GENI Genius Sports Limited

• Group Revenue of $95m, exceeding second quarter guidance of $94m
• Group Net Loss of ($22m) and Group Adj. EBITDA of $21m, meeting guidance of $21m
• Raised 2024 Group Revenue and Adj. EBITDA guidance to $510m and $85m, respectively, representing growth of 23% and 59% and nearly 400bps of margin expansion
• Reaffirming expectation to generate positive cash flow in 2024

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 second quarter ended June 30, 2024.

“This quarter validates our strategic execution as we continue to deepen our league relationships, having extended one of our key data rights agreements, expanded our technology footprint, and bolstered our product offering across the sports ecosystem,” said Mark Locke, Genius Sports Co-Founder and CEO. “We are excited for the remainder of the year and expect to reaccelerate Group Revenue growth, continue our Adj. EBITDA margin expansion and generate positive cash flow.”

$ in thousands

Q224

Q223

%

Group Revenue

95,447

86,847

9.9%

Betting Technology, Content & Services

67,124

56,862

18.0%

Media Technology, Content & Services

17,953

18,357

(2.2%)

Sports Technology & Services

10,370

11,628

(10.8%)

Group Net loss

(21,792)

(10,298)

(111.6%)

Group Adjusted EBITDA

20,797

15,650

32.9%

Group Adjusted EBITDA Margin

21.8%

18.0%

380 bps

 

$ in thousands

1H24

1H23

%

Group Revenue

215,165

184,076

16.9%

Betting Technology, Content & Services

141,021

121,602

16.0%

Media Technology, Content & Services

53,428

40,121

33.2%

Sports Technology & Services

20,716

22,353

(7.3%)

Group Net loss

(47,333)

(35,466)

(33.5%)

Group Adjusted EBITDA

27,675

23,692

16.8%

Group Adjusted EBITDA Margin

12.9%

12.9%

-

 

Q2 2024 Financial Highlights

• Group Revenue: Group revenue increased 10% year-over-year to $95.4 million.
  • Betting Technology, Content & Services: Revenue increased 18% year-over-year to $67.1 million, 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 constant year-over-year at $18.0 million.
  • Sports Technology & Services: Revenue decreased by 11% year-over-year to $10.4 million.

• Group Net Loss: Group net loss was ($21.8 million) in the second quarter ended June 30, 2024, compared to ($10.3 million) in the second quarter ended June 30, 2023.

• Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $20.8 million in the quarter, in-line with guidance of $21.0 million. This represents a 33% increase compared to the $15.7 million reported in the second quarter ended June 30, 2023 and nearly 400 basis points of margin expansion.

Q2 2024 Business Highlights

• Launched augmented broadcasts of Canadian Football League matches on TSN+
• Introduced ‘Manager Mode’ for Viaplay’s Danish Cup Final broadcast, featuring real-time graphical overlays to highlight player names, movements, shot speeds, and other statistics
• Secured an agreement with the Union of European Football Associations (“UEFA”) to provide AI player tracking technology in over 140 stadiums and spanning 1,350 matches
• After the reporting period:
  • Funds advised by Apax Partners LLP fully exited their position in Genius Sports
  • Genius Sports and Football DataCo finalized the agreement to extend exclusive official data partnership through 2029
  • Genius Sports appointed The English Premier League’s Semi-Automated Officiating Supplier
  • Launched Fantasy EFL, the EFL’s first-ever 72-club fantasy football game
  • Partnered with X to launch Trend Genius product ahead of summer sporting events

Financial Outlook

Genius Sports expects to generate Group Revenue of approximately $510 million and Group Adjusted EBITDA of approximately $85 million in 2024. This implies year-over-year Group Revenue and Adj. EBITDA growth of 23% and 59%, respectively. Genius Sports also expects to generate positive cash flow in the full year of 2024.

$ in millions

Q1 2024A

Q2 2024A

Q3 2024E

Q4 2024E

FY 2024E

Group Revenue

120

95

119

176

510

Group Adjusted EBITDA

7

21

25

32

85

 

Financial Statements & Reconciliation Tables

Genius Sports Limited

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Revenue

$

95,447

 

$

86,847

 

$

215,165

 

$

184,076

Cost of revenue

 

67,079

 

62,173

 

173,990

 

149,870

Gross profit

 

28,368

 

24,674

 

41,175

 

34,206

Operating expenses:

Sales and marketing

 

9,661

 

6,589

 

18,076

 

13,980

Research and development

 

7,214

 

5,812

 

13,835

 

12,081

General and administrative

 

30,867

 

19,618

 

52,452

 

37,692

Transaction expenses

 

1,628

 

496

 

2,092

 

1,324

Total operating expense

 

49,370

 

32,515

 

86,455

 

65,077

Loss from operations

 

(21,002)

 

(7,841)

 

(45,280)

 

(30,871)

Interest income (expense), net

 

348

 

(202)

 

1,014

 

216

Loss on disposal of assets

 

(12)

 

(11)

 

(19)

 

(22)

Loss on fair value remeasurement of contingent consideration

 

-

 

(376)

 

-

 

(2,809)

Change in fair value of derivative warrant liabilities

 

-

 

-

 

-

 

(534)

(Loss) gain on foreign currency

 

(2,822)

 

1,496

 

(3,909)

 

2,297

Total other (expense) income

 

(2,486)

 

907

 

(2,914)

 

(852)

Loss before income taxes

 

(23,488)

 

(6,934)

 

(48,194)

 

(31,723)

Income tax benefit (expense)

 

1,314

 

(3,952)

 

214

 

(4,600)

Gain from equity method investment

 

382

 

588

 

647

 

857

Net loss

$

(21,792)

 

$

(10,298)

 

$

(47,333)

 

$

(35,466)

Loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$

(0.09)

 

$

(0.05)

 

$

(0.21)

 

$

(0.16)

Weighted average common stock outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

229,464,001

 

227,005,216

 

229,395,387

 

224,370,949

 

Genius Sports Limited

Condensed Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

 

 

 

 

 

(Unaudited)

 

 

 

June 30

 

December 31

 

2024

 

2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

67,718

 

$

100,331

Restricted cash, current

 

25,299

 

-

Accounts receivable, net

 

63,167

 

71,088

Contract assets

 

26,407

 

38,802

Prepaid expenses

 

24,793

 

27,231

Other current assets

 

15,149

 

7,329

Total current assets

 

222,533

 

244,781

Property and equipment, net

 

13,731

 

11,552

Intangible assets, net

 

114,483

 

129,670

Operating lease right of use assets

 

6,901

 

7,011

Goodwill

 

326,011

 

326,011

Investments

 

28,886

 

26,399

Restricted cash, non-current

 

-

 

25,462

Other assets

 

3,443

 

4,838

Total assets

$

715,988

 

$

775,724

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

39,462

 

$

57,379

Accrued expenses

 

51,463

 

56,331

Deferred revenue

 

39,200

 

44,345

Current debt

 

22

 

7,573

Operating lease liabilities, current

 

3,282

 

3,610

Other current liabilities

 

11,092

 

13,676

Total current liabilities

 

144,521

 

182,914

Long-term debt – less current portion

 

9

 

19

Deferred tax liability

 

15,320

 

15,335

Operating lease liabilities, non-current

 

3,752

 

3,501

Other liabilities

 

-

 

936

Total liabilities

 

163,602

 

202,705

Shareholders' equity

Common stock, $0.01 par value, unlimited shares authorized, 215,100,812 shares issued and 210,994,864 shares outstanding at June 30, 2024; unlimited shares authorized, 213,224,868 shares issued and 209,118,920 shares outstanding at December 31, 2023

 

2,151

 

2,132

B Shares, $0.0001 par value, 22,500,000 shares authorized, 18,500,000 shares issued and outstanding at June 30, 2024 and December 31, 2023

 

2

 

2

Additional paid-in capital

 

1,669,875

 

1,646,082

Treasury stock, at cost, 4,105,948 shares at June 30, 2024 and December 31, 2023

 

(17,653)

 

(17,653)

Accumulated deficit

 

(1,071,820)

 

(1,024,487)

Accumulated other comprehensive loss

 

(30,169)

 

(33,057)

Total shareholders' equity

 

552,386

 

573,019

Total liabilities and shareholders' equity

$

715,988

 

$

775,724

 

Genius Sports Limited

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

 

 

Six Months Ended June 30,

 

 

 

 

2024

 

2023

Cash Flows from operating activities:

 

 

 

 

Net loss

 

$

(47,333)

 

$

(35,466)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

41,877

 

35,032

Loss on disposal of assets

 

 

19

 

22

Loss on fair value remeasurement of contingent consideration

 

 

-

 

2,809

Stock-based compensation

 

 

23,938

 

14,185

Change in fair value of derivative warrant liabilities

 

 

-

 

534

Non-cash interest expense, net

 

 

-

 

170

Non-cash lease expense

 

 

1,889

 

1,955

Amortization of contract cost

 

 

599

 

473

Deferred income taxes

 

 

-

 

47

Allowance for expected credit losses

 

 

(411)

 

250

Gain from equity method investment

 

 

(647)

 

(857)

Loss (gain) on foreign currency remeasurement

 

 

3,889

 

(2,228)

Changes in operating assets and liabilities

 

Accounts receivable

 

 

2,159

 

(24,746)

Contract asset

 

 

12,395

 

3,125

Prepaid expenses

 

 

2,438

 

(3,070)

Other current assets

 

 

(6,318)

 

911

Other assets

 

 

(755)

 

488

Accounts payable

 

 

(17,917)

 

(10,843)

Accrued expenses

 

 

(4,868)

 

35

Deferred revenue

 

 

(6,584)

 

(1,600)

Other current liabilities

 

 

(3,643)

 

(1,887)

Operating lease liabilities

 

 

(1,911)

 

(2,049)

Net cash used in operating activities

 

 

(1,184)

 

(22,710)

Cash flows from investing activities:

 

Purchases of property and equipment

 

 

(4,594)

 

(1,002)

Capitalization of internally developed software costs

 

 

(23,856)

 

(21,232)

Distributions from equity method investments

 

 

1,561

 

1,555

Purchases of intangible assets

 

 

-

 

(238)

Proceeds from disposal of assets

 

 

-

 

30

Net cash used in investing activities

 

 

(26,889)

 

(20,887)

Cash flows from financing activities:

 

Repayment of loans and mortgage

 

 

(9)

 

(10)

Proceeds from exercise of Public Warrants

 

 

-

 

6,812

Repayment of promissory notes

 

 

(7,575)

 

(7,387)

Net cash used in financing activities

 

 

(7,584)

 

(585)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

2,881

 

322

Net decrease in cash, cash equivalents and restricted cash

 

 

(32,776)

 

(43,860)

Cash, cash equivalents and restricted cash at beginning of period

 

 

125,793

 

159,020

Cash, cash equivalents and restricted cash at end of period

 

$

93,017

 

$

115,160

Supplemental disclosure of cash activities:

 

 

 

 

Cash paid during the period for interest

 

$

178

 

$

1

Cash paid during the period for income taxes

 

$

715

 

$

2,781

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 June 30,

 

Six Months Ended June 30,

 

2024

2023

 

2024

2023

 

(dollars, in thousands)

 

(dollars, in thousands)

Consolidated net loss

$

(21,792)

$

(10,298)

 

$

(47,333)

$

(35,466)

Adjusted for:

 

 

 

 

 

Interest (income) expense, net

 

(348)

 

202

 

(1,014)

 

(216)

Income tax (benefit) expense

 

(1,314)

 

3,952

 

(214)

 

4,600

Amortization of acquired intangibles (1)

 

9,024

 

10,117

 

19,228

 

19,850

Other depreciation and amortization (2)

 

12,022

 

7,854

 

23,248

 

15,655

Stock-based compensation (3)

 

17,568

 

3,624

 

25,237

 

14,329

Transaction expenses

 

1,628

 

496

 

2,092

 

1,324

Litigation and related costs (4)

 

1,149

 

608

 

2,348

 

1,392

Change in fair value of derivative warrant liabilities

 

-

 

-

 

-

 

534

Loss on fair value remeasurement of contingent consideration

 

-

 

376

 

-

 

2,809

Loss (gain) on foreign currency

 

2,822

 

(1,496)

 

3,909

 

(2,297)

Other (5)

 

38

 

215

 

174

 

1,178

Adjusted EBITDA

$

20,797

$

15,650

 

$

27,675

$

23,692

(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 mainly legal and related costs in connection with non-routine litigation.

(5) Includes 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 second quarter results.

The live conference call and webcast may be accessed on 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 our revenue-generating operations, including stock-based compensation expense (including related employer payroll taxes), change in fair value of derivative warrant liabilities, remeasurement of contingent consideration, and gain or loss on foreign currency. Group adjusted EBITDA margin is calculated as Group adjusted EBITDA divided by Group revenue.

Group adjusted EBITDA and Group adjusted EBITDA margin are used by management to evaluate our core operating performance on a comparable basis and to make strategic decisions. We believe Group adjusted EBITDA and Group adjusted EBITDA margin are useful to investors for the same reasons as well as in evaluating our operating performance against competitors, which commonly disclose similar performance measures. However, our calculation of Group adjusted EBITDA and Group adjusted EBITDA margin 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 U.S. 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/20240806377603/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