Genius Sports Q3: Revenue up but net loss widens by similar amount
Group net loss worsened 29.5% year-on-year.
Sports data supplier Genius Sports has announced the financial results for its fiscal third quarter ended September 30 2023. The report reflected group revenue of $101.7m, exceeding third-quarter guidance of $100m and representing 29% year-on-year growth.
When looking into revenue, it splits into three. Broken down, revenue from betting technology, content and services increased 34.1% to $66m; media technology content and services increased 27.9% to $22.9m and sports technology and services brought in $12.9m in revenue; an increase of 11.3% when compared to the same period this time last year.
Betting technology content and services increased due to, ‘New customer acquisitions, increased customer utilization of available content, and growth in business with existing customers due to price increases on contract renewals and renegotiations alongside the expansion of value-added services, and new service offerings.’
Meanwhile, media technology, content and services revenue increased due to growth in the Americas region, primarily for programmatic advertising services.
However, despite an increase in revenue, group net loss of $11.6m worsened 29.5% year-on-year. Genius Sports claimed the loss was despite ‘improved underlying performance.’ The company’s statement clarified, ‘This improvement was offset by a $29.8m reduction in gain on foreign currency compared to the prior year, resulting in Group net loss.’
Group adjusted EBITDA of $17.7m exceeded its third-quarter guidance of $17m and represented a 131% year-on-year growth.
Year-to-date, Genius Sports reported a total revenue of $285.8m; up 21.3% and a group net loss of minus $47.1m; an improvement of 12.7% when compared to 2022.
Loss from operations decreased drastically from minus $33.3m to $8.9m when compared to Q3 2022, and research and development costs also dropped by 25% down to $6.1m.
Total current assets increased year-on-year rising 4.8% to $248.1m; meanwhile, total assets remained pretty much the same with a slight decrease, falling to $772.2m from $773.3m.
After the Q3 reporting period, Genius Sports signed new partnerships with Premier League Productions to provide a live broadcast and data insights; as well as having extended its partnership with the NFL.
Additionally, Genius Sports also launched an immersive sports betting experience – BetVision – announced a new partnership with Snap; and developed the first Rugby World Cup fantasy game in partnership with World Rugby. It was also granted a provisional gaming license from Nebraska Racing and Gaming Commission, as well as having extended its data and integrity partnership with Brazil’s National Basket League; and partnered up with Ryder Cup to launch interactive gamification hub for fans.
Mark Locke, Genius Sports Co-Founder and CEO, and Nick Taylor, Genius Sports CFO, commented, “Our consistent outperformance reflects the execution of our core strategy as we continue to develop and distribute innovative technology across the sports ecosystem, enabling success for our partners, and further solidifying our long-term strategic position.
“We have reached a critical turning point in our business as we have realized consistent margin expansion in each quarter this year and now have much higher visibility into our long-term model following the renewals and extensions of key rights partnerships.”
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