Genius Sports growth in US sports helps to beat ‘22 revenue and EBITDA guidance

financial results
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Genius Sports has revealed that 2022 was a successful year, beating its guidance for both revenue and EBITDA, as US operations provided a platform for growth. 

Publishing its 2022 financial report, Genius Sports posted revenue of $341m, up 41% year-over-year and just over the guidance of $340m. 

The sports technology and data firm recorded 918.6% adjusted EBITDA growth, reaching $2.7m in 2022 compared to negative $12.5m in 2021.

As a result, Genius Sports reduced its net losses by 69% to $81.6m, down from a loss of $592.8m in 2021. As well as revenue growth, this was attributed to stock-based compensation and “disciplined cost control”. 

Despite an improvement in the full year, Genius’ net loss increased in Q4 to $127.7m compared to just $53.3m in Q421. 

“Our 2022 results demonstrate our commitment to executing the financial and strategic plan we outlined in our Investor Day at the start of 2022, and we have successfully delivered on our forecast each quarter,” said Mark Locke, Genius Sports Co-Founder and CEO. 

“We remain relentlessly focused on balancing investment in our highest growth initiatives, while still demonstrating the unique operating leverage of our business model. 

“Following our consistent execution in 2022 and the maturation of our technology investments, the stage is now set for 2023 to capture the immense opportunity ahead of us, afforded by the global competitive position we have built to-date.”

Boosted by the 60% increase in in-play GGR and the increased number of legalized states, Genius’ US operations more than doubled during 2022. 

As well as receiving a supplier license in Ohio, Genius launched NFL Watch & Bet video streams in both the US and Canada during Q4 as it seeks to continue its growth trajectory in the region. 

Beginning with Caesars, Genius rolled out Watch & Bet to sportsbook clients in the US whilst securing three new clients in Canada

Another North American-focused move in Q4 was to launch the three-point shot tracker for the NBA on ESPN utilizing its subsidiary Second Spectrum’s technology. 

Breaking down the group’s performance by division, the Betting Technology, Content and Services unit was the most lucrative, with a turnover of $2093m in 2022, up 18.1% YoY., whilst the Media Tech, Content and Services was the fastest growing, with revenue of $82.7m, up 71.2% YoY. 

Genus ended 2022 following a series of deals which helped to provide it with a strong cash balance at the year’s end, closing the year with $159m, comprising $36m of restricted cash. 

Nick Taylor, CFO added: “Our expectation of nearly tripling our Group Adj. EBITDA and generating free cash flow in the second half of 2023 is the direct result of a cost base that does not need to grow in line with revenues moving forward. 

“With $159m of total cash on our balance sheet, zero debt financing, and our legacy warrants now removed, our shareholders are well positioned to capture the benefits of profitability and cash flow acceleration.”

Providing outlook for 2023, Genius Sports disclosed that it anticipates revenue of around $391m this year, whilst expecting adjusted EBITDA of around $41m.