Genius Sports reports record Q4 revenue as losses deepen on “accelerated” investment in growth initiatives
Genius Sports has reported a 78.7% year-on-year rise in revenue to $84m for Q4 2021, a new quarterly record for the New York-listed data provider.
Revenue from the group’s core betting technology, content and services division climbed by 52.9% to $53.9m in Q4, driven in part by new customer acquisitions and price increases powered by the supplier’s official data rights strategy.
The media technology, content and services arm delivered revenue of $17.1m and more than doubled amid growth of 127.5%. This was driven by the acquisition of new customers in the Americas and Europe for programmatic advertising services and the inclusion of revenue from recent acquisitions.
Revenue from the Nasdaq-listed firm’s sports technology and services segment more than tripled to $13m following growth of more than 206% thanks to the inclusion of revenue from acquired businesses including Sportzcast and Second Spectrum.
Genius Sports made a Q4 adjusted EBITDA loss of $12.5m compared to $4m profit in the same period of last year, due in part to increased investment in the business.
Key events during the quarter saw Genius agree a new sports data and global technology partnership with the Canadian Football League.
The business also launched new ‘RomoVision’ technology for CBS broadcasts of the NFL and supported Nickelodeon’s broadcast of the NFL playoffs using Second Spectrum’s player tracking and video augmentation capabilities.
After the reporting period, Genius announced expanded partnership deals with bet365 and Betway to include official data, streaming and fan engagement solutions.
Fourth quarter performance meant full-year 2021 revenue jumped 75.5% to $262.7m, although annual adjusted EBITDA dipped by 91.1% to just $1.6m, down from $17.5m in the prior corresponding period.
This was again attributed to accelerated investment in Q3 and Q4 to fund growth initiatives, particularly in the US business.
Commenting on the results, Genius Sports CEO Mark Locke said: “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.
“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,” he added.
As revealed during January’s investor day, Genius Sports still expects to generate revenue of around $340m and adjusted EBITDA of around $15m in full-year 2022.
It has also provided new full-year financial guidance for 2023 and is forecasting revenue in the range of $430m to $440m and adjusted EBITDA of $40m to $50m.
The business made a full-year net loss of $592.8m in 2021, compared to a deficit of just $30.3m in 2020, driven by an 827% increase in general and administrative costs to $293.2m.
Genius has also suspended its business relationships in Russia and Belarus following the invasion in Ukraine. This is expected to cause an estimated $2m-$6m negative impact on annual revenue.
Genius Sports’ share price is down by more than 6% at the time of writing to $4.67 per share.