Genius Sports, a firm that positions itself as the official partner for data, technology, and broadcasting within the sports, betting, and media industries, has disclosed its first quarter results for the year. The company boasts encouraging performance indicators and has updated its financial projections for 2024.
For the first quarter of 2024, Genius Sports saw its group revenue touch $119.7 million, surpassing the company’s initial first-quarter estimate of $117 million. This accomplishment signifies a momentous rise from the $97.2 million in revenue the company declared in the previous year.
The company attributes these results largely to its Betting Technology, Content & Services division, which accounted for nearly $74 million in revenue in Q1 2024, marking a 14.1% annual increase. The Media Technology, Content & Services sector saw remarkable 63% growth, reaching $35.5 million. However, the Sports Technology & Services sector fell behind, ending the quarter with revenue of $10.3 million, a decline of 3.5% year-on-year.
Notably, Genius Sports also declared a group net loss of $25.5 million for Q1 2023. Despite the substantial surge in revenue, the firm’s losses grew by 1.5%.
Furthermore, Genius Sports reported group adjusted EBITDA of approximately $6.9 million, a reduction of 14.5% year-on-year. The firm stipulated that the adjusted EBITDA margin for the group during this period was 5.7%, a decrease from 8.3% in Q1 2023.
Genius Sports Predicts Profitability by Year’s End
The co-founder and CEO of Genius Sports, Mark Locke, shared his company’s results, expressing confidence in the ongoing positive trend. Despite minor setbacks, Locke is satisfied with the metrics, stating that they surpass previous forecasts.
As we seek to broaden our tech reach and strive to prolong one of our most valuable data affiliations with Football DataCo, our excitement and confidence in our 2024 outlook and future prospects are heightened.
Mark Locke, co-founder & CEO, Genius Sports
To provide some background, Genius Sports is currently in the thick of negotiations to extend a contract with the British soccer rights holder.
In the meantime, Genius Sports has forecasted its financial aspirations for 2024, estimating approximately $500 million in revenue for FY 2024, marking a 21% growth year-on-year. The firm also targets a group adjusted EBITDA of roughly $82 million for 2024, an expected increase of 54%. Significant to note, Genius Sports anticipates generating a positive cash flow in FY 2024.
In related developments, Genius Sports has recently extended its collaboration with Sports Information Services (SIS) and ended its association with Apax Partners’ Gabriele Cipparrone.
