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Genius Sports Reports Strong Fourth Quarter and Full Year 2020 Results

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Genius Sports Limited (NYSE:GENI) (“Genius” or “GSL” or the “Group”), the official data, technology and commercial partner that powers the global ecosystem connecting sports, betting and media, today announced financial results for its fiscal 2020 fourth quarter and full year ended December 31, 2020.

“2020 was a landmark year for Genius, with outstanding performance amidst the challenges presented by the global pandemic,” said Mark Locke, GSL Co-Founder and CEO. “We have entered 2021 with great momentum, bolstered by our recently-completed merger with dMY II and NYSE listing, as well as our exclusive partnership with the NFL. I am more confident than ever about the opportunities ahead as we continue to leverage our unique technology and scale to grow alongside the rapidly expanding global sports, betting and media ecosystem.”

$ in thousands

4Q20

4Q19

%

FY20

FY19

%

Group Revenue

47,017

 

36,847

 

27.6%

 

149,739

 

114,620

 

30.6%

Betting Technology, Content & Services

35,265

 

28,580

 

23.4%

 

110,618

 

88,370

 

25.2%

Sports Technology & Services

4,258

 

4,333

 

(1.7%)

 

16,066

 

14,367

 

11.8%

Media Technology, Content & Services

7,494

 

3,934

 

90.5%

 

23,055

 

11,883

 

94.0%

Group Adj. EBITDA

4,034

 

(1,214)

 

nm

 

17,510

 

(6,208)

 

nm

Group Adj. EBITDA Margin

8.6%

 

nm

 

nm

 

11.7%

 

nm

 

nm

nm = not meaningful

4Q 2020 Financial Highlights

  • Group Revenue: Group revenue increased 27.6% year-over-year to $47.0 million. On a constant currency basis, revenue increased $9.3 million, or 24.8% year-over-year.
    • Betting Technology, Content & Services: Revenue increased 23.4% year-over-year to $35.3 million, 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.
    • Sports Technology & Services: Revenue declined by (1.7%) year-over-year to $4.3 million.
    • Media Technology, Content & Services: Revenue increased 90.5% year-over-year to $7.5 million, driven by the acquisition of new customers in the Americas and Europe, primarily for programmatic advertising services.
  • Group Adj. EBITDA: Group adjusted (non-GAAP) EBITDA increased to $4.0 million from ($1.2) million.
    • Group adjusted EBITDA margin was 8.6% in the quarter.

Full Year 2020 Financial Highlights

  • Group Revenue: Group revenue increased 30.6% year-over-year to $149.7 million, with strong growth across all product lines. On a constant currency basis, revenue increased $34.5 million, or 30% year-over-year.
    • Betting Technology, Content & Services: Revenue increased 25.2% year-over-year to $110.6 million, 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.
    • Sports Technology & Services: Revenue increased 11.8% year-over-year to $16.1 million, driven by expanded services provided to existing sports league and federation customers across all tiers of sport.
    • Media Technology, Content & Services: Revenue increased 94.0% year-over-year to $23.1 million, driven by the acquisition of new customers in the Americas and Europe primarily for programmatic advertising services.
  • Group Adj. EBITDA: Group adjusted (non-GAAP) EBITDA increased to $17.5 million from ($6.2) million, driven by strict cost controls and reduced sales and marketing expenses in the wake of the COVID-19 pandemic, offsetting increased data rights costs.
    • Group adjusted EBITDA margin was 11.7% for the year.

Business Highlights

  • After the reporting period, announced a six-year strategic partnership with the National Football League (NFL), through which GSL will be the NFL’s exclusive distributor of real-time official play-by-play statistics, proprietary Next Gen Stats (NGS) data, and the NFL’s official sports betting data feed to media companies and sports betting operators globally.
  • Acquired Sportzcast Inc., a leading U.S. manufacturer of sports scoreboard data distribution systems, deepening GSL’s reach with sports leagues and federations to drive growth across data, streaming and media.
  • Genius is now permitted to supply in thirteen U.S. states after launching operations in Michigan and Virginia in January 2021. Genius also has permission to supply in three tribal jurisdictions in the United States.
  • Extended official data partnership with the National Basketball Association (NBA), granting GSL non-exclusive rights to distribute NBA and WNBA betting data to licensed sports betting operators in the U.S.
  • Entered into a two-year marketing partnership with FanDuel to deliver data-driven, targeted advertisements in U.S. states where the company operates.
  • Announced exclusive sports betting data and betting streaming partnership with Major League Rugby to help grow the league’s presence in sportsbooks around the globe.

Financial Outlook

GSL anticipates revising its full-year 2021 projections in its first quarter earnings, to be reported in the weeks ahead.

Financial Statements & Reconciliation Tables

The following table summarizes Genius’ consolidated results of operations for the periods indicated.

 

Maven Topco Limited
Condensed Consolidated Statements of Operation
(In thousands)

 

 

Year Ended December 31,

 

Three Months Ended December 31,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

(Unaudited)

 

(Unaudited)

Revenue

$

149,739

 

$

114,620

 

$

47,017

 

$

36,847

Cost of revenue

 

114,066

 

 

89,311

 

 

37,024

 

 

28,988

Gross profit

 

35,673

 

 

25,309

 

 

9,993

 

 

7,859

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

13,176

 

 

17,711

 

 

3,152

 

 

7,055

Research and development

 

11,240

 

 

13,290

 

 

3,006

 

 

1,724

General and administrative

 

31,623

 

 

29,492

 

 

10,281

 

 

8,968

Transaction expenses

 

672

 

 

1,005

 

 

619

 

 

499

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