Genius Sports records 18% revenue rise for Q3 as betting vertical generates $86m
Supplier sees group revenue, adjusted EBITDA, and net income all rise while operating losses fall, as CEO heralds “strong results”
Genius Sports has posted revenue of $120m for Q3 2024, marking an 18% year-on-year (YOY) rise from the $101.7m for Q3 2023, and exceeding the guidance figure of $119m.
The supplier’s betting technology, content, and services segment was behind the largest portion of group revenue, contributing $85.6m to the firm’s topline Q3 figure, which represents a 29.9% YOY climb for the vertical.
Bosses have put the revenue rise down to “higher customer utilization of Genius’ available content,” as well as growth in business with existing customers.
Meanwhile, revenue from Genius Sports’ media technology, content, and services arm fell 3.5% YOY to sit at $22.1m.
It was a similar story for the sports technology, content, and services division, which suffered a 3.2% YOY decline in revenue for the quarter, generating $12.4m.
Genius Sports’ Q3 adjusted EBITDA landed at $25.7m – a steep 45% YOY increase from the $17.7m recorded for Q3 2023. The climb resulted in an adjusted EBITDA margin of 21.4%.
The supplier returned $12.5m in net income over the course of the third quarter, a notable $24.1m turnaround from the $11.6m loss amassed a year prior.
Operating losses for Q3 totaled $6m, down from the $8.9m lost in the corresponding quarter of 2023.
Sales and marketing costs climbed significantly to $9.4m, just shy of $4m more than the costs amounted in last year’s Q3 segment.
Research and development costs fell from $6.1m to $5.8m YOY, but general and administrative costs rose by $10m to sit at $30.4m.
In the light of the latest quarterly results, Genius Sports updated its 2024 financial guidance and now expects revenue for the year to come in at $511m, with adjusted EBITDA of $86m.
Such a return for 2024 would represent revenue growth of 24% YOY and a corresponding climb in adjusted EBITDA of 61%.
The third quarter of 2024 saw Genius Sports secure the services of Mark Kropf, who joined from Google, as the company’s new chief technology officer (CTO).
The supplier also penned a deal with ESPN to help the sports broadcasting giant improve its data-driven storytelling as part of its NCAA coverage, as well as partnering with Reddit to “power new sports scores feature with official NFL data.”
In response to the quarterly results release, Genius Sports’ share price leapt 16.4% to $9.43, at the time of writing.
Reflecting on the firm’s performance over the course of the three months ending September 30, Genius Sport co-founder and CEO Mark Locke talked up the supplier’s performance.
“Our strong results are underpinned by our successful commercial execution, positioning us to capture profitable growth alongside our partners as the sports betting industry continues to evolve and expand,” he said.
“We are empowering partners across the sports ecosystem to better reach, engage, and monetize fans using our innovative technology and unique data-driven insights.”
After the reporting period concluded, Genius Sports launched FANHub, an advertising and activation platform purpose built to engage sports fans and expand the company’s reach.
The supplier also added former Xbox chief Robbie Bach to the Genius Sports board as a new independent director on October 1.