Genius Sports Revenue Jumps 31% in 2020 as Ad Sales Surge

Brendan Coffey
·2 min read

Sports data and analytics provider Genius Sports’ revenue jumped 30.6% to $149.7 million in 2020, as the business posted double-digit gains in each of its three business segments, according to an earnings release this morning, its first as a publicly traded company.

On a percentage basis, Genius’ media technology, content and services arm enjoyed the biggest gains, as segment revenue surged 94% to $23.1 million for the year. The strength was credited to the acquisition of new customers in the Americas and Europe, primarily for programmatic advertising services– that is, directing ads to targeted consumers. Genius’ core business, betting technology and content, rose more than 25% to $110.6 million for the year, while sports technology and services advanced almost 12% to $16 million in 2020, although sales in that area dipped 2% in the fourth quarter, according to the filing. The business posted a net loss on the year of $30.4 million, narrowing from 2019’s $40.2 million loss through reductions in sales and marketing expenses, and research and development, among other items, according to the financials disclosed by the company.

“We have entered 2021 with great momentum, bolstered by our recently completed merger with dMY II and NYSE listing, as well as our exclusive partnership with the NFL,” said CEO Mark Locke in the release. “I am more confident than ever about the opportunities ahead as we continue to leverage our unique technology and scale to grow alongside the rapidly expanding global sports, betting and media ecosystem.”

The earnings release covers the year ended Dec. 31. Since that time, Genius has secured a six-year agreement with the NFL in exchange for up to 22.5 million warrants vesting over the initial term of the deal. The NFL deal means Genius will serve as the worldwide exclusive distributor of NFL official data to the global sports betting and media markets, as well as live digital video outside the U.S., according to the Form 20-F filed today with the SEC. Genius will also serve as the NFL’s exclusive sports betting and i-gaming advertising partner under the deal.

Additionally, the earnings announcement discloses the company spent about $2.3 million on legal expenses on lawsuits involving Sportradar, BetConstruct and Couchmans Data Services. The report also discloses that Genius restated its accounting for warrants, likely resulting from the SEC’s recent guidance that SPACs should be treating warrants as expenses depending on how the legal agreements for them are structured.

Genius closed its merger with the SPAC dMY Technology II last week, with shares advancing 27% in its first five days as a public entity. Shares were down slightly in early trading Wednesday.

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