GENI - Earnings call transcript Q3 2021

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Operator

Welcome to Genius Sports Q3 2021 Financial Results. 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 Brandon Bukstel, Investor Relations Manager. Please go ahead.

Brandon Bukstel

Good morning, everyone and thank you for joining us today.

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

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

Mark Locke

and us joining Good you today. thank morning for

focus announce our and performance We over in the strong on Genius’ three accelerating thrilled I’d unprecedented On updates. is on today’s to level key year-on-year. XX% to are with record an to addition we you updating at another delivered growing have growth quarter revenues call, like in quarter,

growth journey long-term beneficial partnerships, Off recently we mutually NFL back fueled exclusive agreements First, industry-wide of contract, provide we with our on will the targets. and sportsbook to partners. detail announced quantitative our the structured meeting accelerate which our

differential and place our size addressable to our fan market our formally round engagement market in now business. and hope by and our we to frame the it previous On we engagement the we articulating have for of it. outlined out total calls, plan solutions Second, the opportunity earnings media

vision opportunities our some in highlight of for the future us. discuss the we incredible have we of that Third, will and front

we and each enable quarter. Genius in the more shortly. to cover like work to of that leader the the ecosystem. share But of to topics I have excited sports technology areas of in investment these the recap place will detail the are done quickly fulfill as on third highlights continue first, its to from the I’d We will some

We we have are made our the very continued our strong quarter’s reflect execution. excited progress and call last results since about this team’s

by of $XX.X reported record growth revenue in broadly while the increasing year-on-year EBITDA all is driven million by balanced business well strong represents third First, over adjusted revenue segments, breakeven. another we of XX% across quarter quarter. This growth

to mentioned As and business with longstanding federations the strategy data worldwide. we and our deep in official in our lies leagues have core past, partnerships approach our

global and could over Association, favorite depth signed provision on. our League, rights we expands and Premier supports new around of International Each Basketball partnership a alone, of breadth quarter League, mine, as and coverage leagues This varied deals personal clock. events XX league Super Israeli I the China Federation, content Pickleball Federation, as Federation, Association, League, high-quality the our of Professional of go with Drone and Kazakhstan Volleyball Football Racing Swedish Association, Pool Basketball new Soccer Canadian Croatian customers’

our over which XXX,XXX QX, are rights, includes XXX,XXX As rights of leading official under events portfolio exclusive.

provider technology world. the to and leagues We are federations the around leading

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our agreements continued to NFL and official key our leverage their sportsbook build have customers to engage We partnership solutions fan of sportsbook a us engagement relationships. enable exclusive content help range and upon to also better to monetize full provide our users. These

content about still stages the is the way are early are vision excited value in we of the very enhance the we sports our consumed. NFL’s partnership, NFL and the to While re-imagine

in recently achieve ambitions. our As more deals to a foundation detail shortly, our we’ll discuss brilliant term longer announced serve as

key announced with where Eagles, Financial the legalized betting team-based is NFL partnership betting. innovative to Lincoln fan to in odds Field sports sports part engagement real-time for also teams with addition A lounges. we sportsbook drive our our we’ll of partnership engage deliver Philadelphia first fundamental betting have platforms provide to announcements, In the to

And so we are new about excited this development.

the part strategy, newly we efficient as integration our M&A acquired of on Additionally, of businesses. remain focused disciplined

to part Genius like awareness helped Pringles which Spirable and with to Hennessy, an real-time, data-driven example, Spirable brands content. even increase sports dynamic companies of custom-tailored deliver technology we look forward to Heineken range content of personalized to in deeply automatically fans through allows fans our brand The For wider partners platform. broader rolling video as out sports

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partially over of are Genius are color bets first these we through To of XX% placed we wide-ranging provide to deals. As our in are more specific NFL start, by Sports. happy powered the season, States NFL NFL component on the United

value reflect that data. We have of agreed premium our terms the properly commercial

our our average guarantee the global sports structure rate excess in sets vary of full our noting to stated to our but allow the continued often benefit range specifics products, market in-play growth our our with of deals exposure we contract, take to betting average, by current and NFL, which deal of some isolate floors, minimum to betting. the us of will of rate Genius revenue goal worth the include the blended of our in While both line inherent reduce from volatility. limit downside were NFL by while a X%. the It’s contracts creating pre-match off elements if take a shift we that structure weighted This to in-play is gaming of around is

protection. So these take structures holds significant have promotional of seen in give revenues to X% periods gaming an accelerated long-term recently, an deal of global commercial with path revenue. lower of our some rate spend, we support target like agreements and average our Overall, these

including to the and our $XXX Lastly, our average FanHub minimum customers terms. the over initial Spirable of have committed million across media X-year an of products, spending

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addressable business extend and beyond customers sports of services market. a that billion betting budgets of allow global new entirely range provides just addressable see media digital our across digital to the and Our an marketing us share $XX capture advertising sports We market. as opportunity representing

solutions and obviously is traditional and in-house. ad this agencies Now, other search includes highly competitive engines, developed

million XXX for to our digital sportsbook with lead the to the we we base. order said share will of a share to XX and our it we on return diversify entire offering inventory represents, our the customers. That that this bps customers, unique believe to media partnerships a In need penetration customer leads believe in with opportunity sports market to-date, $XXX through in predominantly market. for reach long-term to market our our believe we data exclusive based is rates differentiated long-term the advertising access high and achievable revenue broaden of However,

Our contextually valuable data-driven content. relevant with using brand seeking sports advertising solutions connect audience any are to to

is of most doubled year-over-year. become. For it believe customer we certainly this early it business that is represents what fraction can media has Whilst that reason, innings, a a base our today

include sports betting made live future. vision would content clearly the in leveraging for audiences, our distribution customer my to have of diversifying access data sports to strides conclude unique I our outside interested our are defining like base We in capabilities. to that brands remarks by and

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is must to invest if simply every that, be our in can And with and discuss that have will I vision doubt to our every heavily worldwide. outlook take reinvest continue to this of the plan more now on turn no This to we delivered business league financial we We delivering unique to advantage in Nick and our vision competitive opportunity advantage. strengthening detail. and results absolutely a now, it. fan such Therefore, we

Nicholas Taylor

Thanks Mark.

results solid execution mentioned, our reflect business. underlying Mark QX in As our the

a line revenues group over of and $XX.X increased quarter record quarter increasing well-balanced with Third diversified year-on-year demonstrating significantly, to growth. million, by XX% another each business

Growth First, content. increased technology and also services available In our first million. grew customer segment customers, pricing NFL inaugural our with utilization increased in content of existing recognized the by $XX.X quarter, third and this weeks we betting X year-on-year was to driven the of revenue new for XX% season. wins

and Our new technology million, more growth Sportzcast driven was once And Second $XX.X increase technology lastly, within getting the business than services to both increased to sports continues contribution $XX.X year-on-year a XXX% Spectrum. and pace, significant content media revenue and wins, major million. services revenue doubling betting from to in by again Strong sports and non-sports phenomenal at betting sectors. customer our

to-date made to midpoint. of deals Our range our the over to to the growth year full have kinds great million right gives outlook our us our end. million, increase $XXX exactly $XXX to positively a we to trending continue XX% through quarter equating outlook. confidence is year It in revenue year-on-year of the towards And revenue commercial momentum at

We in EBITDA about. the for broadly the are target also the reinvest year to revising Mark spoken to achieve long-term has we as to that just our vision expect business be adjusted breakeven

generate more solid and As than our our in Mark groundbreaking about agreements to structured our we earlier, on commercial opportunity we are deal. with returns line our ever mentioned NFL expectations excited

share have allow significant terms gaming us revenue. of that We earn a to reached

spend. to spending We The continue premium confident and poised our growth customer global revenue betting marketing sports evolve. meaningful feel revenue of market ability continued million take our and our achieving platform. least media to value-added increase position is from content taking balanced to within at market the share and in coupled the to Ad with Broadly This globally, the in leveraged pricing business we partners have market $XXX unique and the executing should growth next spend our expand growth utilization maturity with and betting our share, contribution drive continues on Tech well sports multiple and as contractually for through several and dynamic levers. over speaking, U.S. committed market the have services partner’s for years, committed

we also to that footed opportunity investments We early As that Mark achieve in the in and those presents financially unique has to think stage we the just build our are touched order in that in Mark on, window categories. vision cycle recognized growth long-term scale a a our of strategic and fund front to described. about three flexible infrastructure be

technology. development, on our are And media focused sports we tech Firstly, transforming technology are and we global through continuing our betting improving platform. existing

and expand Second innovate football. to improved continued sports, American tracking, as such latency, example, to For to Spectrum technology reduce new

continue of beta streaming a rights also building focused accelerating best-in-class Secondly, strategy and rights. to our are we on portfolio

meaningful rights to and medium-term As previously, of streaming data many near generated our payback. noted

investing to we the build our continue are in we ahead U.S. our operations. expanding out to thirdly, support many So, local instances. curves revenue infrastructure of And

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deployment X% market like revenue, communicated to would your current of of open Thank for adjusted XX% and at now our achieving position and XX% even aspirational long-term targets previously you in scale. participation. margin gaming fact, EBITDA capital gives our share, more confidence us to In thoughtful of it up again We market Q&A.

Operator

[Operator go Instructions] the from Kelly The from first is of question line Jed Please ahead. Oppenheimer.

Jed Kelly

X% that, from Mark quarter. about it? just comment if your global we Hi. Two operators, my Thanks We the nice should question Can might hear maybe on on GGR. on for that of may, October on you And guide? kind quarterly oversimplifying us taking then be guidance, think of and a expand kind how in the guidance to betting was it. on are update relative revenue an how just trending give the on aggressive November the you and and little your too we can I

Nicholas Taylor

Nick. Hi, Jed. It’s

one and understand second be first. and market Let me pick the profitability take on might noise been in question, the perhaps But October. able operating some I to the the up second one, the around has I know Mark first

been think that said and our and deals have in any We the the on to that call, our to taken our when Mark $XXX have there. of revenue we we sit couple October upped the to of structured guidance we downside where on million I views weeks million. certainly into deals first protection in such we consideration November some $XXX have have

Mark Locke

question, that’s for revenue if aggressive, right. X% are How asking think your too Jed. you if first I you? that. question, gaming are Hi, the was Thanks On global of

Jed Kelly

I just, – yes. struck you how correct. Yes,

Mark Locke

achievable. that probably of eminently And a I ahead long-term we we think where sort on strong thought we on saying think really would journey slightly reaching was the we don’t be of in mean, towards what earnings that. were very it’s we so. were a basis, We

I of are said the striking excess long-term the think are the of NFL on earnings our in goal. in-play a the we I lot deals in with

we very with feel comfortable So, that.

Jed Kelly

revenue, Got – guess, more November – it. very two we some media advertise? And given the peak I going to And then just quarter I there. on then is mean cadence be one have seen guess the quarter you third how a mean question, the holds, the quick guys follow-ups, Thank you. OSD strong. as for I operators Nick, for quarter media reversion OSPF the and just third

Nicholas Taylor

Yes. Jed, comment on comments to I I the October kind November will back I of my just mean think position, I revert can’t really I on position. the made

very, anticipating In of the quarter terms element again, all we slightly built out and am yes, there. position to up come in circled into media, of on is year-on-year. revenues. – very an I QX $XXX inorganic a on was revenues significantly higher are growth strong the million underlying actually $XXX There be to But am actually have fourth I still guidance. that, our to than where the million basis,

Jed Kelly

Thank you.

Operator

from is of question the line Sachs. next Please The from go Stephen ahead. Goldman Grambling

Stephen Grambling

want said thanks. thought you buckets is allocated cash to clarify, are the to commitment NFL the biggest is to a to to? I breakeven that annual think an you And I going that just I things. when breakeven being that business, is on couple forward Thanks. that a the the basis? just confirm, where is your this and guess Hi, some reinvestments of guess One, into the trending transaction are I referencing you

Nicholas Taylor

Yes. Stephen. Hi,

can go in that check if Let me to. at the and there then and they Mark I first want guys have guess

there there. a So, couple is of questions

right. are You

the basis ups And Just an in We managing Board as annual on as in united the basis, will to and downs a will EBITDA are be or team the obviously on quarterly that an go. position. breakeven point. that we better and be there management short-term on business last

the front we in we of I of invest are decision. front therefore Mark think will we terms footed right position our is And being and on our In cycle accelerating opportunities a significantly. clearly us looking say now and to think really the in are in in early the call, where invest really ability to are growth

practically, areas. three is Now, what means that really

industry, our called to I rights, that that’s and continuing I of remains out I of all, some we business. do curve. Stephen for growth. And to not rights so rights industry, in continue investing a historically of has this any And think lot means in the our But foundation of on deals a will deals, revenue of only think we in like value been ahead have we that just long-term First the invest right will the area. those deals

heard in have acquisitions of turbo-charge look leading as standstill from were great call looking be Secondarily, that. example as to position and of investment. can’t sort tech and you there. again, the market. We I about a noted, tech particularly the you our will we But And Mark

into building the are currently latency, Spectrum looking technology, as bring operations. And areas COGS broadcast dividends there, CBS couple to a for the will on will we show football. Second out investment significant then guess attention investment don’t our such in I like a U.S. I sort were the good visual Obviously, that will that the in they as the guess other to of the we that might have in rights the of the significant be in the Spectrum low come it have was amount, Second last just you area to sports early the footprint to invest section. last R&D things are you products there. that as overlays technology improving affect tracking, really making on of know, a U.S. weeks, over example, seen that

will commercial see, too put get quarter, the the have been is in Bornstein have that our really first And to detail years seen actually are announcement the in I the be ground last growth of the But That’s Deep optimized into think very the XX% I into we given that again time phenomenal our have expect infrastructure, putting teams, when fact and quarter. you in and that that in U.S. QX. for significant obviously, to too of our you We seeing, U.S. infrastructure U.S. you growth. early. careful the time much it’s over and right we to X the pullback grow now on revenues not the

will other the but marketing, really that’s will little income SG&A number also bit terms areas, of of across both and and a that So, be a will impact state well. in the sales in as –

areas really we are that investing. the are they So,

original In and NFL, your on. are around terms how we question of getting

I we think encompass and sports learning to market. they going And of products, our time, difficult are we data, not just wide possibilities right streaming said the every are week. last U.S. go media, the it’s increasingly how events, nature and and deals, these say enhanced I increasingly separate XXX the particular particular given to you our because to suite products to out going so know and be individual I also we think this all – whole What Stephen will NFL our encompassing, portfolio, of difficult. across be is trading, it’s across deals

XX of what deal. to week now up we year I we X are a think We are and are

in of really in deal. – still we much a are are foothills we And So, very this the lot. the the learning

in about learning of are are all But about a terms sorts handle. we We things, just not learning of revenue lot mix.

lot a this say I years of be next this life sportsbook an as U.S. that all well, significantly question the contracts is obviously as profitable this learning can imply absolute the deal we over growth XXX%. for that profitability and Jed’s is we is operator has And pre-play, What X proportionality, learning. this upwards of will to cornerstone are X deal of the is are quarter-on-quarter, of We around impact, course that the driving U.S. phenomenal which years. year-on-year, of the

Stephen Grambling

primary NBA recently you signed, partnership of just And as was one so rights follow-up being perhaps from based could the if agreement on that that touch with the that your you potential one that how the maybe competitors? impact about you there, can have the effectively since focus, thought deal mentioned and

Jack Davison

we deal do elements that we find of Yes. process. important. perhaps compare or holder, prudent are around it will to is but Chief and of any really decision we be to be has Officer. think give little having side NBA how smart would to I mean don’t smart And where a around the of specifically sure a bit judgments to and talk similarities point. rights a rights to something that that the be it’s background the for make do balanced Hi, it prospects that I relationship something Jack viability we have we we whether clearly a with it’s have would a And sort we I we some Davidson, there business. Commercial of clearly, because of would on bit any the stable the flip were NFL business. of good NBA got that way our a be also and question, to anyone lot that’s it’s the as see that. mean I the how just for make to be that, NBA Stephen, about arrived part is to really, else, want that quite and to that good of interesting The to process, this part balanced and a in are differences way articulating way and ultimately I we of And am

relationship. So, you that they of part a inventory. of the with assets And the in Mark we everyone sure their and us growth NBA good about, enabled part digital to available have media of talked have as a lot We assets. knows of of a Nick That have, differences, today. really articulated a some benefit gives sort was of am the dynamic lot ecosystem. of about return the of deal partly None big the talked show lot NFL part We that because that space. have that’s stuff of as as of a I JV have we got got it and us that

stuff difficult wasn’t just table it from quite on So, of that made point that the our view.

outside point we the directly as from much Effectively our but view. NBA The of we the not structure NFL circle those other sports the as that’s that signed. part, the the part those and continue them we handle and we all our take on relationships of actually technology to understanding to it’s square the maintain things operators to from couldn’t like a felt And our do getting have NBA most once to is view, will again, the the been the while And sense lot want really, innovation and all sports point of was of with the share charged do portfolio, part we us talked the operators really – from that, just this relationship deal, that of be twice, we pretend very wouldn’t wasn’t NFL, is and the of deal that that wouldn’t view really And see part for from The betting the of piece. from just is about really on is a sits that point where makes of and a ecosystem forward it of operators important data once our the ecosystem. of want our with allowing move we that whole part about that. NBA direct continue and in directly do ecosystem. and to available perhaps we numbers the it, downstream about really wider the final part dwell couldn’t NBA

it’s limited. at to revenues extremely the true also hasn’t NBA thrilled of that our our have portfolio be happened, the are will moment as but NBA for part that we the So, betting

our of business very, And winning the impact not very deal is this small so at on point. that

Stephen Grambling

you. Thank I back in will queue. it. Got the jump

Operator

go Hickey is question of from next Mike Benchmark The the Please from Company. line ahead.

Mike Hickey

the guys. quarter. Brandon Congrats afternoon, morning, and good good on Nick, Mark, Hey

curious the with Ontario, a are view going think that like the on curious beginning to also obviously, there. how moving Just be, market? sort opportunity, Canadian there operators side, looks into growing thinking And regulated obviously, your it lot of then on sizable market we a of expansionary to media a the of could is you

Jack Davison

shadows, are been Officer, and going know to is the that I with good more of always to going we right for out Yes. something a obviously I Hi. It’s pick Jack become Davison, they see mainstream to there growing come every there. Chief mean know regulation Ontario. market, us, up. to has have a going day. What that’s Commercial a exist starting that’s And business this thing, is we you

but Canada is Ontario other in states regulating, – a like we states opportunity, like more some view. traditional and U.S. a regulate us, that’s like as in our way, It’s way I and point something guess regulate of terms of thing, from from there sports, U.S. the some those good in the For of the time suddenly U.S. both NFL, as a sides mostly the of can market in Canada. those in the a terms position real that data the obviously trading things. in is and view grow, from opportunity in of like and of all point size We our

we properly states can up. So, new states, of like on marketing from to lot from of success view. we a with operators and mirror across have us whole for as that of who Canadian point that that in they point But creates hopefully seen the a spend we view, the open opportunity can U.S. marketing also a it regulated work

there, us, areas the up. will as Not all states for about to feel in good to to good betting Canadian opportunity space, able able the able are all mirror sports stuff those partners of obviously but we very, it’s we just only the U.S., news, In we the business. there, that in publishers media we execute. the So, to very of and with be more able it’s they up relationships is, be opportunity open that to to expect be hope build that in

answers question? that your hopefully So,

Mike Hickey

Yes, guys. nice. Best luck. of Thanks,

Operator

The go next Riley. of B. Please from David ahead. from Bain is question line

David Bain

agreements, of question My shift is, are I tentacle or are versus the you you to can multiple you. envisioned stay data term longer from potential decline that? if from we with even first to pricing length plan? seeing, mean how now could and Thank just displace now, we a some rights actually years or today seeing incumbent to X league flat your a deals larger you partners and view to the what do kind years years of certain speak X technology to and the disruption Great. given that of perhaps

Mark Locke

evolves, And in as kind of includes we lead technology. about lot are of question. in it’s Spectrum single believe our we Second really of Hi, technology it’s actually, specialized think business, what’s good lot. to that are having we seeing I yes, a are need much it’s some going what sports elements think our Second conversation difference And, the market almost Spectrum, and And now frankly, this I sets. we since of technology that acquisition next-gen a the are mean, every – it leagues increasingly, a driving investments. We of

increasing So see in time an those evolving this reliance And going is that the we fees will rights the be those again, reflected on forward. technologies. way that over

distributed I see future getting likes from and have and in leverage of part advantage have are of but that said, in us our unique we as the technology the as views analytics, is and that part market, the in excited widely the we to the considerable technology side fees. audience in really Second drive So making position keep give tracking sure of distance around also have so of about that have drive the that Spectrum investment marketing continued and we the things that we i.e., got the the both data we and those the significant really where well, right conversations should that of we the part – opportunity the

David Bain

platforms little you give TAM more specifically us that And a you. type helpful. platforms. advertising significant say, a That’s entering, And traction are great. this a market Thank what prepared in mentioned would bit term on one Can be, opportunity this are Okay, with? point? can you this second on by, your year having with early my very is remarks substantive of next you something the you a at we see or is longer deal color non-betting

Josh Linforth

The the already seeing media is Hi, for the addressable for here, – Director that, Media business, that we Managing exactly are David. in Josh business. yes, of terms traction market the the space. in This a of lot

rolling the of that [Technical FanHub an ultimately from we we the branching are in Essentially, doing are the to, terms really out operators and technologies for In of Spirable. what and sphere that expansion already programmatic in seen. Coca-Cola platforms it well as equally applies major that to customers drive our the technology sports results will fantastic that ultimately brands be have Difficulty] it believe around and same sportsbook we Anheuser-Busch, it’s

David Bain

see really something could year the in the announcement model or great. Okay, having year or about this And next next early is some think this something sometime we is two? impacted we should substantive on

Josh Linforth

already of a probably is Tailgate we with where the space game. in them are one number contracts we mean, I to provided Yes. their winning this play Jersey Mike’s recent most free have Trivia

that of lot a around the services provided have game. to advertising We promote

really we So already pipeline few are into ‘XX. And as a strong we’ve that there. there is customers a got head

So us outside sports new betting the announcements I be making plenty to in around expect year of of the wins space beyond. over years and sort next

David Bain

Okay, great. Thanks much. so

Operator

is The the go McTernan of Please Company. question & Bernie next from from line Needham ahead.

Bernie McTernan

for over over versus just and assuming in to struck taking last next just deals initial expectations? advertising X the questions. that’s the came wanted spend, And wondering in been start that, U.S.? years how I in committed million aggregate these Great. the the months, your Thanks if am only X clarify it’s $XXX Maybe they the then just basically to

Josh Linforth

Hi, years. again. correct. are structured Josh this Linforth is X Yes, The over deals that’s

majority, few majority is spend, there focused In some the international where North are American market, terms of on the of the the North American market. across nuances is the market. There it a is but

Bernie McTernan

revenue Understood. media how the Can is you outside the big U.S. us about currently? just stream remind

Nicholas Taylor

Bernie. the I a U.S. heavily been of Hi, basis. X rest towards Josh have growth they American are slanted certainly months about deals, those traditionally, XX-XX, about next of mean, U.S. predominantly as of around XX is That’s North versus the now we over in focus on media more that’s the years, talked to And just world where Yes. terms now. the of right focused. the course

Bernie McTernan

just a official Nick, on was I guys there an the That see. we So booked Understood. FanDuel, yesterday. were I agreement in struck supplying Nick. NFL how you wondering And, quarter? was you data just from Thanks standpoint? with to just were revenue was was how to that them great believe if But with follow-up them third wondering

Nicholas Taylor

the yes, of issued FanDuel. an quarter, already because of done a Yes, FanDuel hours provide recognized throughout the them. that the the call. the we deal of And long-term and partner is for the ago a NFL that season. had element to that we we retrospective deal sustainable continue services you’re to absolutely else And take we benefit deal us what as start announcement pre-agreed was to a course, right everyone period The back XX with there the have in is with with was in

weeks. X recognized of $XXX the That’s weeks. the and it’s weeks NFL and new first been million. obviously of X $XXX say the revised have recognize been that’s What one the is operator deal So, I to then for will material Bernie will first million built retrospectively for guidance the we number, into not for the remainder of the seal the those X metrics

Bernie McTernan

much. very Thanks Understood.

Operator

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

Ryan Sigdahl

taking FanDuel trading time take just for talking expanded agreement, rate in-house a about has the trend same but there your you solution. Curious our towards questions. sports trading that services, live in of on Thanks guys. Hello, been at its were

seeing tailwinds you are the headwinds management services a where as from as standpoint? guess I So well trading most

Jack Davison

hi, Yes, Jack Ryan. Davison. It’s

a I of think seeing particular in in ours. you FanDuel is the to with their kind outsourcing a of sports a what what their we deal company are of elements is operations see betting comfort comfort like here in

an from an of So of is in you what currently, will are seeing but stuff focus in-sourced by a being some wheel operator point on in-sourced view. we operational also balance being

the do NFL, can you the trading they same FanDuel as focus on elements imagine on will will for at which that. don’t outsource we they them, but we So time, of

about trajectory efficient customer think most out their be I their be of view money, terms increasingly The So, of things. the spend more you think agreements will the a these will with played operational I think function bang seeing where much as And get I they will end industry, buck. where combination indeed they that in outsourced. up of for and is our of large range our

Ryan Sigdahl

traditional metrics Tech Ad comparative human or compare do guys anything And sources? feel have and you you you or marketing? acquisition and solutions on Are Ad then And your cost are customer how faring any do Thanks. how you anything can missing resources your about Tech, secondly, improvement then for there? on technical versus internally guys

Josh Linforth

provide through with this Linforth I happy is one have can that season NFL example we and Hi, some seen that in specific working the Tech been Genius’ context strong. to of Josh gain. results have operator that we’ve delivered. really Ryan. have you of Ad a results terms they been the Yes, This solution give

give ad deposit against the you that average, first breakeven idea sees to on spend. the total of value that, an So customer

to on player value if we spend acquired see a within the a this is acquire first subsequent around you ad to in XXX% an days, so on average, So, return values their $XXX. example, deposit by XX deposit off season to $XXX players far actually, give And we about of spend tend those Genius. first

happy on strong about their pretty that their I results. contract. through media is and to needless who the end say, that individual of they can are So, have results another year some so to the very think And to of the contract in year is those by minimum customers, the first on And their with Genius. far seen speaks exceed that commitment track results us operator

Ryan Sigdahl

Great. Thanks, guys. Good luck.

Operator

we time, Q&A interest session. in and the have of stop Ladies to gentlemen, the

So Thank a pleasant Goodbye. telephone. is you you day. and your have and joining the now concluded may disconnect conference for

Genius Sports Limited (GENI) 23 Nov 212021 Q3 Earnings call transcript