Genius Sports continued technology innovations and partnerships with the biggest sports leagues and sports betting sites, helping spur a 13% year-over-year increase in legal sports betting revenue for the first quarter of 2023.
Based on figures released Tuesday by the sports betting and media technology company, Genius slightly outperformed its own projections with $97.2 million in revenue in Q1 that ended March 31.
Adjusted EBITDA for the first quarter came in at $8 million, which was well above the $3 million guidance set by Genius.
The company’s betting technology, content, and services side was a big winner with a reported revenue of $64.7 million, a 30.2% year-over-year increase.
Media and sports technology profits decreased by 10% and 11%, respectively, due to less advertising spending and non-cash consideration contracts.
Expansion and innovation fuel success
Genius Sports’ technology is used by prominent sportsbook operators like FanDuel and DraftKings. Genius said an increased legal sports betting handle from its operators launching in Ohio and Massachusetts markets played a big role in the revenue increase with no direct increase in operating expenses.
Genius also cited higher win rates by sportsbook operators from parlays and stronger in-play margins in the NFL benefited the technology company’s profits.
The NFL in-play technology was up 40% in handle and 100% in gross gaming revenue for the 2022-23 season than the previous year.
Big partnerships equal better days ahead
Genius Sports is partnered with over 400 sports organizations worldwide, including some of the biggest in the U.S. The NFL, NBA, NCAA, and NASCAR work with Genius in media, betting, and sports technology.
Genius uses all three platforms, along with computers, data, machine learning, and augmented reality, to create a connected sports ecosystem.
The technology company’s guidance in Tuesday’s report projects a sharp decrease in revenue to $80 million in Q2, but then it sees an upward tick to nearly $100 in the third quarter and a closing quarter that could put profits around $400 million by the end of the year.
