Genius Sports (US:GENI)2024-11-12 12:05Financial Performance - Revenue for the three months ended September 30, 2024, was $120,198 thousand, a 18.0% increase from $101,729 thousand in the same period of 2023[8] - Gross profit for the three months ended September 30, 2024, was $40,082 thousand, compared to $24,283 thousand for the same period in 2023, representing a 65.0% increase[8] - Net income for the three months ended September 30, 2024, was $12,505 thousand, a significant improvement from a net loss of $11,616 thousand in the same period of 2023[10] - Total revenue for the nine months ended September 30, 2024, reached $335,363 thousand, a 17% increase from $285,805 thousand in the same period of 2023[44] - Net loss for the nine months ended September 30, 2024, was $34,828 million, an improvement from a net loss of $47,082 million for the same period in 2023[13] Assets and Liabilities - Total current assets decreased to $224,381 thousand as of September 30, 2024, down from $244,781 thousand at December 31, 2023[6] - Total liabilities decreased to $169,613 thousand as of September 30, 2024, compared to $202,705 thousand at December 31, 2023, reflecting a reduction of approximately 16.3%[6] - Total shareholders' equity decreased to $555,265 thousand as of September 30, 2024, down from $573,019 thousand at December 31, 2023[5] - Cash and cash equivalents decreased to $42,314 thousand as of September 30, 2024, down from $100,331 thousand at December 31, 2023[6] Revenue Breakdown - Revenue from Betting Technology, Content and Services for the nine months ended September 30, 2024, was $226,646 thousand, up 21% from $187,529 thousand in the same period of 2023[44] - Revenue from Europe for the three months ended September 30, 2024, was $68,365 thousand, representing a 22% increase from $56,211 thousand in the same period of 2023[45] - Revenue from Sports Technology and Services for the three months ended September 30, 2024, was $12,447 thousand, slightly down from $12,864 thousand in the same period of 2023[44] - Revenue from Media Technology, Content and Services for the three months ended September 30, 2024, was $22,126 thousand, a slight decrease from $22,938 thousand in the same period of 2023[44] Expenses - Operating expenses for the three months ended September 30, 2024, totaled $46,138 thousand, an increase from $33,173 thousand in the same period of 2023[8] - General and administrative expenses rose to $30.4 million for the three months ended September 30, 2024, up from $20.4 million, marking a 49% increase[142] - Sales and marketing expenses increased to $9.5 million for the three months ended September 30, 2024, compared to $5.8 million, reflecting a 62% rise[140] - Cost of revenue increased to $80.1 million for the three months ended September 30, 2024, from $77.4 million, primarily due to higher data rights costs[139] Cash Flow - Cash used in operating activities decreased to $4,775 million for the nine months ended September 30, 2024, compared to $9,151 million in the prior year[13] - Cash used in investing activities increased to $45,985 million for the nine months ended September 30, 2024, from $34,116 million in 2023[13] - Cash and cash equivalents at the end of the period were $69,075 million, down from $116,391 million at the end of September 30, 2023[13] Stock and Compensation - The company reported a basic earnings per share of $0.05 for the three months ended September 30, 2024, compared to a loss of $0.05 per share in the same period of 2023[8] - The compensation cost recognized for restricted shares during the nine months ended September 30, 2024 was $4.6 million, compared to $4.4 million for the same period in 2023[76] - The company had 91,436 stock options outstanding as of September 30, 2024, with a weighted average exercise price of $10.00[78] Foreign Currency and Market Risks - The company underwent a change in functional currency from GBP to USD effective January 1, 2024, due to changes in the primary economic environment[17] - Genius' primary market risk exposure is to foreign currency exchange, with ongoing sensitivity analysis conducted[175] - The company does not currently hedge its foreign currency translation or transaction exposure but may consider it in the future[125] Legal and Compliance - The company is not currently involved in material legal proceedings, but is engaged in various pending and threatened litigation and regulatory matters[176] - Compliance with additional requirements as a large accelerated filer may increase legal, accounting, and financial compliance costs[178]