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Genius Sports Reports First Quarter Results Above Expectations and Raises 2024 Group Revenue and Adj. EBITDA Guidance
"Following a strong year of execution in 2023, we are pleased to continue our momentum to start the new year, with the first quarter of 2024 marking another period of outperformance relative to expectations," said Mark Locke, Genius Sports Co-Founder and CEO. "As we expand our technology footprint and work to extend one of our most important data partnerships with Football DataCo, we feel an enhanced sense of excitement and confidence in our outlook for 2024 and beyond."
$ in thousands Q124 Q123 %
---------------------------------------- -------- -------- -------
Group Revenue 119,718 97,229 23.1%
73,897 64,740 14.1%
Betting Technology, Content & Services
35,475 21,764 63.0%
Media Technology, Content & Services
10,346 10,725 (3.5%)
Sports Technology & Services
Group Net loss (25,541) (25,168) (1.5%)
Group Adjusted EBITDA 6,878 8,042 (14.5%)
Q1 2024 Financial Highlights
Group Revenue: Group revenue increased 23% year-over-year to $119.7 million. Betting Technology, Content & Services: Revenue increased 14% year-over-year to $73.9 million, driven by new customer acquisitions and growth in business with existing customers as a result of price increases on contract renewals and renegotiations. Media Technology, Content & Services: Revenue increased by 63% year-over-year to $35.5 million, driven by growth in the Americas region, primarily for programmatic advertising services. Sports Technology & Services: Revenue decreased by 4% year-over-year to $10.3 million. Group Net Loss: Group net loss was relatively unchanged from ($25.2 million) in the first quarter ended March 31, 2023, to ($25.5 million) in the first quarter ended March 31, 2024. Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $6.9 million in the quarter vs. $6.0 million guidance and vs. $8.0 million in the first quarter ended March 31, 2023. This year-on-year change is primarily driven by new NFL domestic streaming rights to power our BetVision product, representing a new product offering vs. the prior year. These rights are expensed equally in each month during the NFL season, uniquely effecting Q1 2024 profitability, due to the fewer number of NFL games to generate revenue in the quarter.
Q1 2024 Business Highlights
Chosen as the successful bidder for exclusive Football DataCo betting rights through 2029(1) Selected as the optical tracking provider to the WNBA, representing the first women's professional sports league in the U.S. with leaguewide 3D tracking data Partnered with Lithuanian Basketball League to deliver AI-powered technology to automate rich data collection, live video production and optical player tracking Unveiled 'Edge', an automated pricing tool that enables sportsbooks to maximize profitability Launched a new suite of interactive free-to-play games for sports betting brands, designed to meet the customer acquisition and loyalty challenges facing sportsbook operators Struck a new partnership with DVSport to power officiating and coaching solutions with live college sports data After the reporting period, Genius Sports launched augmented, AI-powered in-game highlights in partnership with Brentford FC and its sponsor, Gtech
(1)The agreement remains subject to contract and approval of the Leagues and their respective Clubs.
Financial Outlook
Genius Sports expects to generate Group Revenue of approximately $500 million and Group Adjusted EBITDA of approximately $82 million in 2024. This implies year-on-year Group Revenue and Adj. EBITDA growth of 21% and 54%, respectively. The Company also expects to generate positive cash flow in the full year of 2024.
$ in millions Q1 2024A Q2 2024E Q3 2024E Q4 2024E FY 2024E ------------- -------- -------- -------- -------- -------- Group Revenue 120 94 119 167 500 ------------- -------- -------- -------- -------- --------
Financial Statements & Reconciliation Tables
Genius Sports Limited
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except share and per share data)
Three Months Ended
March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Revenue $ 119,718 $ 97,229
Cost of revenue 106,911 87,697
-------------------- ------- -------------------- -------------------- ------- --------------------
Gross profit 12,807 9,532
-------------------- ------- -------------------- -------------------- ------- --------------------
Operating expenses:
Sales and marketing 8,415 7,391
Research and development 6,621 6,269
General and administrative 21,585 18,074
Transaction expenses 464 828
-------------------- ------- -------------------- -------------------- ------- --------------------
Total operating expense 37,085 32,562
-------------------- ------- -------------------- -------------------- ------- --------------------
Loss from operations (24,278 ) (23,030 )
-------------------- ------- -------------------- -------------------- ------- --------------------
Interest income, net 666 418
Loss on disposal of assets (7 ) (11 )
Loss on fair value remeasurement of contingent consideration - (2,433 )
Change in fair value of derivative warrant liabilities - (534 )
(Loss) gain on foreign currency (1,087 ) 801
-------------------- ------- -------------------- -------------------- ------- --------------------
Total other expense (428 ) (1,759 )
-------------------- ------- -------------------- -------------------- ------- --------------------
Loss before income taxes (24,706 ) (24,789 )
-------------------- ------- -------------------- -------------------- ------- --------------------
Income tax expense (1,100 ) (648 )
Gain from equity method investment 265 269
-------------------- ------- -------------------- -------------------- ------- --------------------
Net loss $ (25,541 ) $ (25,168 )
==================== ======= ==================== ==================== ======= ====================
Loss per share attributable to common stockholders:
Basic and diluted $ (0.11 ) $ (0.11 )
Weighted average common stock outstanding:
Genius Sports Limited
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
-------------------------------------------------- --------------------------------------------------
March 31 December 31
-------------------------------------------------- --------------------------------------------------
2024 2023
-------------------- ---------- -------------------- -------------------- ---------- --------------------
ASSETS
Current assets:
$ 67,532 $ 100,331
Cash and cash equivalents
100,264 71,088
Accounts receivable, net
25,920 38,802
Contract assets
23,653 27,231
Prepaid expenses
11,814 7,329
Other current assets
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total current assets 229,183 244,781
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
11,551 11,552
Property and equipment, net
119,780 129,670
Intangible assets, net
8,019 7,011
Operating lease right of use assets
323,302 326,011
Goodwill
25,045 26,399
Investments
25,251 25,462
Restricted cash, non-current
3,290 4,838
Other assets
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total assets $ 745,421 $ 775,724
==================== ========== ==================== ==================== ========== ====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
$ 51,377 $ 57,379
Accounts payable
63,385 56,331
Accrued expenses
45,115 44,345
Deferred revenue
23 7,573
Current debt
3,471 3,610
Operating lease liabilities, current
11,526 13,676
Other current liabilities
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total current liabilities 174,897 182,914
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
13 19
Long-term debt - less current portion
15,212 15,335
Deferred tax liability
4,765 3,501
Operating lease liabilities, non-current
- 936
Other liabilities
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total liabilities 194,887 202,705
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Shareholders' equity
Common stock, $0.01 par value, unlimited shares authorized, 215,022,361 shares issued and 210,916,413 shares outstanding at March 31, 2024; unlimited shares authorized, 213,224,868 shares issued and 209,118,920 shares outstanding at December 31, 2023 2,150 2,132
2 2
B Shares, $0.0001 par value, 22,500,000 shares authorized, 18,500,000 shares issued and outstanding at March 31, 2024 and December 31, 2023
1,652,776 1,646,082
Additional paid-in capital
(17,653 ) (17,653 )
Treasury stock, at cost, 4,105,948 shares at March 31, 2024 and December 31, 2023
(1,050,028 ) (1,024,487 )
Accumulated deficit
(36,713 ) (33,057 )
Accumulated other comprehensive loss
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total shareholders' equity 550,534 573,019
-------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Genius Sports Limited
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
Three Months Ended
March 31,
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Cash Flows from operating activities:
$ (25,541 ) $ (25,168 )
Net loss
Adjustments to reconcile net loss to net cash used in operating activities:
21,138 17,308
Depreciation and amortization
7 11
Loss on disposal of assets
- 2,433
Loss on fair value remeasurement of contingent consideration
6,745 10,561
Stock-based compensation
- 534
Change in fair value of derivative warrant liabilities
- 72
Non-cash interest expense, net
1,096 964
Non-cash lease expense
292 226
Amortization of contract cost
5 227
Deferred income taxes
243 58
Provision for expected credit losses
(265 ) (269 )
Gain from equity method investment
715 (795 )
Loss (gain) on foreign currency remeasurement
Changes in operating assets and liabilities
(30,698 ) (5,657 )
Accounts receivable
12,577 (3,143 )
Contract asset
3,357 (143 )
Prepaid expenses
(5,568 ) 1,066
Other current assets
2,234 (576 )
Other assets
(5,533 ) (12,306 )
Accounts payable
7,532 2,113
Accrued expenses
1,140 (6,592 )
Deferred revenue
(3,005 ) 925
Other current liabilities
(1,065 ) (1,019 )
Operating lease liabilities
- 327
Other liabilities
-------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Net cash used in operating activities (14,594 ) (18,843 )
Cash flows from investing activities:
(1,453 ) (310 )
Purchases of property and equipment
(10,927 ) (9,979 )
Capitalization of internally developed software costs
1,410 1,398
Distributions from equity method investments
-------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Net cash used in investing activities (10,970 ) (8,891 )
Cash flows from financing activities:
(5 ) (5 )
Repayment of loans and mortgage
- 6,812
Proceeds from exercise of Public Warrants
(7,575 ) (7,387 )
Repayment of promissory notes
-------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Net cash used in financing activities (7,580 ) (580 )
134 766
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net decrease in cash, cash equivalents and restricted cash (33,010 ) (27,548 )
125,793 159,020
Cash, cash equivalents and restricted cash at beginning of period
-------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
$ 92,783 $ 131,472
Cash, cash equivalents and restricted cash at end of period
==================== ======= ==================== ==================== ======= ====================
Supplemental disclosure of cash activities:
$ - $ 1
Cash paid during the period for interest
$ 322 $ 179
Cash paid during the period for income taxes
Supplemental disclosure of noncash investing and financing activities:
$ - $ 17,653
Acquisition of common shares by subsidiary in connection with warrant redemptions
Genius Sports Limited
Reconciliation of U.S. GAAP Net loss to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
Three Months Ended March 31,
----------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
(dollars, in thousands)
Consolidated net loss $ (25,541 ) $ (25,168 )
Adjusted for:
(666 ) (418 )
Interest income, net
1,100 648
Income tax expense
10,204 9,733
Amortization of acquired intangibles (1)
11,226 7,801
Other depreciation and amortization (2)
7,669 10,705
Stock-based compensation (3)
464 828
Transaction expenses
1,199 784
Litigation and related costs (4)
- 534
Change in fair value of derivative warrant liabilities
- 2,433
Loss on fair value remeasurement of contingent consideration
1,087 (801 )
Loss (gain) on foreign currency
136 963
Other (5)
-------------------- ------- -------------------- -------------------- ------- --------------------
(1) Includes amortization of intangible assets generated through business acquisitions (inclusive of amortization for marketing products, acquired technology, and historical data rights related to the acquisition of a majority interest in Genius in 2018). (2) Includes depreciation of Genius' property and equipment, amortization of contract costs, and amortization of internally developed software and other intangible assets. Excludes amortization of intangible assets generated through business acquisitions. (3) Includes restricted shares, stock options, equity-settled restricted share units, cash-settled restricted share units and equity-settled performance-based restricted share units granted to employees and directors (including related employer payroll taxes) and equity-classified non-employee awards issued to suppliers. (4) Includes mainly legal and related costs in connection with non-routine litigation.
Webcast and Conference Call Details
Genius Sports management will host a conference call and webcast today at 8:00AM ET to discuss the Company's first quarter results.
The conference call may be accessed by dialing (646) 307-1963.
A live audio webcast may be accessed on the Company's investor relations website at investors.geniussports.com along with Genius' earnings press release and related materials. A replay of the webcast will be available on the website within 24 hours after the call.
About Genius Sports
Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. Our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences for the entire sports industry.
We are the trusted partner to over 400 sports organizations, including many of the world's largest leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.
Genius Sports is uniquely positioned through cutting-edge technology, scale and global reach to support our partners. Our innovative use of big data, computer vision, machine learning, and augmented reality, connects the entire sports ecosystem from the rights holder all the way through to the fan.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP. A reconciliation of the most comparable GAAP measure to its non-GAAP measure is included above.
Adjusted EBITDA
We present Group adjusted EBITDA and Group adjusted EBITDA margin, non-GAAP performance measures, to supplement our results presented in accordance with U.S. GAAP. Group adjusted EBITDA is defined as earnings before interest, income tax, depreciation and amortization and other items that are unusual or not related to our revenue-generating operations, including stock-based compensation expense (including related employer payroll taxes), change in fair value of derivative warrant liabilities, remeasurement of contingent consideration, and gain or loss on foreign currency. Group adjusted EBITDA margin is calculated as Group adjusted EBITDA divided by Group revenue.
Group adjusted EBITDA and Group adjusted EBITDA margin are used by management to evaluate our core operating performance on a comparable basis and to make strategic decisions. We believe Group adjusted EBITDA and Group adjusted EBITDA margin are useful to investors for the same reasons as well as in evaluating our operating performance against competitors, which commonly disclose similar performance measures. However, our calculation of Group adjusted EBITDA and Group adjusted EBITDA margin may not be comparable to other similarly titled performance measures of other companies. Group adjusted EBITDA and Group adjusted EBITDA margin are not intended to be a substitute for any U.S. GAAP financial measure.
We do not provide a reconciliation of Group adjusted EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections.
Forward-Looking Statements
This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as "expects," "intends," "plans," "believes," "anticipates," "estimates," and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships, including failure to renew our UK soccer data rights contract; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; elevated interest rates and inflationary pressures, including fluctuating foreign currency and exchange rates; risks related to domestic and international political and macroeconomic uncertainty; and other factors included under the heading "Risk Factors" in our Annual Report on Form 20-F filed with the SEC on March 15, 2024.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements contained in this press release, or the documents to which we refer readers in this press release, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508505446/en/
SOURCE: Genius Sports Limited
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Media Chris Dougan, Chief Communications Officer +1 (202) 766-4430 chris.dougan@geniussports.com Investors Brandon Bukstel, Investor Relations Manager +1 (954)-554-7932 brandon.bukstel@geniussports.com
COMTEX_452057888/1006/2024-05-08T07:00:10