Genius Sports beats revenue expectations, posts $341m in FY22

Genius Sports has posted the results for the financial year ending on December 31, 2022. During the 12-month period, the group posted significant improvements across key metrics, driving its overall outlook and momentum in sports and data markets.

The group posted revenue of $341m, up 41%, and was ahead of the previously set guidance of $340m. The same strong results were posted in adjusted EBITDA which stood at $16m, once again beating guidance of $15m. Meanwhile, Genius Sports reported a net loss of $182m, and the group used the opportunity of the financial year 2022 report to set guidance parameters for 2023 as well.

Genius Sports is looking at a group revenue outlook of $391m for 2023 and an adjusted group EBITDA of $41m, a much stronger performance overall. Positive free cash flow should be arriving in the first half of 2023, with the group remaining fairly confident in the 12-month period and the strength of its operations.

Genius Sports will continue to work on its main verticals, which include but aren’t limited to official sports data, technology and broadcast technology, betting, and media. Commenting on these results, Genius SportsCEO and Co-FounderMark Locke said that the company had had a very strong financial year and that Genius Sports managed to deliver on the forecasts of each quarter throughout the reported period.

"We remain relentlessly focused on balancing investment in our highest growth initiatives, while still demonstrating the unique operating leverage of our business model," Locke explained, confident of what is to come next for the company. He described the way of doing business in 2022 as a "consistent execution" and said that the company was already seeing its technology investments begin to pay off, which is setting the stage for 2023.

More opportunities now abound owing to sound business decisions in the past several months. Genius Sports CFO Nick Taylor welcomed the opportunity to see the company through a very strong financial year. Taylor noted that the group had a significant war chest to tinker around with amounting to $159m total cash on the balance sheet and zero debtfinancing.

He argued that shareholders would benefit from both profitability and cash flow acceleration. Genius Sports has been very active in 2023 already. The company signed up a partnership with the NFL to launch a free-to-play game and it was appointed as the official data partner for XFL.

Image credit: Genius Sports