Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Genius Sports Reports Second Quarter Results Ahead of Expectations and Raises Full-Year Revenue and Group Adj. EBITDA Guidance

  • Group Revenue of $87m, exceeding second quarter guidance of $80m
  • Group Net Loss of ($10m) and Group Adj. EBITDA of $16m, exceeding second quarter guidance of $14m
  • Year-to-date Group Adj. EBITDA more than quadrupled year-on-year to $24m
  • Raising 2023 Group Revenue and Adj. EBITDA guidance for the second consecutive quarter to $410m and $52m, respectively, up from prior guidance of $400m and $49m
  • Genius expects to expand Group Adj. EBITDA Margins from 5% in 2022 to 13% in 2023

Genius Sports Limited (NYSE:GENI) (“Genius Sports” or the “Group”), the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media, today announced financial results for its fiscal second quarter ended June 30, 2023.

“We enter the second half of 2023 having reached a significant inflection point in our business,“ said Mark Locke, Genius Sports Co-Founder and CEO. “Following the financial outperformance in the first half of the year and the recently renewed partnerships with FDC and the NFL, we have validated our core strategy, differentiated our technology stack, and proven our sustainable business model. The ongoing success through the second quarter perfectly demonstrates our balanced approach in delivering near-term results, while accelerating Genius towards our long-term growth and profit targets.”

$ in thousands

Q223

Q222

%

Group Revenue

86,847

71,117

22.1%

Betting Technology, Content & Services

56,862

44,831

26.8%

Media Technology, Content & Services

18,357

14,999

22.4%

Sports Technology & Services

11,628

11,287

3.0%

Group Net loss

(10,298)

(4,755)

(116.6%)

Group Adjusted EBITDA

15,650

8,362

87.2%

Group Adjusted EBITDA Margin

18.0%

11.8%

6.2%

$ in thousands

1H23

1H22

%

Group Revenue

184,076

157,040

17.2%

Betting Technology, Content & Services

121,602

94,552

28.6%

Media Technology, Content & Services

40,121

39,128

2.5%

Sports Technology & Services

22,353

23,360

(4.3%)

Group Net loss

(35,466)

(44,953)

21.1%

Group Adjusted EBITDA

23,692

5,469

333.2%

Group Adjusted EBITDA Margin

12.9%

3.5%

9.4%

Q2 2023 Financial Highlights

  • Group Revenue: Group revenue increased 22% year-over-year to $86.8 million. On a constant currency basis, revenue increased $16.1 million, or 23% year-over-year.
    • Betting Technology, Content & Services: Revenue increased 27% (28% on a constant currency basis) year-over-year to $56.9 million, driven by increased customer utilization of available event content and growth in business with existing customers.
    • Media Technology, Content & Services: Revenue increased by 22% (23% on a constant currency basis) year-over-year to $18.4 million, driven by growth in the Americas region, primarily for programmatic advertising services.
    • Sports Technology & Services: Revenue increased 3% (3% on a constant currency basis) year-over-year to $11.6 million, primarily due to higher revenues from non-cash consideration contracts.
  • Group Net Loss: Loss from operations narrowed from ($39.7 million) in the second quarter ended June 30, 2022, to ($7.8 million) in the second quarter this year, driven by improved underlying performance. This improvement was offset by a $29 million reduction in gain on foreign currency compared to the prior year, resulting in Group net loss of ($10.3 million) in the second quarter ended June 30, 2023.
  • Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $15.7 million in the quarter vs. $14.0 million guidance. This represents an 87% increase compared to the $8.4 million reported in the second quarter ended June 30, 2022.

Q2 2023 Business Highlights

  • After the reporting period, Genius extended its strategic partnership with the NFL
    • Long-term partnership now continues through the end of the 2027-28 season
    • Genius remains the exclusive distributor of official live game data and Next Gen Stats to the global media and betting markets
    • Extended agreement also includes exclusive right to distribute digital advertising inventory and marks and logos to global sportsbooks;
    • Low latency Watch & Bet video feeds to international sportsbooks, now including U.S. sportsbooks;
    • Integrity monitoring services for all NFL games
  • Extended official data partnership with Football DataCo, the data rights holder of UK football, covering over 4,000 events per season across EPL, EFL and SPFL
  • Secured AI-powered tracking technology expansion with the English Premier League and English Football League through best-in-class Second Spectrum technology
  • After the reporting period, Genius launched innovative digital features for the FIFA Women’s World Cup Australia & New Zealand 2023™, leveraging Second Spectrum technology to enrich the game-viewing experience
  • Expanded integrity program with The German Football Association, utilizing a leading intelligence system to combat threats of match-fixing and betting-related corruption
  • Awarded ‘Best Technology for College Sports’ at the Sports Technology Awards 2023 and the ‘Sports Betting Supplier’ prize at the EGR North America Awards 2023

Financial Outlook

Genius expects to generate Group Revenue of approximately $410 million and Group Adjusted EBITDA of approximately $52 million in 2023. The Company also expects to reach an important inflection point as it begins generating sustainable free-cash-flow in the second half of 2023 and beyond.

$ in millions

Q1 2023A

Q2 2023A

Q3 2023E

Q4 2023E

FY 2023E

Group Revenue

$97

$87

$100

$126

$410

Betting Technology, Content & Services

$65

$57

$64

$80

$266

Media Technology, Content & Services

$22

$18

$24

$31

$95

Sports Technology & Services

$11

$12

$12

$15

$50

Group Adjusted EBITDA

$8

$16

$17

$11

$52

Note: values may not add up due to rounding

Financial Statements & Reconciliation Tables

Genius Sports Limited

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue

 

$ 86,847

 

$ 71,117

 

$ 184,076

 

$ 157,040

Cost of revenue

 

62,173

 

61,817

 

149,870

 

163,192

Gross profit (loss)

 

24,674

 

9,300

 

34,206

 

(6,152)

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

6,589

 

8,973

 

13,980

 

18,205

Research and development

 

5,812

 

7,734

 

12,081

 

15,125

General and administrative

 

19,618

 

32,282

 

37,692

 

65,086

Transaction expenses

 

496

 

-

 

1,324

 

128

Total operating expense

 

32,515

 

48,989

 

65,077

 

98,544

Loss from operations

 

(7,841)

 

(39,689)

 

(30,871)

 

(104,696)

Interest (expense) income, net

 

(202)

 

(375)

 

216

 

(766)

Loss on disposal of assets

 

(11)

 

(1)

 

(22)

 

(7)

(Loss) gain on fair value remeasurement of contingent consideration

 

(376)

 

-

 

(2,809)

 

4,408

Change in fair value of derivative warrant liabilities

 

-

 

4,678

 

(534)

 

13,420

Gain on foreign currency

 

1,496

 

30,122

 

2,297

 

42,754

Total other income (expense)

 

907

 

34,424

 

(852)

 

59,809

Loss before income taxes

 

(6,934)

 

(5,265)

 

(31,723)

 

(44,887)

Income tax (expense) benefit

 

(3,952)

 

61

 

(4,600)

 

(515)

Gain from equity method investment

 

588

 

449

 

857

 

449

Net loss

 

$ (10,298)

 

$ (4,755)

 

$ (35,466)

 

$ (44,953)

Loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic and diluted

 

$ (0.05)

 

$ (0.02)

 

$ (0.17)

 

$ (0.23)

Weighted average common stock outstanding:

 

 

 

 

 

 

 

 

Basic and diluted

 

208,505,216

 

198,347,397

 

207,362,662

 

197,060,987

Genius Sports Limited

Condensed Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

 

 

 

 

 

(Unaudited)

 

 

 

June 30

 

December 31

 

2023

 

2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$ 89,812

 

$ 122,715

Restricted cash, current

-

 

12,102

Accounts receivable, net

61,839

 

33,378

Contract assets

37,069

 

38,447

Prepaid expenses

32,690

 

28,207

Other current assets

815

 

1,668

Total current assets

222,225

 

236,517

Property and equipment, net

11,759

 

12,881

Intangible assets, net

144,913

 

149,248

Operating lease right of use assets

5,895

 

6,459

Goodwill

324,549

 

309,894

Investments

24,045

 

23,682

Restricted cash, non-current

25,348

 

24,203

Other assets

10,065

 

10,453

Total assets

$ 768,799

 

$ 773,337

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$ 23,599

 

$ 33,121

Accrued expenses

59,686

 

56,956

Deferred revenue

41,589

 

41,273

Current debt

7,400

 

7,405

Derivative warrant liabilities

-

 

6,922

Operating lease liabilities, current

3,083

 

3,462

Other current liabilities

13,443

 

22,001

Total current liabilities

148,800

 

171,140

Long-term debt – less current portion

29

 

7,088

Deferred tax liability

15,767

 

15,009

Operating lease liabilities, non-current

2,940

 

3,284

Total liabilities

167,536

 

196,521

Shareholders' equity

 

 

 

Common stock, $0.01 par value, unlimited shares authorized, 212,726,102 shares issued and 208,620,154 shares outstanding at June 30, 2023; unlimited shares authorized, 201,853,695 shares issued and outstanding at December 31, 2022

2,127

 

2,019

B Shares, $0.0001 par value, 22,500,000 shares authorized, 18,500,000 shares issued and outstanding at June 30, 2023 and December 31, 2022

2

 

2

Additional paid-in capital

1,625,076

 

1,568,917

Treasury stock, at cost, 4,105,948 shares at June 30, 2023; nil shares at December 31, 2022

(17,653)

 

-

Accumulated deficit

(974,419)

 

(938,953)

Accumulated other comprehensive loss

(33,870)

 

(55,169)

Total shareholders' equity

601,263

 

576,816

Total liabilities and shareholders' equity

$ 768,799

 

$ 773,337

Genius Sports Limited

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

 

 

Six Months Ended

 

 

June 30

 

June 30

 

 

2023

 

2022

Cash Flows from operating activities:

 

 

 

 

Net loss

 

$ (35,466)

 

$ (44,953)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

35,032

 

34,752

Loss on disposal of assets

 

22

 

7

Loss (gain) on fair value remeasurement of contingent consideration

 

2,809

 

(4,408)

Stock-based compensation

 

14,185

 

60,677

Change in fair value of derivative warrant liabilities

 

534

 

(13,420)

Non-cash interest expense, net

 

170

 

350

Non-cash lease expense

 

1,955

 

3,426

Amortization of contract cost

 

473

 

445

Deferred income taxes

 

47

 

8

Provision for doubtful accounts

 

250

 

362

Gain from equity method investment

 

(857)

 

(449)

Gain on foreign currency remeasurement

 

(2,228)

 

(33,816)

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable

 

(24,746)

 

16,276

Contract asset

 

3,125

 

(7,213)

Prepaid expenses

 

(3,070)

 

(3,975)

Other current assets

 

911

 

2,546

Other assets

 

488

 

(3,664)

Accounts payable

 

(10,843)

 

(5,929)

Accrued expenses

 

35

 

(9,657)

Deferred revenue

 

(1,600)

 

7,377

Other current liabilities

 

(1,887)

 

12,306

Operating lease liabilities

 

(2,049)

 

(3,421)

Other liabilities

 

-

 

(9,813)

Net cash used in operating activities

 

(22,710)

 

(2,186)

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(1,002)

 

(2,232)

Capitalization of internally developed software costs

 

(21,232)

 

(21,741)

Distributions from (contribution to) equity method investments

 

1,555

 

(7,871)

Equity investments without readily determinable fair values

 

-

 

(150)

Purchases of intangible assets

 

(238)

 

-

Acquisition of business, net of cash acquired

 

-

 

(20)

Proceeds from disposal of assets

 

30

 

121

Net cash used in investing activities

 

(20,887)

 

(31,893)

Cash flows from financing activities:

 

 

 

 

Repayment of loans and mortgage

 

(10)

 

-

Proceeds from exercise of Public Warrants

 

6,812

 

-

Repayment of promissory notes

 

(7,387)

 

-

Net cash used in financing activities

 

(585)

-

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

322

(13,318)

Net decrease in cash, cash equivalents and restricted cash

 

(43,860)

(47,397)

Cash, cash equivalents and restricted cash at beginning of period

 

159,020

222,378

Cash, cash equivalents and restricted cash at end of period

 

$ 115,160

$ 174,981

Supplemental disclosure of cash activities:

 

 

 

Cash paid during the period for interest

 

$ (329)

 

$ (416)

Cash paid during the period for income taxes

 

$ (2,781)

 

$ (1,204)

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

Shares acquired by subsidiary from cashless Public Warrant exercise

 

$ 17,653

 

$ -

Promissory notes arising from equity method investments

 

$ -

 

$ 14,688

Issuance of common stock in connection with business combinations

 

$ 10,157

 

$ 17,452

Genius Sports Limited

Reconciliation of U.S. GAAP Net loss to Adjusted EBITDA

(Unaudited)

(Amounts in thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2023

2022

 

2023

2022

 

(dollars, in thousands)

 

(dollars, in thousands)

Consolidated net loss

$ (10,298)

$ (4,755)

 

$ (35,466)

$ (44,953)

Adjusted for:

 

 

 

 

 

Net, interest expense (income)

202

375

 

(216)

766

Income tax expense (benefit)

3,952

(61)

 

4,600

515

Amortization of acquired intangibles (1)

10,117

10,196

 

19,850

20,917

Other depreciation and amortization (2)

7,854

7,277

 

15,655

14,280

Stock-based compensation (3)

3,624

23,597

 

14,329

60,777

Transaction expenses

496

-

 

1,324

128

Litigation and related costs (4)

608

4,328

 

1,392

9,245

Change in fair value of derivative warrant liabilities

-

(4,678)

 

534

(13,420)

Loss (gain) on fair value remeasurement of contingent consideration

376

-

 

2,809

(4,408)

Gain on foreign currency

(1,496)

(30,122)

 

(2,297)

(42,754)

Other (5)

215

2,205

 

1,178

4,376

Adjusted EBITDA

$ 15,650

$ 8,362

 

$ 23,692

$ 5,469

  1. Includes amortization of intangible assets generated through business acquisitions, inclusive of amortization for data rights, marketing products, and acquired technology.
  2. Includes depreciation of Genius’ property and equipment, amortization of contract cost, and amortization of internally developed software and other intangible assets. Excludes amortization of intangible assets generated through business acquisitions.
  3. Includes restricted shares, stock options, equity-settled restricted share units, cash-settled restricted share units and equity-settled performance-based restricted share units granted to employees and directors (including related employer payroll taxes) and equity-classified non-employee awards issued to suppliers.
  4. Includes mainly legal and related costs in connection with non-routine litigation matters including Sportradar litigation and BetConstruct litigation.
  5. Includes expenses incurred related to earn-out payments on historical acquisitions, gain/losses on disposal of assets and severance costs.

Webcast and Conference Call Details

Genius Sports management will host a conference call and webcast today at 8:00AM ET to discuss the Company’s second quarter results.

The conference call may be accessed by dialing (646) 307-1963.

A live audio webcast may be accessed on the Company’s investor relations website at investors.geniussports.com along with Genius’ earnings press release and related materials. A replay of the webcast will be available on the website within 24 hours after the call.

About Genius Sports

Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. Our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences for the entire sports industry.

We are the trusted partner to over 400 sports organizations, including many of the world’s largest leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.

Genius Sports is uniquely positioned through cutting-edge technology, scale and global reach to support our partners. Our innovative use of big data, computer vision, machine learning, and augmented reality, connects the entire sports ecosystem from the rights holder all the way through to the fan.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP. A reconciliation of the most comparable GAAP measure to its non-GAAP measure is included above.

Adjusted EBITDA

We present Group adjusted EBITDA and Group adjusted EBITDA margin, non-GAAP performance measures, to supplement our results presented in accordance with U.S. GAAP. Group adjusted EBITDA is defined as earnings before interest, income tax, depreciation and amortization and other items that are unusual or not related to our revenue-generating operations, including stock-based compensation expense (including related employer payroll taxes), change in fair value of derivative warrant liabilities and remeasurement of contingent consideration. Group adjusted EBITDA margin is calculated as Group adjusted EBITDA divided by Group revenue.

Group adjusted EBITDA and Group adjusted EBITDA margin are used by management to evaluate our core operating performance on a comparable basis and to make strategic decisions. We believe Group adjusted EBITDA and Group adjusted EBITDA margin are useful to investors for the same reasons as well as in evaluating our operating performance against competitors, which commonly disclose similar performance measures. However, our calculation of Group adjusted EBITDA and Group adjusted EBITDA margin may not be comparable to other similarly titled performance measures of other companies. Group adjusted EBITDA and Group adjusted EBITDA margin are not intended to be a substitute for any U.S. GAAP financial measure.

We do not provide a reconciliation of Group adjusted EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections.

Constant Currency

Certain income statement items in this press release are discussed on a constant currency basis. Our results between periods may not be comparable due to foreign currency translation effects. We present certain income statement items on a constant currency basis, as if GBP:USD exchange rate had remained constant period-over-period, to enhance the comparability of our results. We calculate income statement constant currency amounts by taking the relevant average GBP:USD exchange rate used in the preparation of our income statement for the more recent comparative period and apply it to the actual GBP amount used in the preparation of our income statement for the prior comparative period.

Constant currency amounts only adjust for the impact related to the translation of our consolidated financial statements from GBP to USD. Constant currency amounts do not adjust for any other translation effects, such as the translation of results of subsidiaries whose functional currency is other than GBP or USD.

Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: the effect of COVID-19 on our business, risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; risks related to our ability to achieve the anticipated benefits from the business combination with dMY Technology Group, Inc. II; and other factors included under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on March 30, 2023.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements contained herein, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.