Genius Sports records 25% jump in revenue as Q4 losses mount
Data giant sees share price slump in Friday afternoon trading as investors react to $127m loss in final three months of 2022
Genius Sports posted a 25.4% year-on-year (YoY) surge in Q4 revenue as an uptick in customers and growth of its ads services drove the top-line performance.
The sports data company recorded revenue of $105.3m for the final three months of 2022, compared to $84m in Q4 2021.
On a constant currency basis, Genius Sports saw its revenue leap 36.1% YoY.
Breaking revenue down by vertical, the firm’s betting technology arm continued to deliver the lion’s share after a 21.5% YoY jump to $65.5m.
The New York-listed company said the rise was due to a rise in customer acquisitions, the increased use of content and the expansion of add-on services.
Elsewhere, the group’s media technology arm’s revenue increased 50% YoY to $25.6m thanks to the aforementioned uptake in Genius Sports’ ads services.
Finally, the sports technology arm returned a 9% jump in revenue to $14.2m as Genius Sports’ Second Spectrum tech continues to grow in popularity across the sports ecosystem.
Genius Sports also saw adjusted EBITDA in Q4 return $2.7m after recording a $12.5m loss in 2021.
However, the group did report a 139.7% increase in net losses for the quarter from $53.3m to $127.7m.
Genius Sports said this was “primarily due to a loss on foreign currency”.
Looking at Genius Sports’ full-year performance, revenue jumped by 29.8% to $341m from $262.7m while EBITDA soared from $1.6m to $15.8m.
Despite seeing net losses rise in Q4, full-year 2022 net losses decreased by 69.4% to $181.6m.
Genius Sports ended the year with a closing cash balance of $159m and said it expects to begin generating positive free-cash-flow in the second half of 2023.
This year, the firm said it expects to generate group revenue of approximately $391m and group adjusted EBITDA of around $41m.
Mark Locke, Genius Sports CEO, said: “We remain relentlessly focused on balancing investment in our highest growth initiatives, while still demonstrating the unique operating leverage of our business model.
“Following our consistent execution in 2022 and the maturation of our technology investments, the stage is now set for 2023 to capture the immense opportunity ahead of us, afforded by the global competitive position we have built to date,” he added.
Genius Sports shares fell 12% to $4.56 on Friday.