Genius Sports hails “unprecedented” growth as Q3 revenue climbs 70%

Sports data and technology company Genius Sports has reported a 70.5% year-on-year (YoY) rise in its group revenue during Q3 with revenue hitting $69.1m. Releasing its latest set of financial results, the sports betting data juggernaut reported double digit growth in its betting technology, content and services division. The firm’s sports technology and services and media technology and content business both reported triple digit YoY growth. Genius’ technology and media divisional revenue was the big winner of the quarter, rising by 159% YoY during Q3, a rise owing to the impact of its Sportzcast and Second Spectrum acquisitions on company financials. Revenue from the media technology, content and services division took the silver medal position during Q3, jumping 114% YoY to $9m. Genius attributed this rise to new customer wins for programmatic advertising services and inclusion of revenues from recent acquisitions. Betting, technology, content and services divisional revenue rose 47.5% YoY to $43.6m, driven by price increases and contract renewals with existing customers, in tandem with new customer recruitment. In contrast, Genius Sports group adjusted EBITDA slumped to a negative figure of $0.4m during Q3, due to the offsetting of strategic investment and data rights costs against its revenue growth. In line with the better-than-expected results, Genius has increased its full-year 2021 revenue projection to between $257m and $262m, with a similar revision of its adjusted EBITDA forecast to be “broadly breakeven” from a previous higher estimate of between $10m-$20m. “Genius management believes the positioning of the business over time will rely on the investments made in this early stage of the Company’s growth cycle, which may present attractive opportunities with sustainable long-term returns,” Genius said in an accompanying statement. Potential investments cited include technology developments, data and streaming rights, the expansion of US operational infrastructure, as well as other potential opportunities to help solidify Genius’s competitive advantages. Genius Sports CEO and co-founder Mark Locke welcomed the record Q3 2021 financial results, suggesting they were beyond preliminary ambitions set by the firm. “Genius Sports’ growth is accelerating at an unprecedented level that far surpasses our original expectations. We are capturing more opportunities than ever before, underpinned by the broad adoption of official data by the entire ecosystem,” Locke said. “While only months into our first NFL season, we are even more confident of 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 for years ahead,” the Genius Sports CEO added. Q3 marked a significant period for Genius for new contracts, with the firm inking strategic partnerships with Entain/BetMGM, FanDuel, Golden Nugget, Hard Digital, Penn/Barstool Sportsbook, and PointsBet. In addition, Caesars, DraftKings, WynnBet and 888/SI Sportsbook have all inked NFL related data deals with the sports betting tech goliath. According to estimates released by Genius, more than 97% of the US market is now utilizing NFL data through exclusive partnerships with Genius Sports.