Genius expects positive EBITDA and $340m in revenue for 2022

Data provider Genius Sports expects revenue to reach $340m and earnings before interest, tax, depreciation and amortisation (EBITDA) of $15m in 2022.

The business announced a number of details about its future outlook in its 2022 investor day today (27 January).

Revenue is set to reach $340m for the year thanks in part to continued growth as 2022 goes on. While revenue for Q1 is projected to be $78m and for Q2 this total is just $68m, the total then rises to $85m in Q3 and $109m in Q4, a busy period that will include both the NFL season and football’s World Cup.

Betting technology, content and services will make up the majority of revenue, bringing in $216m. SPorts technology and services will bring in $49m while projected revenue from media technology and services is $75m.

Like revenue, earnings are also expected to grow as the year goes on. The business expects to be EBITDA negative by $5m in Q1, before recording a total of in $8m in Q2, $9m in Q3 and $3m in Q4.

In 2023, the outlook is more optimistic, with revenue projected to fall between $430m and $440m, while EBITDA is expected to reach between $40m and $50m.

“Genius is the key link between leagues, sportsbooks, media outlets, advertisers, and ultimately, fans,” Genius co-founder and chief executive Mark Locke said. “Our best-in-class data collection technology is used around the clock and around the globe, powering the high-growth global sports ecosystem.

“It is difficult to imagine this industry operating efficiently without the mission critical data and technology solutions we provide.”

In the first half of 2021, Genius’ revenue grew 76.3% to $109.6m in the first half of 2021, but net losses shot up to $464.2m because of high stock-based compensation costs.

The provider noted that $198.5m of its costs of revenue and $216.0m of its operating costs were share-based expenses. All of these were entirely new costs, as Genius had been private in the first half of 2020 before the SPAC merger taking it public closed in 2021.

Original Article