Genius Sports Posted Q2 Growth, Raised Full-Year Projections
Genius Sports, the supplier of official sports data and data-driven content for sports betting operators, released its second quarter financial performance results today, posting significant revenue growth year-over-year.
Genius Group Revenue Increases
Genius Sports revealed group revenue in the quarter more than doubled compared to Q2 2020, reaching $55.8 million. This was mainly driven by the increase in the group’s core business, Betting Technology, Content & Services, which accounted for $40.7 million of the total, up 122% year-over-year. The vertical grew supported by the return of sports calendars, an increase of the group’s market share, the larger contribution from additional services for sportsbooks, as well as new customer wins.
Sports Technology & Services registered $2 million in revenue in the quarter, up 105% compared to the respective quarter in the prior year, mainly due to the acquisitions of Sportzcast in December 2020 and Second Spectrum in June 2021.
Increased advertising spend in both Europe and the US, as well as new key customer wins, supported Genius Sports’ Media Technology, Content & Services vertical, which posted a 62% year-over-year increase of $8 million.
Measured on a constant currency basis, group revenue posted an increase of 84% compared to the second quarter of 2020, or $25.6 million. Group adjusted EBITDA came in at $5.2 million, up 73% on $3 million posted in Q2 2020, while adjusted EBITDA margin was 9%.
We’re enormously proud of our continued execution in the second quarter and our ability to implement our end-to-end solutions on behalf of our industry partners.”
Mark Locke, Co-Founder and CEO, Genius Sports
During the second quarter, Genius Sports agreed to some key partnership deals with sports leagues, including with the Argentine Football Association (AFA), The Colombian Soccer Major Division (DIMAYOR) and Professional Pickleball Association (PPA).
Also in the quarter, Genius Sports raised $435 million in an upsized public offering and closed two previously announced transactions, the acquisition deals of FanHub and Second Spectrum.
Genius Sports was also named “Acquisition & Retention Partner of the Year” at the 2021 EGR North America Awards as recognition of the company’s efforts to excel as a marketing partner to sportsbook and online casino operators.
Future Outlook
After the quarter close, there were a number of significant developments in the US for the official sports data and content supplier, like strategic partnerships with DraftKings, Caesars, WynnBET and 888 SI Sportsbook, as well as a permanent sports wagering license granted by the West Virginia Lottery Commission and an Online Sports Wagering Vendor Permit granted by the Wyoming Gaming Commission. Genius Sports also announced the acquisition of creative performance platform Spirable to enhance its marketing capabilities.
In Canada, Genius Sports entered into a strategic partnership with MEDIAPRO Canada, to boost soccer fan engagement and strengthen MEDIAPRO’s existing relationships with the sport. Genius also secured an agreement with the British Columbia Lottery Corporation (BCLC) to support its sports betting operations, while the country legalized single-event wagering.
Based on the projected effect of the post-quarter developments, Genius Sports raised its full-year 2021 revenue expectations to the $255-$260 million bracket from a previous $250-$255 million, expecting adjusted EBITDA of $10 -$20 million.
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