Genius Sports reported Q2 earnings Tuesday which breathed confidence into the company’s co-founder and CEO Mark Locke.
Second-quarter guidance set a target of $94 million for Group Revenue, but the final tally exceeded that by more than $1 million to finish at $95.4 million. This represents a 10% year-over-year growth from Q2 2023.
“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,” Locke said in a press release.
“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.”
The company’s betting technology, content and services segment clocked the best revenue growth for an individual line of business, increasing 18% year-over-year to $67.1 million. Media technology, content and services revenue stayed constant YoY at $18.0 million while sports technology and services revenue actually decreased by 11% YoY to $10.4 million.
Group Adj. EBITDA met guidance of $21 million with a $20.8 million mark, and the final result came in at a 33% increase compared to the $15.7 million reported in the second quarter of 2023. This growth added nearly 400 basis points of margin expansion.
Highlights
Genius Sports kept up its positive momentum by announcing a partnership extension on Monday with Football DataCo, the data rights holder for the English Premier League, through 2029.
📑 We're proud to announce that we have extended our exclusive partnership with Football DataCo, the data rights holder of UK football, through to 2029.
— Genius Sports (@GeniusSports) August 5, 2024
Our official data feed captured inside UK football stadiums alongside Player Market Data will power new betting innovations… pic.twitter.com/4Mtyt4LN6G
In Q2, the company also secured an agreement with the Union of European Football Associations *UEFA) to provide AI player tracking technology in more than 140 stadiums and spanning 1,350 matches.
Genius Sports kicked off a partnership with the English Football League (EFL) on July 22 to launch the first official 72-club fantasy product for fans across the three divisions called Fantasy EFL.
🚨Introducing Fantasy EFL!🚨
— Genius Sports (@GeniusSports) July 22, 2024
In partnership with the @EFL, we've launched the first official 72-club fantasy product for fans across the three divisions. @FEFLOfficial
Learn more about the new hybrid game here: https://t.co/M08LM5pRZW pic.twitter.com/uIBQ92AR70
Optimistic outlook
All of this growth triggered the company to expect approximately $510 million in Group Revenue and $85 million in Group Adj. EBITDA in 2024, implying year-over-year growth of 23% and 59% respectively.
Total revenue for 2023 finished at $413 million, and original guidance for 2024 projected approximately $480 million.
