Official sports data and tech firm Genius Sports Limited has posted Q2 financial results for the trading period ended June 30, 2021, showing significant gains across all key metrics.
Group revenue in the quarter increased 108% year-on-year to $55.8m which was driven, said the firm, by significant growth in its core betting technology, content and services product, and aided by strong growth in the sports and media technology businesses. On a constant currency basis, revenue increased $25.6m, or 84% year-on-year.
Betting technology, content and services revenue saw an increase of 122% year-on-year to $40.7m. Growth in the business was driven by the return of sports calendars, increased market share, higher share of wallet through additional services for sportsbooks, and new customer wins.
Revenue was also ahead in the firm’s sports technology and services arms, reaching $7.2m and up 105% year-on-year. The improvement, said Genius, was driven by the inclusion of revenues relating to two acquisitions, Sportzcast, acquired in December 2020, and Second Spectrum, acquired in June 2021.
Elsewhere, media technology, content and services revenue increased 62% year-over-year to $8m, boosted by increased advertising spend in the US and Europe alongside new key customer wins.
Q2 group adjusted (non-GAAP) EBITDA increased to $5.2m from $2.3m, helped by revenue growth, strong operating leverage, and disciplined cost control. Group adjusted EBITDA margin was 9% in the quarter.
Co-Founder and CEO Mark Locke told investors: “We’re enormously proud of our continued execution in the second quarter and our ability to implement our end-to-end solutions on behalf of our industry partners. We continue to significantly expand our leading portfolio of official rights by partnering with sports leagues and federations in key regions across the globe.
“Our comprehensive suite of premium content, technology services and fan engagement solutions have strengthened our commercial partnerships. Our recently announced NFL-related agreements with sportsbook operators have validated our strategy and instilled confidence in our ability to deliver results at the high end of our previous guidance for the year.”
The company has also revised its full-year 2021 projections and now expects to generate revenue of approximately $255m to $260m (previously $250m to $260m) and adjusted EBITDA of approximately $10m to $20m.
During the second quarter reporting period Genius agreed to new official partnerships with sports leagues and federations, including, but not limited to, Argentine Football Association (AFA), Professional Pickleball Association (PPA), and The Colombian Soccer Major Division (DIMAYOR).
The quarter also saw the firm raise $435m of primary and secondary proceeds in an upsized public offering, the net proceeds of which will be used for general corporate purposes. Moreover, it closed the two previously announced acquisitions of FanHub and Second Spectrum.