Genius Sports revealed that 2022 was a great year. It beat its guidance in revenue and EBITDA. The US operations were a strong platform for growth.
Genius Sports published its 2022 financial reports. Revenues were $341 million, an increase of 41% year-overyear and slightly more than the guidance of $340m.
The adjusted EBITDA growth of the sports technology and data company reached $2.7m in 2022, compared to $12.5m in 2020.
Genius Sports saw its net losses drop by 69% to $81.6 million, compared to a loss of $592.8m 2021. This was in addition to revenue growth. It was due to stock-based compensation as well as “disciplined costs control”.
Genius’ net loss rose to $127.7m in Q4 despite an improvement in the whole year, compared to $53.3m in Q421.
“Our 2022 results show our commitment to executing our financial and strategic plan that we outlined at our Investor Day at start of 2022 and have successfully delivered on each quarter,” stated Mark Locke Genius Sports CEO and Co-Founder.
“We are focused on investing in the highest growth initiatives while still maintaining our unique operating leverage.
“With our consistent execution in 2022, and the maturation our technology investments, it is now possible for us to seize the enormous opportunity that lies ahead, which is enabled by our global competitive position.
Genius’ US operations increased by 60% in-play GGR, and there was an increase of legalized states. Genius’s US operations doubled in 2022.
Genius received a supplier licence in Ohio and launched NFL Watch & Bet video streams both in the US & Canada in Q4. This is as part of its continued growth in the region.
Genius began with Caesars and rolled out Watch & Bet for sportsbook clients in the US, while securing three new clients Canada.
A third, North American-focused Q4 move was the launch of the three-point shot tracker on the NBA via ESPN using its subsidiary Second Spectrum technology.
The group’s performance was broken down by division. The Betting Technology, Content and Services unit had a turnover of $2093m for 2022, an increase of 18.1% YoY., while the Media Tech, Content and Services unit saw $82.7m of revenue, which was up 71.2% YoY.
Genus closed 2022 after a series of deals that helped it to have a strong cash balance at year’s end. It ended the year with $159m and $36m in restricted cash.
Nick Taylor added that the CFO had stated: “We expect to nearly triple our Group Adj. EBITDA and free cash flow for the second half 2023 are the direct results of a cost base which does not need to increase in line with future revenues.
“With $159m in total cash, zero debt financing and the removal of our legacy warrants, our shareholders are well-positioned to reap the rewards of profitability and cash flow acceleration.
Genius Sports provided an outlook for 2023 and stated that it expects revenue to be around $391m in 2019, while expecting adjusted EBITDA to be around $41m.
