Genius Sports, the international sports data technology company, has announced solid revenue results for the fourth quarter and full year of 2022, with sales growth up across all three of its core divisions.
The company saw its full-year 2022 revenues rise nearly 30% from $262.7 million to $341 million year-on-year, while its fourth-quarter income increased 25.4% to $105.3 million from last year’s $84 million.
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The increases have allowed the firm to chip away at its net losses by 69% across the full year from $592.7 million to $181.6 million.
The group’s profit stayed negative in the final quarter, falling from a loss of $53.3 million in the fourth quarter of 2021 to $127.7 million this year, primarily driven by a loss in foreign currency.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $15.8 million, up 918% from just $1.15 million in 2021, and by 121% in the fourth quarter to $2.6 million from a negative figure of $12.5 million in the year before.
Mark Locke, Genius Sports co-founder and chief executive, said: “Our 2022 results demonstrate our commitment to executing the financial and strategic plan we outlined in our Investor Day at the start of 2022, and we have successfully delivered on our forecast each quarter.
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By GlobalData“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 investment, the stage is not set for 2023 to capture the immense opportunity ahead of us, afforded by the global competitive position we have built to date.”
A full-year segment breakdown saw the group’s Betting Technology, Content, and Services (BTCS) division return the largest revenue of $209.2 million, an 18% increase on last year ($177.2 million), while its Media, Technology, Content, and Services (MTCS) arm recorded the largest growth rate of 71.2%.
Income for MTCS stood at $82.7 million, while the Sports Technology and Services (STS) unit saw year-on-year growth of 39% at $49.1 million.
On a quarterly basis, MTCS recorded the highest growth with a 50% increase from $17 million to $25.6 million, while BTCS’ quarterly revenue rose 21% to $65.5 million from $54 million. STS also continued to perform, reporting growth of 9% from $13 million to $14.2 million.
The group’s fourth-quarter performance was driven by several business developments which saw the company work on major projects with prominent sports betting partners.
These included its data deal expansion with Football DataCo to add sub-second skeletal tracking for English soccer’s Premier League, and production of a three-point shot tracker for the NBA on international sports broadcaster ESPN, as well as the launch of ‘Watch and Bet’ NFL video stream in the US and Canada.
The period also saw an extension of Genius’ partnership with betting company Bet365 to include Second Spectrum tracking technology and the acquisition of an Ohio gaming license.
The group’s closing cash balance was $159 million as of December 31, 2022, above the previously guided range of $140 million to $150 million.
The company said it expects to begin generating positive free cash flow in the second half of 2023.
Genius Sports chief financial officer Nick Taylor said: “Our expectation of nearly tripling our Group Adj. EBITDA and generating free cash flow in the second half of 2023 is the direct result of a cost base that does not need to grow in line with revenues moving forward.
“With $159 million of total cash on our balance sheet, zero debt financing, and our legacy warrants now removed, our shareholders are well positioned to capture the benefits of profitability and cash flow acceleration.”
Looking forward to 2023, Genius said it projects revenues will stand at $391 million, a 14% increase, with an adjusted EBITDA of approximately $41 million.
