Genius Sports announced its report for the fourth quarter of 2023, along with the yearly result. All the figures are as of the closing of December 31, 2023, highlighting an above-expectation performance for the eighth consecutive quarter.
To start with the quarterly performance, Genius Sports reported an increase of 20.7% in its Group revenue. Betting Technology, Content & Services was the biggest gainer, bagging a gross revenue of $86,706k. This is a jump of 32.3% in comparison to the same quarter of the previous year, reflecting $65,543k. Media Technology, Content, and Services followed the trend with a rise of 11.3%, touching upon the figure of $25,546k.
Sports Technology & Services dropped by 15.8% against Q4-2022. The number previously was $14,157k. It slipped to $11,920k. Overall, gross revenue stood at $127,172k against $105,339k for the concluding quarter of 2022.
Group Net Loss came down significantly, marking a slip of 69.9% from $127,716k to $38,452k. Group Adjusted EBITDA and Group Adjusted EBITDA Margin rose by 690 bps from 2.5% to 9.4%. These pertain to quarterly results alone.
In terms of yearly performance, Sports Technology & Services remained down by 4%. It was at $49,080k in 2022 before retracing to $47,137k. Betting Technology, Content, & Services and Media Technology, Content, & Services were up by 31.1% and 10.8% in the same order, bagging values of $274,235k and $91,605k, respectively.
Group revenue for 2023 stood at $412,977k over $341,029k for the previous financial year.
Group Net Loss, Group Adjusted EBITDA, and Group Adjusted EBITDA Margin were favorable, too, marking a chance of 52.9%, 237.9%, and 830 bps throughout the said time window. Genuine Sports is now expecting to have another above expectation quarter. Thereby, carrying the momentum for another successful year in the competitive landscape of top online sportsbooks.
Mark Locke, the co-founder and chief executive officer of Genius Sports, said that the company was now better positioned to benefit from multiple structural growth drivers. Mark further expressed excitement about continuing the same performance in 2024. He also acknowledged the fact that the fourth quarter of 2023 was their eighth consecutive quarter of financial results that were above expectations.
All of it goes on to show that Genius Sports can better execute its strategic objectives while demonstrating increasing profitability in its business models.
As for 2024, Genius Sports is optimistic about generating positive cash flow for the entire year. Group Revenue is teased to touch $480 million with an Adjusted EBITDA of $75 million and a Margin Expansion of 300 bps. Group Revenue and Adjusted EBITDA could grow by 16% and 41%, respectively, year-over-year.
Genius Sports, in 2023, entered into two crucial partnerships with FIBA and FanDuel. Both are strategic in nature and likely to contribute to the company’s financial performance in 2024.
