Summary of Genius Sports Conference Call Company and Industry Overview - **Company**: Genius Sports (NYSE: GENI) - **Industry**: Sports data and media monetization, digital sports and gaming media Key Points and Arguments Acquisition Announcement - Genius Sports announced the acquisition of Legend, a global digital sports and gaming media network, aimed at enhancing its capabilities in monetizing sports data and media [1][4] - The acquisition is expected to significantly accelerate Genius Sports' revenue and EBITDA growth, with projected revenue of approximately $1.1 billion and adjusted EBITDA of $320 million to $330 million for 2026 [4][19] Financial Performance and Projections - For 2025, Genius Sports reported an estimated revenue of $669 million and adjusted EBITDA of $136 million, reflecting a 31% revenue growth and a 20% adjusted EBITDA margin [3] - The company aims for $1.6 billion in revenue by 2028, with an adjusted EBITDA margin of approximately 35% and free cash flow conversion exceeding 60% [5][19] Media Segment Growth - The media segment of Genius Sports achieved a remarkable 37% year-on-year growth in 2025, indicating strong demand for its services [4] - The acquisition of Legend is expected to enhance the media business, positioning it as a leading platform for advertisers targeting sports audiences [5][11] Strategic Synergies - The integration of Legend's AI-powered platform with Genius Sports' existing infrastructure is anticipated to create synergies in data capture, audience engagement, and monetization pathways [5][12] - Legend's established media brands, such as covers.com and casino.org, will provide Genius with direct audience relationships and enhanced monetization capabilities [6][10] Market Position and Competitive Advantage - Genius Sports is positioned uniquely in the market, operating across both official sports data and AI-driven media monetization, which is not replicated by competitors [13][14] - The combined entity will serve over 2,000 customers globally, including leagues, teams, sportsbooks, and media companies, creating a diversified customer base [14] Revenue Model and Predictability - Legend's revenue model includes a mix of upfront payments and performance-based earnings, leading to stable and recurring revenues [16][77] - The average revenue generated per unique visitor on Legend's platforms is over $2, significantly higher than the average for digital publishers [9][10] Future Growth Opportunities - The acquisition is expected to enhance Genius Sports' participation in emerging gaming categories, including prediction markets, which are anticipated to drive additional revenue [17][66] - The integration of Legend's technology will allow Genius to optimize its media flywheel and expand its reach into new markets and partnerships [12][87] Financial Structure and Capital Allocation - The acquisition involves an upfront consideration of $900 million, with $800 million in cash and $100 million in stock, plus an earn-out of up to $300 million based on performance metrics [22] - Genius Sports plans to maintain a disciplined approach to capital allocation, focusing on organic growth, strategic acquisitions, and shareholder returns [23][88] Additional Important Insights - The acquisition is seen as a transformative step for Genius Sports, enhancing its operational capabilities and market reach [25] - The leadership team from Legend will join Genius Sports, ensuring continuity and expertise in driving the combined business forward [6][25] - The company emphasizes the importance of maintaining strong liquidity and flexibility in its capital structure post-acquisition [39][88] This summary encapsulates the key points discussed during the conference call, highlighting the strategic importance of the acquisition and its expected impact on Genius Sports' growth trajectory and market position.

Summary of Genius Sports Conference Call on Acquisition of Legend Company and Industry - **Company**: Genius Sports (NYSE: GENI) - **Acquisition Target**: Legend, a global digital sports and gaming media network Core Points and Arguments 1. **Acquisition Announcement**: Genius Sports announced the acquisition of Legend, which is expected to enhance its strategic and financial execution, achieving significant revenue and EBITDA targets earlier than anticipated [3][4][22] 2. **Financial Projections**: - For 2026, Genius expects approximately $1.1 billion in revenue and $320-$330 million in adjusted EBITDA post-acquisition [4][18] - Long-term targets include $1.6 billion in revenue by 2028 with a 35% adjusted EBITDA margin [4][18] 3. **Revenue Growth**: Genius reported a 31% revenue growth in 2025, with media segment growth at 37% year-over-year [3][4] 4. **Market Position**: The acquisition positions Genius as a leader in both sports data and media-driven monetization, creating a unique end-to-end performance-driven sports and gaming media network [13][24] 5. **Customer Base Expansion**: The combined company will serve over 2,000 customers globally, including leagues, teams, sportsbooks, gaming operators, media companies, brands, and agencies [13][14] Additional Important Content 1. **Data and Technology Integration**: Legend's AI-powered platform enhances Genius's ability to capture real-time user intent and monetize it effectively across various channels [5][10][33] 2. **User Engagement Metrics**: Legend's properties have an average return rate of 75% and generate over $2 in revenue per unique visitor, significantly higher than industry averages [9][48] 3. **Revenue Model**: Legend generates revenue through strategic partnerships in the regulated betting and gaming space, sharing lifetime revenues from players acquired through its platforms [46][48] 4. **Synergies and Growth Opportunities**: The acquisition is expected to create significant revenue and operational synergies, particularly in the iGaming sector and emerging gaming categories [15][19][51] 5. **Leverage and Financial Strategy**: The acquisition will be financed through $900 million, including $800 million in cash and $100 million in stock, with a focus on maintaining manageable leverage levels [20][21][52] Conclusion The acquisition of Legend by Genius Sports is a strategic move aimed at accelerating growth, enhancing profitability, and solidifying its position in the sports data and media landscape. The integration of Legend's technology and audience will provide Genius with new monetization pathways and a broader customer base, ultimately driving long-term value creation.

Summary of Genius Sports Investor Day Conference Call Company Overview - **Company**: Genius Sports - **Industry**: Sports technology and data analytics, focusing on digital transformation in sports Key Points and Arguments 1. **Digital Transformation of Sports**: Genius Sports is positioned at the center of the ongoing digital transformation in sports, which is characterized by data-driven fan behavior and the convergence of betting, media, advertising, content, and commerce [3][4][6] 2. **Genius IQ Platform**: The company emphasizes the importance of its technology platform, Genius IQ, which serves as the operating system for modern sports, capturing real-time data and enhancing fan engagement [4][8][10] 3. **Market Position**: Genius Sports has renewed major league partnerships and expanded its media business, which has nearly tripled in size over the last four years. The technology is deployed in over 300 venues worldwide, with plans for hundreds more [6][7][35] 4. **Revenue Pathways**: The company aims to own revenue pathways in betting, media, advertising, and data, allowing it to extract value without needing to own the sports fan directly [6][7] 5. **Financial Outlook**: The company projects a revenue of $1.2 billion and an adjusted EBITDA of $365 million by 2028, with a 30% margin and 60% free cash flow conversion [9][10] Additional Important Insights 1. **Fan Engagement Strategy**: Genius Sports focuses on creating immediate, intelligent, and immersive fan experiences that are consistent across the entire fan journey, avoiding fragmented solutions [12][14][15] 2. **Technological Innovations**: The company utilizes advanced technologies such as AI, machine learning, and computer vision to enhance data collection and analysis, which is critical for modern sports [17][18][19] 3. **Applications and Experiences**: Genius Sports has developed various applications, including Genius Perform for performance analytics, Genius Bet for interactive betting experiences, and Genius Engage for enhanced media integration [23][28][29] 4. **Partnership with NFL**: The relationship with the NFL is highlighted as a key strategic partnership, focusing on enhancing fan engagement and exploring international growth opportunities [37][76] 5. **Integrity and Regulation**: The importance of maintaining integrity in sports betting and the role of regulation in creating a trusted ecosystem is emphasized [49][52] Conclusion - Genius Sports is strategically positioned to capitalize on the digital transformation of sports through its innovative technology platform, strong partnerships, and focus on enhancing fan engagement and monetization opportunities. The company is optimistic about its growth trajectory and the potential for new revenue streams in the evolving sports landscape [10][81]

Business Overview - Genius Sports has partnerships with over 400 leagues and federations, 250+ brands & advertisers, 650+ sportsbook partners, and 50+ broadcasters[17] - Genius Sports' technology platform, GeniusIQ, aims to drive monetization through personalized advertising, new viewing experiences, next-gen betting products, and deeper data[22] - Genius Sports has invested over $500 million in the past 12 years[33] Financial Performance and Projections - Genius Sports projects revenue of $1.2 billion and adjusted EBITDA of $365 million with a 30% margin by 2028[65] - The company anticipates free cash flow of $220 million by 2028, representing a 60% conversion rate[65] - Genius Sports' revenue has shown consistent growth, from $88 million in 2018 to $655 million in 2025E[35] - The company's adjusted EBITDA margin has expanded from 1% in 2018 to a projected 21% in 2025E[35] - Genius Sports' betting revenue is growing at a CAGR of 27% from 2021 to 2025E, outpacing the global online sports betting GGR growth of 19%[31, 32] Betting Market - Top 25 global customers net revenue retention is 136%[155] - Top 10 US customers net revenue retention is 137%[155] - All customers net revenue retention is 131%[155] Media and Advertising - Genius Sports aims to achieve $300 million in media revenue by 2028[183] - The total global digital ad market is approximately $700 billion, with an addressable non-walled garden ad spend of around $350 billion, and sports fan-focused spending of about $100 billion[185]

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [5] - Group-adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [5][24] - Operating cash flow for the quarter was $27 million, indicating seasonality in cash flow, which typically turns positive in the second half of the year [23] Business Line Data and Key Metrics Changes - Betting revenue grew by 28% year-on-year, primarily driven by growth with existing customers [6] - Media revenue surged nearly 90% year-on-year to $42 million, setting a new quarterly record [12] - The number of sportsbook customers utilizing the BetVision product increased from six to over 100 in one year, demonstrating significant growth [11] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase in the more mature European business year-to-date [21][22] - In-play betting represented 30% of total NFL handle, aligning with expectations, and is expected to continue driving revenue growth [9] Company Strategy and Development Direction - The company is focused on expanding its content coverage and increasing product adoption in the online sports betting industry [25] - The strategic acquisition of Sports Innovation Lab is enhancing the company's advertising capabilities and audience understanding [15][50] - The company is optimistic about the long-term potential of its media business, with a unique set of sports data and audience insights driving superior returns for advertising partners [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on emerging opportunities in prediction markets, contingent on regulatory developments [19][44] - The company anticipates strong growth in both betting and media segments, raising revenue guidance from $645 million to $655 million for the full year [24] - Management highlighted the importance of integrity solutions and official data in the evolving market landscape [46] Other Important Information - The company plans to provide a detailed overview of its business and strategic outlook at the upcoming Investor Day on December 3rd [5][25] - The company is experiencing a timing mismatch between expense and revenue recognition due to new contracts, which is expected to resolve in Q4 [22][30] Q&A Session Summary Question: Can you quantify the impact of the Serie A and European leagues contracts? - Management noted a revenue timing mismatch but did not provide specific quantification [31] Question: What led to the media segment's strong performance? - The growth was attributed to agency partnerships and strong returns from advertising campaigns [40] Question: How does the company view the growth of the betting tech business? - Management expects strong growth above market rates, driven by product rollout and integration [38] Question: What is the company's stance on prediction markets? - Management sees potential opportunities in prediction markets but emphasizes the need for regulatory compliance [44] Question: How is the company addressing the integrity of its data? - The focus remains on providing official data and maintaining transparency in the market [46] Question: What is the outlook for free cash flow in Q4? - Management expects strong organic growth in free cash flow, particularly in the second half of the year [64] Question: How is the company approaching the NFL advertising inventory? - Management reported that NFL ad inventory has been sold out, indicating strong demand [82]

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [5] - Group-Adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [5][24] - Betting revenue grew by 28% year-on-year, driven primarily by growth with existing customers [6][24] - Media revenue surged nearly 90% year-on-year to $42 million, setting a new quarterly record [12][24] Business Line Data and Key Metrics Changes - The media sector was the largest contributor to revenue growth, with a 90% increase year-on-year [12] - The betting segment saw significant growth due to exclusive rights secured for European leagues and Serie A, enhancing the content portfolio [7][8] - The number of sportsbook customers utilizing the BetVision product increased from six to over 100 within a year, demonstrating rapid expansion [11] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase in the more mature European business year-to-date [21][22] - In-play betting represented 30% of total NFL handle, aligning with expectations and indicating a growing trend in the U.S. market [9][56] Company Strategy and Development Direction - The company is focused on expanding its content coverage and product adoption in the online sports betting industry, aiming for durable revenue growth [24][25] - The strategic emphasis is on leveraging unique sports data, audience data, and advertising inventory to enhance return on ad spend for partners [17][19] - The company is observing developments in prediction markets, considering them as potential growth opportunities while ensuring compliance with regulations [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends across both betting and media, with expectations for continued strong growth [24][25] - The company raised its full-year revenue guidance from $645 million to $655 million, reflecting a 28% growth expectation [24] - Management highlighted the importance of official data and integrity solutions in the evolving market landscape [44][46] Other Important Information - The company plans to provide a detailed overview of its business and strategic outlook at the upcoming Investor Day on December 3rd [5][25] - The operating cash flow for the quarter was $27 million, indicating seasonality in cash flow patterns [23] Q&A Session Summary Question: Can you quantify the revenue timing mismatch related to Serie A and European leagues? - Management indicated that the rights market is evolving positively, with rights fees coming down, allowing for better technology deployment and partnerships [28][30] Question: What is the impact of the media segment's performance on EBITDA? - The media segment's strong growth was noted, but it flows through at a lower margin compared to the betting business, with expectations for improvement in future quarters [32][34] Question: How does the company view the growth of the betting tech business? - Management expects strong growth in the betting segment, with product rollouts and integration providing significant revenue opportunities [36][38] Question: What are the implications of prediction markets for the company? - Management sees potential opportunities in prediction markets but emphasizes the need to monitor regulatory developments closely [43][44] Question: How is the company addressing the integrity aspect of its business? - The focus remains on official data and transparency, which are increasingly vital as the market evolves [46] Question: What is the outlook for the media business growth? - Management raised growth expectations for the media business to nearly 30%, driven by strong agency relationships and advertising spend [24][40] Question: How is the company planning to create more NFL ad inventory? - Management confirmed that they have successfully sold out NFL ad inventory, allowing for future inventory creation [82]

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [4] - Group-adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [4][21] - Operating cash flow for the quarter was $27 million, demonstrating seasonality with cash flow typically flipping positive in the second half of the year [21] Business Line Data and Key Metrics Changes - Betting revenue increased by 28% year-on-year, driven by growth with existing customers and the acquisition of exclusive rights to European leagues and Serie A [5][11] - Media revenue surged nearly 90% year-on-year to $42 million, marking a new quarterly record and the strongest year-on-year increase since Q1 2022 [11][22] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase year-to-date in the more mature European business [20] - In-play betting represented 30% of total NFL handle, aligning with expectations and indicating continued growth in this segment [7][9] Company Strategy and Development Direction - The company is focused on expanding its content coverage, increasing product adoption, and leveraging favorable commercial terms to enable durable revenue growth [22][23] - The acquisition of Sports Innovation Lab enhances the company's understanding of fan engagement and advertising effectiveness, positioning it well for future growth [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends across both betting and media, with expectations for nearly 30% growth in media for the full year [22] - The company is optimistic about the long-term potential of its advertising platform, driven by unique data and inventory capabilities [16][23] Other Important Information - The company is observing developments around prediction markets, which may provide new opportunities for expanding the addressable market [17][18] - Management emphasized the importance of compliance with regulatory requirements and the need for official data as the market evolves [32] Q&A Session Summary Question: Can you quantify the impact of the Serie A and European leagues on the quarter? - Management noted a timing mismatch between expense and revenue recognition due to contracts being finalized shortly after the quarter end, but did not provide specific quantification [24][26] Question: What drove the media segment's strong performance? - The growth was attributed to agencies and strong returns from advertising products, with the combination of these factors driving outsized growth [30][31] Question: How is the company positioned regarding prediction markets? - Management sees potential opportunities in prediction markets but is closely monitoring regulatory developments [32] Question: What is the outlook for the NFL's international expansion? - The NFL is experiencing success internationally, with increased interest and betting activity in new markets [46] Question: How does the company view the balance of growth versus profitability? - The company remains focused on achieving a 30% margin target while also emphasizing cash flow conversion and sustainable growth [54][56]

Third Quarter 2025 Earnings November 4, 2025 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results o ...

Group 1 - Genius Sports Limited (NYSE:GENI) is recognized as a promising growth stock priced under $30, with a recent expansion of its partnership with Hard Rock Bet Sportsbook aimed at enhancing data, trading, and marketing capabilities [1][2] - The expanded agreement will allow Genius Sports to provide official data and trading solutions for major leagues, including the Premier League, Serie A, European Leagues, Liga MX, and the NFL [2][3] - The introduction of the BetVision product will enable Hard Rock Bet to offer low-latency live streams, real-time stats, and augmented viewing options, enhancing the betting experience for customers [3]

Summary of Genius Sports (GENI) 2025 Conference Call Company Overview - Genius Sports is a sports technology company that partners with approximately 400 to 500 sports leagues and federations to capture and monetize data, providing a comprehensive end-to-end sports technology platform from data capture to betting and advertising [4][5][6] Core Business Insights - The company has consistently achieved over 20% annual growth since its listing in 2021, with a current guidance of 26% for the year [11][12] - Key growth drivers include: - Expansion of Total Addressable Market (TAM) in the U.S. and internationally, with new states and countries opening up for sports betting [12][13] - Shift towards in-play sports betting, which currently represents about 30% of the U.S. market but is expected to grow significantly [15][16] - Development of innovative products that enhance revenue from existing relationships, with a reported 40% year-on-year growth in the betting segment [18][19] Media Business and Advertising Strategy - The media segment is experiencing strong momentum, with a projected 60% year-on-year increase in the second half of the year [32] - Genius Sports leverages first-party data from its partnerships to target sports fans effectively, enhancing advertising opportunities for brands [30][31] - The partnership with PMG, a leading advertising agency, aims to expand the addressable market and enhance brand engagement through innovative sports advertising [38][39] Competitive Landscape - The competitive landscape has become less fragmented, with fewer players in the market, which is seen as beneficial for Genius Sports [46][47] - Long-term relationships with major sports leagues, such as the NFL and NCAA, provide a stable foundation for growth [48][49] Financial Performance and Capital Allocation - Genius Sports is now cash positive and has improved its EBITDA margin from 5% to 21% over the past three years, with a target of over 30% [62][63] - The company raised $140 million for potential M&A opportunities, focusing on high-quality sports technology and media strategies [64][65] Technology and AI Integration - GeniusIQ, the company's AI system, is central to its operations, enhancing data collection and providing innovative betting opportunities [74][75] - AI is expected to drive cost savings and improve profit margins while also creating new revenue opportunities in the sports sector [76] Leadership Transition - The CFO, Nick Taylor, will transition to Brian Castellani, who has extensive experience in the media and sports sectors, ensuring continuity and strategic focus moving forward [77][78] Additional Insights - The company is focused on engaging the next generation of sports fans through innovative technology and personalized experiences [70][71] - Genius Sports views emerging players in the prediction markets as potential opportunities rather than threats, maintaining a neutral stance on their impact [67][69]