Genius Sports (US:GENI)2021-11-23 18:27Financial Data and Key Metrics Changes - Genius Sports reported record revenue of $69.1 million in Q3 2021, representing over 70% year-on-year growth [9][27] - Adjusted EBITDA is broadly breakeven, with the company raising its 2021 revenue guidance to a range of $257 million to $262 million, equating to over 70% year-on-year growth at the midpoint [14][29] Business Line Data and Key Metrics Changes - Betting technology content and services revenue grew 48% year-on-year to $43.6 million, driven by increased pricing, new customer wins, and higher content utilization [27] - Major technology content and services revenue more than doubled year-on-year to $13.9 million, with strong growth in the media business from new customer wins [28] - Sports technology and services revenue increased 159% to $11.6 million, significantly contributed by Sportzcast and Second Spectrum [28] Market Data and Key Metrics Changes - The company has signed over 30 new rights deals with various leagues, expanding its portfolio to 192,000 events under official rights, of which over 120,000 are exclusive [10][11] - The addressable market for the media business is estimated at $60 billion globally, with a long-term market share target of 75 to 100 basis points [21][22] Company Strategy and Development Direction - The company aims to create a business that captures a slice of every sports-related transaction globally, positioning itself as a technology leader in the sports ecosystem [23][24] - A disciplined M&A strategy is in place, focusing on the efficient integration of newly acquired businesses to enhance service offerings [13] - The company plans to reinvest heavily in technology development, rights strategy, and U.S. infrastructure to support growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue taking market share and achieving premium pricing for value-added content and services [31] - The company is in a unique growth cycle, presenting opportunities for strategic investments to build infrastructure and achieve long-term goals [32][35] Other Important Information - The company has leveraged its exclusive NFL partnership to build key sportsbook relationships, with over 97% of NFL bets placed in the U.S. powered by Genius Sports [18][20] - The company has committed advertising spend of at least $125 million across its media products over an average of three years, primarily focused on the North American market [19][67] Q&A Session Summary Question: Can you expand on the 5% comment on global GGR? - Management believes that achieving 5% of global gaming revenue is eminently achievable and is on a strong journey towards that goal [42] Question: How is betting revenue trending in October and November? - Management indicated that they have downside protection in their deals and that the revenue guidance has been adjusted based on trends observed in October and early November [39] Question: Is the NFL transaction trending to cash breakeven? - Management confirmed that they are managing the business towards an EBITDA breakeven or better position on an annual basis, with significant investments in rights and technology [49][50] Question: What is the outlook for the Canadian market? - Management views regulation in Canada as a positive development, creating opportunities for growth in both sports betting and media partnerships [56] Question: Can you provide more details on the advertising market traction? - The company is already seeing traction in the advertising market, with expectations for announcements regarding new wins in the non-sports betting space in the coming year [64]