Genius Sport, a broadcast, data and technology company, released today its fourth quarter financial report. It showed a remarkable increase in revenue, and a substantial drop in net loss.
Quarterly and full-year revenue
Genius Sports had a fourth quarter revenue of $105.34 million and a full year revenue of $341.03 millions. These figures are both up across all divisions, in both the quarterly and full-year readings.
Mark Locke co-founder and chief operating officer of Genius Sports commented on the results. He described the company’s ability to deliver on its quarterly forecast as an indication of its “commitment towards executing the financial strategic plan” established at the beginning of 2022.
We are determined to balance investment in the highest growth initiatives while still demonstrating our unique operating leverage.
Mark Locke, cofounder and CEO, Genius Sports
Mark Locke believes that the company will be able to capitalize on its global competitiveness and “capture all the enormous opportunities” in 2023.
The overall increase in betting technology, content & services was 21.5% for the quarter and 18.1% over the entire year; Media Technology, Content & Services grew by 50.4% during Q4 and 71.2% through full-year 2022; while Media Technology, Content & Services grew by 51.4% in Q4; and Sports Technology & Services contributed 8.6% to the total with an increase in Q4 as well as 31.9% for the year.
Adjusted EBITDA, Net Loss
The adjusted EBITDA for Q4 was $2.66million, an increase of 121% year-over year. For the full year 2022 it was $15.79million, which is nine times more than 2021. Genius Sports’ guidance of $15 million and $340 million respectively for group revenue exceeded both group revenue and adjusted EBITDA.
The Q4 net loss of the group was $127.72million, an increase of two-and-a half times from $53.29million in Q4 2021. The group’s total loss for the year fell to $181.64million ($592.75million in 2021).
We expect to nearly triple our Group Adj. EBITDA and free cash flow in the second half 2023 are the direct results of a cost base which does not need to increase in line with future revenues.
Nick Taylor, CFO, Genius Sports
Genius Sports’ 2022 results and current performance suggest that Genius Sports has maintained its adjusted EBITDA guidance for 2023 of $391 million to $41 million. It expects to generate positive free cash flows in the second half.
Taylor stated, “With $159m in total cash, zero debt financing and our legacy warrants removed, our shareholders have the opportunity to reap the rewards of profitability and cash flow acceleration.”