Genius Sports revenue totalled $86.9m in Q2 2023, ahead of previously issued guidance of $80m, and 22.1% ahead of the $71.1m generated in Q2 2022.
Of the total revenue, the lion’s share came from the firm’s Betting Technology, Content and Services division, which generated $56.9m, up 26.8% year-on-year.
That growth was driven by “increased customer utilisation of available event content and growth in business with existing customers,” Genius said.
The Media Technology, Content and Services division, meanwhile, generated $18.4m in revenue, up 22.4% year-on-year.
There, growth was driven by increased business in the Americas region, particularly in the area of programmatic advertising services.
The Sports Technology & Services segment saw significantly slower growth than Genius’ other business segments, as it generated revenue of $11.6m, up 3% year-on-year.
That modest growth was attributed primarily to higher revenues from non-cash consideration contracts.
EBITDA and net loss
Following the significant revenue growth, the business declared adjusted EBITDA of $15.7m, up 87.2% on the prior-year period. That figure was also well ahead of previously issued guidance of $14m.
Genius boasted an adjusted EBITDA margin of 18% in Q2 2023, up from 11.8% in Q2 2022.
Still, the business posted an overall net loss of $10.3m for the quarter, compared to a $4.8m net loss in Q2 2022.
The year-on-year increase in net loss required some further explanation from Genius, however.
The group’s loss from operations was in fact down year-on-year in Q2, the business said, from $39.7m in 2022 to $7.8m in 2023.
That improvement was offset by a $29m reduction in gain on foreign currency compared to the prior year, resulting in the increased net loss of $10.3m.
Now, Genius expects to generate group revenue of around $410m and adjusted EBITDA of $52m throughout the full year 2023.
It added that it also expects “to reach an important inflection point as it begins generating sustainable free-cash-flow in the second half of 2023 and beyond.”
CEO Mark Locke said: “Following the financial outperformance in the first half of the year and the recently renewed partnerships with Football DataCo and the NFL, we have validated our core strategy, differentiated our technology stack, and proven our sustainable business model.
“The ongoing success through the second quarter perfectly demonstrates our balanced approach in delivering near-term results, while accelerating Genius towards our long-term growth and profit targets.”
As of the end of the reporting period, Genius held cash and cash equivalents of $89.8m.
Sportradar has been awarded a sub-licence to provide Football DataCo (FDC) data following the settlement of a lawsuit filed by the supplier against its competitor Genius Sports.
FDC represents the data rights of the professional football leagues in England and Scotland; the Premier League, English Football League and Scottish Professional Football League.
Genius has held the exclusive rights to low-latency data from those leagues since signing an agreement with FDC in May 2019.
Following the settlement of the case earlier this week, Genius will retain the exclusive rights to the low-latency data but has ceded a sub-licence to Sportradar for a delayed data feed, lasting until 2024, to be marketed as the Official FDC Secondary Feed.
The settlement marks the end of a legal battle which saw Sportradar challenge Genius for not allowing a sub-licensing deal, which it argued went against competition laws.
After the initial complaint was filed in 2020, Genius Sports attempted to counter-sue Sportradar for dispatching ‘data scouts’ to attend matches and relay data back to Sportradar for the purpose of facilitating in-play betting in real time.
Genius contested the practice as it had been selected as the exclusive collector and distributor of official data from those games.
A joint statement released by Sportradar, Genius Sports and FDC confirmed that following the settlement and Sportradar’s securing of a sub-licence for the data, Sportradar will cease sending data scouts to FDC-represented matches.
No further details of the settlement have been revealed.
In related news, Sportradar today (11 October) signed a new agreement with affiliate XLMedia to be the firm’s official sports data provider through the provision of a range of digital products and services.
XLMedia will use the firm’s real-time sports data products for North American and international sports properties across its digital sports brands, including SportsBettingDime, EliteSportsNY and Canadian Sports Betting.
Sportradar still holds exclusive data rights with both the NBA and the International Hockey Federation.
It also retains a significant hand in international football, with exclusive rights to betting data from UEFA competitions including the Champions League.