Genius Sports Limited (GENI) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call showed strong financial performance with a 20% increase in group revenue and a tripling of adjusted EBITDA. The positive net cash flow and the share repurchase program are favorable indicators. Despite some concerns in the Q&A, such as unclear impacts of NCAA and predictive markets, the guidance for 2025 remains strong with expected revenue and EBITDA growth. The market cap suggests moderate sensitivity to these factors. Overall, the positive financials and strategic initiatives indicate a positive stock price movement.
Key Financial Performance
Group Revenue $144 million, up 20% year-on-year. Growth driven by the betting business, which increased 44% year-on-year to $107 million due to successful contract renewals, higher pricing, and increased in-play betting.
Group Adjusted EBITDA $20 million, nearly tripling from $7 million last year. This reflects an incremental margin of 53% and 800 basis points of year-on-year margin expansion to 14%.
Betting Revenue $107 million, up 44% year-on-year. Growth attributed to successful contract renewals, higher pricing, and increased in-play betting.
Revenue Share Agreements Increased 65% year-on-year, marking the highest growth rate since winning the NFL four years ago.
Contractual Minimums Revenue Increased by 36% year-on-year, marking one of the strongest quarters in the last four years.
Sports Tech Revenue Increased 12% year-on-year, driven by innovative products built on GeniusIQ technology.
Media Revenue $26 million, down from $35 million last year. The previous year had a high comparison due to a 63% increase in Q1 2024.
Gross Margins Increased from 11% last year to 24% this year.
Group Adjusted EBITDA Margins Increased from 6% last year to 14% this year.
Cash Flow Expected to be positive and meaningfully higher than cash net inflow in 2024.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Product Launches: Genius Sports launched several new products including Performance Studio, a tool for coaches to review match moments in 3D, and expanded BetVision for soccer, enhancing fan engagement.
Technology Solutions: GeniusIQ, a next-generation AI platform, is being expanded to unlock opportunities in broadcast, augmented advertising, and coaching insights.
NCAA Partnership Expansion: Genius Sports expanded its NCAA partnership through 2032, securing exclusive data rights for March Madness and all post-season tournaments at no out-of-pocket cost.
Revenue Growth: Group revenue increased by 20% year-on-year to $144 million, with adjusted EBITDA nearly tripling to $20 million.
Cost Control: Gross margins more than doubled from 11% to 24%, and adjusted EBITDA margins increased from 6% to 14%.
Share Repurchase Program: Genius Sports announced a share repurchase program of up to $100 million as part of its capital allocation strategy.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Issues: The company acknowledges potential risks associated with regulatory changes in the sports betting industry, which could impact operations and revenue.
Competitive Pressures: Genius Sports faces competitive pressures from other technology providers and sportsbooks, which may affect market share and pricing strategies.
Supply Chain Challenges: There are concerns regarding supply chain challenges that could impact the timely delivery of technology solutions and products.
Economic Factors: The company notes that while it is largely unaffected by current macroeconomic conditions, there is still a risk of economic downturns affecting consumer spending in the sports betting sector.
Market Volatility: Genius Sports is exposed to market volatility, particularly in global trade, which could impact financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
NCAA Partnership Expansion: Genius Sports expanded its NCAA partnership through 2032, securing exclusive data rights for March Madness and all post-season tournaments at no out-of-pocket cost.
Product Launches: Launched several new products including SAOT for the English Premier League and Performance Studio for teams, enhancing technology distribution and engagement.
GeniusIQ Technology: GeniusIQ technology is central to new product offerings and is expected to drive future revenue growth and enhance fan experiences.
FanHub Platform: The FanHub platform is gaining traction with new customers and is expected to create significant opportunities in sports advertising.
Share Repurchase Program: Authorized a share repurchase program of up to $100 million as part of capital allocation strategy.
Revenue Guidance: Expecting at least $620 million in group revenue for 2025, representing 21% growth.
EBITDA Guidance: Expecting $125 million in group adjusted EBITDA for 2025, with a margin expansion to 20%.
Cash Flow Outlook: Expecting positive cash flow in 2025, significantly higher than 2024.
Market Resilience: Confident in the resilience of online sports betting amid macroeconomic conditions.
Long-term EBITDA Margin Target: Aiming for at least 30% group adjusted EBITDA margin in the long term.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: Genius Sports announced the authorization of a share repurchase program up to $100 million. This program is part of their capital allocation strategy, which primarily focuses on tech investment and M&A, while also providing a tool for delivering strong shareholder returns.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What are the top priorities with ample cash on the balance sheet?
A:We're expecting decent positive cash flow this year. Our priorities in capital allocation include spending on R&D and software development, focusing on M&A carefully, and share buybacks for flexibility.
Q:Can you talk about the balance between your need to grow revenue and potential limitations on your data due to NCAA restrictions?
A:We see this as symbiotic; responsible gaming is key. The NCAA deal allows for visibility on data use and protects sports integrity, which benefits the industry.
Q:How much of the decline in ad tech revenue was expected versus softer spend?
A:The decline was broadly in line with expectations, influenced by timing of media spend and tough comparisons from the previous year.
Q:Can you discuss the monetization of BetVision technology beyond existing relationships?
A:BetVision's launch for soccer is significant, with high volume and margin potential. We're seeing growth in in-play betting and expect it to drive future growth.
Q:What is the guidance for media growth and how does it relate to existing contracts?
A:The guidance is primarily based on managed programmatic services from sportsbooks, with minimal contribution from FanHub expected this year.
Q:Can you talk about the opportunity sets of BetVision in the U.S. versus Europe?
A:In the U.S., BetVision enhances in-play betting; in Europe, it's about innovation and new bet types, leveraging real-time data.
Q:What does the NCAA deal mean for future contracts with college leagues?
A:We can't comment on individual conferences, but our technology is already in use across many leagues, positioning us well for future opportunities.
Q:How do you view predictive markets in relation to your business?
A:We see predictive markets as an opportunity for additional products and partnerships, but regulation will play a key role in their development.
Q:What is the status of sportsbook renegotiations?
A:Renegotiations are ongoing, with no major U.S. deals expected this fall, but international sportsbooks will be renegotiated in 2025.
Q:How is the cash flow expected to change in 2025?
A:We're expecting significant operating cash flow in 2025, with seasonal patterns similar to 2024, influenced by working capital timing.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the specific financial impact of the NCAA deal for 2025, stating that most monetization would occur in 2026. Additionally, there was a lack of clarity on the exact impact of predictive markets on their business.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI platform
Ben Miller
BetVision FanHub
BetVision advertising
FanHub platform
GeniusIQ technology
NCAA example
Slide
achievement
brand
broadcast advertising
capital allocation
component
context
detail
expansion BetVision
flywheel effect
generation
group basis
group margin
league team
league technology
mind
outlook
pocket cost
program capital
quarter
repurchase program
soccer expansion
solution NCAA
sport soccer
technology SAOT
technology agreement
technology solution
topic
update
GENI Transcript
Genius Sports Limited (GENI) Q3 2025 Earnings Call Transcript
Positive11-4
The earnings call summary and Q&A indicate several positive developments, including raised full-year guidance, strong media and betting revenue growth, and margin expansion. The NFL partnership extension and exclusive European soccer rights are strategic wins. Analysts' questions reveal optimism, with management addressing potential risks effectively. The company's focus on high-margin products and successful ad inventory creation further support a positive outlook. The market cap suggests moderate volatility, aligning with a 2-8% stock price increase prediction.
Genius Sports Limited (GENI) Presents At Goldman Sachs Communicopia + Technology Conference 2025 Transcript
Neutral9-8
Genius Sports Limited (GENI) Presents At Citi's 2025 Global Technology, Media And Telecommunications Conference Transcript
Neutral9-5
Genius Sports Limited (GENI) Q2 2025 Earnings Call Transcript
Positive8-6
The earnings call summary and Q&A highlight strong financial performance, strategic partnerships, and optimistic future guidance. Key points include the NCAA partnership, new product launches, and a $100 million share repurchase program. Despite some vague responses, the overall sentiment is positive, with expected revenue growth and EBITDA margin expansion. The company's market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
GENI Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
