Genius Sports adjusts 2021 revenue projections after record-high Q3

Genius Sports has announced its financials for Q3 2021, declaring a record-high revenue of $69.1m, adjusting its full-year revenue projections as a result.
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Genius Sports Limited has announced its financials for the third quarter of 2021, declaring a record-high revenue of $69.1m, a year-over-year growth of over 70%, adjusting its full-year 2021 revenue projections as a result.

Ending September 30, 2021, Genius Sports noted its revenue growth for Q3 was ‘driven by significant, well-balanced growth’ across its business segments. On a constant currency basis, its revenue increased by $25.9m, or 60% YoY.

Broken down per segment, Betting Technology, Content & Services revenue increased by 48% YoY to $43.6m; Sports Technology & Services revenue improved by 159% YoY to $6m; and Media Technology, Content & Services revenue grew by 114% YoY to $9m.

The firm’s group adjusted (non-GAAP) EBITDA for the financial period was ($0.4)m, with revenue growth offset by strategic investments and data rights costs.

Co-Founder and CEO Mark Locke commented: “Genius Sports’ growth is accelerating at an unprecedented level that far surpasses our original expectations. We are capturing more opportunities than ever before, underpinned by the broad adoption of official data by the entire ecosystem.

“While only months into our first NFL season, we are even more confident of the long-term prospects of the partnership. We are transforming the global sports betting market through our progressive investment in technological innovation, and we will continue to do so for years ahead.”

During Q3, Genius Sports announced strategic partnerships to provide its NFL offering to Caesars, DraftKings, Entain and BetMGM, Golden Nugget Online Gaming, Penn Interactive (Barstool Sportsbook), WynnBET, and 888 (SI Sportsbook).

The company was also granted a temporary event wagering supplier license by the Arizona Department of Gaming, and it was also certified by the State of Connecticut, Department of Consumer Affairs, as an online gaming service provider.

Genius Sports has increased its full-year 2021 revenue projections and now expects to generate approximately $257m to $262m (previously $255m to $260m). The firm also revised its adjusted EBITDA forecast to be broadly breakeven (previously $10m to $20m).

The company’s management believes the positioning of the business over time will rely on the investments made in this early stage of its growth cycle, which may present attractive opportunities with sustainable long-term returns.

These anticipated investments include various technological developments, data and streaming rights, the expansion of US operational infrastructure, as well as other potential opportunities to help solidify the company’s competitive advantages while supporting a stabilized adjusted EBITDA margin of 40% at scale.

CFO Nick Taylor stated: “We’ve positioned the business for continued success, giving us great confidence in raising our 2021 revenue outlook.

“We anticipate continued strong revenue growth as the market continues to expand and evolve while preserving the option to reinvest in the business to fund strategic growth initiatives and drive long-term sustainability and scale.

“This early stage of our growth cycle presents a window of opportunity to invest in the future success of the business, and we’re excited to continue building towards our strategic vision.”