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Genius Sports Limited (GENI)
NYSE:GENI
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Genius Sports Limited
(NYSE:GENI)
55Neutral
Positive Factors
Contract Renewals
The company's U.S. business saw 51% revenue growth, which benefited from contract renewals despite a challenging NFL betting market.
Financial Performance
Genius Sports delivered another strong quarter, exceeding revenue and AEBITDA guidance, while generating positive free cash flow.
Strategic Positioning
The company’s strong balance sheet with $280M in pro-forma cash provides flexibility for strategic investments and opportunistic acquisitions.
Negative Factors
Market Risks
The biggest risk to estimates is Media Tech getting back on track following the difficult comparison with growth from the core sportsbooks customers.
Genius Sports Limited (GENI) vs. S&P 500 (SPY)
Market Cap
$2.28B
Dividend YieldN/A
Average Volume (3M)2.84M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth18.25%
EPS Growth62.73%
CountryUS
Employees2,300
SectorCommunication Services
Sector Strength79
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-0.28
Shares Outstanding228,769,930
10 Day Avg. Volume4,462,296
30 Day Avg. Volume2,836,420
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.47
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.25Price Target Upside32.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Genius Sports Limited Business Overview & Revenue Model
Company DescriptionGenius Sports Limited (GENI) is a leading provider of sports data and technology solutions, serving the global sports ecosystem. The company operates primarily in the sports entertainment, sports betting, and media sectors. Its core products and services include real-time sports data collection, data analytics, and technology solutions that enhance fan engagement, and integrity services. Genius Sports collaborates with sports leagues, teams, media companies, and sportsbooks to deliver accurate and timely data and insights.
How the Company Makes MoneyGenius Sports Limited generates revenue through several key streams. A significant portion of its income comes from providing official sports data to sportsbooks, enabling them to offer accurate and real-time betting opportunities. The company also earns from licensing its data and technology solutions to sports leagues and federations, which use Genius Sports' data for enhancing game management and fan engagement. Additionally, the company partners with media organizations to distribute sports content, further expanding its revenue base. Significant partnerships with major sports leagues and organizations, such as the NFL, contribute to its earnings by securing exclusive data rights and offering value-added services.
Genius Sports Limited Financial Statement Overview
Summary
Genius Sports Limited shows strong revenue growth but continues to face challenges with persistent losses and negative free cash flow. The company maintains a low debt profile, which is positive, but must improve profitability and cash flow to enhance financial stability.Income Statement
Genius Sports Limited has shown significant revenue growth, with a 12% increase in the TTM compared to the previous year. However, the company continues to operate at a loss, with negative EBIT and net income margins. The gross profit margin improved to 19.8% in the TTM, but the company still struggles with profitability.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position, with a debt-to-equity ratio of 0.01 in the TTM, indicating low reliance on debt financing. However, the company's equity ratio decreased slightly, indicating a potential risk if liabilities increase. The return on equity remains negative due to ongoing losses.50
Neutral
Cash Flow
Cash flow from operations improved, but the company still reports negative free cash flow, indicating cash outflows exceed inflows. The operating cash flow to net income ratio is positive, showing some ability to generate cash despite losses, but capital expenditures remain high.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 462.54M | 412.98M | 341.03M | 262.74M | 149.74M | 114.62M | Gross Profit |
| 91.51M | 69.00M | 2.86M | -213.43M | 35.67M | 25.31M | EBIT |
| -84.52M | -74.16M | -181.20M | -573.29M | -20.07M | -35.18M | EBITDA |
| -6.41M | 5.64M | -106.37M | -540.96M | 14.92M | -10.53M | Net Income Common Stockholders |
| -73.28M | -85.53M | -184.99M | -592.75M | -30.35M | -40.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.23M | 100.33M | 122.72M | 222.38M | 11.78M | 8.23M | Total Assets |
| 375.30M | 775.72M | 773.34M | 887.08M | 391.00M | 375.30M | Total Debt |
| 73.19M | 14.70M | 21.24M | 88.00K | 93.00M | 73.19M | Net Debt |
| 64.96M | -85.63M | -101.48M | -222.29M | 81.21M | 64.96M | Total Liabilities |
| 137.85M | 202.71M | 196.52M | 180.91M | 530.43M | 456.66M | Stockholders Equity |
| 237.44M | 573.02M | 576.82M | 706.18M | -139.43M | -81.36M |
| Cash Flow | Free Cash Flow | ||||
| -41.72M | -34.27M | -51.01M | -96.67M | -1.70M | -21.76M | Operating Cash Flow |
| 19.25M | 14.88M | -3.46M | -63.31M | 17.07M | 2.49M | Investing Cash Flow |
| -59.44M | -47.57M | -54.82M | -132.32M | -22.66M | -24.62M | Financing Cash Flow |
| -7.60M | -596.00K | -21.00K | 410.36M | 10.10M | 6.93M |
Genius Sports Limited Technical Analysis
Positive
9.22
Price Trends
9.02
Positive
8.76
Positive
7.66
Positive
Market Momentum
0.08
Negative
53.05
Neutral
74.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GENI, the sentiment is Positive. The current price of 9.22 is above the 20-day moving average (MA) of 9.21, above the 50-day MA of 9.02, and above the 200-day MA of 7.66, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 74.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GENI.
Genius Sports Limited Risk Analysis
Genius Sports Limited disclosed 54 risk factors in its most recent earnings report. Genius Sports Limited reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Genius Sports Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.00B | 94.64 | 6.93% | ― | 28.50% | ― | |
60 Neutral | $8.06B | 19.71 | 42.87% | 0.37% | 11.07% | 3.32% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
57 Neutral | $34.14B | ― | -54.81% | ― | 30.07% | 39.93% | |
55 Neutral | $2.28B | ― | -11.01% | ― | 18.25% | 62.73% | |
45 Neutral | $1.06B | ― | -70.72% | ― | 18.61% | 49.61% | |
41 Neutral | $81.11M | ― | 229.13% | ― | -1.20% | 92.72% |
* Communication Services Sector Average
Performance Comparison
GENI
Genius Sports Limited
9.39
3.37
55.98%
CHDN
Churchill Downs
108.60
-4.64
-4.10%
FUBO
fuboTV
3.09
1.48
91.93%
DKNG
DraftKings
38.66
-3.58
-8.48%
GAN
GAN
1.77
0.47
36.15%
SRAD
Sportradar Group AG
20.13
9.84
95.63%
Genius Sports Limited Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 10.82% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record revenue growth, positive cash flow, and successful product innovations. However, some challenges were noted with bookmaker win margins and lower-than-expected media segment growth.Highlights
Record Revenue Growth
Genius Sports reported a year-on-year group revenue growth of 38% in Q4 to $176 million, bringing the full year group revenue to $511 million, representing a 24% growth, exceeding the initial guidance of $480 million.
Strong EBITDA Performance
Group adjusted EBITDA increased by over 2.5x year-on-year to $32 million in Q4, bringing the full year EBITDA to $86 million, in line with guidance and well above expectations.
Positive Cash Flow Achieved
2024 marked the first year of positive net cash flow with $82 million in operating cash flow, increasing more than 5x from $15 million in 2023, resulting in a year-end net cash balance of $135 million.
Betting Business Growth
Betting revenue grew by 48% year-on-year in Q4, driven by contract renewals and strong momentum of in-play betting, making it the strongest quarter of growth since Q4 2021.
Successful U.S. Expansion
Total U.S. revenue increased by 51% year-on-year due to successful contract renewals with every major sportsbook, demonstrating strong commercial capabilities.
Innovative Product Development
Introduction and expansion of BetVision, which saw significant growth in viewership and engagement, with plans to introduce it to soccer and basketball.
Lowlights
Pressure on Bookmaker Win Margins
Despite overall positive results, there was pressure on bookmaker win margins during the NFL season, impacting some financial metrics.
Media Segment Growth Lagging
Media revenue growth was 4% in Q4, below expectations, though it achieved 15% growth for the full year.
Company Guidance
During the Genius Sports Fourth Quarter 2024 Earnings Call, the company provided a robust guidance for 2025, projecting a group revenue of $620 million and a group adjusted EBITDA of $125 million, marking a year-on-year increase of 20% and 46% respectively. The guidance indicates an expansion in EBITDA margin to 20%, alongside increasingly positive cash flow. In 2024, Genius Sports achieved a 24% increase in full-year group revenue to $511 million and a 2.5x rise in Q4 adjusted EBITDA to $32 million, contributing to a full-year total of $86 million. The company also reported its first year of positive net cash flow, generating $82 million in operating cash flow, a substantial increase from $15 million in 2023, leading to a year-end net cash balance of $135 million. This financial performance was driven by a 48% year-on-year increase in betting revenue in Q4 and a strong performance in the U.S. market, where revenue grew by 51%. The company highlighted the success of BetVision, which saw significant engagement, with in-play betting representing 76% of the total handle through the platform. Looking forward, Genius Sports plans to expand BetVision to other sports globally, aiming for launches in soccer and basketball in 2025, further enhancing their competitive differentiation and growth potential.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.