SBC News Voice of the Sports Betting Industry
Genius Sports has reaffirmed its confidence in achieving its corporate objective of “generating a positive cash flow in the full year of 2024.” The NYSE sports data and media technology group “exceeds its corporate guidance,” as detailed by Q2 2024 accounts.
Generating Q2 revenues of $95 million, Genius Sports outperforms its income target of $94 million, with period revenues up 10% from 2023 results of $86 million.
Headline growth reflected an 18% increase in Betting Technology & Content income to $67 million (Q2 2023: $56 million), driven by new customer acquisition, key contract renewals, and the growth of existing client contracts.
The sales growth of the Betting Technology unit maintained a stagnant income performance for Genius’s Media Technology services, which generated revenues of $18 million.
Elsewhere, Genius Sports Technology Services decreased by 11% to $10.4 million on a year-on-year basis.
Of significance to corporate guidance, Genius achieved its Q2 EBITDA target of $21 million, up 33% from 2023 comparatives of $15.7 million, as earnings reflected “nearly 400 basis points of margin expansion.”
Q2 trading saw Genius double its net operating losses to $21 million, as group accounts revealed a 50% increase in period expenses to $49 million.
Despite underlying losses, Genius raises its group revenue and EBITDA guidance to $510 million and $85 million, respectively, representing growth of 23% and 59% and nearly 400 bps of margin expansion.
“This quarter validates our strategic execution as we continue to deepen our league relationships, having extended one of our key data rights agreements, expanded our technology footprint, and bolstered our product offering across the sports ecosystem,” said Mark Locke, Genius Sports Co-Founder and CEO.
“We are excited for the remainder of the year and expect to reaccelerate Group Revenue growth, continue our Adj. EBITDA margin expansion, and generate positive cash flow.”
Of significance to its corporate outlook, Genius enters H2 trading with a new shareholder profile as private equity fund Apax Partners LLP fully exited its investment in the NYSE technology group.
