Genius delivers on H1 targets narrowing transformative NYSE losses

Genius Sports has reported a robust Q2 trading period, as its NYSE settled business narrows interim trading losses to $45m.

Total group revenue during H1 2022 amounted to $157m, a 43% increase on the 2021 figures of $109m, whilst income in the second quarter specifically rose by 27.3% to $71m (2021: $55.8m).

Although losses were recorded during both the three month and six month period, both showed substantial improvements on 2022 trading, which saw H1 losses of $469m and $464.1m respectively – amounting to a 99% improvement in losses for H1.

Of Genius Sports’ verticals, H1 revenue for its Betting Technology, Content and Services division peaked at $94.5m ($79.6m), an increase of 18.7%, with quarterly earnings rising by 10% to $44.8m ($40.6m).

Media Technology, Content & Services saw the most success with year-on-year revenue reaching $39.1m, an uptick of 125% on H1 2021 results of $17.3m, whilst also recording quarterly revenue growth of 87.8% to $15m ($8m).

Meanwhile, a growth rate of 85.8% was achieved by the Sports Technology & Services unit during H1 to $22.3m ($12.5m), whilst quarterly revenue stood at $11.2m ($7.1m), 57% higher than the year prior. 

Across the board, Genius’ losses but also its recovery was reflected in EBITDA figures, with the total H1 margin recorded as a decline of 62% from $14.4m in 2021 to $5.4m this year. 

On the other hand, the company showed continued resilience during the second quarter as it continues to bounce back as an NYSE listed enterprise – reporting EBITDA of $8.4m ($5.1m), a 61.1% increase on Q2 2021.

Genius’ quarterly performance was positively impacted by several commercial arrangements with operators such as Betsul in Brazil and Tipsport in the Czech Republic as well as the International Ice Hockey Federation (IIHF) and top-flight Portuguese club SL Benfica.

Looking ahead, the sportstech group ramped up its World Cup preparations during the quarter, launching free-to-play games for the FIFA+ platform including weekly predictor games, trivia and bracket challenges. 

A breakdown of consolidated accounts saw Genius reduce stock-based compensation to $60m, matched against 2021’s post-NYSE listing rewards of $414m.

The significant reduction in stock-based compensation saw Genius tighten its H1 expenditure to $98m, down from 2021 comparative costs of  $261m – (2021 results accounted for $233 in administrative expenses).  

“Group net loss was $4.8 million in the quarter. This represents a 99% year-over-year improvement, driven primarily by a reduction in stock-based compensation compared to the second quarter ended June 30, 2021” – read Genius statement

Providing a financial outlook, Genius reaffirms that it will generate its group revenue target of approximately $340m and Group Adjusted EBITDA of approximately $15m in 2022 – irrespective of foreign exchange rate fluctuations.

Should FY2022 targets be achieved, Genius forecasts that it will generate group revenues of +$430m with an EBITDA range of $40-to-$50m in 2023.

“We remain highly focused on delivering profitable growth and have executed ahead of expectations through the first half of the year. We continue to utilize our partnerships and unique technology to yield strong results and build upon our commercial strategy,” said Mark Locke, Genius Sports Co-Founder and CEO.

“We have maintained steady EBITDA profitability globally and established a leading position within the US. all while achieving EBITDA profitability at the group level. Genius has strong momentum and we feel confident in the continued execution of our strategic plan.”

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