwhile, Q4 revenue for the Betting Technology, Content & Services unit stood at $53.9 million ($35.3m), and full year earnings for this division reached$177.2 million, a 60.2% growth rate on the previous year ($110.6m).

Genius attributed this to price increases as a result of its official data rights strategy, expansion of its value-add services and addition of new offerings, adding that new customer acquisitions greater Genius’ available event content strengthened full year trading.

Lastly, revenue for Media Technology, Content & Services in the fourth quarter doubled from $7.5 million to $17.1 million in the fourth quarter and by 109.6% to $48.3 million for the full year ($23.1m).

Customer acquisition was again cited as a key income driver in this area, particularly in Europe and the Americas, with programmatic advertising services and inclusion of revenues from recent acquisitions specifically outlined as central to this growth.

Locke concluded: “We are confident that 2022 will be another strong and profitable year as we capitalise on the growth opportunities ahead and continue to expand our services around the world.”

Moving forward, Genius anticipates revenue of $340 million and adjusted EBITDA of $15 million 2022, and revenue “in the range of $430 to $440 million” and adjusted EBITDA of $40 to $50 million the following year.

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