GENI - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, welcome to the Genius Sports Q1 Results 2021 Conference Call. Throughout the call, all participants will be in a listen-only mode and afterwards there will be a question-and-answer session. [Operator Instructions] Today, I am pleased to present Mark Locke, CEO and Nick Taylor, CFO. Please go ahead with your call.

Nicholas Taylor

Good morning, everyone.

cause like call you that historical may to that we'd made certain are results begin, to risks this results forecasts. during constitute could or we from to from that remind statements subject differ our Before materially actual our our forward-looking statements forward-looking responsibility We assume statements. no for updating last Form statements such earnings in with and factor risk considered SEC, release our the cautionary filings on with Any conjunction be annual including our discussions XX-F. should our statements report in in

call, Genius's the to discuss not at non-GAAP These directly A measures most During I'll results these With or will reconciliation presentation, comparable management earnings release certain measures financial website in be of should Genius's available now isolation is the prepared Locke. measures can also over GAAP. and non-GAAP may believe our investor.geniussports.com. accordance GAAP as which on press useful to earnings our Mark that for US in a be call measures operating we considered that, turn in found in US substitute evaluating performance. be the with

Mark Locke

you. Thanks want gratitude morning. clients, start company. call public as extending for I investors, and moment, advisors, first customers, employees. welcome contributed joining. thank a our our Good to my to who's We to earnings our everyone by this to And to course, of

that powers ecosystem our believe in global core mission technology of the all partner official connects You and the sports, being that media. betting data,

our and towards And potential you quarterly I'm us and forward to investors, enabled for targets. to us And activities to using have these progress on to you welcome get earnings looking long-term today. new thank to point. this joining our update You business

the our to sports built the history, diving of of opportunity distribution, across data Before our a to at depend federations, the ecosystem sports technology to of platform and betting and our collection in Genius business ultimately results, and are overview long that the we monetize the Over of media. the sports, By growth us. is ahead partners market. brands heart like sports positioned fans. connects with start with uniquely brief and I'd betting a proprietary and we on on globe, hundreds and positioned that well media operators leagues capitalize streamline the partnering sportsbook engage audiences sports into

market While of presents boundaries our to growing the sports opportunity alone. betting sports monetize our sports fans stems best fast far beyond betting vision today, the

of media building audience tomorrow, long multitude over our sports, the focused partners enables As merchandising or and on to that a tech converge monetize platform others. ticketing, through betting betting, of the world we their whether ways are term, a in

Our to data the to partnerships deeply position as and integrated our solutions and services grow best us added in value and expand puts continue evolves. industry technology the

on quarter, to to Before like long-term the we would we reiterate our move financial targets.

our XX% million, ‘XX call. detail more revenues $X.X more the we a to in on of over our XXX% economics adjusted With continue proud I'll have the the $XX margin you grew customers share significant revenue. our reflecting target model. to adding are takeaways before. nearly later to and year-over-year, unit and enormous us, quickly the to before we key we In our ahead into to performance from on quarter towards moment, X% gaming behind with than ever the capitalize steps EBITDA by quarter are opportunity that to value in We momentum on strong we six XX%, term that, taken long EBITDA and And revenue first long-term strong we billion. march of the industry we a of a target of growth And on quarter, the underlying the by accelerate the dive the of touch us. are of fantastic

are and and NFL structure sports, potential. the sports a in of in that We have the the preeminent completely This its its is pleased industry. media exclusive to is for in innovative with across leading an our revolutionary betting capabilities partnership world league intent announced strategic major agreement and six-year entire very statement combines our for

and We and and companies, two our both complementary acquired technology our Spectrum highly and core scale These will strengthen strategic distribution. also innovative FanHub. Second acquisitions from offering benefit

full Given year following a from where of previously. to market performance million, the the $XXX guidance transactions, to we are revising the and the underlying aforementioned business, range $XXX XXXX to roughly of guided strong million key we to XX% revenue up XX% our

to new as thrilled David we're Lastly, our Levy welcome Chairman.

oversaw During of sports many position. he strong is in with track premium his content. working of of portfolio XX-year Turner, and incredible the our tenure appointment names leading another and David’s record media, his biggest statement his ambition at With

on continuing So execute has to far, XXXX long-held all our been about strategy.

One is of data. our steadfast important most differentiating official commitment our to factors

new are information is this the been sports federation. the the source facts has to live of For sanctioned that approved directly and sports and those you or league space, who by of relevant

with official sports more data proactively becoming increasingly industry, and engage the more betting is As valuable.

our Japanese data exclusive. growth number under XXX,XXX of Additionally, events such which more the decade portfolio series adding is include others. our operators to a as them Rugby by grown puts very official the betting NFL, that built regulated live and worldwide markets thrilling place means after year-on-year are League MLB, not tremendous trend. us accuracy up speed official of reporting of period. amongst value premium events added our this over rights, The of scale a the was We've sportsbook top portfolio from included Major data. growing does at content, the of the and of portfolio, rapidly This XX% and than forefront XXX,XXX This of which tier Basketball to on rapid to

federations. As we and acquire approach leagues rights that unique partnerships a many of with of is large our know, our sports you and contra through proportion

every engagement and the sports fan drive In new our efficiencies. the value quarter, solutions to demonstrated technology. we've at increase supported our have technology create level help first data revenues, leading of them with We that

advanced game, and that their [ph] capturing LiveStats the March Our more. statistics technology broadcasts, team courtside and NCAA's websites was Madness player every powered

seen have broadcast end Sports the logo throughout may of tournament. our at every You Genius the

also that launched our Hockey will greatly Ice We providing with valuable solution, a in strengthen across our sport. tool negotiations hand LiveStats leagues this

media accelerate. also Our operations continue [ph] to

us with data, ecosystem. understanding live sports personalized for platform unique of Our offer Ad and of solutions control the to Tech and our sports betting coupled audience, of and exclusive entire our enables suite sports ownership the

the FanDuel, where personalized, in states targeted first announced run ads with new partnership marketing During operate. to quarter, we a they

MLB our solutions marketing continue ticket to and using our the the its leagues to sales expanding We are also digital drive partnership for with clubs.

advertising deals partnerships operations, sports media and inventory, platforms. new Our supercharging huge grow globally, their including to and And presence Parimatch, across the quarter, Cyanide through [ph] represent all our betting operated winning we will we owned [indiscernible] to NFL WynnBET, NFL with digital sports our continue betting Microgame. clients, as [ph]

popular our existing the MLB, execution NASCAR competitions. premium allows participate provide better This and in off with of most content the to upside legalized to proud ever NFL, the us rapidly place on official and the NBA, date in than capitalize we allows US the to have of partnership The us business model expanding long-term We've market. the are our more. position building a agreements US exclusive with on to established market. We a betting

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our global through betting the live advertising delivered Genius driven, are driven sports in sportsbooks understanding devoting publishing its the scale Lastly, our significant unique and United bidding comprehensive fan understanding advertising and of behavior acquire time data customers fan a large to live platform, technology space. a that and else offer audience enabling unique which advertising with data, engagement us to solutions of has the allow and States. campaigns, solutions data events, Genius monetize spend market, no sportsbook engagement cost-effective, fans, marketing access to that for can. official targeted and combines that sports are offer us one to uses real data, to

publishers, the year, starting In This NFL, which and in we that with innovative partnership retention many an personalized of content a that deliver compensated NFL technology which earlier, a customers. exclusive I KPIs. partners, signed data also acquisition is a strategic of target Genius to drives media right and and These partnership. which next through interests aligns pacing, costs. to of combination fully sportsbooks solutions I previously go with its I This the our our widgets, campaign content more As with live detail fan examples influence our as engagement based the we few their us performance at mentioned, fan criteria uses and example, on our slides, in to our digital about featuring the are and cases, statistics revolutionary game completely the sources few the behalf betting allows transactions all engagement model, proprietary time In six-year potential. partners. audience real just time. into that operator partnership optimizes an structure is in said right a offer sportsbook will the of key Genius related its the develops customer

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services. and existing value step added portfolio, in new expect of official as well our appreciate us to rights customers showcase value as unique change allowing our We and to the data broad

Our sold are a suite of and as package. products services

our the the So of of the massively addition value overall increases NFL offering.

in increase League wallet. and us customers, sportsbook the share allowed to more with deal English to take sell Our greater our our a of pricing Premier XXXX

the this in the Genius and manner allows This single our area. makes do both its develop NFL with puts in We expect to in products the the is through its through and by data to deal Genius the Genius customer ability NFL betting of the unique technology. the wide to accessing because the to media in unique Concurrently, and unique is we In NFL fans exclusive offer. would particular, driver partnership will which season, to more. a valuable of the of of This in to maximize us NFL proprietary services range else acquisition than the position largest more through to the deal in it. a earn acquire US. relationship engage NFL that US differentiated Genius advertising next-generation we cost-effective customers it marketing this exclusive anyone work and ways value be can to multitude access to monetize the data of spend

to if ecosystem. and the continue this our levels of the two of pathway has technology this Spectrum been can our recent at a our This I'd to these complementary call, to of Second they innovate data, our acquisitions with partners. give new do few both how to to and technology acquisition targets. Second start content services to provide and highly through media As Spectrum. and central FanHub, short betting the businesses. overview is mission a take we long-term and only you I Starting provide accelerate sports like entire minutes We and mentioned innovative

offering will an our data solutions the They with technology create tracking, tracking most sports, and Spectrum data for advanced highly end-to-end and us NBA, with League augmentation betting Second English and official media video world's innovative Premier partnerships is analytics partners. the provide MLS. that data help provider,

data experiences and Their broadcasters products has future. fan also several Bally major best-in-class one. learning of to and power Spectrum our companies, will betting with technology media BT and accelerates Second Sport acquisition The media partnerships marketing our plans including engagement fan into betting, bring and the together help established team, streaming, converge and artificial ESPN, intelligence Sports. to machine vision, solutions the computer sports

occasion of acquisition record acquisition at hundreds aligns leading has monetization This quarter, leader’s and growth of will FanHub turn Spectrum, relationships each expands love major that our media Our create create and our strategic our offering to and second partners screens, delivering proven products technology announce engagement provider be sponsors. engagement, across now for new market. digital in entire free-to-play with key opportunities. goals FanHub. fully assets our fans sponsorable of betting Free-to-play will I'll fan the a In solutions digital derive the of solutions. become value Spectrum. essential for and were future thrilled games to track turn worldwide Like their which unlock deliver fan demonstrable free-to-play significant greater to integrated Second enhance will with across we sports, ecosystem. FanHub's also increasing allowing addressable and third Second long-term FanHub, of and first and leading will

to and pre-existing millions gaining revenue set acquire an Sports engaged Tier in early with works largest [ph] of base a the opportunity companies advantage Genius deepening the PointsBet. clients, fan identified Betway ecosystem, MLB, part MLS, technology market and is their As the client with across highly NFL, already X the and partners, FanHub suite media and some Second to of progress guidance. push walk mover customers, and for examples partnership the of and value in to including it user the updating clients, that, you will disciplined Direct its to Nick Genius FanHub towards opportunities Sports engagement product a further With relevance services. the leader, our high generate we us sponsors over our into Spectrum and we through as revised priority to synergies acquisition network them quarterly significant growth And will are I for their and strategy. and forward integrate our look excellent distribution financials turn FanHub's offering. on

Nicholas Taylor

such public Mark. balanced group growth joining company $XX.X our of The Thanks, year-on-year well company a to earnings business on all our across delivered growth you increasing increased with life across significantly. all to leaders. areas business. and one And delighted us revenue as for the segmental start each with momentum performance segment Quarter XX% thank great all million, We're first call.

year-on-year, XX% acquisition, million. Technology, in increase in services driven growth Content combination to $XX QX. markets, Europe of Firstly, escalators in and underlying more and as to technology customers. Services Content reactivate revenue in advertising existing additional to betting to of driven million increased This US Betting new from year-on-year price than sportsbooks. by doubled growth as This acquire share The was sportsbook continued well our a growth by Services the spend our the growth and in looking was major revenue $X.X and customer wallet through contracts, increasing

to increased sports Sports to Services Group Lastly, XXX% tiers over growth leverage to through $X.X services which all customers and by and drop across our Technology strong inherently disciplined the to result existing million, revenue sport. driven control, provided year-over-year operating allows and adjusted to federation of grew robust million. also expanded EBITDA league our XX% cost revenue primarily of $X.X The EBITDA. adjusted

of $XXX QX $XXX this performance, [ph] to key business our XXXX announcements, million. in right our growth to you year de-SPAC continued guidance of our back strong increase, our $XXX well The drivers communicated as our the segments, as performance million at time official to across underlying a with balanced revenue range underlying increase new to our of are and full the for On portfolio. recent well strong all delighted the million from revenue we

steaming is as rights, and $XXX for the of led this media end rest underlying this to the global official pace revenue more world, mission-critical we our the a business the significant range million of will range sports than in with acquisition well we're continues to factors the events These position in under betting of strategy. have to and expected growth or rights, our at high the the organic ecosystem. $XXX Drivers XXX,XXX on to of and exclusive drive year. NFL NFL XXX,XXX determine million US over of Together as that are exclusive. low ahead which an As XX, March the depend of the of continued whether growth go-to-market global have will

season. updated As the calendar guidance the four our our which year, a view only includes NFL the months XXXX reminder, first of of reflects

over in calendar expect We carry current outlook. not revenue which related our of year included to NFL is gaming XXXX quarter the into first

we Second As to the mentioned, welcome Mark thrilled family. are to FanHub and Spectrum Genius

during generate our underlying be guidance to just from And to both the forecast XXXX strong, underlying EBITDA which in $X synergies to anticipate For continues performance. QX, these to acquisitions The revenue in million to updating $XX we as to a of million. estimate we to acquisitions, is we to of contribute And and approximately to business predominantly with standalone $XX the which EBITDA year. adjusted million estimate FanHub compared XXXX revenue any are contribution before organic to range previous This On $XX of from discussed we EBITDA Second for of this de-SPAC. expected for close We're last QX we a million our from also $XX $XX $XX business basis, the $XX annualized million. onwards. this revenue will we've our million Spectrum. million range our generate when the million our communicated expect in guidance

of items. number Our new guidance includes also updated EBITDA a

level to acquisition, adjusted as can relation EBITDA expecting both Second an we're Spectrum be Firstly, and to the at see, FanHub profitable XXXX. you in marginally in

The a guidance legal, company, costs. which principally have we the in previous be will excluded you being are public US aware, professional incremental a million of costs items governance main which $XX impact and of XXXX. As to estimate our

significant new sheet is to advantage strength support Additionally, of our a our investments. balance and flexibility opportunistic de-SPAC

$XX As following the XXXX, leading is ahead three next strengthen the part feel of order and to strength, payback us of close to this years. these revenue towards this, streaming over invest we market where capital the portfolio. And in anticipate million appropriate. curve allows our strong meaningful rights drive will capturing the of de-SPAC five principally discretionary of investments in This long-term to revenue investments we contribution

capital on separately, significant time growth it visibility, therefore so something will these better like-for-like of a underlying included wanted I discretionary this much arises, a can was increased out return. when de-SPAC where guidance opportunities. is investments time Our our shareholder us called to puts basis. in of to in you compare types to as and These do provide the We've advantage believe we position business original from of we take and the performance opportunity there not

to discussions type all does to it they and become business. cash our of that of we financial and this to relation partnership that net NFL the business impact as close recent $XX two the of early core XXst, on To million. it been, September position. the of reiterate the our our is will more approximately partnership with very [ph] numbers, at the our at financial reflect through combination, effects will in our stages traditionally likely pro NFL than from in our heart due of partnership, January. position That to want touch the acquisitions, customers I Following running March of quickly our are the fixtures forma have the we very encompassing impacts NFL, seasonal particularly in NFL revenues as the organic our we quarterly start, said, want seem is

that basis, QX this US Bowl our sport. which and particularly revenues will Looking Madness, major QX. anticipate QX. in had with at anticipating QX then growth for We QX significant our in and quieter continued Super QX revenue in impact, is a quarterly a is contained on am both March I of quarter on of be this line because year, that a quarterly position group's predominately QX

January and the the from seasonality cost the to aspects year consideration We we NFL finalize cash each year, to to of six the recognizing to this accounting of revenues. anticipate deal. currently season will element continued the recognize mirroring only, the therefore September NFL side, through various paid our On of during NFL start the the

incur non-cash in In to also equity element agreement, Genius. cost a NFL's relates it will to cash of we ownership as the charge, the the addition

over warrant Officer, our purposes, accounting For by XXXX Commercial and QX prepared the their Davison and Chief of answer we share we that, With presentation. Engagement, period be a Jack Mark NFL Commercial Josh earnings will as Linforth vesting to remarks issued based of any the payment. Director joined I recognize Media questions. will these conclude to

Operator

First Instructions] the of comes [Operator question Oppenheimer. from with go ahead. line Kelly Jed Please

Jed Kelly

to call. And Hey, great. my Thanks taking earnings for congratulations your first on questions. getting

So where, And that is just guess And I major Mark, streaming sportsbooks. on your seems rights. is. NFL of with lot focus flexibility they've thing just been holders their signed the touching deal, to on also because the one a given of the sponsorships NFL, that's lot three since a be where interesting rights has the

of in how benefits - - from can you more betting talk potentially years, some seen about could So think two Thursday you cast rights. put you with how streaming? Genius on we've on Night And your content how can going Amazon I benefit, know, their some a of the

So can how you with leveraging NFL? you're talk the opportunity streaming the about

Mark Locke

Sure.

time. the And I much all is our I'll and talk of streaming engagement betting more are converging very So frankly sports mean, view that fan generally. and world over

up And how this sort of of large on portfolio at So Second around basis. logic on at continues a long lot betting those to comes betting to the was with term how product together. look operators take grow, strategies, looking this When to Spectrum continues we we've and you as offer streaming of our and on reasonably as the of the long that rights. to we're are view built part streaming works and know, putting streaming a really to acquisition sports term service rights a side technology through that a that the innovations evolve coming industry the together the

drive that of around put sports other data, access is acquisition, Betway whereby The targeted really to the lot engagement, [ph] them, really us part convergence for it, means that the a front the this can of in and allows fan offerings we of customer value of the

Jed Kelly

you more is as TV, And back or connected of more access, to media guess, going I just the around advertising? be performance of then on a see And in do OTT opportunity up, follow FanDuel your the eventually marketing? it

Mark Locke

Yeah. how really the about I all - the can using mean, about think data, when dollar out are we different data, different better thinking sort underlying look, about the about various we think sits is target underneath what we're platforms of we platforms, of audience [ph] that we that think there. And

as be a think of So the emerge, technology on know, those analyze the to you know, the data. sort of business, as about - sort as again, underlying much optimize we intelligent and industry the you platforms of different And very of underlying evolves, services use focused data. serving providing platforms, using we'll processing

Jack Davison

Commercial worth Yeah. Officer. Davidson, Chief just it Hi, Jed. thought I'm I Jack was jumping in.

enabler really we kind out of we what content, the is and - are, about going of So with of of that thinking Amazon although because could hub the right part question the that NFL a one, NFL convergence stuff innovation good the convergence. your about forward, an that really, like as kind not of

and those sports that - them technology think help as will we view, enabler flourish, about that our further the to partners providing be of to of - that's with help of even and enable joining partnerships come the to an future, hub of innovation they're something convergence as we other to NFL part what intending are the So is that. as And the and really which about We're partnerships that betting convergence. the to that NFL dots a to technology succeed. NFL that. the really from Even are kind point announced, doing,

that's direction about when the the partnership. in they're likes we're of one you key some of that of think about, thinking and ways. and sort really and So Amazon, future But the the doing really the of already drivers that could what go,

So does that make sense?

Jed Kelly

a just more Very does. of that one cap - to on Hey, in Nick, you EBITDA me, us [ph] how on revenue contribute helpful. it rate for of your for basis? your is should the full Nick. we the Or And more can growing from for then forward, to then relative you range? revenue help Yes, expenses expected cash they're that XQ? was going gained starting I guess, And it's what think operating your year run acquisitions, cost

Nicholas Taylor

Hey, Yeah. Jed.

those operation Let around touch acquisitions take and the first, about me - on then leverage have. reverse we sort of and way the I'll that talk

million that closed. expecting yet the a given not So haven't close to annualized perspective contribution their $XX in the both $XX that XXXX to decks We're and as although guidance, we've position, they million their acquisitions guided to is position. in we've where two, the to in acquisition quarter

revenue. you On at margin guess, given In is terms the contribute synergies an two question to you Obviously, a it, forward $XX look revenues, of that we're any to - million said, basis, hear of we've Jed, worth EBITDA we've on can around of Spectrum, to million as our to revenue part comments, in obviously a million of guidance and ways. standalone contribute circa FanHub gone cost $XX previous Can Jed? me given worth I annualized to I a $X see our pre basis, Second expecting XXXX still with.

Jed Kelly

Yeah, you fine. can hear

Nicholas Taylor

this we sorry, have Yeah, end. some strange at music

put So off that. apologies, been have

we is our direct impact of perspective. guidance are long on anticipate, guidance, you'd a our the of rights in position think to yet, of big state So state XX% SG&A have position on XXXX for margin steady position We're our and term right And from they'll in a but what I EBITDA obviously the of reach that, that hasn't margin that and changed a de-SPAC reaffirming you impact giving I what would term, be gross as we can numbers, a are to I position. not that as therefore our say steady just gave playing costs the margin direct updated a XX% mature our deck, can are position. deck we've of and see staff a at EBITDA and view XXXX got sort net yet clearly a likely long and anticipate, costs

Jed Kelly

Thank you

Operator

Capital Please the line Ryan from of comes go question next The Craig-Hallum with Sigdahl Group. ahead.

Ryan Sigdahl

morning. the results on trends awards. and business and Good Congrats

deal, some detailed which EBITDA or there? guidance line it helpful, Or is on business? that investments guess the is for within you you within there the out. include reconciliation? NFL Within that Is the the thank in broke reconciliation I how is that elements guidance the underlying First, very

Nicholas Taylor

our we're Yeah. – numbers, Hey, absolutely in core underlying NFL let's the is in Ron. our business. clear, Yeah,

rights. part position. $XX the upgrade frankly, take of million $XX I part revenue that, we're million because because and on million - new zero its our going streaming of to the and principally the and the of adjusted the our that EBITDA opportunity, of flexibility, sheet strength separately out that’s are $XX balance to So around called on investments to Those

NFL, the do to opportunistic going nothing really to curve. we're ahead that take to of ability invest an with So the

So to five at we're going and contributing separately in reason they'll The to part and But contribution guidance call XX. be a they revenue but would why I years. the we'll the get three next de-SPAC XXX make the payback over XXXX. obviously cost, weren't out them meaningful significantly of is our the

like-for-like ability basis. So we compare wanted to give you on a to an

Ryan Sigdahl

can talk this underlying NFL hard x is, NFL, NFL? the the kind raised you the on talk, business on the positive then and then of be guess of But guide, EBITDA the so what able you expected to is two and I'm to the contributor directionally, know And I year? asking are the Helpful. to bifurcate inclusion out. it's I

Mark Locke

to the we anticipate is contract indeed, life to say in anticipated of basis XXXX, generating - you market. the to sensitivity of course, too the Yeah. am Hi, go breakeven for And Ryan. the not What of Well, much you, a NFL. we give thereafter. commercial And I be obviously, secondly, as can profitable. to reasons, going to we that's first cash all, not cash I that details a be on know, on and on how NFL

Ryan Sigdahl

kind their the then I Excellent. versus the of they NFL what do you that Competitor guess, you to what with publicly to is still customers which have do? said available to relative deal, conversations publicly Sportradar, key over lost out switching clients. their And NFL to those parse data guys? others how sportsbooks going to plan can exclusive distribute they how are

Jack Davison

the going sportsbooks you'd Yeah. I are how early a flavor some on mean, And the the like. we are days. we're conversations a I - of you can having for if bit mean, look I conversations - just in with of give

Ryan Sigdahl

Yeah.

Jack Davison

that's I we'll early And Ryan. that. guess an we on will others, Hi, quite NFL, expect. unofficial be we've always and Sportradar something anticipated We're that the from offering product

on the to free-to-play how they acquire entire starts with do drive well I assets, player from [ph] use drive NFL talking sportsbook you going operators this such journey international we're are their you're But NFL from which what data obligation to worth their the And out engage that. buy - a the data we and commercial work metric, about a kind the using bit as their them thing the them core their an not for their player, players data of to think saying, order a engagement wherever as a retention fact, official where, know, real going engage that official part think NFL. streaming do is, well the in level, how that - of they like kind back we're named stuff helping as official is for user how things market how and that data operators in partners, using is customer what we want they guess, do really there's I as betting of to getting with their official use been a about they I drive step actually demand on us, you in of the to that some have with market. can, markets, as to that three their we have it's to partners have do with

quite So those but of been the in early fantastic. has our conversations, we're view, point on response from

other about this of really call. to an deal. operator tried the market us, because part really what much to about That's whether so product to highlight for are more worrying an we on parties to unofficial So there's going this the in offer offer isn't we're able as

makes So sense. that I hope

Mark Locke

Yeah. the it's four reported actually, understand what the of actually granular exactly a into really in more - well on know, that to buckets. if swap it go slightly it's sort sort a people, I heard we've because, lot have the reports you inclusion as a about lots of is of done data. know, we incumbent. the But falls of, sort we included what for what's you of NFL direct mean, you different And it. it with very give useful is, mean, I us first is the break almost deal official NFL, of with game is for of down the sort clearly the everyone simply

official up media the build gives is data it second for us media the purposes, The ability products around to space.

services additional we the very work offer, is deal The also to with international additional effectively and part business for the NFL that. important value the we space. additional the streaming, work as we hard and And but of and third around the to something that unique it's do a revenue. an have a a well lot an so Tech - really is NFL, for with of products around deal structure, create is which that the But the betting, Ad that an is there this rights to create added what very part a

data, earlier, add alluded So and our value we're not Jack on side. we lots we customers look, to say can can go the like do different of going you other going to as we said, that, can across them of ways, marketing that. we're value partners of with sale in the a reach don't add We top to market just when we sportsbook help their engage what conversations NFL sort just with is but NFL Nick again, can with know, and better, of them sports. the as, on But we work can we also

were relationships. that lot word, with having of at more to doing of much that in budget for within us for each really them operators, and larger access those return allow looking we're So value - parts so, sort a sportsbook driving partners different hopefully, our the deals much looking for holistic we you know, forgive of of

us So much it's I it's revenue, type it very different a much an to a [ph] But Paul larger give access sort more of widely of sort reported. - does of think deal, it's then

Ryan Sigdahl

Very helpful.

think kind of revenue you revenue that up those buckets, expected differently, of each anyway to specifically? of biggest Just or the said on about But Mark, your bifurcate deal of the those valuable, been, sports has part kind historically betting mix. this know, follow you do as the most of a across which the are four how

Mark Locke

clearly too go don't I I'm it's And to surprise again, about sensitive. Ad view, from of sort detail by very the is commercially a saying, I'm too of think sure, it'll that, into point Tech so be is betting the market. no much that I know, much don't I want revenue But look, because you important. away giving advertising sports fairly think the,

earlier, we've customers that earnings heard lot that is incredibly acquisitions and a our to As growth, way. you'll help that have business on the in with growing that well, made support the of adding value we're

leave probably I'll that. that's where think I it on So

Ryan Sigdahl

luck. Great. job, Good Nice guys.

Operator

The go question Benchmark to comes ahead. of Mike Company. Please next with Hickey line

Mike Hickey

Awesome guys. job congrats, and the on [ph] congrats Brian NFL deal. the Nick, Mark, Hey, on quarter quarter, first and

big equity involved. deal. least this seemed sort You incumbent of like for it the a you at us got of pretty radar some surprise, sort guess touched was There's for It tight. they're it, I but on was that that was

So just a this, sticky year of sort you've know was realize on hit And for this it with but how now maybe one what it win of moving I year curious, sort is option. you it's and really with I deal? that got a deal, forward? couple but it's fixed to year, six you

curious, longevity up? a So have then follow Thanks, deal? the And guys. just of the

Mark Locke

Yeah, sure.

our said from the we're the look of similar requirements lot think realize opportunity us, an as very are of products very much amount very had done a the delivering business. have NFL But the think customers I we know, did they what it, future the the I that I focused future mean, again, allowed work, I what the our utilize were very the like, And know you've we to they vision, NFL awful you that of to visions, create a I product, on that work So assets on lot a mean, the know, and where focused very you fact you'll structure us technology our really work and with a when the that that as think evaluating hard on I already, for we're know, aligned. NFL about guess, and you I before, look, to, that really, partners. we're value in

and them So cutting-edge, this - We of I for ability gives giving an providing done that It's that what this of is deal. exciting long been to transformational, to and NFL us us really access partnership. partnership. the the is innovation a very through market, foundational believe with services term extremely that platform tech build fan and providing think be that long NFL center partnership. us to really and out next-generation part its partnership and opportunity engage that term in not the next-generation a It to expecting we're in and and to new exciting before an those technology gives important that build incredibly help the technology, what's the technology

Mike Hickey

Nice. you goals. Glad your of sort to term reiterated financial long on that hear

that term does of events, goal? you puzzle term to your the that And, And the part that know, by your to NFL opportunity long share powered assumption XX% the deal sort I assumption maybe view? the Just the of Genius. long of same Is NFL accelerate accelerates, originally that guess, curious was how changed? bridge

Mark Locke

leverage, words. term is believe That's know, our that Yeah. journey it's being our customers. does about for about you to to multiple exactly really, accelerate it's it's you goal, that partners, I'll services to know, your availability long We our it about, about steal business And right. provide as having our able

with, growth. that So yeah, that towards provides us for we you them. It this term we us know, and does financials platform have believe our long accelerate that reaffirmed

Mike Hickey

around Nice. a them? sports. data data Last sort a endorsement XX to and there's you of a already of them Obviously, possibilities do official the think, can you have that happening Thank betting? around for endorsing you. NCAA, just I the for collegiate the year of any lot from your, evolve at relationship question with betting But NCAA think me, exclusive thoughts sports sort

Mark Locke

of very say we probably mentioned I have mean, I a on view is, Genius you basis. We've see NCAA. out LiveStats betting from in the providing of I long NCAA a with surprise, can't know, relationship no Look, technology comment of Suffice to on the numbers lot close Sports on We're the events. And, do I CBS our it rolled call that services. them. you'll the the their broadcast think data huge with what the in logo on that a collection term back

think we're I We've partnerships isn't So feeling technology we like betting a We've our have and got space from good choose in rolled a place. on. again, me it relationship. out technology to how those comment for the NCAA

Mike Hickey

right. All Best Thanks, guys. luck. of

Operator

line from comes Stephen question Goldman next The of with Grambling Please Sachs. go ahead.

Unidentified Analyst

or in at and than roadmap you've NFL throw NFL of look some cash on signings league I'm Europe, it's look ramp Thanks you taking of to there, in questions. might for marquee the the perhaps these similar revenue one over or typically more as how do you as contract make Hey, that in the terms, past at know, the other had the the translate going Steven. and what different ramp, contracts, markets? you

Mark Locke

with on around partnerships I always the partnerships the like, Yeah. way technology have structured our Look, I of mean, US sports is leagues. - we been outside a generally guess

our right partnerships, and global provide with many same. the those them to very business, is take the ranging business [ph] and and core theory look the leagues. services partner remain to very, contouring to our for services those products a quantum We behind to to for as look our We the sport. in partners right. provide relationships the the different, while exchange is and we very, sports The So know, in technology basis, model NFL swapping, is a data on - wide you or about exchange collect

a our of accelerates we as we life the breakeven over that the profitable it cash Now, clearly, growth. of ‘XX, the is, you that in equity we of on there's be And the to it's believe going of basis relationship some have, the but involved – global in result deal know, contract. it's type a in NFL, and sort this cash of believe elements

vein. most see it our much very same we in So sport the of see partnerships. We

Unidentified Analyst

the you within for then new what attached customers, having also trying that there's to with that, it. with conversation get more having these specific out signings, both contract are was events to And have. get too have Yeah, guess, you the was imagine with trying other I I these guidance contracts and existing that opportunity a as your I you without at look adjusting just services

either It quickly to this larger seeing those season. NFL we is ramp a just that perhaps upcoming the way advance faster, it's those? through could or know, Or you one be three So But structured? this start like having like, up? in normally how year because it's think to year just sounds of you'll be conversations trying two can just

Mark Locke

is, Yeah. I our One then as sort parts. related take for slice revenue. if mean, a and you I'm the I I'm the you're part, is totally gaming know, of model how we asking but sure not also, to follow mean, revenues question, you're we is well. of I which mean, business our see as fixed growth the the ramp, sure the aware, I are a the of consists two market, in different of services, the and provision

increased increase market of increased the that the stated as and a X% to So of as increased really provision size coming content, ramp sort of the market, achieve we of see utilization, obviously in well. an the we've result to partnerships, the

Nicholas Taylor

other And And to sportsbook on is like, customers, ability natural where be contract assets every what ultimately, one, TAM whether the acquire focus of the a upside Nick. therefore, basis, have on the sportsbooks, the immediately will and but says, NFL to variable nature regardless have thing in we TAM as we six like US of Yeah. then we whether the the as to fixed basis, years. go in across material sort obviously, the we to expect will monetizing back growth leaders, Mark the NFL. that's looks our season or Hi, Steven. contract that know that with the important Its of a that's grow

Unidentified Analyst

one, one maybe And other term question. a that's helpful. longer That's

what long long and fixed term You the CapEx guess, relatively the software you've well, But conversion you what EBITDA investments generally think is being that I limited targets, - know as talked EBITDA would from term term got about I requirements. about look like? long cash assumption? as Effectively, that

Nicholas Taylor

have Yeah, of that's certain capitalize right. internally level a We - software. don't we generated a

it $XX think round million round head, million XXXX. about top of my in $XX was to I about,

to it's or number way So - new forward, linear to performance, EBITDA and going products. will any revenue ramp stay not relative to any continue in as going it develop to absolute we

perspective be EBITDA will pretty conversion So cash the on any strong.

Unidentified Analyst

Thanks so Awesome. much.

Operator

gentlemen, and your have for may time. conference no there day. at now telephone. you a concluded attention. disconnect further you The bye. Thank and this for Thank pleasant questions are and now your you is Ladies Good joining

Genius Sports Limited (GENI) 20 May 212021 Q1 Earnings call transcript