Genius Sports has published its financial results for the second quarter and the first half of 2022, where it achieved year-over-year growth in revenue in both periods.
The company added that in the first six months of the year, US revenue has nearly quadrupled compared to the same period in 2021.
Reflecting on the results, CEO and Co-Founder Mark Locke noted that Genius Sports has “established a leading position” in the US, adding that the company is “confident in the continued execution” of its strategic plan.
For Q2, Genius Sports revenue came in at $71.1m, a 27.3% increase YoY (2021: $55.8m) and ahead of its guidance for the period ($75.0m at guidance exchange rate, $68m guidance).
While revenues have increased, the group has also improved its net loss YoY by 99% to $4.7m (2021: $464m net loss) following “a reduction in stock-based compensation” compared to the same period the previous year.
Group adjusted EBITDA in Q2 came in at $8.4m, beating the guidance set ($9m at the guidance exchange rate vs $8m guidance), and a 61% YoY uptick after “disciplined cost control, continued investment in the high-growth US business, and overall revenue mix”.
For the first half of the year, Genius Sports reported group revenue of $157m, a 43.3% improvement YoY (2021: $109.5m), adding that revenues in the US have nearly 300% YoY to $47.1m.
Group net loss for the company in H1 stood at $44.9m (2021: $469.4m), while group adjusted EBITDA for the period came in at $5.4m (2021: $14.4m).
“We remain highly focused on delivering profitable growth and have executed ahead of expectations through the first half of the year,” commented Locke.
“We continue to utilize our partnerships and unique technology to yield strong results and build upon our commercial strategy.
“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.”
Genius Sports revenue breakdown
Per vertical, Genius Sports has reported that its Betting Technology, Content & Services business earned the most revenue during the quarter with $44.8m, a 10% improvement YoY (2021: $40.6m) thanks to “increased utilization of available content, expansion of value-add services and new service offerings, and new customer acquisitions”.
For H1, Betting Technology, Content & Services earnings stood at $94.5m, an 18.7% improvement YoY (2021: $79.6m).
Media Technology, Content & Services followed in Q2 revenue with $15m, a 88% growth YoY (2021: $7.9m), which the firm noted was mostly due to “organic growth driven by increasing uptake of programmatic advertising services”.
In 2022 so far, Media Technology, Content & Services income stood at $39.1m, a 125.4% growth YoY (2021: $17.3m).
Sports Technology & Services came with $11.3m in Q2 earnings, a 57% uptick YoY (2021: $7.1m), impacted by Second Spectrum revenue and “expanded services provided to existing sports league and federation customers across all tiers of sport”.
For the half year, Sports Technology & Services revenue stood at $23.3m, an 85.5% increase YoY (2021: $12.5m).
During Q2, Genius Sports’ Second Spectrum technology won a Sports Emmy alongside CBS Sports for its RomoVision NFL broadcasting product.
The group also secured official data, trading, and live streaming deal with online sportsbook Betsul in Brazil, and it launched the new CFL GameZone and interactive CFL Preseason Futures game as part of its partnership with the CFL in Canada.
Financial outlook
Looking ahead, Genius Sports reaffirmed its 2022 expectation to generate approximately $340m in group revenue and $15m in group adjusted EBITDA, despite risks related to foreign exchange rates.
The company added that in 2023 it expects group revenue in the range of $430m to $440m and group adjusted EBITDA in the range of $40m to $50m.
