Company Overview - Genius Sports Limited (GENI) shares increased by 10.6% to $11.25 in the last trading session, with a higher-than-average trading volume, contrasting with a 0.7% gain over the past four weeks [1] - The company is experiencing growth due to expanding partnerships, innovative product launches such as BetVision and SAOT, and the integration of GeniusIQ technology across sports ecosystems [1] Earnings Expectations - Genius Sports is projected to report quarterly earnings of $0.00 per share, reflecting a year-over-year change of +100% [2] - Expected revenues are $118.04 million, which is a 23.7% increase from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Genius Sports has been revised 145.2% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting favorable market sentiment [3] Industry Comparison - Genius Sports is part of the Zacks Internet - Content industry, where Yelp (YELP) also operates, closing 0.6% higher at $34.9, but has seen a -1.4% return over the past month [3] - Yelp's consensus EPS estimate remains unchanged at $0.48, representing an -11.1% change compared to the previous year, and it also holds a Zacks Rank of 2 (Buy) [4]

Core Viewpoint - The market anticipates Genius Sports Limited (GENI) to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 6, with a consensus EPS estimate of $0.00, indicating a year-over-year change of +100% [3][19]. - Revenues are projected to be $118.04 million, reflecting a 23.7% increase from the same quarter last year [3][19]. Estimate Revisions - The consensus EPS estimate has been revised 145.21% higher in the last 30 days, indicating a significant reassessment by analysts [4][19]. - Despite the positive revision trend, the Most Accurate Estimate is lower than the consensus, resulting in an Earnings ESP of -875.19%, suggesting a bearish outlook from analysts [12][19]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but the predictive power is stronger for positive readings [9][10]. - Genius Sports Limited's combination of a negative Earnings ESP and a Zacks Rank of 2 (Buy) complicates the prediction of an earnings beat [12][20]. Historical Performance - In the last reported quarter, Genius Sports Limited had an expected loss of $0.05 per share but reported a loss of -$0.03, resulting in a surprise of +40.00% [13]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14]. Conclusion - While the company is not positioned as a compelling earnings-beat candidate, investors should consider various factors beyond earnings expectations when evaluating the stock [17][20].

Core Viewpoint - Genius Sports Limited (GENI) has shown a 0.7% increase in share price over the past four weeks, closing at $10.17, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $12.82, representing a 26.1% upside [1] Price Targets - The average of 17 short-term price targets ranges from a low of $11.00 to a high of $15.00, with a standard deviation of $1.13, indicating variability among analysts [2] - The lowest estimate suggests an 8.2% increase from the current price, while the highest estimate indicates a 47.5% upside [2] Analyst Sentiment - Analysts have shown increasing optimism regarding GENI's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 6.2% over the past month, with one estimate increasing and no negative revisions [12] Zacks Rank - GENI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside in the near term [13] Conclusion on Price Targets - While the consensus price target may not be a reliable measure of the extent of potential gains for GENI, it does provide a useful guide for the direction of price movement [14]

Group 1 - Enovix Corporation (ENVX) is currently outperforming its peers in the Computer and Technology sector with a year-to-date return of approximately 38.6%, compared to the sector average of 11.3% [4] - The Zacks Consensus Estimate for ENVX's full-year earnings has increased by 3.5% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Enovix Corporation holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] Group 2 - Enovix Corporation is part of the Electronics - Miscellaneous Products industry, which ranks 55 in the Zacks Industry Rank, with an average year-to-date gain of 14.8% [6] - Another notable stock in the Computer and Technology sector is Genius Sports Limited (GENI), which has returned 19.3% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The Internet - Content industry, to which Genius Sports Limited belongs, is currently ranked 175, with a year-to-date gain of 10.9% [6]

Group 1: Company Overview - Genius Sports Limited (GENI) shares increased by 8.4% to close at $10.47, supported by high trading volume, contrasting with a 4.4% loss over the past four weeks [1] - The company is leveraging advanced technology solutions and partnerships with NCAA and the English Premier League, along with innovative products like GeniusIQ, BetVision, and SAOT, to drive revenue growth [2] Group 2: Financial Performance - Genius Sports is expected to report quarterly earnings of $0.01 per share, reflecting a year-over-year increase of 111.1% [2] - Revenue projections for the upcoming quarter are $118.96 million, which is a 24.6% increase compared to the same quarter last year [2] Group 3: Market Trends and Stock Performance - Trends in earnings estimate revisions are closely linked to short-term stock price movements, indicating potential strength in the stock [3] - The consensus EPS estimate for Genius Sports has remained unchanged over the last 30 days, suggesting that the stock's price may not continue to rise without earnings estimate revisions [4] - Genius Sports currently holds a Zacks Rank of 3 (Hold), while another company in the same industry, Perion Network, has a Zacks Rank of 4 (Sell) [4]

Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]

Summary of Genius Sports Conference Call Company Overview - **Company**: Genius Sports - **Industry**: Sports technology and betting Key Highlights from Q1 Results - **Revenue Growth**: 20% year-on-year growth in revenue [5] - **EBITDA Growth**: EBITDA increased threefold, with strong incremental margins of 53% [5] - **Betting Revenue**: Betting revenue rose 44% year-on-year, despite headwinds in March [6] - **Guidance Reaffirmed**: Guidance for 21% revenue growth, 40% EBITDA growth, and a 20% margin [6] Strategic Developments - **NCAA Deal**: Recently announced a new deal with NCAA, enhancing strategic positioning [6] - **Semi-Automated Offsides Technology**: Implementation in the Premier League, showcasing technological advancements [6] - **Flywheel Concept**: Emphasizes the convergence of sports, betting, and media advertising, with Genius Sports' technology at the center [8] Betting Technology Insights - **Revenue Breakdown**: Revenue from revenue share contracts grew 65%, while minimum guarantees increased by 36% year-on-year [19] - **US Market Focus**: Majority of growth attributed to US sports books, with European markets also showing significant growth [14][15] - **In-Play Betting**: In-play betting is a key growth driver, with penetration expected to increase over time [39] Consumer Behavior and Market Resilience - **Consumer Resilience**: Betting is viewed as a form of entertainment, with historical data suggesting stability during economic downturns [27][28] - **Market Dynamics**: The shift from linear to digital advertising is creating opportunities for Genius Sports [67] Fanhub and Advertising Opportunities - **Fanhub Platform**: A self-serve platform for advertisers to engage with sports fans during key emotional moments [68] - **Unique Inventory Creation**: Genius Sports is focused on creating unique advertising inventory through its technology [76][80] - **Ad Spend Efficiency**: Brands can achieve higher returns on ad spend through Genius Sports compared to generalist platforms [71] Capital Allocation and M&A Strategy - **M&A Focus**: Priority remains on acquiring subscale, high-quality sports tech that is margin and cash accretive [110] - **Share Buyback**: A $100 million buyback authorization is in place, viewed as good housekeeping [108] League Rights and Margins - **League Renewals**: Upcoming renewals, including the EPL, are expected to maintain high margins without requiring additional rights [100][102] - **NCAA Deal Impact**: The NCAA deal is seen as accretive to margins and overall business strategy [104] Conclusion - Genius Sports is positioned for continued growth in the sports technology and betting industry, with strong Q1 results, strategic partnerships, and a focus on innovative advertising solutions. The company remains committed to maintaining high margins and exploring M&A opportunities to enhance its market position.

Core Insights - Genius Sports Limited (GENI) reported a revenue of $143.99 million for the quarter ended March 2025, reflecting a year-over-year increase of 20.3% [1] - The company's earnings per share (EPS) was -$0.03, an improvement from -$0.11 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $142.96 million by 0.72%, while the EPS surpassed the consensus estimate of -$0.05 by 40% [1] Revenue Breakdown - Revenue from Betting Technology, Content & Services was $106.54 million, exceeding the two-analyst average estimate of $103.34 million [4] - Revenue from Media Technology, Content & Services reached $25.89 million, slightly above the average estimate of $25.80 million [4] - Revenue from Sports Technology & Services was $11.56 million, falling short of the average estimate of $14.02 million [4] Stock Performance - Genius Sports Limited's shares have returned +23.7% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Group revenue increased by 20% year on year to $144 million, with adjusted EBITDA nearly tripling to $20 million, resulting in a margin expansion of 800 basis points to 14% [6][7][17] - The company expects to generate at least $620 million in group revenue and $125 million in adjusted EBITDA for the year, representing 21% revenue growth and over 300 basis points of margin expansion to 20% [17][18] Business Line Data and Key Metrics Changes - Betting business revenue increased by 44% year on year to $107 million, driven by successful contract renewals and higher pricing [19] - Revenue from revenue share agreements increased by 65% year on year, marking the highest growth rate since winning the NFL contract [19] - Sports tech revenue grew by 12% year on year, supported by innovative products built on Genius IQ technology [20] Market Data and Key Metrics Changes - Revenue growth was geographically balanced, with Europe, The Americas, and the rest of the world achieving growth rates of 16%, 23%, and 39% respectively [20] - Media revenue decreased to $26 million from $35 million year on year, with expectations for low to mid-teens growth for the full year 2025 [22] Company Strategy and Development Direction - The company expanded its NCAA partnership, securing exclusive data rights for March Madness and all postseason tournaments, enhancing its strategic position in the sports betting ecosystem [9][10] - New product launches, such as SAOT and Performance Studio, are expected to create a powerful flywheel effect, driving incremental revenue and enhancing customer engagement [10][11][12] - The company is focusing on capital allocation towards tech investment and M&A, while also implementing a share repurchase program of up to $100 million [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience against macroeconomic conditions, citing the predictability of revenue and costs [17] - The company anticipates continued growth in online sports betting, viewing it as a resilient component of consumer spending [17] - Management highlighted the importance of responsible gaming and collaboration with leagues to ensure the integrity of sports betting [29][30] Other Important Information - The company is experiencing a robust and growing customer pipeline for its Fanhub platform, which is expected to be a significant opportunity in the sports advertising ecosystem [12][13] - The company is leveraging its technology to create new types of engaging experiences for fans and brands, enhancing its overall value proposition [15][16] Q&A Session Summary Question: What are the top priorities with the ample cash on the balance sheet? - Management indicated that capital allocation priorities include R&D spending, M&A focus, and share buybacks as a means of being opportunistic in a volatile market [25][26] Question: How does the NCAA's push to protect student athletes impact revenue growth? - Management believes that responsible gaming and collaboration with the NCAA can coexist, enhancing the integrity of sports betting while allowing for revenue growth [27][29][30] Question: What factors contributed to the decline in media revenue? - Management stated that the decline was expected due to tough year-on-year comparisons and timing of spending, with expectations for double-digit growth in media revenue later in the year [36][37] Question: How does BetVision's expansion into soccer impact monetization? - Management highlighted that the expansion into soccer represents a significant opportunity due to the high volume of games and the potential for increased in-play betting [40][41] Question: What is the outlook for predictive markets? - Management views predictive markets as an opportunity for additional products and partnerships, while also considering the regulatory implications [94][96] Question: How is the company positioned for future sports tech revenue growth? - Management expressed optimism about leveraging existing technology and relationships to expand into other sports, enhancing overall revenue potential [66][69]

Financial Data and Key Metrics Changes - Group revenue increased by 20% year on year to $144 million, with adjusted EBITDA nearly tripling to $20 million from $7 million last year, resulting in an EBITDA margin expansion of 800 basis points to 14% [5][16][21] - The company expects to generate at least $620 million in group revenue and $125 million in adjusted EBITDA for the year, representing 21% revenue growth and over 300 basis points of margin expansion to 20% [16][21] Business Line Data and Key Metrics Changes - Betting business revenue increased by 44% year on year to $107 million, driven by successful contract renewals and higher pricing [18] - Revenue from revenue share agreements grew by 65% year on year, marking the highest growth rate since winning the NFL contract [18] - Sports tech revenue increased by 12% year on year, supported by innovative products built on Genius IQ technology [19] Market Data and Key Metrics Changes - Revenue growth was geographically balanced, with Europe, The Americas, and the rest of the world achieving growth rates of 16%, 23%, and 39% respectively [19] - Media revenue decreased to $26 million from $35 million last year, following a strong 63% increase in Q1 2024 [20] Company Strategy and Development Direction - The company expanded its NCAA partnership, securing exclusive data rights for March Madness and all postseason tournaments, which is expected to drive greater revenue without any rights fees [6][7] - New product launches, such as the semi-automated offside technology (SAOT) and BetVision for soccer, are expected to create a powerful flywheel effect, enhancing revenue generation and customer engagement [8][10][12] - The company is focusing on capital allocation towards tech investment and M&A, while also implementing a share repurchase program of up to $100 million [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience against macroeconomic conditions, noting that online sports betting remains a strong component of consumer spending [16] - The company anticipates continued growth in media revenues, particularly from the evolution of the Fanhub platform, with expectations of low to mid-teens growth for the full year 2025 [20][42] Other Important Information - The company has a robust and growing customer pipeline for its Fanhub platform, which is expected to be a significant opportunity in the sports advertising ecosystem [10][11] - Management highlighted the importance of responsible gaming and maintaining the integrity of sports betting as essential for long-term industry growth [25][27] Q&A Session Summary Question: What are the top priorities with the ample cash on the balance sheet? - Management indicated that capital allocation priorities include R&D spending, M&A focus, and share buybacks as a means of being opportunistic in a volatile market [23][24] Question: How does the NCAA's push to protect student athletes impact revenue growth? - Management believes that responsible gaming and protecting player integrity align with the interests of the sports betting industry, suggesting a symbiotic relationship [25][26][27] Question: What factors contributed to the decline in media revenue? - Management noted that the decline was expected due to tough year-on-year comparisons and timing of spending, but anticipates a return to growth in the latter half of the year [32][33] Question: How does BetVision's expansion into soccer impact monetization? - Management highlighted that the expansion into soccer represents a significant opportunity due to the high volume of games and the potential for increased in-play betting [36][37] Question: What is the company's view on predictive markets? - Management sees predictive markets as an opportunity for additional products and partnerships, while also considering the implications for long-term regulation [90][92] Question: How is the guidance for in-play betting expected to change? - Management anticipates a small increase in in-play betting percentages in the latter half of the year, with potential upside to the guidance [94][95]