Genius Sports Limited announced its financial results for the fiscal fourth quarter and full year ending Dec. 31, 2022. While operating in the US online gambling market, the company also works with over 400 sports organizations worldwide, including many of the world’s largest leagues and federations, such as:
Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. The company’s Co-Founder and CEO, Mark Locke, said:
“Our 2022 results demonstrate our commitment to executing the financial and strategic plan we outlined in our Investor Day at the start of 2022, and we have successfully delivered on our forecast each quarter.
We remain relentlessly focused on balancing investment in our highest growth initiatives while still demonstrating the unique operating leverage of our business model. Following our consistent execution in 2022 and the maturation of our technology investments, the stage is now set for 2023 to capture the immense opportunity ahead of us, afforded by the global competitive position we have built to date.”
Genius Sports notes a 25% year-over-year increase for Q4 2022
Genius Sports reported a 25% year-over-year increase in fourth-quarter group revenue to $105.3 million. On a constant currency basis, revenue increased by $28 million, 36% year-over-year.
- In its betting technology, content, and services segment, the company recorded a 22% revenue increase to $65.5 million year-over-year.
- Revenue for the media technology, content, and services segment rose 50%, up to $25.6 million.
- Likewise, Genius noted an 8.6% increase to $14.2 million for the sports technology and services segment.
Genius Sports more than doubled its net loss for the quarter. The company’s net loss was $127.7 million in the quarter compared to $53.3 million in Q4 2021. It was mainly because of a loss in foreign currency.
In the last quarter of 2022, the company’s Group Adjusted EBITDA was $2.7 million. That’s $4.5 million at the guidance exchange rate vs. $3.0 million guidance. The figure represents a $15.2 million progress compared to the $12.5 million loss in Q4 2021.
A look at Genius Group’s full-year revenue for 2022
For 2022, Genius reported a 30% increase in group revenue to $341 million.
- For the company’s betting technology, content and services segment revenue rose 18% year-to-year to $209.3 million.
- Genius’ media technology, content, and services revenue rose 71% to $82.7 million.
- As for its sports technology and services segment, revenue went up to $49.1 million, a 32% increase.
Genius expects to generate group revenue of approximately $391 million and Group Adjusted EBITDA of about $41 million in 2023. The company also expects to generate positive free cash flow in the second half of 2023.
Nick Taylor, Genius Sports CFO, commented:
“Our expectation of nearly tripling our Group Adj. EBITDA and generating free cash flow in the second half of 2023 is the direct result of a cost base that does not need to grow in line with revenues moving forward. With $159m of total cash on our balance sheet, zero debt financing, and our legacy warrants now removed, our shareholders are well positioned to capture the benefits of profitability and cash flow acceleration.”