Genius Sports reports 20% YOY revenue increase for Q4 2023
Supplier exceeds 2023 guidance by 21% as CEO Mark Locke predicts strong year ahead
Genius Sports’ revenue grew 20.7% year on year (YOY) to $127.2m for Q4 2023 as the supplier reported its eighth consecutive quarter of exceeding financial results.
Adjusted EBITDA grew exponentially to $12m, a 349% YOY increase from $2.7m, while adjusted EBITDA margin rose to 9.4% from 2.5% the previous year.
Net losses decreased 69.9%, from $127.7m to $38.5m in Q4 2023.
Breaking down Genius Sports’s revenue into segments, its betting arm saw a 32% YOY increase to $86.7m, which was driven by new customer acquisitions as well as increased customer utilization of the firm’s available event content.
The media division saw Q4 revenue stand at $28.5m, a 11.3% YOY increase, with Genius Sports attributing growth to the Americas region.
However, sports technology revenue decreased 15.8% YOY, from $14.2m to $11.9m, due to Genius Sports receiving “non-cash consideration in the form of official sports data and streaming rights”.
Over the full year, revenue grew 21.1% YOY to $413m, exceeding initial guidance of $391m. Adjusted EBITDA stood at $53m, also exceeding initial guidance of $41m – a 237.9% YOY rise.
Net loss on the year decreased 52.9% YOY, from $181.6m to $85.5m, which was driven by “improved underlying performance”.
Genius Sports expects to generate revenue of $480m for the year 2024, with adjusted EBITDA of approximately $75m.
Mark Locke, the company’s co-founder and CEO, said the business is in a position to have a strong 2024 after exceeding expectations last year.
He 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.”
Q4 2023 highlights included expanding the firm’s partnership with FanDuel through the launch of NFL BetVision, as well as unveiling Edge, the automated pricing tool that allows sportsbooks to “maximise profitability”.