Genius Sports has exceeded its Q2 2022 earnings guidance after generating $71.1m in revenue and adjusted EBITDA of $8.4m during the quarter.
Those figures represent year-on-year growth of 27.3% and 61.1% in revenue and adjusted EBITDA, respectively.Genius failed to turn to profit during the quarter, however, posting a net loss of $4.8m. This represented a 99% reduction on its $469.5m net loss in Q2 2021, though that figure was mainly attributable to the firm paying out $414.5m in stock-based compensation.
The majority of revenue in the latest quarter came from Genius’ betting technology, content and services division, which accounted for $44.8m or 63% of the group total.
Growth of 10.2% in this segment was driven by increased utilisation of available content, the expansion of value-add services and new service offerings, and new customer acquisitions, Genius said.
Genius’ media technology, content and services segment generated a further $15m, or 21.1% of total revenue, after recording year-on-year growth of 87.8%, making it the fastest growing part of the business.
Meanwhile, sports technology and services was the firm’s smallest segment by revenue, generating $11.3m or 15.9% of the total, but this segment also saw impressive year-on-year growth of 57%.
Genius Sports co-founder and CEO Mark Locke: “We have maintained steady EBITDA profitability globally and established a leading position within the US, all while achieving EBITDA profitability at the group level.”
The Q2 figures brought total revenue for the first half of 2022 to $157m, up 43.3% on the first six months of 2021.“We remain highly focused on delivering profitable growth and have executed ahead of expectations through the first half of the year,” said Mark Locke, Genius Sports co-founder and CEO.
“We have maintained steady EBITDA profitability globally and established a leading position within the US, all while achieving EBITDA profitability at the group level. Genius has strong momentum and we feel confident in the continued execution of our strategic plan.”
During the quarter, key achievements for the business included securing its first tracking data and broadcast augmentation partnership in Portuguese football with top-tier football team SL Benfica.
It also secured an official data, trading, and live streaming deal with online sportsbook Betsul to help power its offering in Brazil, while expanding another long-term partnership with Czech sportsbook operator Tipsport.
Other achievements include the development and launch of several free-to-play and fantasy sports games, including products launched in collaboration with FIFA and the International Ice Hockey Federation.
The business reaffirmed its earnings expectations for 2022, with revenue expected to come in at around $340m and group adjusted EBITDA to reach $15m.
Genius also looked ahead to 2023 and said it expects group revenue in the range of $430m-$440m and adjusted EBITDA of $40m-$50m.
More to follow…