Genius Sports Clocks 22% Growth In Q2 Revenues, Stocks Gain On Raised Annual Outlook

Genius Sports Limited GENI reported second-quarter FY23 sales growth of 22.1% year-on-year to $86.85 million, beating the consensus of $80.15 million.

Q2 EPS loss of ($0.05) missed the street view of ($0.04) loss.

Strength in Betting Technology revenues bolstered quarterly revenue performance. 

Segment Revenue: Betting Technology, Content & Services increased by 26.8%, Media Technology, Content & Services rose by 22.4%, and Sports Technology & Services gained 3%.

Loss from operations narrowed to $(7.8) million from $(39.7) million net loss a year ago, driven by improved underlying performance. 

Group Adjusted (non-GAAP) EBITDA was $15.7 million in the quarter, up 87% year over year.

As of quarter end, the company held $89.8 million in cash and equivalents.

Mark Locke, Genius Sports Co-Founder and CEO, said, "We enter the second half of 2023 having reached a significant inflection point in our business," said Mark Locke, Genius Sports Co-Founder and CEO.

Outlook: Genius Sports raised its outlook for FY23. The company expects revenue of $410 million, against the previous expectation of $400 million (consensus $401.95 million). It sees Adjusted EBITDA of $52 million, higher than the previous estimate of $49 million.

Genius expects to expand adjusted EBITDA Margins from 5% in 2022 to 13% in 2023.

GENI sees Q3 revenue of $100 million (consensus $99.42 million) and Q4 revenue of $126 million.

Price Action: GENI shares are trading higher by 6.08% at $7.85 on the last check Monday.