Genius confident on long-term growth after cutting net loss in Q1

Genius Sports Reports 20% Revenue Growth in Q1 as Losses Narrow Significantly

In the first quarter ending March 31, Genius Sports showcased an impressive revenue surge of 20% year-on-year, reaching $144 million, a substantial increase from $119.7 million reported in the same quarter last year. This positive financial trajectory is detailed in the supplier’s earnings report published Tuesday.

According to Mark Locke, co-founder and CEO of Genius Sports, the company is strategically positioned for long-term “sustainable” growth. The uptick in revenue, driven largely by enhancements in two of its three core business segments, signals a promising reduction in group losses.

The betting technology, content, and services division emerged as the primary revenue generator for Genius, displaying the most robust growth. The sports technology and services sector also demonstrated progress, though the media technology segment faced a decline in revenue.

Despite increased operational expenditures during the quarter, the rise in revenue, bolstered by favorable foreign currency fluctuations, facilitated a remarkable 67.8% reduction in net losses. Moreover, adjusted EBITDA soared by an impressive 187% year-on-year.

Locke emphasized strong performance not only for Q1 but also for future prospects regarding growth, profitability, and cash flow. “This quarter exemplifies our effective execution of strategic objectives through technology distribution, product innovation, and commercial momentum,” he stated.

He further noted, “Our largely fixed cost structure, combined with solid growth drivers, strengthens our confidence in achieving sustainable growth, profitability, and positive cash flow well into 2025 and beyond.”

Revenue Breakdown: Betting Business Leads the Way

Analyzing the revenue components, the betting segment experienced a remarkable growth of 44.1% year-on-year, totaling $106.5 million. This growth was primarily attributed to increased business from existing clients, resulting from price adjustments during contract renewals and renegotiations.

Additionally, the sports segment reported a solid 12.6% increase in revenue, reaching $11.6 million, driven by heightened sales of products leveraging GeniusIQ technology.

Conversely, the media division saw a decline, with revenues dropping 27% to $25.9 million due to decreased programmatic and social advertising services compared to the previous year.

Revenue Gains Offset Increased Costs

In terms of expenditures, the cost of revenue experienced a modest increase of 1.8%. However, the notable revenue growth led to a staggering 177.3% increase in gross profit.

While total operating expenses rose by 49.9%, this rise was effectively counterbalanced by the revenue growth in Q1. Consequently, the pre-tax loss decreased from $24.3 million to $20.4 million.

Genius Sports reported $437,000 in interest income and a significant $12.2 million gain from foreign currency, marking a considerable improvement from last year’s $1.1 million loss. This culminated in a pre-tax loss of $7.8 million, a notable improvement from the $24.7 million loss in 2024.

After accounting for $542,000 in tax and an additional $94,000 from equity method investments, Genius concluded Q1 with a net loss of $8.2 million, significantly better than the $25.5 million loss from the previous year.

Future Projections: What Lies Ahead for Genius in 2025

In its Q1 report, Genius Sports outlined ambitious full-year targets, forecasting revenue to reach $620 million for FY25—an anticipated growth of 21.3% from the prior year.

Moreover, the company projects adjusted EBITDA to climb to approximately $125 million, reflecting a 46% increase compared to last year. Genius is optimistic about further enhancing its positive annual cash flow throughout the upcoming fiscal year.