LONDON & NEW YORK - Genius Sports Limited (NYSE:GENI) has outperformed market expectations with its fourth-quarter earnings, reporting a revenue of $127.2 million, a 20.7% increase from the same quarter last year and slightly above the analyst consensus of $126.12 million.
Despite a net loss of $38.5 million, which has narrowed from the previous year's $127.7 million, the company's adjusted EBITDA soared to $12 million, surpassing the $11 million guidance and showcasing a substantial 349% growth YoY.
The company's overall annual performance also reflected positive trends, with a 21% increase in group revenue to $413 million, beating the initial guidance of $391 million. Adjusted EBITDA for the year more than tripled to $53 million, exceeding both the initial guidance of $41 million and the latest guidance of $53.0 million. The adjusted EBITDA margin expanded by over 800 basis points YoY to 13%.
Genius Sports' betting technology, content, and services segment were significant contributors to the growth, with a 32% increase in revenue YoY. Media technology, content, and services also grew by 11%, while sports technology and services saw a 16% decline.
Looking ahead, Genius Sports anticipates a strong 2024 with expected group revenue of approximately $480 million, representing a 16% growth YoY and above the analyst consensus of $474.4 million. The company also projects an adjusted EBITDA of $75 million, indicating a 41% increase YoY and nearly 300 basis points of margin expansion. Moreover, the company expects to generate positive cash flow throughout 2024.
The stock responded positively to the news, with a modest increase of 0.85%, reflecting investor optimism regarding the revenue beat and upbeat guidance for the coming year.
"We are excited to report our eighth consecutive quarter of financial results above expectations, while demonstrating the increasing profitability of our business model and our ability to consistently execute on our strategic objectives," said Mark Locke, Genius Sports Co-Founder and CEO. Locke also expressed confidence in the company's positioning to benefit from structural growth drivers across the digital sports ecosystem and their momentum going into 2024.
The company's strategic partnerships and product launches, such as BetVision with Caesars (NASDAQ:CZR) Sportsbook, Fanatics, and BetRivers, and the 10-year partnership with FIBA, have been pivotal in driving growth. Genius Sports' innovative solutions like 'Edge,' an automated pricing tool for sportsbooks, further underscore its commitment to leveraging technology for profitability and customer engagement.
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