Genius Sports has reaffirmed confidence in achieving its full-year 2022 financial objectives, irrespective of ongoing market headwinds and adjustments.
Publishing its Q1 2022 trading update (period ending 31 March), Genius registered corporate revenues of $86 million, up 60% on Q1 2021 comparative results of $54 million and outperforming its ‘expected guidance’ by 10%.
Headline growth was attributed to increased demand for its three core business units – Betting Technology, Media Services and Sports Tech by new and existing customers.
Buoyed by new client partnerships and the expansion of ‘added-value services’ for existing customers, Genius’ Betting Technology unit recorded a 27% increase in revenues to $50 million (Q12021: $38m).
The Media Services division was recognised as the period’s ‘star performer’, achieving a 150% revenue increase to $24 million (Q12021: $9.3m) – driven by the growth of its programmatic advertising services for new clients.
Integrating the new live data and AI sports tracking solution of Second Spectrum, Genius’ Sports Tech unit registered a x2 jump in revenues to £12 million (Q12021: $5.4m).
“Our strong first quarter is a result of successful execution,” said Mark Locke, Genius Sports Co-Founder and CEO.
“We began 2022 with a comprehensive Investor Day, outlining our strategic plan and underlying assumptions supporting our financial outlook.
“Our financial and operational achievements in the quarter demonstrate our ability to deliver on that plan and increase our competitive advantages through unique and proven technology.”
Q1 developments saw Genius continue to prioritise US market media and betting opportunities that will provide the group with ‘long-term competitive advantages’.
Of significance, Genius became the lead data visualisation and media tracking partner of Turner Sports and ESPN broadcasts of the NCAA Division 1 Basketball Tournaments during the quarter.
In addition, the firm’s North American sports tech commercial pipeline will be further strengthened by the NBA deploying Second Spectrum tracking technologies across its G-League venues.
Further commercial highlights saw Genius obtain regulatory approval for its Betting Technology solutions for the Canadian province of Ontario.
Continued investment in North American expansion opportunities, projects and corporate resources contributed to a period EBITDA loss of $2.9 million (Q1202: $9.2m).
Closing its trading statement, Genius reaffirmed confidence in achieving its full-year 2022 targets of $340 million and adjusted EBITDA of $15 million – “despite risks related to foreign exchange and ceased commercial operations in Russia and Ukraine.”
The NYSE sports tech firm maintains its hard target of achieving group revenues of $430-to-$440 million and Group Adjusted EBITDA of $40-to-$50 million in 2023.