Genius Sports posts Q3 results, enjoys EBITDA and revenue increase

Genius Sports, the global sports technology company, released its latest trading update last week, outlining strong performance for the three months ended September 30, 2022. Announcing its unaudited financial results for the fiscal third quarter of 2022, the company revealed its group revenue hit $78.7m. When compared to the $69.1 million reported in group revenue from Q3 in 2021, the result from this year marked a strong 13.8% increase.

With the increase in revenue, Genius also reported a significant increase in adjusted EBITDA. For the third quarter of 2021, adjusted EBITDA was negative $392,000. With that in mind, in Q3 this year, the group adjusted EBITDA hit $7.7m, marking a 2,053.6% increase when compared to the corresponding period in 2021.

In a statement, the company provided a breakdown revealing that it has seen growth in two out of three operating segments in the third quarter of this year. The company's betting technology and content services revenue hit $49.2 million, up 12.6% when compared to Q3 last year. Similarly, the company's revenue from media technology, content and services increased by 29% to $17.9m.

Despite the increase in the aforementioned segments, Genius reported a slight dip in the revenue from sports technology and services that hit $11.6m. This result represented a decrease of just 0.3% when compared to the third quarter of last year.

Without any doubt, the third quarter was a busy period for Genius. In Q3 this year, the company inked 27 new partnerships with operators and sportsbooks. Some of the more famous companies Genius joined forces with include NorthStar Gaming, Bally's Interactive and MaximBet, among others. What's more, in the third quarter this year, thanks to deals with NFL organizations, the company launched free-to-play games.

Focusing on the bigger picture, Genius released data regarding its performance for the first nine months ended September 30, 2022. The global technology company revealed that its total revenue for the period hit $235.7m, while EBITDA hit $13.1m. According to Genius, both results were ahead of the guidance which predicted $231m in revenue and $12m in adjusted EBITDA.

Mark Locke, Genius' Co-Founder and CEO, said about the latest results: "We are pleased to deliver another quarter of growth and Group Adj. EBITDA profitability, and we remain on target to achieve our full-year goals set on our Investor Day at the start of 2022."

Last but not least, Locke pointed out: "This year has been characterized by strong execution as we continue to deploy innovative technology, win new customers, and strengthen our key partnerships across the sports, betting, media, and broadcasting ecosystem, all with an eye towards cost discipline and profitable growth."

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