Genius Sports (US:GENI)2024-08-06 11:07Financial Performance - Genius reported a consolidated net loss of $21.8 million for the three months ended June 30, 2024, compared to a net loss of $10.3 million for the same period in 2023, representing a 112% increase in losses year-over-year[189]. - Adjusted EBITDA for the three months ended June 30, 2024, was $20.8 million, up 32% from $15.7 million in the same period of 2023[189]. - Revenue for the three months ended June 30, 2024, was $95,447,000, an increase of 10% compared to $86,847,000 for the same period in 2023[205]. - Gross profit for the three months ended June 30, 2024, was $28,368,000, representing a 15% increase from $24,674,000 in the prior year[205]. - Loss from operations for the three months ended June 30, 2024, was $(21,002,000), a significant increase from $(7,841,000) in the prior year, reflecting a 168% decline[205]. - Net loss for the three months ended June 30, 2024, was $(21,792,000), compared to $(10,298,000) for the same period in 2023, marking a 112% increase in losses[205]. - The net loss for the six months ended June 30, 2024, was $47.3 million, compared to a net loss of $35.5 million for the same period in 2023[257]. Expenses - Total operating expenses increased by 52% to $49,370,000 for the three months ended June 30, 2024, compared to $32,515,000 in the same period of 2023[205]. - Sales and marketing expenses rose by 47% to $9,661,000 for the three months ended June 30, 2024, up from $6,589,000 in the previous year[205]. - Research and development expenses increased by 24% to $7,214,000 for the three months ended June 30, 2024, compared to $5,812,000 in the same period of 2023[205]. - General and administrative expenses increased to $30.9 million for the three months ended June 30, 2024, compared to $19.6 million in 2023, driven by a $10.9 million increase in stock-based compensation[298]. - Total stock-based compensation increased to $17.6 million for the three months ended June 30, 2024, from $3.6 million in the same period of 2023, representing a 385% increase[291]. Cash and Assets - Cash and cash equivalents at the end of the period were $67.7 million, down from $100.3 million at the end of December 31, 2023[218]. - Total assets decreased to $715.988 million as of June 30, 2024, from $775.724 million as of December 31, 2023[218]. - Total current liabilities decreased to $144.521 million as of June 30, 2024, from $182.914 million as of December 31, 2023[218]. - The total shareholders' equity as of June 30, 2024, was $552.4 million, down from $573.0 million at the end of 2023, reflecting a decrease in equity[204]. Revenue Streams - Betting Technology, Content and Services revenue increased by $10.3 million or 18% to $67.1 million for the three months ended June 30, 2024, driven by new customer acquisitions contributing $12.2 million[223]. - Sports Technology and Services revenue decreased by $1.3 million or 11% to $10.4 million for the three months ended June 30, 2024[224]. - Media Technology, Content and Services revenue increased by $13.3 million or 33% to $53.4 million, driven by growth in the Americas region[237]. - Betting Technology, Content and Services revenue increased by $19.4 million or 16% to $141.0 million, with new customer acquisitions contributing $20.1 million[245]. Market Presence and Strategy - Genius has established relationships with over 400 sports leagues and federations, over 800 sportsbook brands, and over 170 marketing customers, highlighting its extensive market presence[191]. - The company’s data rights for Tier 1 sports, acquired through competitive bidding, account for a significant majority of its third-party data rights fees, emphasizing the high acquisition costs associated with these rights[194]. - Genius estimates that non-Tier 1 sports comprise approximately 90% of the total volume of sporting events offered to sportsbooks, indicating a broad market opportunity[195]. - Genius aims to be the official data, technology, and commercial partner for the global sports ecosystem, focusing on enhancing fan experiences and providing sustainable revenue streams for sports leagues[182]. Financing and Debt - As of June 30, 2024, the company had less than $0.1 million in debt outstanding, down from $7.6 million as of December 31, 2023[270]. - The company amended its Credit Agreement on July 10, 2024, increasing the total facility size to $120.0 million, with an additional $30.0 million contribution from Goldman Sachs Bank USA[281]. - Genius may need additional cash resources due to changed business conditions and may seek additional equity or debt financing if current resources are insufficient[244]. Other Financial Metrics - Interest income for the three months ended June 30, 2024, was $348,000, a significant improvement from an expense of $(202,000) in the prior year[205]. - The company reported a tax benefit of $1,314,000 for the three months ended June 30, 2024, compared to an expense of $(3,952,000) in the same period of 2023[205]. - The company recorded a foreign currency loss of $2.8 million for the three months ended June 30, 2024, compared to a gain of $1.5 million for the same period in 2023[227]. - Interest income, net was $1.0 million, a significant increase from $0.2 million, due to higher interest rates on cash balances[251]. Future Outlook - The company expects capital expenditure and working capital requirements to increase as it continues to expand its product offerings[269]. - Genius will transition to a "large accelerated filer" status on December 31, 2024, which may increase legal, accounting, and financial compliance costs[286].