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]

Financial Data and Key Metrics Changes - The company achieved a 24% growth in group revenue, reaching a record high adjusted EBITDA margin of 29% in Q2 [5][27] - Full year guidance has been raised to $645 million in revenue and $135 million in adjusted EBITDA, reflecting continued momentum in the underlying business [5][27] Business Line Data and Key Metrics Changes - Betting revenue increased by 30% year-on-year to $88 million, driven by price increases from contract renewals and expansion of value-added services like BetVision [22][23] - Media revenue returned to growth, increasing by 4% year-on-year to $19 million, with expectations for stronger growth in the second half of the year [23][25] - Sports tech revenue grew by 22% year-on-year to $13 million, as leagues and federations increasingly utilize Genius IQ technology [25] Market Data and Key Metrics Changes - The company has secured exclusive data and streaming rights to Serie A, the top professional soccer league in Italy, enhancing its position in the European market [9][10] - The exclusive rights to the European leagues from IMG Arena have been acquired, providing access to thousands of top-tier soccer events across Europe [11][12] Company Strategy and Development Direction - The company aims to distribute its technology globally, focusing on partnerships with leagues and federations to modernize sports through AI and machine learning [7][9] - The strategy includes leveraging technology to secure rights deals at reduced costs, thereby deepening the competitive moat and paving the way for future technological advancements [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term financial success, citing the certainty of fixed costs over a multi-year period and a clear path for continued EBITDA margin expansion [19][29] - The company is well-positioned for continued growth, particularly as it enters the peak sporting calendar [29] Other Important Information - A transition in the CFO position was announced, with Brian Castellani joining as the new CFO, bringing extensive experience from media organizations [20][21] - The company has maintained a disciplined approach to managing cash operating expenses, despite a one-time increase in stock-based compensation related to the NFL partnership [26] Q&A Session Summary Question: Impact of ESPN and NFL partnership on technology offerings - Management views the ESPN and NFL partnership positively, expecting it to enhance technology offerings and drive engagement through products like BetVision [32][34] Question: Revenue potential of Fanhub marketing platform - Management believes the media business could eventually exceed the size of the betting business, with strong growth expected in the coming years [36][38] Question: Financial expectations for new contracts in European leagues - Management confirmed that new contracts are expected to generate positive returns and contribute to EBITDA growth [42][44] Question: Guidance increase related to new league partnerships - The guidance increase incorporates new partnerships and underlying business momentum, with expectations for continued growth in both media and betting segments [50][56] Question: Market share increase with new partnerships - Management indicated that market share is increasing, particularly in European soccer, with plans to roll out Genius IQ technology across numerous stadiums [94][96] Question: Incremental revenue opportunities from Genius IQ - The technology offers multiple use cases, and the company is focused on strategically rolling it out to capture significant market share in European soccer [100][101]

Financial Data and Key Metrics Changes - The company achieved a 24% growth in group revenue, reaching a record high adjusted EBITDA margin of 29% in the second quarter [4][25] - Full year guidance has been raised to $645 million in revenue and $135 million in adjusted EBITDA, reflecting continued business momentum [4][25] Business Line Data and Key Metrics Changes - Betting revenue increased by 30% year-on-year to $88 million, driven by price increases from contract renewals and expansion of value-added services like BetVision [22] - Media revenue returned to growth, increasing 4% year-on-year to $19 million, with expectations for stronger growth in the second half of the year [22][27] - Sports tech revenue grew by 22% year-on-year to $13 million, as leagues utilize Genius IQ for various applications [23] Market Data and Key Metrics Changes - The company secured exclusive data and streaming rights to Serie A, enhancing its position in the European market, which is the largest in terms of annual gross gaming revenue [9][11] - The exclusive rights to the European leagues from IMG Arena were acquired, giving the company a leading position in European soccer [10][11] Company Strategy and Development Direction - The company aims to distribute its technology globally across stadiums and leagues, focusing on enhancing fan engagement and monetization opportunities [5][12] - Recent partnerships and technology deployments are expected to create a sustainable long-term model with high barriers to entry [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain consistent long-term revenue growth and margin expansion, targeting at least a 30% EBITDA margin [18][27] - The evolving rights market is seen as shifting competitive dynamics in favor of the company, validating its strategic approach [12][17] Other Important Information - A transition in the CFO position was announced, with Brian Castellani joining as the new CFO, bringing extensive media experience [19][20] - The company is exploring potential M&A opportunities while maintaining a disciplined approach to cash management [82][85] Q&A Session Summary Question: Impact of ESPN and NFL tie-up on technology offerings - Management views the ESPN and NFL partnership positively, expecting it to enhance media technology offerings [30][32] Question: Revenue potential of Fanhub and marketing platform - Management believes the media business could eventually exceed the size of the betting business in the long term [34][36] Question: Financial expectations for new contracts in European leagues - Management confirmed that new contracts are expected to generate positive returns and are immediately accretive to EBITDA [39][41] Question: Guidance increase related to new league partnerships - The guidance increase incorporates both new partnerships and organic growth trends in the betting segment [53][55] Question: Market share increase with new partnerships - Management indicated that market share is increasing, particularly in European soccer, with a strong position in the market [90][94] Question: Incremental revenue opportunities from Genius IQ - The technology deployed in Genius IQ offers various use cases, which are expected to capture significant parts of the European soccer market [96]

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]