The data, technology and broadcast business experienced growth across all its businesses in the period. However, it was its betting arm that witnessed the most significant increase, with revenue rising 26.8%.
Genius put this down to higher customer utilisation of event content and growth in business with existing clients.
The provider also noted that renewed partnerships with a number of major clients will help drive further growth.
In recent months, Genius has extended a partnership with Football DataCo (FDC), which manages data rights for the English Premier League. It has also renewed deals with the National Football League and indoor American football’s XFL.
“We enter H2 having reached a significant inflection point in our business,“ Genius co-founder and CEO Mark Locke said. “Following the financial outperformance in the first half of the year and the recently renewed partnerships with FDC and the NFL, we have validated our core strategy, differentiated our technology stack and proven our sustainable business model.
“The ongoing success through the second quarter perfectly demonstrates our balanced approach in delivering near-term results. It is also accelerating Genius towards long-term growth and profit targets.”
Genius Sports results – growth across all divisions
Group revenue for the three months to 30 June hit $86.8m (£68.1m/€79.0m). This was up from $71.1m in the same quarter last year.
Betting-related business generated $56.9m of Q2 revenue. Elsewhere, media technology, content and services revenue climbed 22.4% to $18.4m, driven by growth in the Americas.
Genius also reported a 3.0% rise in sports technology and services revenue to $11.6m. This, Genius said, was primarily the result of higher revenue from non-cash consideration contracts.
Turning to spending in Q2, cost of revenue edged up 0.7% to $62.2m. However, operating expenses were 33.7% lower at $32.5m mainly due a 39.3% reduction in general and administrative spend.
Genius also noted some finance costs but these were more than offset by a $1.5m gain on foreign currency. As such, finance income reached $907,000 for the quarter.
Net loss widens despite revenue hike
However, amid higher revenue and lower operating costs, pre-tax loss widened from $5.3m to $6.9m. This was due to Genius last year registering a much higher – $30.1m – gain on foreign currency.
The provider paid $4.0m and also noted a $588,000 gain from equity investment. This left a net loss of $10.3m, wider than $4.8m in the previous year. Genius was, however, able to post an 87.2% rise in adjusted EBITDA to $15.7m.
Lower net loss in H1
Switching to Genius Sports’ results for the first half and, while revenue and cost patterns were similar, there was better news for net loss.
Revenue in the six months to 30 June was $184.1m, a 17.2% increase from 2022’s H1 figure. Of this total, $121.6m came from betting activity, up 28.6% year-on-year.
Elsewhere, revenue from the media business edged up 2.5% to $40.1m, but sports revenue fell 4.3% to $22.4m.
Revenue costs were 8.2% lower at $149.9m while operating expenses fell 31.7% to $65.5m. Finance expenses amounted to $852,000, in contrast to a $59.8m gain in 2022 due to higher foreign currency gain.
Genius paid $4.6m and also drew $857,000 from equity investment. As such, net loss was $35.5m, but this was lower than $45.0m in 2022 despite last year’s foreign currency gain impact.
The provider also reported a 333.2% year-on-year increase in adjusted EBITDA to $23.7m.
Such was the impact of growth in H1, Genius has raised guidance for the full year. For the 12 months to 31 December, revenue is now expected to hit $410.0m and adjusted EBITDA $52.0m. This is higher than previous guidance of $400.0m and $49.0m, respectively.