Genius Sports, the international sports data technology company, has announced an increase in revenue of more than 20% for the fourth quarter and full year of 2023, allowing it to significantly reduce its net loss.
The company saw its full-year 2023 revenues rise 21% from $341 million to $413 million year-on-year (YoY), while its fourth-quarter income also increased 21% to $127.2 million from last year’s $105.3 million. Both figures exceeded initial guidance.
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The increases have allowed the firm to chip away at its net losses by 53% across the full year from $181.6 million to $85.5 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $53.3 million, up 238% from $15.7 million in 2022, and by 349% in the fourth quarter to almost $12 million from $2.6 million in the prior year.
Mark Locke, Genius Sports co-founder and chief executive, 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 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.”
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By GlobalDataA full-year segment breakdown saw the group’s Betting Technology, Content, and Services (BTCS) division return the largest revenue of $274.2 million, a 31% increase on last year ($209.2 million), while its Media, Technology, Content, and Services (MTCS) arm recorded an 11% uplift to $91.6 million.
However, revenue for the Sports Technology and Services (STS) unit decreased by 4% YoY to $47.1 million, down from $49.1 million last year.
In Q4, Genius’ BTCS division recorded the highest growth with a 32.3% increase from $65.5 million to $86.7 million, driven by “new customer acquisitions, growth in business with existing customers as a result of price increases on contract renewals and renegotiations, expansion of value-add services, and increased customer utilization of Genius Sports’ available event content.”
Quarterly revenue for the company’s MTCS business, meanwhile, rose 11.3% from $25.6 million to $28.5 million which it said was driven by growth in the Americas region, primarily for advertising services.
Income from the STS arm was down 16% from $14.2 million to $11.9 million which was attributed to “a decrease in revenue where Genius Sports receives non-cash consideration in the form of official sports data and streaming rights.”
Net loss for the quarter narrowed from $127.7 million in 2022 to $38.5 million in 2023.
In Q4, Genius expanded its partnership with US sports betting firm FanDuel to launch the NFL BetVision streaming solution.
In the quarter, Genius also announced a strategic 10-year partnership with basketball’s international governing body FIBA to deliver AI-powered technology for leagues and national federations through 2035, as well as launching FanHub ID, a product that aims to give advertisers and content owners new opportunities to measure and reach new audiences for marketing.
For 2024, Genius expects to generate revenue of approximately $480 million with an adjusted EBITDA of around $75 million.
