Genius Sports Q2 losses soar despite strong quarter for betting arm
Supplier enjoys 9.9% year-on-year group revenue growth in line with guidance, while operating losses nearly triple compared to the same period in 2023
Genius Sports has reported revenue of $95.4m for Q2 2024, representing a 9.9% increase year on year (YoY) from $86.8m in Q2 2023.
The firm’s betting technology, content and services division was its largest source of revenue, rising 18% YoY to $67.1m.
Revenue from media technology, content and services fell 2.2% YoY to $18.0m, while sports technology and services revenue dropped 10.8% to $10.4m.
Operating losses for Q2 amounted to $21.0m, rising from $7.8m in Q2 2023.
Sales and marketing costs landed at $9.7m, research and development costs were $7.2m, while general and administrative costs rose to $30.9m from $19.6m.
Overall net losses for Q2 totalled $21.8m, up 111.6% from the $10.3m experienced in the corresponding period in 2023.
Adjusted EBITDA for the quarter came to $20.8m, a YoY increase of 32.9% against $15.7m.
In terms of H1 2024 performance, Genius Sports’ revenue was $215.2m, representing a 16.9% YoY rise compared to 2023.
The group recorded a net loss of $47.3m for H1, up 33.5% from the previous year, while adjusted EBITDA for the first half of 2024 increased 16.8% to $27.7m.
Despite the mounting losses, the New York-listed firm has its full-year 2024 revenue and adjusted EBITDA guidance to $510m and $85m, respectively.
During the company’s Q1 report, revenue and adjusted EBITDA expectations were hiked up to $500m and $82m.
The firm has also seen its share price leap more than 7% to $6.42 at the time of writing.
Mark Locke, Genius Sports co-founder and CEO, said that the company’s results provide validation for its strategy thus far.
He said: “This quarter validates our strategic execution as we continue to deepen our league relationships, having extended one of our key data rights agreements, expanded our technology footprint and bolstered our product offering across the sports ecosystem.
“We are excited for the remainder of the year and expect to reaccelerate group revenue growth, continue our adjusted EBITDA margin expansion and generate positive cash flow.”
Following the reporting period, private equity firm Apax Partners cashed out its 20 million shares in Genius Sports.
The company also partnered with the English Football League (EFL) to launch the first ever EFL fantasy football game.
Genius Sports also extended its data partnership with Football DataCo through to 2029.