Genius Sports, the international sports data technology company, has posted higher revenue than expected for the third quarter (Q3) of 2023, bringing in $102 million.
This represents a 29% year-on-year (YoY) growth from the same period in 2022. Genius initially projected a $100 million revenue for the period ended September 30, 2023.
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In Q2 financials released today, the group also announced a net loss of $11.6 million and adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) of $18 million, which exceeded its third quarter guidance of $17 million and represents 131% YoY growth.
The main contributing factor behind the overall revenue increase was a rise of 34.1% in the company’s income from the betting technology, content, and services sector, to $65.9 million.
Genius said this was driven by “new customer acquisitions, increased customer utilization of available content, and growth in business with existing customers due to price increases on contract renewals and renegotiations alongside the expansion of value-add services, and new service offerings.”
Revenue was also up 27.9% in the media technology, content, and services division to $22.9 million, driven by growth in the Americas region, primarily for programmatic advertising services, while the sports technology and services sector saw an 11.3% rise to $12.9 million.
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By GlobalDataIn recent months, Genius launched BetVision, an interactive application for sportsbooks, and expanded its partnership with American football’s NFL.
The firm also partnered with English soccer’s Premier League Productions and Snap Inc., the camera and social media company, to provide “immersive augmented reality (AR) fan experiences” via its Snapchat Lenses offering.
In addition, Genius developed the first official Rugby World Cup Fantasy game in partnership with World Rugby, extended its official data and integrity partnership with Brazil’s National Basketball League, and partnered with golf’s Ryder Cup.
Mark Locke, Genius Sports co-founder and chief executive, said: “Our consistent outperformance reflects the execution of our core strategy as we continue to develop and distribute innovative technology across the sports ecosystem, enabling success for our partners, and further solidifying our long-term strategic position.”
Nick Taylor, Genius Sports chief financial officer, added: “We have reached a critical turning point in our business as we have realized consistent margin expansion in each quarter this year and now have much higher visibility into our long-term model following the renewals and extensions of key rights partnerships.”
In the first quarter of the year, Genius recorded revenue of $97.2 million and followed that up with a turnover of $87 million in Q2.
Through the first three quarters of 2023, the company has generated revenue of $285.8 million, up 21.3% from $235.7 million last year, while its net loss stands at $47 million, down 12.7% from $53.9 million in 2022.
Genius expects to generate revenue of approximately $412 million and adjusted EBITDA of approximately $53 million in 2023.
