Genius Sports Expects 2020 Revenue to Stand at $145M

In a year when the sporting calendar was decimated by Covid-19, Genius Sports revenue was up by 32% in the first three quarters of 2020 compared to the same period in 2019.

Full-Year Revenue Might Reach $145 Million

Genius Sports, a leading provider of sports data and technology powering the sports, betting and media ecosystem, has made its first filing with the US Securities and Exchange Commission (SEC).

The company, which is in the process of going public through acquisition, reported $102.7 million in revenue in the first nine months of 2020, which corresponds to a 32% increase year-on-year and approximately twice above its 2018 numbers, according to the filing.

Genius Sports will combine with dMY Technology Group – a publicly listed special purpose acquisition vehicle with about $276 million in cash held in trust. The transaction values Genius at $1.5 billion.

The combined company is expected to have approximately $150 million of growth capital and a debt-free balance sheet to boost its US and international expansion through organic growth and strategic acquisitions.

The revenue growth in the first three quarters was accumulated during a challenging time when the Covid-19 pandemic caused the cancellation of sports events all over the world. In the statement, the company projects its full-year revenue to stand at $145 million.

Genius has shown substantial and consistent growth in the past five years starting from $42 million in 2016, according to its investor presentation released in December. Revenue is expected to grow to $190 million in 2021 and to reach $238 million in 2022. The company expects growth in its customer database due to the further liberalization of sports betting markets globally.

Other revenue boosters will be increased customer utilization of events under official rights, providing additional services to sportsbooks, including streaming and risk management, new media, marketing and advertising agreements, as well as additional income from sports leagues and federation partners.

Nearly 75% of Revenue in 2020 Comes From Betting

According to the company’s filing, Genius reported $114.6 million in sales, and a net loss of $40.2 million in 2019. The cost of sales, and in particular the rights fees associated with league data, are the biggest expense for Genius, the filing says. However, those fees are expected to “be highly scalable,” which means that revenue should increase at a higher pace than rights fees.

The filing also shows that nearly three quarters of Genius revenue ($75.4 million) in the first nine months of 2020 came from its betting partners. The company works with Bet365, Sky Betting & Gaming, DraftKings, William Hill, Flutter Entertainment and many others. Media and sports technology products accounted for the rest ($27.4 million).

Some 80% of the revenue came from Europe, while 13% was generated by Americas and the rest came from around the globe.