SBC News Voice of the Sports Betting Industry
Genius Sports reaffirms that it will generate positive cash flow in 2024, achieving a corporate objective from its NYSE IPO.
The statement follows Genius Sports’ Q3 trading results, which exceeded corporate expectations, with revenues at $120m—18% higher than 2023’s comparative of $101m and above the expected guidance of $119m.
Further positives include Q3 net income of $12.5n, along with adjusted EBITDA of $26m, surpassing the guidance of $25m and marking a 45% increase on the 2023 comparative of $17.6m. The positive net income result enables Genius Sports to reverse $11 million in losses reported in 2023.
A breakdown of business segments showed a 30% year-over-year revenue increase in Betting Technology to $85m, driven primarily by higher customer utilisation of available content and price increases on contract renewals.
Growth in Betting Technology offset declines in Media Content & Services, which saw a 4% year-over-year revenue decrease to $22m, and in Sports Tech Services, which experienced a 3% decrease to $12.4m.
As of the end of 2024, commercial highlights include Genius renewing US sportsbook customers on improved commercial contracts, while its media division will launch the long-awaited ‘FANHub’ as the “world’s first advertising and activation platform custom-built to reach and engage sports fans.”
On a nine-month basis, revenue increased to $335m from $285m, the cost of revenue rose to $254m from $227m, and gross profit improved to $81m from $58.5m.
Group accounts were further improved by Genius securing a favourable foreign currency gain totalling $17.2m in 2024, compared to a loss of $1.9m in 2023.
As stands, Genius maintains a net loss of $34.8m, reducing the loss of $47.1m reported in 2023.
Genius Sports anticipates generating approximately $511m in Group Revenue and around $86m in Group Adjusted EBITDA for 2024, reflecting year-over-year growth of 24% in revenue and 61% in Adjusted EBITDA. The company also expects to achieve positive cash flow for the full year.
Closing Q3 trading, Mark Locke, Genius Sports Co-Founder and CEO, stated, “Our strong results are underpinned by our successful commercial execution, positioning us to capture profitable growth alongside our partners as the sports betting industry continues to evolve and expand.”
“We are empowering partners across the sports ecosystem to better reach, engage, and monetise fans using our innovative technology and unique data-driven insights.”
