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Genius Sports Reports Strong Fourth Quarter Results and 75% Annual Revenue Growth in 2021 – Genius Sports News & Updates

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  • Delivered Group Income of $84.0m in This autumn 2021, rising 79% year-over-year
  • FY 2021 Group Income elevated 75% year-over-year to $262.7m

Genius Sports activities Restricted (NYSE: GENI) (“Genius” or “GSL” or the “Group”), the official information, know-how and business accomplice that powers the worldwide ecosystem connecting sports activities, betting and media, at present introduced monetary outcomes for its fiscal 2021 fourth quarter and full yr ended December 31, 2021.

“2021 was a transformational yr that noticed Genius type modern new relationships with leagues, sportsbooks and types alike, which allowed us to ship report group income within the fourth quarter,” mentioned Mark Locke, GSL Co-Founder and CEO. “We’re assured that 2022 might be one other sturdy and worthwhile yr as we capitalize on the expansion alternatives forward and proceed to develop our companies all over the world.”

$ in hundreds

Q421 Q420 % FY21 FY20 %

Group Income

84,012 47,017 78.7% 262,735 149,739 75.5%

     Betting Know-how, Content material & Providers

53,929 35,265 52.9% 177,201 110,618 60.2%
     Media Know-how, Content material & Providers 17,051 7,494 127.5% 48,312 23,055 109.6%

     Sports activities Know-how & Providers

13,032 4,258 206.1% 37,222 16,066 131.7%

Group Adjusted EBITDA

(12,507) 4,034 nm 1,550 17,510 (91.1%)

Group Adjusted EBITDA Margin

nm 8.6% nm 0.6% 11.7% (11.1%)

 nm = not significant

This autumn 2021 Monetary Highlights

  • Group Income: Group income elevated 78.7% year-over-year to $84.0 million. On a continuing foreign money foundation, income elevated $7 million, or 74.1% year-over-year.
    • Betting Know-how, Content material & Providers: Income elevated 52.9% year-over-year to $53.9 million, pushed by progress in buyer utilization of Genius’ occasion content material and new buyer acquisitions. Progress was additionally supported by value will increase powered by Genius’ official information rights technique, growth of value-add companies, and new service choices
    • Media Know-how, Content material & Providers: Income greater than doubled year-over-year to $17.1 million, pushed by the acquisition of latest prospects within the Americas and Europe, primarily for programmatic promoting companies, and the inclusion of revenues from latest acquisitions
    • Sports activities Know-how & Providers: Income greater than tripled year-over-year to $13.0 million, pushed by the inclusion of revenues derived from latest acquisitions, Sportzcast and Second Spectrum
  • Group Adjusted EBITDA: Group adjusted (non-GAAP) EBITDA decreased to ($12.5) million, pushed by accelerated funding within the enterprise

Full Yr 2021 Monetary Highlights

  • Group Income: Group income elevated 75.5% year-over-year to $262.7 million, with sturdy progress throughout all product traces. On a continuing foreign money foundation, income elevated $102.5 million, or 64.0% year-over-year
    • Betting Know-how, Content material & Providers: Income elevated 60.2% year-over-year to $177.2 million, primarily pushed by progress in enterprise with current prospects ensuing from Genius’ official information rights technique, growth of value-add companies, and new service choices. Progress was additionally supported by new buyer acquisitions and elevated utilization of Genius’ obtainable occasion content material
    • Media Know-how, Content material & Providers: Income elevated 109.6% year-over-year to $48.3 million, pushed by the acquisition of latest prospects within the Americas and Europe, primarily for programmatic promoting companies, and the inclusion of revenues from latest acquisitions
    • Sports activities Know-how & Providers: Income elevated 131.7% year-over-year to $37.2 million, pushed by the inclusion of revenues derived from latest acquisitions, Sportzcast and Second Spectrum, and supported by expanded companies offered to current sports activities league and federation prospects throughout all tiers of sport
  • Group Adjusted EBITDA: Group adjusted (non-GAAP) EBITDA decreased to $1.6 million, pushed by accelerated funding in Q3 and This autumn to fund progress initiatives, significantly within the high-growth US enterprise

This autumn 2021 Enterprise Highlights

  • Agreed to transformative sports activities information and world know-how partnership with the Canadian Soccer League (“CFL”) to develop fan engagement and prolong media attain
  • Launched new ‘RomoVision’ know-how for CBS broadcasts of the NFL and supported Nickelodeon’s broadcast of the NFL playoffs utilizing Second Spectrum’s participant monitoring and video augmentation capabilities
  • After the reporting interval, Genius introduced growth of partnerships with bet365 and Betway to incorporate official information, streaming and fan engagement options
  • After the reporting interval, Genius hosted its first digital Investor Day, together with a deep dive on the enterprise and expectations for Group Adjusted EBITDA profitability in 2022 and 2023

Monetary Outlook

As a part of the Firm’s Investor Day, held on January 27th, Genius introduced its expectation to generate Group Income of roughly $340 million and Group Adjusted EBITDA of roughly $15 million in 2022. In 2023, it expects Group Income within the vary of $430 to $440 million and Group Adjusted EBITDA of $40 to $50 million.

Monetary Statements & Reconciliation Tables

The next desk summarizes Genius’ consolidated outcomes of operations for the intervals indicated.

Genius Sports activities Restricted
Condensed Consolidated Statements of Operations
(Unaudited)
(In hundreds, besides per share information)

Three Months Ended December 31,

  Yr Ended December 31,
2021 2020   2021

2020

Income

$84,012

$47,017

$262,735

$149,739

Price of income

109,422

34,409

476,168

114,066

Gross (loss) revenue

 (25,410)

12,608  (213,433)

35,673

Working bills:

     Gross sales and advertising and marketing

10,349

3,536

27,292

13,176

     Analysis and improvement

6,585

4,596 26,513

11,240

     Normal and administrative

30,726

10,922 293,168

31,623

     Transaction bills

3,240

619 12,886

672

Complete working expense

50,900 19,673 359,859

56,711

Loss from operations

 (76,310)

 (7,065)  (573,292)

 (21,038)

    Curiosity expense, web

 (146)

 (2,075)  (3,331)

 (7,874)

    Loss on disposal of property

 (45)

 (8)  (46)

 (8)

    Achieve (loss) on truthful worth remeasurement of contingent consideration

 (19,405)

271  (19,405)

271

    Change in truthful worth of by-product warrant liabilities

37,907  (11,412)

    Achieve (loss) on overseas foreign money

 (6,613)

356 3,032

114

Complete different revenue (bills)

11,698

 (1,456)

 (31,162)

 (7,497)

Loss earlier than revenue taxes

 (64,612)

 (8,521)

(604,454)

 (28,535)

Earnings tax profit (expense)

11,322

 (4,984)

11,701

 (1,813)

Internet loss

$(53,290)

$(13,505)   $(592,753)

$(30,348)

Internet loss per widespread share:

           

    Fundamental and diluted

$(0.28)

$(0.19)

$(3.93)

$(0.43)

Weighted common widespread shares excellent:

    Fundamental and diluted

 192,129,058

70,040,242

150,912,333

70,040,242

Genius Sports activities Restricted
Condensed Consolidated Steadiness Sheets
(Unaudited)
(Quantities in hundreds, besides share and per share information)

December 31

December 31
2021

2020

ASSETS

     

Present property:

    Money and money equivalents

$222,378

$11,781

    Accounts receivable, web

48,819

24,776

    Contract property

21,753

10,088

    Pay as you go bills

24,436

4,107

    Different present property

7,297

10,584

Complete present property

324,683

61,336

    Property and tools, web

14,445

5,002

    Intangible property, web

191,219

114,542

    Goodwill

346,418

200,624

    Deferred tax asset

5

    Different property

10,319

9,496

Complete property

$887,084

$391,005

LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)

Present liabilities:

    Accounts payable

$19,881

$10,106

    Accrued bills

55,889

35,220

    Deferred income

29,871

26,036

    Present debt

23

10,272

    Spinoff warrant liabilities

16,794

    Different present liabilities

30,354

3,714

Complete present liabilities

152,812

85,348

    Lengthy-term debt – much less present portion

65

82,723

    Deferred tax legal responsibility

16,902

8,097

    Different liabilities

11,127

3,589

Complete liabilities

180,906

179,757

Non permanent fairness:

Choice shares, $0.0001 par worth, none approved, issued and excellent at December 31, 2021; 218,561,319 shares approved, issued and excellent at December 31, 2020

350,675

Complete short-term fairness

–  

350,675

Shareholders’ fairness (deficit)

Widespread inventory, $0.01 par worth, limitless shares approved, 193,585,625 shares issued and excellent at December 31, 2021; 70,040,242 shares approved, issued and excellent at December 31, 2020

1,936

24

B Shares, $0.0001 par worth, 22,500,000 shares approved, 18,500,000 shares issued and excellent at December 31, 2021; none approved, issued and excellent at December 31, 2020

2

    Further paid-in capital

1,461,730

2,393

    Collected deficit

(757,317)

(153,237)

    Collected different complete revenue (loss)

(173)

11,393

Complete shareholders’ fairness (deficit)

706,178

(139,427)

Complete liabilities, short-term fairness and shareholders’ fairness (deficit)

$887,084

$391,00

Genius Sports activities Restricted
Condensed Consolidated Statements of Money Flows
(Unaudited)
(Quantities in hundreds)

 

Yr Ended

  Yr Ended
  December 31,   December 31,
2021  

2020

Money Flows from working actions:

 Internet loss

$(592,753)

$(30,348)

 Changes to reconcile web loss to web money offered by (utilized in) working actions:

 Depreciation and amortization

59,351

35,043

 Loss on disposal of property

46

 8

 (Achieve) loss on truthful worth remeasurement of contingent consideration

19,405

(271)

 Inventory-based compensation

489,474

 Change in truthful worth of by-product warrant liabilities

11,412

 Non-cash curiosity expense (revenue), web

2,444

6,835

 Amortization of contract price

808

538

 Deferred revenue taxes

(13,409)

1,304

 Loss on overseas foreign money remeasurement

192

464

 Adjustments in property and liabilities

 Impact of enterprise mixtures

(22,411)

 Accounts receivable, web

 (24,306)

(5,046)

 Contract asset

(11,906)

(4,030)

 Pay as you go bills

(20,563)

(749)

 Different present property

3,350 (6,682)
 Different property (1,702) 2,321
 Accounts payable 9,577 (3,384)
 Accrued bills 20,858 11,930
 Deferred income 4,050 9,021
 Different present liabilities 2,218 520
 Different liabilities 557 (401)
 Internet money offered by (utilized in) working actions (63,308) 17,073
 Money flows from investing actions:
 Purchases of property and tools (6,417) (1,464)
 Capitalization of internally developed software program prices (26,920) (15,920)
 Reimbursement of govt mortgage notes 4,738
 Purchases of intangible property (25) (1,389)
 Acquisition of enterprise, web of money acquired (104,942) (3,934)
 Proceeds from disposal of property 176 51
 Internet money utilized in investing actions (133,390) (22,656)
 Money flows from financing actions:
 Proceeds from merger with dMY Know-how Group, Inc. II 276,341
 dMY Know-how Group, Inc. II transaction prices (24,828)
 Capitalization of Genius fairness issuance prices (20,217)
 PIPE financing, web of fairness issuance prices 316,800
 Issuance of widespread inventory in reference to further fairness providing, web of fairness issuance prices 254,774
 Issuance of B shares 2
 Choice shares payout and Incentive Securities Catch-Up Fee (313,162)
 Reimbursement of loans and mortgage (96,959) (21)
 Proceeds from borrowings 10,024
 Proceeds from train of Public Warrants 17,613
 Proceeds from shareholder deposits 93
 Internet money offered by financing actions 410,364 10,096
 Impact of change fee modifications on money (3,069) (960)
 Internet improve (lower) in money 210,597 3,553
 Money, starting of interval 11,781 8,228
 Money, finish of interval $222,378 $11,781

Genius Sports activities Restricted
Reconciliation of U.S. GAAP Internet loss to Adjusted EBITDA
(Unaudited)

(Quantities in hundreds)

Three Months Ended December 31,

  Yr Ended
December 31,
2021 2020   2021

2020

Consolidated web loss

$(53,290)

$(13,505)

$(592,753)

$(30,348)

Adjusted for:

Internet, curiosity expense

146

2,075

3,331

7,874

Earnings tax expense (profit)

(11,322)

4,984

(11,701)

1,813

Amortization of acquired intangibles(1)

11,351

5,626

37,617

21,571

Different depreciation and amortization(2)

6,281

4,105

22,542

14,010

Inventory-based compensation(3)

37,531

489,474

Transaction bills

3,240

618

12,886

672

Litigation and associated prices(4)

867

750

4,395

2,295

Change in truthful worth of by-product warrant liabilities

(37,907)

11,412

(Achieve) loss on truthful worth remeasurement of contingent consideration

19,405

(271)

19,405

(271)

Different(5)

11,191

(348)

4,942

(106)

Adjusted EBITDA

$(12,507)

$4,034

 

$1,550

$17,510

  • Contains amortization of intangible property generated by way of enterprise acquisitions, inclusive of amortization for information rights, advertising and marketing merchandise, and bought know-how.
  • Contains depreciation of Genius’ property and tools, amortization of contract price, and amortization of internally developed software program and different intangible property. Excludes amortization of intangible property generated by way of enterprise acquisitions.
  • Contains restricted shares and inventory choices granted to workers and administrators and equity-classified non-employee awards issued to suppliers.
  • Contains primarily authorized and associated prices in reference to non-routine litigation issues together with Sportradar litigation and BetConstruct litigation.
  • Contains achieve/losses on disposal of property, achieve/losses on overseas foreign money and bills incurred associated to earn-out funds on historic acquisitions. For the yr ended December 31, 2021, an allowance for uncertain accounts of $0.7 million is included for Russian sportsbook prospects because of occasions in Ukraine.

Webcast and Convention Name Particulars

Genius Sports activities administration will host a convention name and webcast at present at 8:00AM EST to debate the Firm’s fourth quarter and monetary yr outcomes.

The convention name could also be accessed by dialing (760) 294-1674.

A reside audio webcast could also be accessed on the Firm’s investor relations web site at traders.geniussports.com together with Genius’ earnings press launch and associated supplies. A replay of the webcast might be obtainable on the web site inside 24 hours after the decision.

About Genius Sports activities

Genius Sports activities is the official information, know-how and business accomplice that powers the worldwide ecosystem connecting sports activities, betting and media. We’re a world chief in digital sports activities content material, know-how and integrity companies. Our know-how is utilized in over 150 international locations worldwide, empowering sports activities to seize, handle and distribute their reside information and video, driving their digital transformation and enhancing their relationships with followers.

We’re the trusted accomplice to over 400 sports activities organizations globally, together with lots of the world’s largest leagues and federations such because the NFL, EPL, FIBA, NCAA, NASCAR, AFA and PGA.

Genius Sports activities is uniquely positioned by way of cutting-edge know-how, scale and world attain to help our companions. We’re greater than only a know-how firm, we construct long-term relationships with sports activities in any respect ranges, serving to them to manage and maximize the worth of their content material whereas offering technical experience and round the clock help.

Non-GAAP Monetary Measures

This press launch contains non-GAAP monetary measures not introduced in accordance with U.S. GAAP.

Adjusted EBITDA

We current Group adjusted EBITDA, a non-GAAP efficiency measure, to complement our outcomes introduced in accordance with U.S. GAAP. Group adjusted EBITDA is outlined as earnings earlier than curiosity, revenue tax, depreciation and amortization and different gadgets which are uncommon or not associated to our revenue-generating operations, together with inventory based mostly compensation expense.

Group adjusted EBITDA is utilized by administration to judge our core working efficiency on a comparable foundation and to make strategic choices. We imagine Group adjusted EBITDA is helpful to traders for a similar causes in addition to in evaluating our working efficiency towards opponents, which generally disclose related efficiency measures. Nonetheless, our calculation of Group adjusted EBITDA will not be corresponding to different equally titled efficiency measures of different firms. Group adjusted EBITDA is just not meant to be an alternative choice to any U.S. GAAP monetary measure.

We don’t present a reconciliation of Group adjusted EBITDA to consolidated web revenue/(loss) on a forward-looking foundation as a result of we’re unable to forecast sure gadgets required to develop significant comparable GAAP monetary measures with out unreasonable efforts. This stuff are tough to foretell and estimate and are primarily depending on future occasions. The affect of these things might be vital to our projections.

Fixed Forex

Sure revenue assertion gadgets on this press launch are mentioned on a continuing foreign money foundation. Our outcomes between intervals will not be comparable as a consequence of overseas foreign money translation results. We current sure revenue assertion gadgets on a continuing foreign money foundation, as if GBP:USD change fee had remained fixed period-over-period, to reinforce the comparability of our outcomes. We calculate revenue assertion fixed foreign money quantities by taking the related common GBP:USD change fee used within the preparation of our revenue assertion for the newer comparative interval and apply it to the precise GBP quantity used within the preparation of our revenue assertion for the prior comparative interval.

Fixed foreign money quantities solely modify for the affect associated to the interpretation of our consolidated monetary statements from GBP to USD. Fixed foreign money quantities don’t modify for some other translation results, resembling the interpretation of outcomes of subsidiaries whose useful foreign money is aside from GBP or USD, as such results haven’t been materials thus far.

Ahead-Trying Statements

This press launch incorporates forward-looking statements as outlined in Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended, that contain vital dangers and uncertainties. All statements aside from statements of historic info are forward-looking statements. These forward-looking statements embrace details about our attainable or assumed future outcomes of operations or our efficiency. Phrases resembling “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such phrases and related expressions are meant to establish such ahead wanting statements. Though we imagine that the forward-looking statements contained on this press launch are based mostly on cheap assumptions, you need to be conscious that many elements may have an effect on our precise monetary outcomes or outcomes of operations and will trigger precise outcomes to vary materially from these in such forward-looking statements, together with however not restricted to: the impact of COVID-19 on our enterprise, dangers associated to our reliance on relationships with sports activities organizations and the potential lack of such relationships or failure to resume or develop current relationships; fraud, corruption or negligence associated to sports activities occasions, or by our workers or contracted statisticians; dangers associated to modifications in home and overseas legal guidelines and rules or their interpretation; compliance with relevant information safety and privateness legal guidelines; pending litigation and investigations; the failure to guard or implement our proprietary and mental property rights; claims for mental property infringement; our reliance on info know-how; dangers associated to our potential to attain the anticipated advantages from the enterprise mixture with dMY Know-how Group, Inc. II; and different elements included underneath the heading “Danger Components” in our Annual Report on Type 20-F filed with the SEC on April 30, 2021.

Readers are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date of this press launch. We undertake no obligation to publicly replace or revise any forward-looking statements contained herein, to mirror any change in our expectations with respect to such statements or any change in occasions, circumstances or circumstances upon which any assertion is predicated.

Contact

Media

Chris Dougan, Chief Communications Officer
+1 (202) 766-4430
[email protected]

Traders

Brandon Bukstel, Investor Relations Supervisor
+1 (954)-554-7932
[email protected]

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