SBC News Genius Sports beats FY2023 targets as 2024 focus turns to profitability

Genius Sports beats FY2023 targets as 2024 focus turns to profitability

Genius Sports Inc celebrates its eighth consecutive quarter of growth, as its yearly revenue and earnings results surpass market expectations.

In its full-year 2023 report released today, Genius Sports announces corporate revenues of $412m, marking a 21% increase from FY2022’s comparative results of $341m. The growth in headline revenues exceeds the NYSE betting technology, media, and data group’s expected revenue guidance of $391m.

Generating record income, Genius further outperformed its corporate earnings target of $41m, as FY2023 adjusted EBITDA stood at $53m, tripling FY2022 results of $16m. Matched against tough period comparatives, Genius concluded FY2023 trading with Q4 revenue growth of $127m (Q4 2022: $105m).

A strong finish to the year’s trading was led by Genius’ ‘Betting Technology & Content’ unit, which registered a 32% increase in Q4 revenues to $87m, contributing to an overall FY2023 growth of 31% to $274m (FY2022: $209m).

The unit’s growth is attributed to factors including new client acquisitions, expanded services with existing customers, improved price adjustments, introduction of value-added services, and increased customer utilisation of tech and media services.

Likewise, Genius’ Media Technology unit reported a Q4 revenue increase to $28.5m, generating a FY2023 revenue contribution of $92m, benefitting from increased demand for its North American data rights and programmatic advertising services.

Q4 trading results were impacted by a 16% decline in closing revenues to $12m (Q4 2022: $14m) registered by the Sports Tech unit, whose yearly revenues slipped by 4% to $47m (FY2022: $44m). Genius noted tough trading for the unit, attributed to reduced income from non-cash considerations, such as official sports data and streaming rights.

SBC News Genius Sports beats FY2023 targets as 2024 focus turns to profitability
Mark Locke: Genius Sports

The NYSE technology group closes FY2023 trading by halving its corporate losses to $83m, compared to FY2022 operating losses of $183m, with corporate accounts detailing a $42m reduction in corporate expenses.

“We are excited to report our eighth consecutive quarter of financial results above expectations, while demonstrating the increasing profitability of our business model and our ability to consistently execute on our strategic objectives,” said Mark Locke, Genius Sports Co-Founder and CEO.

 “The business is now better positioned than ever to benefit from multiple structural growth drivers across the digital sports ecosystem, and we’re excited to continue our momentum into 2024.”

Updating investors, Genius sets its FY2024 corporate guidance of generating Group Revenue of approximately $480m and Group Adjusted EBITDA of approximately $75m. 

Group prospects are strengthened by the launch of the BetVision platform with Caesars Sportsbook, Fanatics, and BetRivers in North America and Genius entering an expanded partnership with FanDuel to launch the revolutionary NFL BetVision streaming solution.

The year’s trading concludes with leadership announcing that Genius will generate positive cash flow in the full year of 2024.

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