SBC News Genius Sports ups FY2024 landing on strong Q1 commercial results

Genius Sports ups FY2024 landing on strong Q1 commercial results

Genius Sports trades with confidence as a strong opening to 2024 sees the NYSE technology group generate peak demand for its betting and media services.

In its Q1 trading update, Genius raised its full-year 2024 guidance to a combined revenue of $500 million and an adjusted EBITDA of $82 million, upgrading from its previous FY targets of $480 million and $75 million.

Headline results saw Genius generate Q1 corporate revenues of $120m, up 23% on 2023 comparatives of $97m and exceeding its Q1 guidance of $117m.

Period trading saw Genius generate record Betting Technology revenues of $74m, up 14% on 2023 results of $64m. Further highlights saw the NYSE firm record a 63% increase in Media Tech sales to $35m (Q12023: $21m).

Genius cited growth in its Betting Technology services, aligned with positive industry trends, allowing its unit to capture a 23% growth in US online sports betting and a 60% increase in in-play betting.

Likewise, the firm’s Media Tech unit was strengthened by an increased demand for products and services from leading US customers of DraftKings, FanDuel, Caesars, ESPNBet, and Fanatics.

Of distinction, Genius underlined an increased demand for media and betting services from non-sportsbook partners such as the AFL, Twitter (X) and the Florida Lottery.

Q1 results were slightly dented by a 3% decline in revenues of Sports Tech services to $10.3m (Q12023: $10.7m).

SBC News Genius Sports ups FY2024 landing on strong Q1 commercial results
Mark Locke: Genius Sports

Genius CEO and Co-Founder Mark Locke commented: “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.”

Period earnings saw Genius achieve an adjusted EBITDA of $6.9m, above the expected Q1 guidance of $6m, but below 2023 comparatives of $8m.

Q1’s EBITDA impact was anticipated due to the increased costs of Genius exclusive NFL domestic streaming rights used to power the BetVision product.

As detailed by Genius: “These rights are expensed equally in each month during the NFL season, uniquely affecting Q1 2024 profitability, due to the fewer number of NFL games to generate revenue in the quarter.”

Closing Q1 accounts, Genius maintains corporate losses at $25m. Leadership reaffirmed its principal objective to “generate positive cash flow in 2024”, returning the business to profit performance since its NYSE listing in 2021.

Moving into H2 trading, Genius underscored strong commercial prospects as the successful bidder for exclusive Football DataCo betting rights through 2029 and having unveiled ‘Edge’, its new automated pricing tool that enables sportsbooks to maximise profitability.

CEO Locke concluded: “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.”

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