Genius Sports has become one of the largest sports data and technology companies in the world behind the growth of legal sports betting following Friday’s earnings report.
The London-based sports data provider generated $105.3 million in group revenue in Q4 2022 — a 25% increase year-over-year. Total group revenue, which includes the company’s betting, media, and sports technology segments, reported $341 million in revenue for the fiscal year ending December 31, 2022. In FY2021, group revenue for Genius reached $262.7 million.
Genius’ favorable results in Q4 2022 were driven by the company’s betting technology, content, and services segment, which generated $65.5 million in revenue during the quarter — a 21.5% uptick year-over-year. Genius’s media technology, content, and services segment reported a 50.4% year-over-year growth in revenue in Q4 at $25.6 million. Its sports technology and services segment generated $14 million in revenue — an 8.6% increase year-over-year.
“Following our consistent execution in 2022 and the maturation of our technology investments, the stage is now set for 2023 to capture the immense opportunity ahead of us, afforded by the global competitive position we have built to date,” said CEO and co-founder Mark Locke.
Genius estimates total group revenue to reach roughly $391 million in FY2023. Despite the anticipated growth in revenue for Genius, the company actually reported substantial losses in Q4 2022.
Fourth-quarter fumble
In Q4, Genius posted a net loss of $127.7 million, compared to $53.3 million for the same period last year. The losses can partly be attributed to Genius building its portfolio of brands.
It most notably expanded its partnership with the NBA in Q4, which focused on the out-of-market TV package NBA League Pass. Genius also launched free-to-play NFL games during the quarter and secured a deal with the Portland Trail Blazers to deliver immersive game broadcasts.
In April 2021, Genius secured exclusive NFL data rights with a six-year, $120 million deal. A month later, the company acquired Second Spectrum — the official analytics provider of the NBA, Premier League, and MLS — for $200 million. Genius’ portfolio of partnerships also includes deals with the XFL and FanDuel — America’s largest sportsbook by market share.
Genius has also expanded its reach by receiving a temporary sports betting vendor license in Massachusetts. The Bay State legalized retail sports betting on January 31 and went live with online sports betting sites on March 10.
