Genius Sports adjusts revenue forecast for 2021 after record Q3
Genius Sports Limited announced its financial results for the third quarter of 2021, reporting record revenue of $ 69.1 million, more than 70% year-over-year growth, adjusting its revenue projections accordingly for the year 2021.
As of September 30, 2021, Genius Sports reported that third-quarter revenue growth was “driven by significant and well-balanced growth” across all of its business segments. At constant exchange rates, its revenue increased by $ 25.9 million, or 60% year-on-year.
Broken down by segment, Betting Technology, Content & Services revenue grew 48% year-on-year to $ 43.6 million; Sports Technology & Services revenue improved 159% year-on-year to $ 6 million; and multimedia technology, content and services revenue grew 114% year-over-year to $ 9 million.
The Company’s adjusted (non-GAAP) EBITDA for the financial period was $ (0.4) million, with revenue growth offset by strategic investments and data rights costs.
Co-founder and CEO Mark Locke commented: âThe growth of Genius Sports is accelerating to an unprecedented level that far exceeds our initial expectations. We’re capturing more opportunities than ever, underpinned by the widespread adoption of official data across the ecosystem.
âAlthough only a few months after the start of our first season in the NFL, we are even more confident in the long-term prospects of the partnership. We are transforming the global sports betting market through our progressive investment in technological innovation, and we will continue to do so in the years to come. “
During the third quarter, Genius Sports announced strategic partnerships to provide its NFL offers Caesars, DraftKings, Entain and BetMGM, Golden Nugget Online Gaming, Penn Interactive (Barstool Sportsbook), WynnBET and 888 (SI Sportsbook).
The company has also been granted a temporary event betting provider license by the Arizona Department of Games, and it has also been certified by the State of Connecticut, Department of Consumer Affairs, as an online gaming service provider.
Genius Sports has increased its revenue forecast for the year 2021 and now expects to generate around $ 257 million to $ 262 million (previously $ 255 million to $ 260 million). The company has also revised its Adjusted EBITDA forecast to be broadly balanced (previously $ 10 million to $ 20 million).
The management of the company believes that the positioning of the company over time will depend on investments made at this early stage of its growth cycle, which can present attractive opportunities with long-term sustainable returns.
These planned investments include various technological developments, data and streaming rights, expansion of the US operational infrastructure, as well as other potential opportunities to help solidify the company’s competitive advantages while supporting a profit margin. ‘Adjusted EBITDA stabilized by 40% at scale.
CFO Nick taylor said, âWe have positioned the company for continued success, which gives us great confidence in increasing our revenue outlook for 2021.
âWe anticipate continued strong revenue growth as the market continues to develop and evolve while preserving the opportunity to reinvest in the business to fund strategic growth initiatives and drive long-term sustainability and scale. .
“This first step in our growth cycle presents a window of opportunity to invest in the future success of the business, and we are delighted to continue to build towards our strategic vision.”