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Genius Sports has raised its full-year financial expectations for 2021 after revealing peak Q2 trading, which saw the sportstech company’s revenues quadruple to $59 million (Q2 2020: $27 million).
Genius disclosed double and triple-digit Q2 sales performance across its major business areas in its first H1 Interim results as a NYSE company.
Genius’ flagship Betting Technology subsidiary had a 144 percent increase in revenues to $41 million in Q2 2020 (Q2 2020: $18 million).
Benefiting from a normalised global athletic calendar, new customer wins, and current sportsbook clients activating new wagering services were all factors in the unit’s strong increase.
The acquisitions of Sportzcast and Second Spectrum in H1 enabled the Genius SportsTech segment generate record revenues of $7.2 million, up 105 percent from the $3.5 million in Q2 2020.
Meanwhile, revenues for Genius’ Media and Content services climbed by 62 percent to $8 million, owing mostly to increased advertising expenditure by US and European clients.
Mark Locke, CEO of Genius Sports said: “We’re enormously proud of our continued execution in the second quarter and our ability to implement our end-to-end solutions on behalf of our industry partners.”
According to year-to-date expectations, Genius H1 revenues are $110 million, up 76 percent from $62 million in 2020, as the company raises revenue projections for 2021 to $255-$260 million.
Genius’ H1 EBITDA was $14.5 million (H1 2020: $4 million), allowing the company to stick to its profitability projection of £10-20 million for 2021.
Major increase in US market prospects
With multi-year strategic collaborations with DraftKings, Caesars, WynnBET, and 888 SI Sportsbook, Genius cites a major increase in its US market prospects as it enters H2 trading.
Genius board revealed that its completed NYSE IPO allowed the company raise $435 million in primary and secondary proceeds, which will be used for general corporate objectives, as part of its US growth strategy.
Locke continued: “We continue to significantly expand our leading portfolio of official rights by partnering with sports leagues and federations in key regions across the globe.
“Our comprehensive suite of premium content, technology services and fan engagement solutions have strengthened our commercial partnerships. Our recently announced NFL-related agreements with sportsbook operators have validated our strategy and instilled confidence in our ability to deliver results at the high end of our previous guidance for the year.”