Genius Sports surpassed expectations, revealing a Q4 2023 group revenue of $127.2m, marking a 20.7% year-on-year increase.
The company’s revenue is distributed among three distinct business divisions: ‘betting technology, content, and services,’ ‘media technology, content, and services,’ and ‘sports technology and services.’
The betting technology segment remained the company’s primary revenue catalyst, generating $86.7m during the quarter, marking a 32.3% increase. The media technology division contributed an additional $28.6m, reflecting an 11.3% growth. However, the sports technology division was the sole segment with negative growth, witnessing a 15.8% decline in revenue to $11.9m.
Groupwide, adjusted EBITDA surged over fourfold year-on-year, soaring from $2.7m in Q4 2022 to $12m. This resulted in a significantly enhanced adjusted EBITDA margin of 9.4%, up from 2.5%. Despite the improvement, the business reported a net loss, amounting to $38.5m this quarter, a decrease from the $127.7m net loss in Q4 2022.
A robust Q4 propelled the business to surpass its earlier issued guidance for full-year 2023. Initially targeting revenue around $391m, Genius instead achieved $413m, a 21.1% year-on-year improvement, exceeding the original guidance by 5.6%. Full-year adjusted EBITDA reached $53.3m, marking a substantial 238% increase from the $15.8m reported in full-year 2022.
However, the business announced a full-year net loss of $85.5m, marking a substantial improvement from the $181.6m net loss reported in 2022.
The co-founder and CEO Mark Locke, said:
We are excited to report our eighth consecutive quarter of financial results above expectations, while demonstrating the increasing profitability of our business model and our ability to consistently execute on our strategic objectives. The business is now better positioned than ever to benefit from multiple structural growth drivers across the digital sports ecosystem, and we’re excited to continue our momentum into 2024.
For the upcoming year, the company anticipates full-year revenue of $480m and adjusted EBITDA of $75m, with expectations for positive full-year cash flow.
Genius Sports Limited (GENI) is currently trading at $6.68 (-5.38%).
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