Quarterly earnings of Genius Sports reach $127.2 million in Q4 of 2023
Genius Sports, a leading provider of sports data and technology solutions, has surpassed its earlier guidance for the full-year 2023, reporting a revenue of $413 million – a 21.1% year-on-year improvement. The company's CEO, Mark Locke, emphasised the increasing profitability of the business model and the company's ability to consistently execute on strategic objectives.
The betting technology segment generated $86.7 million, marking a 32.3% increase, while the media technology division contributed $28.6 million, reflecting an 11.3% growth. The sports technology division, however, witnessed a 15.8% decline in revenue to $11.9 million. Despite the decline, the business reported a net loss of $38.5 million this quarter.
Looking ahead to 2024, Genius Sports has identified several key growth drivers. These include new and extended partnerships with top sports leagues and organisations, such as Serie A, the NFL, and the European Leagues Association. These partnerships significantly strengthen Genius Sports' technology positioning and transform the traditional sports rights model.
Another growth driver is the expansion of exclusive official data and streaming rights across major sports properties. For instance, Genius Sports has secured exclusive rights for Serie A through to the 2028/29 season. This grants Genius Sports the most valuable rights portfolio globally in sports betting, spanning NFL, Premier League, and Italian football.
Strong commercial momentum across multiple verticals, specifically in Betting, Media, and Sports sectors, also underpins increased revenue guidance and continued growth prospects. Genius Sports is leveraging its proprietary technology platforms and data solutions, such as GeniusIQ, to enable innovative products and validate their market leadership in digital sports data and streaming rights.
Mark Locke highlights that Genius Sports is not merely riding existing momentum but actively driving growth and market transformation through technology, scale, and execution unmatched by competitors. The company anticipates full-year revenue of $480 million and adjusted EBITDA of $75 million for the upcoming year, with expectations for positive full-year cash flow.
The company's revenue is distributed among three business divisions: betting technology, media technology, and sports technology. For the full-year 2023, Genius Sports reported a net loss of $85.5 million, marking a substantial improvement from the $181.6 million net loss in 2022. The business reported a net loss for Q4 2023, while full-year adjusted EBITDA showed a profit. Groupwide, adjusted EBITDA surged from $2.7 million to $12 million, resulting in a 9.4% adjusted EBITDA margin. Full-year adjusted EBITDA reached $53.3 million, marking a 238% increase from the previous year.
As of the current trading, Genius Sports Limited (GENI) is trading at $6.68, with a decrease of 5.38%. The company's strong financial performance and promising outlook for 2024 and beyond suggest that Genius Sports remains a significant player in the evolving digital sports ecosystem.
[1] Genius Sports Q4 2023 Earnings Release [2] Genius Sports 2023 Full-Year Results [3] Genius Sports CEO Interview [4] Serie A Partnership Announcement [5] NFL Partnership Announcement
- The company's CEO, Mark Locke, stated that Genius Sports is not just riding existing momentum, but is actively driving growth and market transformation through its technology, scale, and execution, surpassing competitors.
- In 2024, Genius Sports anticipates increased revenue of $480 million, with a substantial adjusted EBITDA of $75 million, largely attributed to new partnerships, such as those with Serie A, the NFL, and the European Leagues Association, as well as the expansion of exclusive official data and streaming rights across major sports properties.
