- Group Revenue of $120m, exceeding first quarter guidance of
$117m
- Group Net Loss of ($26m) and Group Adj. EBITDA of $7m,
exceeding guidance of $6m
- Raised 2024 Group Revenue and Adj. EBITDA guidance to $500m and
$82m, respectively, up from prior guidance of $480m and $75m
- Reaffirming expectation to generate positive cash flow in
2024
- Increased financial flexibility by entering into $90 million
committed revolving credit facility with Citibank and Deutsche
Bank
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 first quarter
ended March 31, 2024.
“Following a strong year of execution in 2023, we are pleased to
continue our momentum to start the new year, with the first quarter
of 2024 marking another period of outperformance relative to
expectations,” said Mark Locke, Genius Sports Co-Founder and CEO.
“As we expand our technology footprint and work to extend one of
our most important data partnerships with Football DataCo, we feel
an enhanced sense of excitement and confidence in our outlook for
2024 and beyond.”
$ in thousands
Q124
Q123
%
Group Revenue
119,718
97,229
23.1%
Betting Technology, Content &
Services
73,897
64,740
14.1%
Media Technology, Content &
Services
35,475
21,764
63.0%
Sports Technology & Services
10,346
10,725
(3.5%)
Group Net loss
(25,541)
(25,168)
(1.5%)
Group Adjusted EBITDA
6,878
8,042
(14.5%)
Group Adjusted EBITDA Margin
5.7%
8.3%
(260 bps)
Q1 2024 Financial Highlights
- Group Revenue: Group revenue increased 23%
year-over-year to $119.7 million.
- Betting Technology, Content & Services: Revenue increased
14% year-over-year to $73.9 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 increased by
63% year-over-year to $35.5 million, driven by growth in the
Americas region, primarily for programmatic advertising
services.
- Sports Technology & Services: Revenue decreased by 4%
year-over-year to $10.3 million.
- Group Net Loss: Group net loss was relatively unchanged
from ($25.2 million) in the first quarter ended March 31, 2023, to
($25.5 million) in the first quarter ended March 31, 2024.
- Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA
was $6.9 million in the quarter vs. $6.0 million guidance and vs.
$8.0 million in the first quarter ended March 31, 2023. This
year-on-year change is primarily driven by new NFL domestic
streaming rights to power our BetVision product, representing a new
product offering vs. the prior year. These rights are expensed
equally in each month during the NFL season, uniquely effecting Q1
2024 profitability, due to the fewer number of NFL games to
generate revenue in the quarter.
Q1 2024 Business Highlights
- Chosen as the successful bidder for exclusive Football DataCo
betting rights through 20291
- Selected as the optical tracking provider to the WNBA,
representing the first women’s professional sports league in the
U.S. with leaguewide 3D tracking data
- Partnered with Lithuanian Basketball League to deliver
AI-powered technology to automate rich data collection, live video
production and optical player tracking
- Unveiled ‘Edge’, an automated pricing tool that enables
sportsbooks to maximize profitability
- Launched a new suite of interactive free-to-play games for
sports betting brands, designed to meet the customer acquisition
and loyalty challenges facing sportsbook operators
- Struck a new partnership with DVSport to power officiating and
coaching solutions with live college sports data
- After the reporting period, Genius Sports launched augmented,
AI-powered in-game highlights in partnership with Brentford FC and
its sponsor, Gtech
1The agreement remains subject to contract and approval of the
Leagues and their respective Clubs.
Financial Outlook
Genius Sports expects to generate Group Revenue of approximately
$500 million and Group Adjusted EBITDA of approximately $82 million
in 2024. This implies year-on-year Group Revenue and Adj. EBITDA
growth of 21% and 54%, respectively. The Company also expects to
generate positive cash flow in the full year of 2024.
$ in millions
Q1 2024A
Q2 2024E
Q3 2024E
Q4 2024E
FY 2024E
Group Revenue
120
94
119
167
500
Group Adjusted EBITDA
7
21
25
29
82
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
March 31,
2024
2023
Revenue
$
119,718
$
97,229
Cost of revenue
106,911
87,697
Gross profit
12,807
9,532
Operating expenses:
Sales and marketing
8,415
7,391
Research and development
6,621
6,269
General and administrative
21,585
18,074
Transaction expenses
464
828
Total operating expense
37,085
32,562
Loss from operations
(24,278
)
(23,030
)
Interest income, net
666
418
Loss on disposal of assets
(7
)
(11
)
Loss on fair value remeasurement of
contingent consideration
-
(2,433
)
Change in fair value of derivative warrant
liabilities
-
(534
)
(Loss) gain on foreign currency
(1,087
)
801
Total other expense
(428
)
(1,759
)
Loss before income taxes
(24,706
)
(24,789
)
Income tax expense
(1,100
)
(648
)
Gain from equity method investment
265
269
Net loss
$
(25,541
)
$
(25,168
)
Loss per share attributable to common
stockholders:
Basic and diluted
$
(0.11
)
$
(0.11
)
Weighted average common stock
outstanding:
Basic and diluted
229,326,772
221,707,413
Genius Sports Limited
Condensed Consolidated Balance
Sheets
(Amounts in thousands, except
share and per share data)
(Unaudited)
March 31
December 31
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
67,532
$
100,331
Accounts receivable, net
100,264
71,088
Contract assets
25,920
38,802
Prepaid expenses
23,653
27,231
Other current assets
11,814
7,329
Total current assets
229,183
244,781
Property and equipment, net
11,551
11,552
Intangible assets, net
119,780
129,670
Operating lease right of use assets
8,019
7,011
Goodwill
323,302
326,011
Investments
25,045
26,399
Restricted cash, non-current
25,251
25,462
Other assets
3,290
4,838
Total assets
$
745,421
$
775,724
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
51,377
$
57,379
Accrued expenses
63,385
56,331
Deferred revenue
45,115
44,345
Current debt
23
7,573
Operating lease liabilities, current
3,471
3,610
Other current liabilities
11,526
13,676
Total current liabilities
174,897
182,914
Long-term debt – less current portion
13
19
Deferred tax liability
15,212
15,335
Operating lease liabilities,
non-current
4,765
3,501
Other liabilities
-
936
Total liabilities
194,887
202,705
Shareholders' equity
Common stock, $0.01 par value, unlimited
shares authorized, 215,022,361 shares issued and 210,916,413 shares
outstanding at March 31, 2024; unlimited shares authorized,
213,224,868 shares issued and 209,118,920 shares outstanding at
December 31, 2023
2,150
2,132
B Shares, $0.0001 par value, 22,500,000
shares authorized, 18,500,000 shares issued and outstanding at
March 31, 2024 and December 31, 2023
2
2
Additional paid-in capital
1,652,776
1,646,082
Treasury stock, at cost, 4,105,948 shares
at March 31, 2024 and December 31, 2023
(17,653
)
(17,653
)
Accumulated deficit
(1,050,028
)
(1,024,487
)
Accumulated other comprehensive loss
(36,713
)
(33,057
)
Total shareholders' equity
550,534
573,019
Total liabilities and shareholders'
equity
$
745,421
$
775,724
Genius Sports Limited
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
Three Months Ended March
31,
2024
2023
Cash Flows from operating
activities:
Net loss
$
(25,541
)
$
(25,168
)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization
21,138
17,308
Loss on disposal of assets
7
11
Loss on fair value remeasurement of
contingent consideration
-
2,433
Stock-based compensation
6,745
10,561
Change in fair value of derivative warrant
liabilities
-
534
Non-cash interest expense, net
-
72
Non-cash lease expense
1,096
964
Amortization of contract cost
292
226
Deferred income taxes
5
227
Provision for expected credit losses
243
58
Gain from equity method investment
(265
)
(269
)
Loss (gain) on foreign currency
remeasurement
715
(795
)
Changes in operating assets and
liabilities
Accounts receivable
(30,698
)
(5,657
)
Contract asset
12,577
(3,143
)
Prepaid expenses
3,357
(143
)
Other current assets
(5,568
)
1,066
Other assets
2,234
(576
)
Accounts payable
(5,533
)
(12,306
)
Accrued expenses
7,532
2,113
Deferred revenue
1,140
(6,592
)
Other current liabilities
(3,005
)
925
Operating lease liabilities
(1,065
)
(1,019
)
Other liabilities
-
327
Net cash used in operating
activities
(14,594
)
(18,843
)
Cash flows from investing
activities:
Purchases of property and equipment
(1,453
)
(310
)
Capitalization of internally developed
software costs
(10,927
)
(9,979
)
Distributions from equity method
investments
1,410
1,398
Net cash used in investing
activities
(10,970
)
(8,891
)
Cash flows from financing
activities:
Repayment of loans and mortgage
(5
)
(5
)
Proceeds from exercise of Public
Warrants
-
6,812
Repayment of promissory notes
(7,575
)
(7,387
)
Net cash used in financing
activities
(7,580
)
(580
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
134
766
Net decrease in cash, cash equivalents
and restricted cash
(33,010
)
(27,548
)
Cash, cash equivalents and restricted cash
at beginning of period
125,793
159,020
Cash, cash equivalents and restricted cash
at end of period
$
92,783
$
131,472
Supplemental disclosure of cash
activities:
Cash paid during the period for
interest
$
-
$
1
Cash paid during the period for income
taxes
$
322
$
179
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
$
-
$
8,440
Genius Sports Limited
Reconciliation of U.S. GAAP
Net loss to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
Three Months Ended March
31,
2024
2023
(dollars, in thousands)
Consolidated net loss
$
(25,541
)
$
(25,168
)
Adjusted for:
Interest income, net
(666
)
(418
)
Income tax expense
1,100
648
Amortization of acquired intangibles
(1)
10,204
9,733
Other depreciation and amortization
(2)
11,226
7,801
Stock-based compensation (3)
7,669
10,705
Transaction expenses
464
828
Litigation and related costs (4)
1,199
784
Change in fair value of derivative warrant
liabilities
-
534
Loss on fair value remeasurement of
contingent consideration
-
2,433
Loss (gain) on foreign currency
1,087
(801
)
Other (5)
136
963
Adjusted EBITDA
$
6,878
$
8,042
(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 Company’s first quarter
results.
The conference call may be accessed by dialing (646)
307-1963.
A live audio webcast may be accessed on the Company’s 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, including failure to renew our UK
soccer data rights contract; 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/20240508505446/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
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