Genius Sports Reports Strong Fourth Quarter Results and 75% Annual Revenue Growth in 2021
Genius Sports reported Q4 2021 revenue of $84.0 million, up 78.7% year-over-year, and full-year revenue of $262.7 million, a 75.5% increase. Key segments showed strong growth: Betting Technology grew 52.9%, Media Technology surged 127.5%, and Sports Technology tripled 206.1%. However, Group Adjusted EBITDA fell to ($12.5 million) due to higher investments. The company anticipates revenues of $340 million and EBITDA of $15 million for 2022 and aims for $430-$440 million in 2023.
- Q4 2021 revenue increased 78.7% year-over-year to $84.0 million.
- FY 2021 revenue rose 75.5% to $262.7 million.
- Betting Technology revenue grew by 52.9% year-over-year.
- Media Technology revenue doubled, increasing by 127.5% year-over-year.
- Sports Technology revenue tripled, growing 206.1% year-over-year.
- Strong revenue growth across all product lines.
- Group Adjusted EBITDA decreased to ($12.5 million), down significantly.
- Net loss increased to $592.8 million for FY 2021.
-
Delivered Group Revenue of
in Q4 2021, increasing$84.0m 79% year-over-year -
FY 2021 Group Revenue increased
75% year-over-year to$262.7m
“2021 was a transformational year that saw Genius form innovative new relationships with leagues, sportsbooks and brands alike, which allowed us to deliver record group revenue in the fourth quarter,” said
$ in thousands |
Q421 |
Q420 |
% |
FY21 |
FY20 |
% |
Group Revenue |
84,012 |
47,017 |
|
262,735 |
149,739 |
|
Betting Technology, Content & Services |
53,929 |
35,265 |
|
177,201 |
110,618 |
|
Media Technology, Content & Services |
17,051 |
7,494 |
|
48,312 |
23,055 |
|
Sports Technology & Services |
13,032 |
4,258 |
|
37,222 |
16,066 |
|
Group Adjusted EBITDA |
(12,507) |
4,034 |
nm |
1,550 |
17,510 |
( |
Group Adjusted EBITDA Margin |
nm |
|
nm |
|
|
( |
nm = not meaningful
Q4 2021 Financial Highlights
-
Group Revenue: Group revenue increased
78.7% year-over-year to . On a constant currency basis, revenue increased$84.0 million , or$35.7million 74.1% year-over-year.-
Betting Technology, Content & Services: Revenue increased
52.9% year-over-year to , driven by growth in customer utilization of Genius’ event content and new customer acquisitions. Growth was also supported by price increases powered by Genius’ official data rights strategy, expansion of value-add services, and new service offerings$53.9 million -
Media Technology, Content & Services: Revenue more than doubled year-over-year to
, driven by the acquisition of new customers in the$17.1 million Americas andEurope , primarily for programmatic advertising services, and the inclusion of revenues from recent acquisitions -
Sports Technology & Services: Revenue more than tripled year-over-year to
, driven by the inclusion of revenues derived from recent acquisitions, Sportzcast and Second Spectrum$13.0 million
-
Betting Technology, Content & Services: Revenue increased
-
Group Adjusted EBITDA: Group adjusted (non-GAAP) EBITDA decreased to
( , driven by accelerated investment in the business$12.5) million
Full Year 2021 Financial Highlights
-
Group Revenue: Group revenue increased
75.5% year-over-year to , with strong growth across all product lines. On a constant currency basis, revenue increased$262.7 million , or$102.5 million 64.0% year-over-year-
Betting Technology, Content & Services: Revenue increased
60.2% year-over-year to , primarily driven by growth in business with existing customers resulting from Genius’ official data rights strategy, expansion of value-add services, and new service offerings. Growth was also supported by new customer acquisitions and increased utilization of Genius’ available event content$177.2 million -
Media Technology, Content & Services: Revenue increased
109.6% year-over-year to , driven by the acquisition of new customers in the$48.3 million Americas andEurope , primarily for programmatic advertising services, and the inclusion of revenues from recent acquisitions -
Sports Technology & Services: Revenue increased
131.7% year-over-year to , driven by the inclusion of revenues derived from recent acquisitions, Sportzcast and Second Spectrum, and supported by expanded services provided to existing sports league and federation customers across all tiers of sport$37.2 million
-
Betting Technology, Content & Services: Revenue increased
-
Group Adjusted EBITDA: Group adjusted (non-GAAP) EBITDA decreased to
, driven by accelerated investment in Q3 and Q4 to fund growth initiatives, particularly in the high-growth US business$1.6 million
Q4 2021 Business Highlights
-
Agreed to transformative sports data and global technology partnership with the
Canadian Football League (“CFL”) to grow fan engagement and extend media reach -
Launched new ‘RomoVision’ technology for
CBS broadcasts of the NFL and supported Nickelodeon’s broadcast of the NFL playoffs using Second Spectrum’s player tracking and video augmentation capabilities - After the reporting period, Genius announced expansion of partnerships with bet365 and Betway to include official data, streaming and fan engagement solutions
- After the reporting period, Genius hosted its first virtual Investor Day, including a deep dive on the business and expectations for Group Adjusted EBITDA profitability in 2022 and 2023
Financial Outlook
As part of the Company’s Investor Day, held on
Financial Statements & Reconciliation Tables
|
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(Unaudited) |
|||||||
(Amounts in thousands, except share and per share data) |
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
|
|
|
|
|
|
Cost of revenue |
109,422 |
|
34,409 |
|
476,168 |
|
114,066 |
Gross (loss) profit |
(25,410) |
|
12,608 |
|
(213,433) |
|
35,673 |
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
10,349 |
|
3,536 |
|
27,292 |
|
13,176 |
Research and development |
6,585 |
|
4,596 |
|
26,513 |
|
11,240 |
General and administrative |
30,726 |
|
10,922 |
|
293,168 |
|
31,623 |
Transaction expenses |
3,240 |
|
619 |
|
12,886 |
|
672 |
Total operating expense |
50,900 |
|
19,673 |
|
359,859 |
|
56,711 |
Loss from operations |
(76,310) |
|
(7,065) |
|
(573,292) |
|
(21,038) |
Interest expense, net |
(146) |
|
(2,075) |
|
(3,331) |
|
(7,874) |
Loss on disposal of assets |
(45) |
|
(8) |
|
(46) |
|
(8) |
Gain (loss) on fair value remeasurement of contingent consideration |
(19,405) |
|
271 |
|
(19,405) |
|
271 |
Change in fair value of derivative warrant liabilities |
37,907 |
|
- |
|
(11,412) |
|
- |
Gain (loss) on foreign currency |
(6,613) |
|
356 |
|
3,032 |
|
114 |
Total other income (expenses) |
11,698 |
|
(1,456) |
|
(31,162) |
|
(7,497) |
Loss before income taxes |
(64,612) |
|
(8,521) |
|
(604,454) |
|
(28,535) |
Income tax benefit (expense) |
11,322 |
|
(4,984) |
|
11,701 |
|
(1,813) |
Net loss |
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
192,129,058 |
|
70,040,242 |
|
150,912,333 |
|
70,040,242 |
|
|||
Condensed Consolidated Balance Sheets (Unaudited) |
|||
(Amounts in thousands, except share and per share data) |
|||
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
|
|
|
Accounts receivable, net |
48,819 |
|
24,776 |
Contract assets |
21,753 |
|
10,088 |
Prepaid expenses |
24,436 |
|
4,107 |
Other current assets |
7,297 |
|
10,584 |
Total current assets |
324,683 |
|
61,336 |
Property and equipment, net |
14,445 |
|
5,002 |
Intangible assets, net |
191,219 |
|
114,542 |
|
346,418 |
|
200,624 |
Deferred tax asset |
|
5 |
|
Other assets |
10,319 |
|
9,496 |
Total assets |
|
|
|
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY (DEFICIT) |
|||
Current liabilities: |
|
|
|
Accounts payable |
|
|
|
Accrued expenses |
55,889 |
|
35,220 |
Deferred revenue |
29,871 |
|
26,036 |
Current debt |
23 |
|
10,272 |
Derivative warrant liabilities |
16,794 |
|
- |
Other current liabilities |
30,354 |
|
3,714 |
Total current liabilities |
152,812 |
|
85,348 |
Long-term debt – less current portion |
65 |
|
82,723 |
Deferred tax liability |
16,902 |
|
8,097 |
Other liabilities |
11,127 |
|
3,589 |
Total liabilities |
180,906 |
|
179,757 |
Temporary equity: |
|
|
|
Preference shares, |
- |
|
350,675 |
Total temporary equity |
- |
|
350,675 |
Shareholders' equity (deficit) |
|
|
|
Common stock, |
1,936 |
|
24 |
B Shares, |
2 |
|
- |
Additional paid-in capital |
1,461,730 |
|
2,393 |
Accumulated deficit |
(757,317) |
|
(153,237) |
Accumulated other comprehensive income (loss) |
(173) |
|
11,393 |
Total shareholders' equity (deficit) |
706,178 |
|
(139,427) |
Total liabilities, temporary equity and shareholders' equity (deficit) |
|
|
|
|
|||
Condensed Consolidated Statements of Cash Flows |
|||
(Unaudited) |
|||
(Amounts in thousands) |
|||
|
Year Ended |
|
Year Ended |
|
|
|
|
|
2021 |
|
2020 |
Cash Flows from operating activities: |
|
|
|
Net loss |
|
|
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
Depreciation and amortization |
59,351 |
|
35,043 |
Loss on disposal of assets |
46 |
|
8 |
(Gain) loss on fair value remeasurement of contingent consideration |
19,405 |
|
(271) |
Stock-based compensation |
489,474 |
|
- |
Change in fair value of derivative warrant liabilities |
11,412 |
|
- |
Non-cash interest expense (income), net |
2,444 |
|
6,835 |
Amortization of contract cost |
808 |
|
538 |
Deferred income taxes |
(13,409) |
|
1,304 |
Loss on foreign currency remeasurement |
192 |
|
464 |
Changes in assets and liabilities |
|
|
|
Effect of business combinations |
(22,411) |
|
- |
Accounts receivable, net |
(24,306) |
|
(5,046) |
Contract asset |
(11,906) |
|
(4,030) |
Prepaid expenses |
(20,563) |
|
(749) |
Other current assets |
3,350 |
|
(6,682) |
Other assets |
(1,702) |
|
2,321 |
Accounts payable |
9,577 |
|
(3,384) |
Accrued expenses |
20,858 |
|
11,930 |
Deferred revenue |
4,050 |
|
9,021 |
Other current liabilities |
2,218 |
|
520 |
Other liabilities |
557 |
|
(401) |
Net cash provided by (used in) operating activities |
(63,308) |
|
17,073 |
Cash flows from investing activities: |
|
|
|
Purchases of property and equipment |
(6,417) |
|
(1,464) |
Capitalization of internally developed software costs |
(26,920) |
|
(15,920) |
Repayment of executive loan notes |
4,738 |
|
- |
Purchases of intangible assets |
(25) |
|
(1,389) |
Acquisition of business, net of cash acquired |
(103,871) |
|
(3,934) |
Proceeds from disposal of assets |
176 |
|
51 |
Net cash used in investing activities |
(132,319) |
|
(22,656) |
Cash flows from financing activities: |
|
|
|
Proceeds from merger with dMY |
276,341 |
|
- |
dMY |
(24,828) |
|
- |
Capitalization of Genius equity issuance costs |
(20,217) |
|
- |
PIPE financing, net of equity issuance costs |
316,800 |
|
- |
Issuance of common stock in connection with additional equity offering, net of equity issuance costs |
254,774 |
|
- |
Issuance of B shares |
2 |
|
- |
Preference shares payout and Incentive Securities Catch-Up Payment |
(313,162) |
|
- |
Repayment of loans and mortgage |
(96,959) |
|
(21) |
Proceeds from borrowings |
- |
|
10,024 |
Proceeds from exercise of Public Warrants |
17,613 |
|
- |
Proceeds from shareholder deposits |
- |
|
93 |
Net cash provided by financing activities |
410,364 |
|
10,096 |
Effect of exchange rate changes on cash |
(4,140) |
|
(960) |
Net increase (decrease) in cash |
210,597 |
|
3,553 |
Cash, beginning of period |
11,781 |
|
8,228 |
Cash, end of period |
|
|
|
|
|||||||||
Reconciliation of |
|||||||||
(Unaudited) |
|||||||||
(Amounts in thousands) |
|||||||||
|
Three Months Ended |
|
Year Ended
|
|
|||||
|
2021 |
2020 |
|
2021 |
2020 |
||||
Consolidated net loss |
|
|
|
|
|
|
|||
Adjusted for: |
|
|
|
|
|
|
|||
Net, interest expense |
146 |
2,075 |
|
3,331 |
7,874 |
|
|||
Income tax expense (benefit) |
(11,322) |
4,984 |
|
(11,701) |
1,813 |
|
|||
Amortization of acquired intangibles(1) |
11,351 |
5,626 |
|
37,617 |
21,571 |
|
|||
Other depreciation and amortization(2) |
6,281 |
4,105 |
|
22,542 |
14,010 |
|
|||
Stock-based compensation(3) |
37,531 |
- |
|
489,474 |
- |
|
|||
Transaction expenses |
3,240 |
618 |
|
12,886 |
672 |
|
|||
Litigation and related costs(4) |
867 |
750 |
|
4,395 |
2,295 |
|
|||
Change in fair value of derivative warrant liabilities |
(37,907) |
- |
|
11,412 |
- |
|
|||
(Gain) loss on fair value remeasurement of contingent consideration |
19,405 |
(271) |
|
19,405 |
(271) |
|
|||
Other(5) |
11,191 |
(348) |
|
4,942 |
(106) |
|
|||
Adjusted EBITDA |
|
|
|
|
|
|
- Includes amortization of intangible assets generated through business acquisitions, inclusive of amortization for data rights, marketing products, and acquired technology.
- Includes depreciation of Genius’ property and equipment, amortization of contract cost, and amortization of internally developed software and other intangible assets. Excludes amortization of intangible assets generated through business acquisitions.
- Includes restricted shares and stock options granted to employees and directors and equity-classified non-employee awards issued to suppliers.
- Includes mainly legal and related costs in connection with non-routine litigation matters including Sportradar litigation and BetConstruct litigation.
-
Includes gain/losses on disposal of assets, gain/losses on foreign currency and expenses incurred related to earn-out payments on historical acquisitions. For the year ended
December 31, 2021 , an allowance for doubtful accounts of is included for Russian sportsbook customers as a result of events in$0.7 million Ukraine .
Webcast and Conference Call Details
The conference call may be accessed by dialing (760) 294-1674.
A live audio webcast may be accessed on the Company’s investor relations website at investors.geniussports.com along with Genius’ earnings press release and related materials. A replay of the webcast will be available on the website within 24 hours after the call.
About
We are the trusted partner to over 400 sports organizations globally, including many of the world’s largest leagues and federations such as the NFL, EPL,
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures not presented in accordance with
Adjusted EBITDA
We present Group adjusted EBITDA, a non-GAAP performance measure, to supplement our results presented in accordance with
Group adjusted EBITDA is used by management to evaluate our core operating performance on a comparable basis and to make strategic decisions. We believe Group adjusted EBITDA is useful to investors for the same reasons as well as in evaluating our operating performance against competitors, which commonly disclose similar performance measures. However, our calculation of Group adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Group adjusted EBITDA is not intended to be a substitute for any
We do not provide a reconciliation of Group adjusted EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections.
Constant Currency
Certain income statement items in this press release are discussed on a constant currency basis. Our results between periods may not be comparable due to foreign currency translation effects. We present certain income statement items on a constant currency basis, as if GBP:USD exchange rate had remained constant period-over-period, to enhance the comparability of our results. We calculate income statement constant currency amounts by taking the relevant average GBP:USD exchange rate used in the preparation of our income statement for the more recent comparative period and apply it to the actual GBP amount used in the preparation of our income statement for the prior comparative period.
Constant currency amounts only adjust for the impact related to the translation of our consolidated financial statements from GBP to USD. Constant currency amounts do not adjust for any other translation effects, such as the translation of results of subsidiaries whose functional currency is other than GBP or USD, as such effects have not been material to date.
Forward-Looking Statements
This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: the effect of COVID-19 on our business, risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; risks related to our ability to achieve the anticipated benefits from the business combination with dMY
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements contained herein, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220311005189/en/
Contact
Media
+1 (202) 766-4430
chris.dougan@geniussports.com
Investors
+1 (954)-554-7932
brandon.bukstel@geniussports.com
Source:
FAQ
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