GENI - Earnings call transcript Q4 2021

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Operator

Welcome to Genius Sports Limited Q4 2021 Earnings 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 Genius Sports. Please go ahead with your meeting.

Unidentified Company Representative

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 statement. no for updating last Form statements such earnings in with and filed factor risk considered SEC, release XX. our the cautionary filings on with Any conjunction be Annual including April on our discussions XX-F should our statements Report in in

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

Mark Locke

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

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the meantime, Ukraine. to in thoughts people with unimaginable with them to the in a the remain suffering. support And tragic peaceful well everything in Ukrainian of direct being resolution to To our We region this and of constant people will and for in with Sports support. the safety end, Our this the In them. first hope at continue time. offer we during the is remain our and we power Genius responsibility our colleagues our our families this do support Board contact

now from year cover our highlights quarter and will XXXX. full We the fourth

by to hosting Investor remind began you our in, that XXXX Virtual Day. we we Before want diving first

you the important you I I the already But business as our highly understanding replay the the will of which for haven't we it, webcast, our available who as strategy website. recap execute viewed are the over briefly on encourage takeaways, If key missed those Relations few they presentation, our is for years. to next watch Investor

First, we introduced XXXX XXXX group EBITDA. our and financial revenue outlook group for adjusted and

million be to high growth group in expect also XXXX. adjusted million and our $XX This in making businesses, highlighting million business. view profitable and with profitability the a generated approximately included investments We we've $XX already business, today EBITDA in of XXXX, to XXXX this expansion the year, were in our of $XX and detailed the US underlying

partners We member and & key our the by This also board a including validates Sky the and customers, Apax. long hosted a our ahead. and industry, DataCo, opportunity Gaming the few Betting position Football competitive in term NFL, the of of appointed heart

And finally, betting vision in long We and them. of a a also of technology our our and our we reporting deep capabilities, enablement showcasing dive as gave depths unique convergence technology customer three the the team our solutions of each of the the layer term media. of segments, driving sports, true provided powering view

Now, for exciting to business. year the cap off an

highlights the from Let's quickly quarter. discuss the fourth

year. into relationships our with betway. execute the $XXX and continue $XX million us to this in the growth. and roughly group This Investor representing of $XXX XXXX I'll built approximately plan, we assumptions This for well latest XX% our guidance to new our slightly EBITDA. First, is recently This we betXXX driving our updated reporting leading in in was balanced This in Brazil, to our and million, our adjusted signing million in annual beyond. we summary, revenue and CFL, million and $XXX continue million, Africa, over expand market. XX Day, adjusted our to in with as full $XX betting outlined again detail XXXX with of sports revenues XXXX segments. growth content US the quarter the across increase group NFL $XXX partnership gives year, our strongly quarter. EBITDA cover million. $XX In to approximately leagues In the once the continuing $X streaming reported QX year-on-year. of leagues range continued against of by the contributed Federation's in revenues in existing and And XX% a We our upon brought heading each representing of line our portfolio year the in as global guided the ahead and data range the and such year In our EBITDA markets and growth partnerships XXXXm by adjusted driven with high includes official high strategy our world. $XX revenue business around we This shortly. commercialize rights million expect content portfolio like in for which with deals and the brands expect we of guidance. capability also and example. this quality federations such more in execute million and to expanded confidence renewed India our million solidify of profitability to deals new We've with our innovative on growth around sportsbook fourth or We've content, group with proven

our deeply Our provided technology partner embedded detailed which leagues federations also unique and our Investor Day the overview a of world. for around with sports, is

proof announced of of with and growth driving December role point we technology stack the the a the we play which in CFL, is our sport. in Our partnership

this and the deal CFLs will believe Canadian video We content beginning part the important market. rights As XXXX years, international agreement, in XX this upcoming exclusively in an in rights emerging And with be data markets. data the of Genius obtained and the worldwide, its sportsbooks official commercialize starting for season. in to US, streaming

[ph] importantly, tech augmentation, The generation how collection, any to we've data much so media. fan support believe partnership sports in The and advanced with growing product advertising, the Throughout next partners visualization in diverse going Genius tracking, more. quarter set data because the represents our work fans. league across than believed CFL we partnered stack the they More into precedent world, will and in that. internationally every a single this other is for Year, of continued across and leagues we engagement, focused and type technology and saw integrity with encompassing their second New the sport screen betting more. forwards. CFL exactly and on the services digital more of intently no experiences, as partnership different engaging younger enabling to And Genius do layer this all They sports, our

our customers powered you slime next-gen time quarter, customers. instance, including children with our feature official recent I'd example, broadcasts betway and trails, broadcasts expanding may and just official premium, up example of year, RomoVision of betway for and also is outside from Genius our statistics, the the of for nautical sports scratch implement world. a of along personalization stats full to around the Card but real are thousands how only more live which beginning streaming tracking And features or season Genius is streams latest product Second importantly, events with call We've possible. throughout sports to we're betting the supporting partnership notable have surface Game, This, proprietary league's And US. and latency per leagues the of as are like new built betting time real and live solutions, the in not data NFL data feed. sportsbooks NFL, will Wild BetXXX components for the the two an with just For the seen suite the sports including successfully acquired and technology. CBS player NFL provide sports access what's the to content. package and existing like on betXXX the examples your Spectrums, low to broadcasts to service, delivering Nickelodeon's of most by like partnerships. comprehensive the customers streaming NFL augmentation and

time live and the Basketball alongside delivering for League that Euroleague with also real pricing pinpoint way Premier and agreement and English the basketball. basketball, Our includes a NCAA data NFL trading solutions,

will across display, benefit acquisition official cost data-driven and TV. Lastly, video from both our campaigns, customers marketing of lower and driving engagement connected deeper

In delivering fact, started strong we've already results.

dynamic Let's unique fans content. ads teams. across take Genius social betway betting as content and Facebook, its players to including templates try delivery across new an wanted example. favorite automate time by used Betway and with to odds visitor social to data-driven and live [ph] reaching customizable relevant access data media, their real promoting markets

XXXX, increase just XXX% example a app live XX% Facebook its reduction app how of our trading stronger customer through Day, dollar-based top achieve increased our net In leads XX Remember drive revenue of which As install compared increase XXX% betway in we and data to dollar-based partners from via about coverage, net on acquisition we wide per another under Genius and among a a talked a rate, of our our in revenue in for campaigns. prior download, click and cost we empowering growth customers. solutions Investor utilization across This a retention. top range XXX% is successfully events customers. retention retention downloads to experienced of to result,

data sounds. another Morgan betting, Genius who connect [ph] are example brands example along the its to with Captain that. customer consumers. to served Rum, Morgan real score broadening and Bowl updates integrated The partnered also of lights Bowl, Super betway sports is with of live and Super was Bowl base but also This how from solutions. we Punch of seeking Lastly, Punch Captain time The outside with relevant fun a is other only Bowl not leverage

Before year. throughout Day. you handing for we our drivers express XXXX. near, our growth and it forward keeping our as enter medium outlined to quarterly our over term on plan And updated just calls look I confidence on we excitement and want of the long to the Investor and to each We've Nick,

partners have Day and platform, network media. in our highlighted incredible supports which sports we We betting technology that growing a Investor an of across

revenue US have group technology our And name advantages. to is I'll position that, We and in heart technology-driven XXXX our high sports now biggest competitive in outlook. data the and continued the We've and several backing results growth this at XXXX to of our That beyond. to group discuss all and strategic the strategic with initiatives. market partnerships. growth With and ecosystem call and in and enabling turn financial integrated EBITDA adjusted leads in vision, operations the the Nick expanded deeply of

Nicholas Taylor

quarter. increased three all across again reporting once Mark. To fourth Thanks our XX% start, million $XX balanced driven segments. group year-on-year in growth well to is This revenues the by

the with revenues [ph] million in first six utilization grew and Our quarter, betting QX of wins, revenues. XX% new from $XX.X to quarter benefiting our in full NFL year-on-year existing sportsbooks, related the increased customer

Our $XX.X major strong in non-betting continue at revenues year-on-year than in strong to grow in customers quarter. betting the revenues business quarter. pace, spend in the million America continues with Major a and particularly advertiser benefit to to both with from more North doubling QX

more revenue of our tech contributions sports to services. our in $XX Second with and acquisitions the Sportzcast Spectrum, million, in Lastly, recent the suite than addition from to of tripled quarter existing

Day, being along leagues outlined we Spectrum provided federations sports services recognized Investor The our FanHub, segment, million revenues in tech Second approximately our around recent and Spectrum, the As contributed have other our acquisition, world. to calendar and the XXXX. $XX Spirable in with in Second

XX% XXXX our latest to see of you'll slide, As next group $XXX over million., range. ahead revenues our that's the guidance increased slightly on

we've each I've each In full share $XXX wallet, in customers the partnerships is growth. reporting major content, cost results with our growth our throughout of base, retain a has manner. course, equating annual XX% noted effective and expanded million, utilization and quarter business, increasing across taking help to primarily of them delivered This and our greater customers drivers a of the to winning this of year, year. acquire growth consistently customer services, well supported segment, we've throughout In through year. translated balanced programmatic our new in revenues year advertising existing business, revenue our customers as by betting As available

to all You again heard segment differentiating Investor this our million year. sports products annual the this $XX growth business. has in in contributed to about our And Day. lastly, our on XXX% And revenue in

lifted leagues level. the year-on-year around Spectrum. recent broadly million. group our breakeven with our reporting roughly by bolstered We by EBITDA over to adjusted the year, XXX% and a at million continue basis, the $X has which and deploy with has acquisitions world, federation's Sportzcast been additions we're $XX a like Second our of technology revenues expectations This which to for in On is line

profitable, in on the and we business, Today, XXXX our outlined enter remains at allows expansion original US profitability core phase, half defined investment to group growth as again, a whilst an Our of as business, And on us maintaining in as Day, is level. US the our we expansion, our in invest and detail presents we particularly which this for Invest second into region. XXXX highest accelerated opportunity Investor

a are in clear, the making high Let degree US. conviction investments have we around we me be the of

We investment our strategy, are to the profitable beginning XXXX. in capital disciplined US and and allocation business expect flip

and As carefully position. its we're Mark situation earlier, impact XXXX on the mentioned our monitoring Russian

range million $X Our in initial is view the risk that of $X the to is XXXX revenues to million.

at stage early to the financial changing outlook. our adjust it's Given situation, this rapidly too

to as accordingly progress. it update sure implications we to we we be However, potential any wanted will things see you today, as lay out

year quarterly unchanged full guidance remains a XXXX the few our ago. from such, and weeks Day As Investor

reminder, approximately basis group achieve quarterly revenue this and updated and $XX of and keep the respectively. we progressing will assumptions how of throughout Day. on $XXX EBITDA a year. We underlying guidance our we you a Investor And introduced we're expected million million, adjusted to As on

introduced of range And million a Day. on $XX we group $XX $XXX expect group range in deliver to revenue $XXX EBITDA to to million adjusted our Investor million the XXXX in million. the and We also guidance of

heard Genius growth Investor and in thereafter. you've does building And is blocks that As the fast are not noted contractual describe to should highly XXXX, as Day. revenue due the in that to be day, on controllable massive position. grow need and us we that place a this that profitable profitable opportunities expect to XXXX The cost not and in on base and our already detail as

as now in conclude to incredibly As to outlined forward we keep the our advance execute In and prepared the we've and look remarks year. enter Year, updated through Q&A. on we to line this the we'll we the New plan excited are open January, you meantime,

Operator

Sachs. Instructions] [Operator you. of Please go Thank Stephen First is line Goldman from the from question ahead. Grambling

Stephen Grambling

then wondering Stephen. see on segments. got the Thanks give walking kind Its guidance you a Hi. through the couple of of could for And the group between the the I you us slide question. adjusted quarterly I'm that if taking cadence that the sensitive a are could give promotional And mix kind puts expenses of then and takes think to color to be about leading to margin that, environment could any on gross guidance you game of that and/or how betting? that EBITDA. on in Thanks. EBITDA,

Jack Davison

so Steven, Chief Commercial if I really around, the about way that's and on Davison, so it's don't, the first and [ph] promotional bit spend other a Jack okay, imply mix. the talk Officer. And let's

of there. the opt performance And marketing, And marketing, like, spend, and digital about buckets it pushing spend. that think this about sort of digital And how think and in all sort I of operated promotional free about [ph] we think stuff. when buckets, we promotional So, kind okay. marketing, ads, performance, bonuses we if you out performance, three marketing, think those TV of three guess, are being the bets we operators the about offline

impact That's does our that not not we our of our course. where But going on what we quite stuff, [ph] seen, the that is be going not promotional that be really, we've sense, enormous what main sense clear likely, will what is is some done performance continue the businesses is will future know, really quite and buckets, - to New will two signup of stuff kind on some And of in the thought because pattern we so - that, is bonuses first time. a marketing reduction sort That's we drive. business. the in. focus signup its think and there of the think we work that the and reduction the that's not bonuses, in area that But you if team well, - of the this sort could will York, of – is market standfast saying and to marketing reduction be And long run actually for stuff. that's outlook that, we

we trend, time. good So happen insulated isolated feel will which that - over about from or being those from pretty

Mark Locke

also also rotation Stephen, of up the It's its It's Mark. - about worth hi, come. worth some picking spend up how picking

we do so you the product there's from we moment, the offer acquisition. that know, retention, stack, And the goes, obviously point at the to States our reactivation. they acquisition and that same a And you the offer, focus move that know, the products sets focus same on same to going view, customer customer as is time customer in big from to software And customer the thing. stack product of

the as profitability. an so from acquisition focus the spend opportunity, So I of that an see comes as on as and more said, retention through reactivation, change, though target actually time will even increasing over operator we move

Nicholas Taylor

Hi, up. it pick Yeah. Steve. It's Nick. I'll

they the and all, to the you position particularly time around directing I actually, which our of around First though GAAP, slide deck, cost a in it's the around relation our we've cost think, bridge, a US question cash all, P&L is – the of base. included in for I first just which bridge talked cadence detailed to quarterly about the worth position. quarterly is the to you how XX, Fist to think

the So you various in can see out EBITDA where items to to an we've pulled go relation.

you've at payments million looked got you prompt of got [ph] million if there. of $XX you've in in and share amortization example, $XX based number, worth the For there,

EBITDA. that hopefully to to the - base make. our the point you around So give wraps first can clarity cost you That's some

nature. base, cost it's look cadence, the relatively we've year, fixed given our [indiscernible] if for On its in position, our you at

$XXX If we Day what million Investor on you we're at the said expecting. it's right, that looked

visibility good of pretty have that. We

are sign in to opportunity rights of nature, in new As any fixed to their up you subject know, course. due most our rights

We of is And strong cost over in it's impact visibility XXXX you which rest not obviously base beyond that XXXX The if indeed people just well. talk to visibility, a based, control the just more the and And that of on that and margin again, cost indeed, but obviously, and got around betting. switch that high basis. have through as where betting profile but quite that pretty a [indiscernible], and towards towards media less base. about talked revenues the our helps the not only of about we've XXXX, if the drop is lot XXXX, not Jack around it's predominantly position. cost fundamental it's moves If that really the with mix just other way media

So for XXXX. We cost our of visibility we're with of pretty base confident a our there. do number lot

So time for page Investor and will on this if hopefully that at Investor you. our between hopefully also Day Day XX the numbers, looking square you're circle our

Stephen Grambling

helpful. anticipate the of that's new well? up. for one I soon And if do states out there's Like that Yeah, that process. business in they anything those - from impact Is could US of maybe California, could how Thank know other if we to How kind for guess are impact typically legalize that? any do follow you gets legalized? kind we in that example, as look XXXX, you. the

Mark Locke

Yeah.

states. we that’s, is, and we we look legalization coming, view you know, way our reports the we of that look see state those at we forecast, somewhere way this the take we the different in that about the simply do middle all So - at look we how at the

put that's definitely attached how But comes California equally, is, that you impacted betting that there's if be are large side, on. you numbers - state comes follow is based the a negatives positively that a the consensus way. helps. effectively as out that other high particular Earlier, obviously, way can smart a and there's in fundamentally, calculate with regulate, know, that we if know, we the SKU, negatively propensity potentially obviously, the in So it know, states both you legalize. how consensus And up view we've on they on the such

Stephen Grambling

Okay, thank you.

Operator

Please Next Needham. question line ahead. McTernan the from Barry is from of go

Barry McTernan

if, was Great. the a the launching hold the focus taking expecting was And Good focus the for NFL, Morning. investors know, company should if what's be question. just the for step your 'XX? in I attention? Mark, for XXXX taking either back what Thanks wondering you maybe

Mark Locke

We mean, from I a good hear for big us. Thanks for you. look, tuning to Yeah, was April. went public year XXXX in in.

remind that, $XXX won just of under to million. top so businesses, right. we of And raised And you, the three on NFL, acquired we we

lot we've pretty and that So and you big year, a through of on a focuses different it the there's of challenges was lot integration there, a acquisitions. know, the of had the including, successes

for increasing us, into us of is talking know, more we you we've also, have acquisitions comfortable, that driving feel drives the There's in putting that margins, focus sure that And heard really now think Really out become we grow comes made. market I that really to and out on extensively a the pot. play, that product, profitability. helps in our that. Day drive execution and the our making in products we're obviously about positioned business drives lot Investor well helps successful, operators the opportunities the market focusing around to risks 'XX. make of operational play, value you'll and you the very are for that we're very And there's know, on on, the as an that sure

forward in it's summary, we're XXXX. looking to know, you you So, about And, know, but execution.

Barry McTernan

up, just would on up just in the market the of what's post-regulation helpful. then ingredients pick interesting one to will the look to And anything Expect the be what think regulation Would like promotion, live follow like your that two track? call you opportunity in the betting is it. How would insights that market, you is? Ontario, going [ph] to and largest so in - be betway look like hear Got operators betXXX, love think why with on Canada.

Jack Davison

promotions, in about new What way other think alive it's market The Ontario spend, create opportunities. really talked states it's kind when create quite before, Canadian York Jack to going you're promotional about streams I early market New regulator. ad likely you're think, out, to interesting see is or to grab on, revenue we the sort It's could interesting see of to think you've as be there, of about - a Davison, as same opportunity then we it for would the going and you hi. US major market, I rightly of mix different And the Canada, about What's and land coming the is pointed we XXX, in that up, aren't like because got dissimilar share like Yeah, how opens the not players or really be that's which again. you California in market of the highly way in is different. operators coming, see bands, yet betway share terms create bit little they US market. think. to

think the then of bit hard markets know, regulate. and in go organisations see you think score in success I media pretty and you'll - are they'll pushing different see that those markets local some quite you audience. heroes there, nature sort I having them different if a and those There mix early, of a And also you'll I attention. some the operator - the as see more have think,

you'll So up some And going sort sort the dynamics. to of market be interesting slightly of see mix, will throw that's different. I think

to that content is ourselves position - of we resell for you products specific us, the a looking the what also always got all trying right - ability always into mix but have know, in we an at fundamentally market. having and new markets. terms For that we of We're market to

content reasons CFL sure make one know, because we the we when to that to it right is of the why So up. deal for opens the have you got we've want with market

know important, NFL I we will important, will know. other be we content be all the mean, So

We we of will need really because differentiate. we to us the help Our partnerships there. think services very want likes stuff with were and having content relevant And CFL, important. marketing extra the

Barry McTernan

insight. you. the Appreciate Great. Thank

Operator

is of Citi. Next Jason from Bazinet ahead. Please line question the from go

Jason Bazinet

of your costs influences as of about just question, two for to I sort two Nick, total mid unrelated second, used about And of do the And revenues. your the comparable that the revenues sort a on I explosion, six. reasonable to you questions to continue percentage deferred commentary as assume are two teens. at what anticipate a given revenue come Is XX.X fixed, the XX, to it I Ukraine down high looking of that you is us so. EBITDA? in to shifts deferred your first most was then it risk business? balance? Thanks. Can it's to the revenue six. sort that or be to just had That's so it's And to of the just to And think, it fall remind mix the

Nicholas Taylor

that a We hi. terms Yeah, a Mark doing of mitigating wanted you we're obviously as directly really leagues. teams the relation of we content. can what to be our in about of to But the We're early talked question can, quickly, can will are wanted we impacted. doing sports whatever you Clearly, and relationships what really, any We're Russian posed, in and hence, situation whole terms doing we that also customers we our with situation to in give move give - expect gets view. we that range. so the continues to

say yes, that like-to-like, right for if revenue comes terms looks will will be - And like-for-like. it's being In to it of it's I of you're exactly that probably except be in think early EBITDA, right, if a now, there that not drop too reduction what that don't like-to-like through. terms through number like

Jason Bazinet

Okay.

Nicholas Taylor

deferred down. revenue, has it come relation On to in the second yeah, part,

fee therefore heritage I and you to tend to as be also, that about in the particularly, in advance hence we used a case. on in our where guess our that totally of on also. think in be advance we know, in basis. in obviously, place. European shares, bill kind the And market we've you deferred not If Media build that's – model to fixed has why US, are the the tends profit And revenue tended

So mix balance fill have you therefore, you've the those finalized. a basis once arrears say. got the numbers in And sheet change, we on tend slight been to as

to grow segment. revenue deferred business more becomes to to media continue focused, expect would I as little variable and a continues revenue yes, the bit So our reduce,

Jason Bazinet

Perfect. Thank you.

Operator

Jed Next from of line question is [ph] ahead. Please the Oppenheimer go Kelly from

Unidentified Analyst

Hey, seemed business guys. if my actually, could. tracking versus of guys Spectrum. your And us well, since 'XX outlook you Two sports the for Thanks on This you US Day? could has really, Jed. your at versus the then Shannon do the and questions. Is tech provide taking is I how towards any for really the goals it's acquired update kind core Investor there segment Second to

how have thinking expect on any I should we that you. if M&A? update So segment? more wondering about And you're you was Thank in

Nicholas Taylor

Hi, it's Nick.

of gave Day, we are no Investor seeing results changes information line, in you. the material of the results terms that you we so and in there's you're see the front you've got, gave on what between In the that that specific

guys up that's straightforward. So I'll one let other of pretty specific the pick the question.

Mark Locke

On M&A.

Jack Davison

M&A know, expect, different obviously on provides in we've some the sheet corrections the opportunity, market. a been And strong frankly. ways. balance $XXX balance the in sheet lots opportunity quite about would our of you There's on significant of that, lot and got million for price front, As There's at a moment. you

acquisitions comfort we're the hard, integrated made So, lot a business. we're open, into from We're has opportunities. - that well working of we've obviously we're take the assessing we how

study there's we'll but again, in worth opportunistic, of terms so, specific available, know, And updating be individual you targets. and we'll that's where nothing

Unidentified Analyst

you. Thank

Operator

Please line ahead. Capital of Craig is go from from the Leon Sigdahl question Next Group.

Ryan Sigdahl

win, me. Group. you that there? have are market and Canada. it market uplift you no be relationships That's wins guys, do unsure who kind of it's You matter who Capital little matter guys with hodgepodge of share? ultimately, and talked bit Ryan Curious there? Sigdahl, But wins mentioned wins a there all kind of a the So operators more Does ultimately. main a you to Craig-Hallum about planning

Jack Davison

great very about We a question, position That's basis. Ryan. feel good on that

As you operators of wins. know, all the relationships great contracts and work a We don't really to many, mind of we're supplier we there. structures got work them. with We've with all major who

December, we everyone As the Canadian else. market opens up have in

in the going CFL. we they're better So we position even feel that in content, want on because don't think We we've mind who the got exclusive basis slightest. about which some wins to

So question. hopefully your answers that

Ryan Sigdahl

And issues feedback, your downtime, the Yeah, customers it can hear go would thank Super talk you. Bowl, any there? given first performance then around from was to in

Jack Davison

no Jack, Yeah. It's season, we on we're good are involves different, with first had really and a very again. happy where it. this We

it know, We looking do we – operationally, up a pleased and with were goes with back before of very start season everything ourselves of the the of was bit. you and to are, the our and that. We get done a the all And lot success there. that deals sort had get

products As earlier, the right all and product as drive partners touched getting business. year, into we more help next the look on Mark to about operator it's

to pleased next brings. first So we're beyond the we're season, get through really excited season and super first what about our NFL - but

Ryan Sigdahl

the I it guys. luck, over turn Good you. Thank others.

Operator

Next question the from Farley Robin ahead. Please UBS. is in go line of

Robin Farley

a clarify talking know, to wanted new to just actually you to your about would from kind could you I states, that XXXX Thanks. you pass new thanks. Great, clarify were do of up some the just If outcome? profitability losses hit involve, referendum little what states estate investment? large you legalizing, needed targets? because further need pushed earlier out front? Could like actually it that more bit about legalizing of California of Or a kind

Mark Locke

Robin. Hi,

no needed investment. there's Firstly,

on, you states them new to we're So positioned as come suggest well extremely switch - on. know, the

division in go. a care have the ready very each We But takes state, to we're than that. licensing hot licensing of that other

do California In to terms need come online? of The no. answer's we

take as sort model. we that are as look As I one you that consensus about our how rolling of, the view the we mentioned and - know, functions policy states before of out

no requirements, So come again, If it upside. it we'll at does, look and happens. that it too present Obviously, for you welcome is California when that we that no, know, as specifically but online. and might to there

Robin Farley

is just then, are know, Investor has six it Okay, I wonder great. And increase soon you betting, of your since in Day, that? GDR from I lastly, too weeks an or think that see XX% change to so talked [ph] you've of Thanks. about, play if, evolved? Or coming a in in you seen if sort the

Mark Locke

were any the that we – data to carefully. obviously At trends. assume look, Yeah, we've we studying I moment, sorts don’t got mean, great of it's question. we think it enough think

Investor and our not a view we're altering So had numbers Day. still our before the we taking out conservative put that in at that we we moment,

Robin Farley

Okay, great. Thank you.

Operator

ahead. [Operator Instructions] Benchmark. go of question from Hickey is from next The Mike the Please light

Mike Hickey

guys. quarter. Nick. Mark, on the Congrats Good morning, Hey,

me. maybe XX. spend. Just of I in Or about your sort early that thinking a of a Obviously here businesses in think of going business. a usual, couple guess, sort to sense overall, advertising here questions for yet? sportsbooks happening there's sort I lot be seeing any pullback And a Are is from you moderation you the span

up. the impacts Just there how curious curious And advertisers, impacting inflation war as And sort ad well. is your sort to follow non-sportsbook, it business? of how of Thanks, guys. economy the then your desire spend

Jack Davison

there. a Its here. touched Jack Hi, earlier. just little Yeah. I

digital sports, a based and is markets, marketing. to those short potential question on no, in sports other spend. we're reasons of about result our slowdown in in of seeing think answer Performance business bonuses area. is of impact spend of we of slowdown are around those offline our free we operator performance your not business, two trends that very, focus the the areas one marketing the opposed And for negative to light. think the as we sort this is that that promotional and an going come marketing focused on when the being regularly any So areas, with bets in digital our very that terms to as And and is

same of I the that's gave So earlier, answer really. sort

over of of in happens, work those it's marketing hand the of that what well. right non-sports and work sort performance now is to the same terms we our I'm feel also the we all about, to to the way elements reengagement, area of retention, a of last that lot tools maintain and to going the area. about betting point So Mark sorts as earlier about in talk Josh said of in work acquisition. continue But whatever -

Josh Linforth

the Hi. This is MD Business. Media Josh, of

brand for non-sports the it's grow around area more through to focused more engage integrations early days on in advertise us, side we like see we're to with just and ways a very more brands deeper well. creation assets obviously, to looking sports continues things and very, that. because as So of really safe mean, better it's creates fans. of sports, the more And strongly. It environment, I leagues

and market it because it's like headed early terms So in you know, of as see don't of any there. risk we days, terms where a sort massive that, - things movements we of you growth we're see It's in real know, and opportunity.

Mike Hickey

players but consumer, the on do implications you in places I question, historically you Thanks, in XX decades, guys. of side historically, real stretching you or know, have flip mean, historically it a business the sort long plus how Nice. And guess just I when like And I Thanks, fairly obviously been adjust? the Mark, guys. budgets. time built years. for sportsbooks dependency recessionary obviously, mean, and this proof? has recession that of environment or within it's see been you

Mark Locke

into I you're now. mean, very are tend - actually to I and mean, these right, know, And resilient. a up sort Yeah, few would proof strong. of cycles recession businesses, stand - well. say, they would is recession And, I you I we

in that somewhat dynamics seeing, - even growth going think you know, market in on the think are especially the of with that that high dynamics the muted. US what's macro you're market, sort So, those of I the of more some I

don't expect you events, macro sort know, can't some we the of really effects any know, So, particularly, significant we beyond, predict. you

Mike Hickey

Thanks, guys.

Operator

your with questions? done you are Hickey, Mr.

Mike Hickey

thanks, Yeah, luck. guys. Good

Operator

Ben the Next Please Credit go line Suisse. question is from of Chaiken from ahead.

Ben Chaiken

would those frame When transition you in is, business at it getting flow your you When set? guide how's to implies, just for ‘'XX beyond? I think relatively the are guess 'XX to years over going? EBITDA and XX% about get through costs I ‘'XX, we 'XX, what we EBITDA flow the from fixed think Hey, through. I'm know, how

Nicholas Taylor

is again. therefore the very, dynamics XXXX sitting share kind very few ones. is visibility on other to sort here as the And EBITDA they what a and Nick, And great Obviously rights I massively impact that natural them to of XXXX we or people going mix are Yeah, mean, I fixed, subject be. said of businesses, as have our betting remaining have. I deals. where material of media and it's right what dynamics. between to parts deals our opportunities not margins, element said long up will any than base be earlier, frankly, sign wont then only I cost control that profit obviously, XXXX therefore The no cost the where accretive the either And XXXX mix any basis hi, cost now cost the on some different relatively the sports but the Yeah, is cost of earlier, them, area term material. more got to right of we and there's really certainly know small and have are

revenues bit will taper, XXXX, the be and mean, a growing than you obviously, - concept So dynamics base basic a getting know, XXXX a XXXX the cost or I beyond. It growing fixed and rate cost XXXX. slower but in the it little beyond XXXX. starts at difference of of getting is you same start XXXX in the

Ben Chaiken

Got you.

expectation an next me a the broke bit. be that. months. made get of coming, tough. that Meaning correct. suggesting this you your summer, into tricky through you in Day, looking rather will higher. when that XXXX, was I Investor business which or is if be one to because rates, were around out way? answer. mistaken. assumptions if not mistaken, the win maybe I suggested gears floor out the not into I'm it question it's season guys on I XX an a Okay, be view This we'd just sports need some Switching might What or you in the some broke But be investment I'm came recognize bleeding thought in over could might Or little 'XX? industry explicitly entire think there for appreciate see to correct, I backed around was this And review, it. But the to win, But X% inform think if

Jack Davison

Jack, Yeah, hi. It's again.

obviously, was know, is, our markets great learnings of and is, Day, focus you from focus when we our and sports, we're you about, as think lot to and includes the ways were industry, here engage a include play, win us, in play focusing the on the that's win to rate at [ph] length and a seek of of real course, on about NFL that includes Investor across the a the were. know, talking operators, underway, include are those game. talking with to where, across bit that in NFL where that. because - Investor the on that's we're you So stakeholders the aligned we're a will expectations the improve in we there expectations other lot we further about, understanding know, and so expectation so specifically, that stakeholders rate themselves, business, on trying the NFL attention But where And our is clear our talked as Day,

conservative, the about at we we and is where it's what I'm until happen bit we to the those think we those good balance feel tell – in in think won't know, Investor not, are Days, between assumptions And, where those sat moment. moving to ones really assumptions, So on early our sit, we or we and pretty we really assumptions a you assumptions outlined the next right know way. into going we are right conservative getting those but season, push whether from

Ben Chaiken

Got you, helpful.

of year another it like sports. Okay, sounds so

So upcoming. getting through NFL the season. It's

helpful. That's cool. Thank you. Okay,

Jack Davison

I right. think that's

we're show industry, in do of play, sometimes in now content, actually an our streaming amount how matches operator live think is about which business about product right there's sometimes site. what - you now, you obviously focus the in huge a so that's on operators, about I know, that - the development for engage

which know, margin you you these we're drive all things are will product, others about building is, of [indiscernible] products, points forward. know, some, Sometimes building

about of you of rightly so. questions It's So lots - it's of view only point get of and the from only details it's part specifically NFL because recognize our the is we're that lots one other of thing it, the part business, know, business. one on to our only very we

outlook stuff our key our does on an the driver not have impact for going it's that us. although and revenues forward, So,

Ben Chaiken

you. thank Great,

Jack Davison

you. Thank Ben. Okay,

Operator

Ladies and gentlemen, today's that session. concludes

and you for Thank disconnect your Good-bye. telephone. joining may have You a pleasant day.

Genius Sports Limited (GENI) 11 Mar 222021 Q4 Earnings call transcript