Genius Sports’ second quarter earnings show a strong move towards profitability, with the data and analytics company’s net loss narrowing 99% to $4.8 million. However, better-than-expected sales growth was marred by a stronger dollar.
Genius posted $71.1 million in revenue, according to results released this morning before the start of trading in New York, up from the consensus of six Wall Street analysts at $65 million and the impact of foreign exchange conversions. , surpassing the company’s latest guidance of $68 million. Currency sale to dollars. The British pound fell 11% against the dollar during the quarter. It used to cost him $1.35 to buy a pound, now it costs him about $1.20. According to the press release, the business would have generated $75 million had the currency remained flat.
“We remain focused on delivering profitable growth and have exceeded expectations throughout the first half of this year. We continue to leverage our partnerships and proprietary technology to deliver strong results and We are building a commercial strategy,” Genius co-founder and CEO Mark Locke said in a release.
Genius has emphasized to investors that it will reduce losses and return to profitable earnings before interest, taxes, depreciation and amortization (EBITDA) by the end of the year. The business appears to be on track toward those goals in the latest quarter, with a net loss of $4.8 million for him, well below her $464 million a year ago. The business also had positive Adjusted EBITDA in the quarter, with Adjusted EBITDA of $8.34 million. Many fast-growing companies look to his EBITDA as a measure of growth. Genius adjusts his EBITDA by adding many items, including stock-based compensation expense and litigation costs.
For the full year, the company confirmed full-year revenue and EBITDA guidance, but assumes the pound-dollar exchange rate will remain at $1.35, the same as at the beginning of the year. Genius says that in such a scenario he would record $340 million in revenue in 2022 and his adjusted EBITDA would be $15 million. Looking forward to 2023, Genius projects that he will have revenues of $430 million to $440 million and an adjusted EBITDA of $40 million to $50 million.
Genius is one of the leading providers of sports data and analytics to sports books and media operators worldwide. The stock is struggling along with the rest of the industry as investors shy away from high costs and mounting losses across the once-frenzy betting stock sector as they enter 2022. Genius’ stock has rebounded more than 75% this month on improved volumes after he bottomed out at $2.25 at the end of June, suggesting market sentiment may be changing. indicates that