Growth hungry Genius Sports upgrades 2021 forecasts
Genius Sports has upgraded its full-year 2021 financial forecasts, having disclosed peak Q2 trading which saw the sportstech group double its revenues to $59 million (Q2 2020: $27m).
Publishing its first H1 Interim results as an NYSE enterprise, Genius revealed double and triple-digit Q2 revenue outcomes across its core business units.
A breakdown of Q2 performance saw Genius’ flagship Betting Technology unit register a 144% increase in revenues to $41 million (Q2 2020: $18m).
The unit’s significant uplift was attributed to benefitting from normalised global sporting calendar, new customer wins and existing sportsbook clients activating new wagering services.
Expanding its technology services, the H1 acquisitions of Sportzcast and Second Spectrum helped Genius SportsTech unit achieve record revenues of $7.2 million, up 105% on Q2 2020 results of $3.5 million.
Meanwhile, Genius’ Media and Content services, would register a 62% increase in revenues to $8 million, with growth primarily attributed to increased advertising spend by US and European clients.
“We’re enormously proud of our continued execution in the second quarter and our ability to implement our end-to-end solutions on behalf of our industry partners,” said Mark Locke, CEO of Genius Sports.
Providing year-to-date guidance, Genius H1 revenues stand at $110 million, up 76% on corresponding 2020 results of $62 million – as the group upgrades 2021 revenue projections to $255-$260 million range.
Genius’ H1 EBITDA results stood at $14.5 million (H1 2020: $4m) helping the company maintain its 2021 earnings guidance to fall between £10-20 million
Entering H2 trading, Genius cites a significant upgrade in its US market prospects, having entered multi-year strategic partnerships with DraftKings, Caesars, WynnBET and 888 SI Sportsbook
Supporting its US growth strategy, Genius governance confirmed that its concluded NYSE listing helped the company raise $435 million in primary and secondary proceeds that will be used for general corporate purposes.
Locke continued: “We continue to significantly expand our leading portfolio of official rights by partnering with sports leagues and federations in key regions across the globe.”
“Our comprehensive suite of premium content, technology services and fan engagement solutions have strengthened our commercial partnerships. Our recently announced NFL-related agreements with sportsbook operators have validated our strategy and instilled confidence in our ability to deliver results at the high end of our previous guidance for the year”.