The following is a summary of the Genius Sports Limited (GENI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Genius Sports reported a Q3 revenue of $120 million, an 18% year-on-year growth.

• Adjusted EBITDA for the group was $26 million, a 45% increase from the previous year, representing a 400 basis point margin expansion to 21%.

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

• For 2024, revenue guidance raised to $511 million, a 24% year-on-year increase, and adjusted EBITDA guidance to $86 million, up 61%.

Business Progress:

• Extended major sports rights deals through the decade, ensuring fixed cost certainty.

• Agreed on new commercial terms with every major US and many global sportsbook customers, enhancing group revenue.

• Launched FANHub, a fan activation platform to bridge sports and advertising, diversifying revenue streams.

• Expanded BetVision and sportsbook renewals contribute to solid foundations for sustained annual revenue growth.

Opportunities:

• Anticipate benefiting from robust growth drivers supported by a strong sporting calendar.

• Positive trends in the US sports betting market and increased focus on in-play betting as a driving force for future growth.

• Expanded product offerings like FANHub target a broad range of advertisers outside traditional sportsbooks, tapping into a larger digital advertising market.

Risks:

• Despite stable financial metrics, the business faces risks from potential unfavorable sports outcomes impacting bookmakers, which commenced in October.

• Global sportsbook renewal and renegotiation processes embed variability that could influence revenue forecasts if market conditions shift unexpectedly.

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