Genius Sports (GENI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $120.2 million, up 18% year-over-year, surpassing guidance.

• Adjusted EBITDA grew 45% year-over-year to $26 million, with margin expansion to 21%, exceeding guidance.

• Gross margin expanded nearly 950 basis points to 33%, the highest since public listing.

• Net income was $12.5 million, a $24.1 million improvement from a loss in Q3 2023.

• Raised full-year 2024 revenue and Adjusted EBITDA guidance to $511 million and $86 million, reaffirming positive cash flow expectations.

Financial highlights

• Q3 2024 revenue: $120.2 million, up from $101.7 million in Q3 2023.

• Q3 2024 Adjusted EBITDA: $25.7 million, up from $17.7 million in Q3 2023.

• Q3 2024 net income: $12.5 million, compared to a net loss of $11.6 million in Q3 2023.

• Gross profit for Q3 2024 was $40.1 million, up from $24.3 million in Q3 2023.

• Betting Technology, Content & Services revenue rose 30% year-over-year to $85.6 million.

Outlook and guidance

• 2024 revenue guidance raised to $511 million, representing 24% year-over-year growth.

• 2024 Adjusted EBITDA guidance increased to $86 million, up 61% year-over-year.

• Reaffirmed positive cash flow expectations for full year 2024.

• Medium-term expectations: sustained annual revenue growth of 20% and adjusted EBITDA margin target of at least 30%.

• Q4 guidance: nearly 40% revenue growth and 900 basis points of adjusted EBITDA margin expansion.