Genius Sports Scores Revenue Growth But Fumbles on Profit, Stock Takes A Hit

Genius Sports Limited GENI shares are trading lower after the company reported fourth FY23 results.

Sales grew 20.7% Y/Y to $127.2 million, beating the consensus of $126.1 million.

Segment Revenue: Betting Technology, Content & Services increased by 32.3%, Media Technology, Content & Services rose by 11.3%, while Sports Technology & Services declined by 15.8% Y/Y.

Group Adjusted EBITDA was $12.0 million in the quarter, up 349.4% Y/Y. Adjusted EPS loss of $(0.12) missed the street view of $(0.07).

As of year-end, the company held $100.3 million in cash and equivalents.

Outlook: Genius Sports expects first quarter FY24 revenue of $117 million (consensus $110.29 million) and adjusted EBITDA of $6 million.

The company forecasts revenue of $94 million, $113 million, and $156 million for the second, third, and fourth quarters of 2024, respectively.

The company expects FY24 revenue of about $480 million (vs. street view of $474.42 million) and adjusted EBITDA of around $75 million, representing growth of 16% and 41% Y/Y, respectively, and nearly 300bps of margin expansion.

The company projects to generate positive cash flow for the entirety of 2024.

Mark Locke, Genius Sports Co-Founder and CEO, said, “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.”

Price Action: GENI shares are down 4.04% at $6.77 on the last check Monday.