- Earnings call transcript Q3 2022

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Operator

Good morning. And welcome to the Genius Sports Third Quarter Earnings Results 2022 Conference Call. My name is Abbie and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. At this time, I would like to turn the call over to Genius Sports.

conference. your begin may You

Brandon Bukstel

Good morning, us. for thank you joining and

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

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

Mark Locke

ahead CFO employees target include commend sports, media, I'd who highlights and call, driving revenue and an that To results from its of new our our the on which quarter will growth We're outlook NFL goals update who today's of Day. book we've key pleased quarter. in Investor the call. are business our detail. on strong XXXX industry will Taylor, was in set execution remain The guidance. the across the to driving quarter, of backdrop to our I outstanding in financial to execution forecast. has in our plan led million third quarter, our $XX quarter strategic our third we the serve U.S. This ahead. ahead or to revenue was consecutive generated by and XX in earnings and execute delivered discuss in to our of In of to U.S. full of effort across technology line customers the as I services betting results and business, result call partners. quarter. and million up like wins EBITDA customer strong thank start EBITDA will more third successful revenue profitability and million sales million, Good our start, and our out to year. at and On adjusted a $XXX performance Nick of performance the pass will basis the financial our significantly an team as our And adjusted EBITDA overview $X.X of tracking another This profitable joining morning. an This sports loss of largely quarter for then The key for you million on year-to-date the the betting we on committed strong deliver $XX year respectively, organization. years reoccurring to our our a $X secure evident the discuss the last and adjusted to revenue from backend brings in

our successfully We'll delivered long technology's base this partners our advertising discuss our the audiences to quarter, support to to in sports lastly, the having Technology, fundamental Our how space. in our And differentiated while developed XX Spectrum to We're quarter. broadcast media more the in and vision. detail traditional celebrating we've exciting by Second new this successfully achieving our we've also review team customer customers features shortly new term our signed strategic betting consumer new expanding than engaging of clients. beyond wins customers sports continuing which

Following third and the confident $XX year-end more cover adjusted executing EBITDA. in in million are in XXXX and to revenue into our are $XXX continue Nick ability quarter, outlook we of will of a detail million this successful maintaining shortly. our

you of globe, books. for many Genius we share with know, marks the sequential As realize the to Tuesday leagues tier of have across revenue beginning contracts top several where the season enabling sports growth

in capturing margin market the last extra leverage multiple business multiple operating little the You we report, may is our EBITDA growth in this at ways betting words, in opportunities Genius Genius revenues. in revenue premier and expanding rapidly and shovels In accretion outlined the company the recall alongside quarterly other generates picks cost.

lean has period XX California well The and in care in been strong we growth of three betting pre-match and over market we Handle in and one. with from looks states obvious promising margin this of also in-play XX% of were mix healthy the Ohio, that and the of Maryland, or mature positive as about, our And in growth growth still Massachusetts, initiative expectations. line failed an ballot EBITDA and XXXX namely more betting the NFL While a as the year-over-year despite all as with our KPIs September up to new launch has been predicted, such states. revenue Phoenix weeks contributed week quarter. the reporting and in period season, year adjusted is when

relative More our September of play to win significant year. growth in-play GGR and XXX% This in to improvements resulted season's importantly, roughly margins of last we in compared to average. saw is expectations last

as we margins growth win significant a noting While worth emphasize it's margins seen driver, pre-match impressive as win in-play we've also often growth well. improving in that

As gaming U.S. compared XXXX. outpaced year to types. growth our have which U.S. in win year September has pre-match, propel broader market the across XX% business, September improve our expand as quarter, meaning U.S. a than a rate by revenues revenue, and XXXX U.S. specifically margins of Again, more all our which the betting growth parlays, including Genius in-play these helped betting, of of bets third in for overall and on far the to factors share growth including each are reminder, contributed

only As may I small season. what caveat weeks it data indicative of remainder not the the reflect expect be of results the three covering of size results these NFL earlier, to season. of these a Therefore, for sample

our will goal comfortable data current our be We of communicate how to However, as In done customers have revenue. contributing time. so maintaining feel quarter globe transparent team been metrics, betting sports possible, an third who through in trending of new around the the has end the we use winning signed the the alone, business. is XX sales all done but we we new over job is markets excellent regulated the season. as In meantime, assumptions our

that number For combined our wins customer QX context, year. of now matches doubling the the new and in for count QX

partnerships they sports bet constantly the with become well. our utilization Additionally, we're offering continuing increasing customers new of our available. efficient services to and We're content existing as streaming as data expand and

powered after weeks immersive betting Second implementation tracking deal, season. Most example, and of Genius's results the expand we're technology. suite of with the extended Spectrum summary, notably, augmentation a unique its of first for and the will betXXX first real period, as by betXXX few with time betting part recent As the sportsbook reporting to official data the partnership second satisfied In partner the our explore of NFL experiences Genius become content. coverage of to

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the take Let's the U.S. in as NFL an example

and we seen, solutions of to have this the to engage experiences. and of the betting is play embedding to of stadium and clubs in are free may utilize these you teams launched and Rams. games several benefit with teams to is to sponsors further modernize sports the better In the grow NFL, media and Colts, Genius season, suite technology convergence Broncos, First, the partnership activate Raiders, fans including NFL free audiences, driving play just These new sponsors. way Genius, games another its

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with potential Genius continue pursue significant to call technology I'd over team that, [ph] Nick to the growth come. excited to turn around tangible other the over stage but the are the This capabilities, with only the years a to with broadcasters to Taylor. and to to imaging world. And represents showcase revenue and now like NFL leagues We NFL for today to our opportunity big partnership, we're reaching our at bring not evolving better also

Nick Taylor

Mark. Thanks

mentioned we'd revenue profitability against the delivered balanced the remind we U.S. exchange into EBITDA As diving of like has pound. and and well at another dollar further Before throughout you to volatile rates adjusted remain start, the growth British quarter foreign the the the details, appreciated even quarter

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business for much Handle this with was and win And growth by out along As of U.S. drive performance operators. betting of lastly, increasing content helps Mark business improved earlier, also services. in-play we our mentioned and utilization our the expand supported start betting positive quarter a was growth as the margins busy with of by partnerships strong Overall, the this existing momentum customers calendar. setting to sporting to for continue

brings is strong another increasing purchases our of our year-over-year $XX of media currency XX% which outperformance segment constant with line million, $XX forecast. right exchange revenues million $XX to growth, guidance rate, guidance or growth and year-to-date in of XX% major million, of our our This Our assuming $XX currency year-on-year to and to XX%. quarter compared constant million

customers of results forecast our expect Despite our over represents expect in a space. for to beginning sportsbook with to Looking are media that to which time. our adapt impacting QX, market to earlier. Therefore, more are advertising year. the headwinds, broader these into closely we to the line the and we headwinds not existing our sports but share deliver betting clientele, only advertisers continue growing traditional touched to taking Mark customers, opportunity with continue with business on This also outside media full sizable

generating product Lastly, currency, in our group revenue $XX our in the sports in a grew Also million in quarter. guidance. with X% constant line

group initial million, initial from of sports constant quarter, is aggregates the of the at Our flagging revenue translated $XX million million This guidance that rate first also beating of or QX, this of rate currency of a year-on-year which at using revenue our our Collectively, XXXX, million improvement worth represents expectations. da Spectrum representing in adjusted quarter and EBITDA a basis. in last more post-acquisition. Spectrum guidance, is our the with Second assumed full in million the a reported revenue becoming quarter guidance, line adjusted our third on loss is $X.X Second year. material exchange portion EBIT, growth in lapping adjusted our same to group our $X group the time was to EBITDA was the $XX exchange it's of $XX Using XX% which or This quarter million. figure from revenue now a revenue $X generated significant the we're

plans XXXX, steadfast are consistent we executing are nine is commitment to remain performance that our tracking despite of currency our the the this the I in January. And plan. of first year happened headwinds that We months earlier. Through ahead to our throughout with pleased you and mentioned

million margin. XX, you When our can rates, of of million hand you we million. the even and group $XXX impact $XX on by the Slide EBITDA year-to-date left ahead revenue guidance see see also of respectively, As exchange $XXX of greater our an $XX exceeded and guidance can side adjusted reported million, we've and of removing tracking

we believe final would using as enable three in approach that as us guidance, results exchange fixed the as quarters quarter As our the business full of goals on to our the our the assumed by continues rate outlook. to target we the execute year year, that We remain achieve to raise strong year first planned. four

million of the further adjusted dollar full year in we Given outlook $XX of are revenue, $XXX appreciation and since the U.S. our last reaffirming EBITDA. quarter, in million

outlook We remain in rates initial maintaining exchange also at the current confident same guidance, are guidance. XXXX our and our our using

rates on and accordingly. the may clarity of performance, this direction update more have business outlook exchange we As we

Looking excess in with business term remains our a track need on enables to of market, we're in long to significantly us a increase. revenue this leverage the or XX%, objective, portfolio Northstar. larger believe in we margins that not operating beyond does achieve XXXX, capture to EBITDA pool The expanding robust which

not execution a Our cost forward relatively base fixed with that way point grow target. should line the term is long often our paving revenues, towards in this from

matter as share That any the coming seen accounting a for historic historical restate SEC a prior of our XX-F disclosed received is and share, type of cash X-K our previously you SEC pertains to to relates a We to a of filed a XXXX to and on latest XXXX and matter of of earnings separate be Form fiscal in This assets, our of amend this may morning loss is Form I years. and context on adjustment restatement which amendment of in EPS the this housekeeping, no adjustment calculations those housekeeping, transparent view timing the for relate we calculation. final days. a plan preference clear, it to our a is a profit treatment the existed listing, be of this of to fully impact per be from our XXXX. the have which There To group of XXXX forthcoming and only. Amendment to comment said, years should response our in disclosure to. As what financial XX-F, the filing the liabilities relating wanted and to

on including Before noted $XXX quickly well. position on the to to expected touch as balance finish quarter we of like sheet, I we conclude, third with the our last that cash quarter cash I'd restricted cash. million

As $XXX cash and just finished forecast. the right financials, our cash the restricted you'll line over million we've our quarter in see with in in with

In closing had fact, exchange if have the as balance would cash about million not higher effect our rates. been been of the $XX fully presentational

our cash to this As funding breakeven particularly to plan generate by the cash be with like $XXX continued a and it roughly currency and our position line XXXX. the now our ratios ample positive have prepared quarter, second as to in and on total under noted at growth remarks the expect last strong Q&A. QX and flow of cash range today, of expect the final quarter comfortable flow million liquidity exists exchange still we the as cash are On end. that the million I'd to balance the profitability open based cash accelerate to $XXX the continue we to business note, expect half of conclude we be given volatility, restricted clear, we year-end at To

Operator

Needham the [Operator McTernan Bernie Instructions] Company. line from & of comes question Your from first

Your open. line is

Bernie McTernan

platform, hold talk benefits can betting play thank third and Great, headwinds about some on higher in the the structural tailwinds thinking of revenue through quarter just of the one you questions. GGR in time the the sports to of verse start, some you impacting your against Maybe and quarter? in taking for

Mark Locke

for one is you this Nick think, I

Jack Davison

Bernie. It's speaking. actually Hi, Jack

until season what operate that think that. good sort sort you a thing of the need quarter under on so, NFL at I very a to very good start of Just obviously to the

view the us, of the play so our kind from our NFL, of inputs it's of of point performance We things and started it's obviously We're with those the pretty season And Handle point the margin, from the revenues good, between very balance happy that all for from number a are. into from we we GGR, a we and at different stuff of I point a of spits at are the slightly the of for top, weeks of real see sort from we us of ahead pretty period, that in and a these short where as What from start it are things revenue that for revenue look is a play things. view, very translates really pregame business. three of where out of saw we're would view. at that how view, mixture things. our And is wide margin the we a all with look point

good definitely that but indications that those restate like and we very that's to about let season, trends think started. and and early weeks three means, where so it's I And of things what the that, it's good with there. happy we're

here our to other much be thing business betting the isn't us it state wider for you but is of important, cognizant as than our is know. that, the fact business, The is betting to NFL that,

the insignificant, relative and they're the performance or down only success they're that not on but not up swings thing defines NFL there, our of are So failure.

answers your that question. hopefully So

Bernie McTernan

spending love get three how where or $XXX to And against Yeah, media years. committed color we'd tracking just then the million revenue, you on no, of any on that's great. are over guys

any I operators think of were there any through third one as happening the we're likewise, are that like they're And budget those kind above minimum deals, spending are there in flushes year in quarter? threshold? just their

Nick Taylor

it's Nick. Yeah. Hey,

with but year-on-year, line think the then, we're expectations. we that's constant in in currency there's media still increase And position. year. HX marks, back prepared month the nine XX% had exceptional in be aggregate in now the clear, certain an really since quarter, headwinds, our But year-on-year of XX% line I back this gives a broader the last our expectations it's and quarter performance us basis in in as let's on

with guidance, our for guidance with be back QX the you and is outperformance saw in line in line not or in exceptional For example, QX, but year anticipating QX. the that indeed this we were to be

in I the continue very comments, competent think I the of Mark the share, to is prepared said take environment. we're wider to guess market regardless earlier media other thing

Bernie McTernan

Understood, thanks taking for questions.

Operator

of from from Your comes line the Bazinet next Jason question Citi.

is open. Your line

Jason Bazinet

question Is your free better there thinking to If know from on year improvements you next XXXX anything accurate balance thinking just actually. that would Congratulations year. free EBITDA to just cash I on Iwas that that capitalized I about in quick cause cash in translate this today free a and cash of cash, forecast. to from had was about not cash and ops growth CapEx? less being software defined as EBITDA

Nick Taylor

Jason. you there Thank any the isn't Jason, Hey, from for anything calculations. No value.

guided randomized is we've quarterly within similar capital there's EBITDA But year quarterly capital. through to of this know as working and in year expect no to to certainly terms drop working be swings with next the that that intra cash. swings year, Our you why reason doesn't

course time CapEx are expecting which not and increase level CapEx the in that the other of out are of basis software capitalized sort for tangible then which areas over called absolute as piece. of an certainly to expect the and small well is You've a indeed, two reduce to

Operator

line Your comes next of from Robin Farley from UBS. question the

open. is line Your

Robin Farley

being year-over-year? that? at in the to of that questions. One the and was way two all then year-end mix million Great, FX? the looking range million is Is NFL your for Should on U.S. the we to is $XXX is all the that few guidance? play Is XX%. conclude $XXX sort FX, due pieces previously guidance. in stats that wanted of And just similarly, was it clarify in of $XX that to first XXXX $XXX One just And about to of million? that XX% just consistent cash two also million think the play handle your kind weeks, revenue balance for up at

current of update had your sort if the XXX XXX for to that January/ as wonder in so XXX I you would be kind rates to sort be. of that expectations time. quarter, in mark to would rates that like at FX market just I today's what last think of you Thanks. with You're investors a could anticipate well can the rates that at rates reaffirming you XXX gave given

Nick Taylor

it's one pick Hey, piece. or let And Robin, Nick. guys up the specific two guess, NFL of take I'll I'll questions three. I

So we about we're of the on mid-August on right. when rates. And you've think what called was talked which the of XXX, sort rate the it I when around exactly X.XX, Well, XXX-XXX, cash are about today about sort that's now out, X.XX. around they

will purely it's indeed, around you cash stayed FX position. purely can X.XX, just that balance year, an this at statement, flow throughout our million our FX presentational in cash bid. So we'd if And see be $XX actually higher, from

what Robin the of revenue that the adjusted was January. X.XX, strong on unit Day that back guidance prepared position, the XXXX out Investor business, EBIT of call XXXX that in we've guess thing, I said currency at reiterated performance the in the On reiterate first to to sort the important just we is the back the remarks which in is based on

is to that's yeah, biggest of everybody to purely much that the a currencies. and the variable, presentational our -- say change of You're really constantly presentational of sort exchange right on more couple is guidance the moving over to revenues, on course on we're guidance impact X.X conscious official do to keen But our of weeks. this remind rates. Again a what And very between based I'm and minimal not anywhere our that impact our therefore X.XX movement of and last that on EBITDA.

one be first to the is over hand based around to likely on of come an question looking the play. to to view, updated probably your XXXX to rates up I'll and the in with pick been I've in New on back what So Year, do exchange market to NFL where the Robin. guys the

Jack Davison

It's Yeah, Jack. Basically, assumptions online. about hi, Robin. your

for the and revenue of real mix the As in thought that's there. mixture margin where the But had on moment in question seeing previously and I be will the time. board, and we've very stated our all and make and at the they ways bought assumptions what earlier a of short period are our there's line us said to on, a to we trends in things short, Bernie's other we as Handle the we're

Robin Farley

Thank great. you. Okay,

Operator

Capital Your line Ryan the next Sigdahl question comes Group. Craig-Hallum from from

Your open. line is

Ryan Sigdahl

I betXXX? want so with guys. talk can that's what about now integration Thursday going look But Hey, you to Amazon Second to betXXX, start nice football with on happening. nice Spectrum, night that's with showcase to sports bring a consumer the the within other the to wider the audience about leagues? the NFL, opportunity within technology experience like but much secondly, talk within then also betting to And

Mark Locke

Hi, it's Mark.

us the an And interacting that Spectrum activities they're years. place that of look room to from think interacting that. that exploratory we where can seen over partnership. are interactivity doing streaming gives things you've merchandizing, ticketing can pose We and at that the with XX-plus layer the Spectrum generally bookmakers XX or time, other presentational to is punters of last experience with that sites using partnership that with And the we the So that's an interface some we'll and frankly, Second the sort things whether or that are that the the opportunity like for that if Second recognition, the that improvement, We sort user some coming. other over betXXX of user And just to think bet. coming think be and technology do is there's innovation use drive experience, that be of you really really improved.

we're with where this. heading that's kind of So

Ryan Sigdahl

Is it whole app? it up, or AVs within betting it's throughout experience the the maybe the more it is in functionality, follow -- is more a

Mark Locke

that We in what whole yeah, put the kind mean, Well, how to opportunities about gave you huge at bet about think We've work term. talk a there punters, sell, bit sports user you we to of we only types said the a of betting are but it's of vision that video, the out interface. new longer beginning year, betting. experience, more believe going within and do we cross investor the to products not bets other the

the traditional is will users products products, game, of over that's external products but think that further both. future whether of betting or the sports that is time, will around be representations to in they're to based initially will evolve, that the betting going that AV be or user it that change. the having sold think in we way, game we going And So involved cross it, of into graphical -- the whether future the and that as whether experience

Ryan Sigdahl

then thumb macro Nick. given just for of I crosswind today, feel the the operating about forward And my but margins, do in currency XXXX. the how cost implies at XXXX forward? going XX% a EBITDA update structure of and Great, good future Appreciate between the kind you guidance, on Thanks. one margins model years? incremental in that about then the Is rule leverage going various of challenges constant guess, math

Nick Taylor

at year-on-year. some seeing the much operating Yeah. this not expenses obviously year-on-year in fact, our And in they're as quarter-on-quarter the business, as in decreasing, increasing you're revenues. look is actually cost well year, numbers Hi, support steadily areas, and seeing actually, you're that revenues increasing. yeah, And The our if headlines that base can really higher the look total Ryan. you you if at

position So point And very of XX. actually ago, year sort just at EBITDA we're next constant that XX now. on we're inflection Robin, to for saying we're to with a our confident currency second basis, a that

the you're about margin So incremental correct. that thinking is way

Ryan Sigdahl

luck, guys. good Thanks,

Operator

Jed from from comes question next Your Oppenheimer. Kelly

Your line open. is

Jed Kelly

Hey, great. my questions. taking for Thanks

did in think cost Nick, your revenue, I your the really sports to cost So Just associated data off, data looking cost betting. at with nice start of you drive leverage

in there? So been market. you. Are softness of advertising some with have can And Thank talk segment? some you media and the you kind your that know, of seeing the we you then, about puts broader takes hearing

Nick Taylor

thanks Jed, for the Hey, questions.

On revenues. base cost support much And kind really I've just can mirrors current to of higher first absolutely. it Ryan, the one, is what said that the

in the match. of a little revenue on in there's of seasonality that bit rights to cost the and NFL NFL try and relation revenues that we Now the and

to it and significantly click. revenues But gross continue QX, QX grow higher growing don't that the always slightly make So that margin line we're the envisage our decent have to or have certainly a point we and as the we you base right, significantly, at that today, QX. a in is like operating I in cost

headwinds. On prepared the there obviously the I media And performance little this guess broader are exceptional in commented in a space, well, remarks, the Jed HX. I think I but bit

outperforming So our QX. in we're not expectations

currency we acquisitions do we're Jed, to we a do, also regardless continue QX, like, but entirely no that And organic is in we think almost growth. now looks constant lapping said at earlier, to of And we're year-on-year is take share XX% are wider inorganic We apologize XX%, what media that expectations with year-on-year. in [indiscernible]. that our and as growth. line don't what the always that expect in take environment remember all to as we we continue thing let's -- to market that's now for to And that continuing growth, I other the not expect year-to-date, are Mark

Jed Kelly

then just And another question. as

of spectrums the was your book announcement couple NBA. a around involved of an data. of think, with one there kind competitors tracking ago, NBA second other and believe, sports weeks I I

And relationship? talk this I prospects. of into as around can you then tracking So books, sports more about guess that sort player lean

Just competitors? you. how to standpoint, are you positioned from your relative technology a Thank

Jack Davison

Jack it's again. speaking sorry, Jed,

cases of technology very feel the across understood the the a So use I market to we well for Spectrum, and the like and about compared view, competition that from point feel we And Second doing. it's technology to in a very, what base. wide be is think great leader good

talked all Some user of the stuff experience. about Mark

props, types, of to stuff So that different With player talking as about. on around respect bet to are feel types when we there Mark earlier illuminate, right on about of coming betXXX. touched bits NBA. out, But top the and data you're great of that, new opportunity

Specifically, you're right.

we think we've is about way the that are spoken a I NBA. work than leagues before. and this with sports multifaceted. And that The We provider, can to more tracking

and purely we couple it's and distribute like we with are rights. instances, instances, provided combination in So in weird some technology that buy of those their some are capacities, And a of just to there. instances, things. respect we their In we're some we technology a all NBA the providers, rights, we the are NFL

good part really to of that be So we're thrilled relationship.

So with that -- does that answer your question, Jed?

Jed Kelly

Yes, thank you.

Operator

the David of Next line question comes Riley B. Bain from Securities. from

is open. line Your

David Bain

landscape with generally rights guess forward. or would much. and so thanks sports for question that Genius Sportradar litigation, I to my the strategically, moving the of European for change Great, how be regard would settlement first

Mark Locke

press limit code Football very the XXXX. Sports low Sportradar market has data unofficial be give the therefore the stadia resolved agreed to data league fee I'm has co-betting official this. you Hi. it sub football to for the rights Premier matches, continue a and Scottish and of very from I we've reached. the to Professional to very as what position provide the And official Genius from shall remaining But, so of through staffing marketed can in refrain confidential. But happy with the limits happy release. with the maintain to about lines League the League to I'm Genius sort database -- purchased feed delayed settlement license code, from football through I'm date Yeah, basically litigation fit. And We've license secondary we've data, happy say XXXX. right ability football outcome. terms that are to the resolution and data, our very football the through latency the exclusive as enables deems

David Bain

for that? like just Or bigger going like to I about now one a way is this forward? that. picture there general think But this sports understand Yeah, the European a is

Mark Locke

don't the is that of market have and operating -- basically sort this we business way been worked have we that the think the has mean, changed. I has really way forever. I the

accepted the and of the leagues, the now much and, and sports adopted pretty books the the industry. that's think view rest I of

really us, much of our is for positive our It's comment differently a really of aren't just us. whether into and but understand things cost it operate. affirmation our think what I rights how I And model. are from very change doing. the we on not, or where doesn't going for We competitors built how we're data will and for our us, can't coming to So change operate

David Bain

Got it.

then, if and kind the guidance that cash versus differential And a dollars this mechanical the others, Robin some OpEx. to is following in or mix in we understand know of like kind using I what to take Okay. that change we flow? just you I your EBITDA Can so get understand have example, different dollars FX. Nick do X.X or on but just CapEx know up buckets pounds view? would certain we some or those free are given, Could revenue of just just

Nick Taylor

I buckets EBITDA, Yeah, those I and guess, into hey, revenue, mean, cash. two individual at looking David.

order. So, perhaps I can take on reverse

the less got business. the in exchange said I I the think answers the $XX of rate based So as one for in we've cash cash, previous level million because on of just of

revenues, been So are. you SERCA on any in this within EBITDA on the that bit. mean are I don't $XXX about and because EBITDA can far imported we where remained And bottom would X.XX that had that. suffer math therefore I have million. our see the some exchange rates you is inevitably, guess given the million foreign that said denominated, mix of better at quarter that and are dollar $XXX can costs revenues we've kind less of exchange the there the by is impacted flow, do P&L cash

strong revenues XX% U.S., go probably and calendar. I as in that's denominated related. to but one revenues. revenues? not David, I the and in So reduction, the this this are seen obviously with actually revenues our let you guess the of EBITDA our course, our and of of is non-dollar quieter revenues much mean, in U.S. how dropped with nuances, QX a but why QX, impact rate it we've think of only was year, settles with we've Obviously, sports exchange your it's QX, card dollar seen to and up mix our a are of relatively minimal significantly I U.S. denominated keen And like or QX,

to the of say, from likely performance early the significant What a what Robin XXX. FX said we're has that, And probably is XXX in confident David, also our rate reiterate, that are is purely really, So an at view with we update at just underlying example the to new year. to I would impact. business guidance that has

David Bain

like if So generally an a next as were mix I say quick Real should to U.S. one more example, year XQ be would the think.

Nick Taylor

sum, good a David. that's think I

mix of trajectory mean, I the seasonality in slightly quarter, higher right. and the but market say, expect I would forward. the yeah on naturally be the business I I a to quarter going that's U.S. U.S. as think growth the mean,

David Bain

you. Thank Perfect.

Operator

line Your from next Mike the of comes Company. from Hickey question Benchmark

line Your is open.

Mike Hickey

services you. I my sports, first guys going for taking afternoon. Amazon one Jack. and on streaming Nick the trend you morning, Good win the Mark, the guys, visible of seems guess a on been it like for that's very questions. to here Hey, obviously live great good are Thanks And side. just

on incrementally you look transition Tier or GGR services that's not? see X, of sports. at but you guess, I when question, in And looking then X sort same trends incremental that behavior maybe pre-money anything the curious you versus at for of or is betting, play, positive Just anything terms there's betting Tier of ultimate the streaming in maybe

to and X don't pickup services in viewership, for I a Tier larger you sort with which is Now that, do great here? you be streaming X Netflix surfing? can that'd spike market live a the of sports opportunity you surfing, good. surfing these hear also is betting sports of tennis think to guys. or get But you sports an -- can sure. like you opportunity obviously for maybe know, sport here side. I incremental Netflix not But bet on gets betting if looking that going you that see imagine Tier on Seems Thanks, I'm that like viewership also to sports, and think into is would already. the going

Mark Locke

Hey, the tennis not. backwards. I'll take questions it's Mike's,

is sports. mean I NFL here and but only these I of business business and and spend the the about about business But think our enormously not really time talking a calls our we the meetings of a is on that in ton longtail you investor NFL. guys about

of and so the hundreds have. pickleball cover from from time like That window longtail it's everything about Investor with. things about Day, always important And because, is all we of day, available, to way it's into to down events NFL the all of having for engage content it's surfing. we always tried sharp sporting open having sports to the we the So explain the of betters thousands

the engagement. real ways to think sport the their because start And So on in for something more is that that it are is Netflix of kind engagement, is are fans site, fan whether because we and own engaged. is fan because of indifferent it more streaming I fan lots bookmakers interested about the to we promoting interested comes improving we fan making streaming them just engagement that whether -- or because we're experts longtail it's and more engagement comes the really ultimately with improving Adding about pioneered. fans getting

about better talking job we a with doing engage fans the job is Our do earlier stuff do job of were that of we some with in a and what deal to and sports the exploratory we're Second the XXX work our with broadcast. making Spectrum,

is make And any in they really that of bookmaker more broadcast interested betters -- products, sites, we more to really we integrated information, interactive, additional will to data. getting that a broadcasts interactive, other answer probably cross and welcome we really think players were still play sure that sense But acquisition making The sports or sure are side, unbelievably bookmakers over a want. lot whether the only our who think. help the book the sports bets think of online technology making We to on viewers. selling, time more for that sit covers the what Second the about that more have fans The fan that it's but I about of sports I on more content, the on that's sports Amazon we betting fans a point again, your they And So in not those more new streaming that's world generation in are of can some engagement. it's stack way whether placed. better job whether interested the detail, Spectrum and was first It's appealing betting more -- site sports an on into Amazon, or those we're do betting next question, well see. can, Netflix betting come interesting of of for a Netflix on well that's us focused or generation view, on or from an only incredibly that making more

valuable sort as we a we're of uniquely talked from we've the placed really exciting and And the deals we're some fairly see drive as of about. think really I part proving really with to So that this of it value ecosystem.

Mike Hickey

Thanks, side. the the Mark. the ad average a in Nice. not here the media One you well too U.S. you Nick squeeze more ad trending we've gotten lot me. But business challenging. on here, much and it's no questions has for because very stock been look at doubt side, of not tech to

'XX. prepared the of guide. confidence remarks, obviously, Because given guess media So term stand that a your near I you I some larger on baked the for assumption reaffirmed just seeing think you've that headwinds had minimums sort you above 'XX original but your But 'XX here, your you're into heard embed guide. your

you're but media headwinds realize changing the resilient to sign. your be that have I not you and 'XX Thanks, given you feel you've guidance, for I'm yet So that your peers just curious that in why guys. here noted

Nick Taylor

media Jack commercial to be currency. helpful just of to guidance you pedantic, what give he of get whole XXXX actually be with operators because the what helpful. Yeah, me be hey, answer based are this to any color on it constant let bit Actually color at projections. on more for a is is XXXX specific able be Mike. But the revenues a from we sort side. give that little But this the might a Jack comfortable But might we previously as might didn't reiterated to that

Jack Davison

I obviously other headwinds some for obviously Hi, guess Yeah. true, some market the some really. stated Mike. things in you players

slightly wider our think those with but we're relevant that. historically, more don't signed from this operators actually year. I I of remember we've Mike. and lot weren't operators very And but got betting different in who We place, front than were I [indiscernible]. me, the Because, brands products some a not betting they much core our to of deals sports to in market, think are a those across just beginning this I products point market. offer many we're in sports think view, of

of quarter, I XX the there number think that. the was I some was think this number

so offering And very of from other a might we're that with across good their foothills world products We're all guess into in which we've massive the and We opportunity we're really But us, that to front a of beginning doesn't which know starting good maxed we pressure drive this some from these Whereas right out how see a got got we've coming not able to the was we've that's businesses be it there's where place because I space, in entirely amounts them. here. in position. from expand see that place. mean opportunities we familiar of seeing space. they not our people in headwinds? it. Are not current market And not those mature

Mike Hickey

Thank Good gentlemen. you, luck.

Operator

There This are today's at no further concludes this time. questions conference call.

may now You disconnect.

Genius Sports Limited (GENI) 10 Nov 222022 Q3 Earnings call transcript