Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the Genius Sports Second Quarter Earnings Results 2023 Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] I'll now turn the conference over to the Genius Sports. Please go ahead.

Brandon Bukstel

morning. good and you, Thank

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

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

call that, Mark With to over now I'll Locke. turn the CEO, our

Mark Locke

EBITDA plan. business Good adjusted triple continue we year for as successfully morning, today. our began us first expect key will profitability. as inflection and to by of thank strategic we to be XXXX that the year this executed financial you We're strong and the pleased We for our telling our joining a our half momentum you through on

now start full guide which the guide, $XX year. the higher to $XX we now today raising to adjusted more year latest are four million date of million and the of million year to what we XXXX With the we the again XX% our EBITDA is than first of half the in half times behind than first is delivered year $XX reported us, of the

and the from are Financial results that the Football marquee our a first and our partnerships the strategy working. of DataCo expansions to fact testament the year of is clearly half NFL

differentiated media driven the generating is of which financial results solidifying heart at our position Our the entire sports ecosystem, technology the is organization. meaningful approach across

result of along in we we successful the a business As of execution, started margin have long now EBITDA XX% long-term our were our we term to ourselves than find when in greater the adjusted excess further path target visibility and our year.

greater will detail We in call. during all of discuss today's this

revenue second also million, the EBITDA nearly adjusted $XX XX% increased begin, EBITDA in XX%, of led for beating of to XX% This an adjusted million. QX guidance XXXX. doubling our to This we year-on-year million ahead represents group $XX the quarter of up to our in by million To from quarter, margin $XX well target. $XX

As through this acceleration mentioned than already to in year, the compared year, rapid the first half of quadrupled of our my earlier EBITDA remarks, have this profitability. last adjusted demonstrating more we

raising in to our confident XXXX we've $XXX and achieved, initial guidance. to EBITDA full group adjusted results $XX our guidance date and and milestones operational respectively, we delivered we the the Given of ahead million year significantly feel revenue million

NFL. and flow through was quarter to continue positive Additionally, XXXX plan sustainable turn expect an highlights Football the point the to from and the half year flow our of most extension important the we inflection of lead Among DataCo reach and we as the beyond. important cash this partnerships, in generating two second cash

without renewed fundamental sponsors. is our competitive a why process. organizations This the various league key bidding a digital Our expand multiple again sports ability lead on relationships shortly. key with schedule ecosystem. includes both creates to and strategy and with this stakeholders and approach, and driven reason touch partners is I'll by technology-led itself, of which retain the our to our This within teams, partnerships broadcasters, points ahead

our now, betting, business, which just how the across should By fuels you but secure the long integration partnerships ultimately the term not deep understand growth also in technology enable entire to in media. with leagues, us

One of media of base. of revenue expansion our is the the long-term customer drivers growth our

While most media bookmakers still of customers today. our are

Puma, We advertising term year, Ram, the successful Bayer, are the campaigns name and Cobra, sizable just Jeep, customers, brands, gaining to long supported for a representing half Through few. traction several with a digital have of non-betting consumer we opportunity. new first including Stellantis,

market. Our expanding this footprint should we penetrating continue long support as term growth

timeframe in business, words, In payable now high across visibility we we profitability As amount NFL feel the exact confidence of renewal. other confident to and Football term the we through we in expectations of as by strong know continue and ability DataCo result executing fees achieve beyond. that through to long-term results, the of and XXXX, gave greater have long ability continue securing particularly even this our rights our and to growing through a momentum ahead XXXX and our near

recent To detail a bit rights that on to provide I'd end, renewals. more like

to has of and key is with This with led why Our work a partnerships been solutions. lead reason stay always unique choose us leagues technology approach suite us over by to our time.

will relationships. any our further strength improving very which sizes technology. XXX our the NFL of validate of of renew both and frequent the our enables most centered as two basis. of a around the now today, deals new all and DataCo recent or all of that maintain The partners to our relationships Football without across process, on are of focus technology, league the strategy RFP on world it us this bidding particularly our globally, renewals important quality core same we'll competitive strategy win We leagues renewals sets with deals While is over

they as years customers, negotiate sports so industry benefit Importantly, betting tailwinds sports the also from in to positioning book continue for strengthen we contracts we our to with the come. many

To quickly recap.

these world. League, represents English all UK in professional and only to gained approximately this to we Professional By This amounts are most position DataCo, especially ongoing an and require the includes we competitive cost events our X,XXX exclusive Scottish base, renew visibility stronger the among this the events rights securing Football League. Collectively, Football within maintain global of which we League, our contracts the network extended the will expanded with sportsbooks we annually, negotiate through have on bet-on who also as but data, which First, English our customer football. XXXX, partnerships of not events these and basis. Premier

critical we continue this basis, Spectrum deal. of Second our that ability important to our remain term It also component a through is that the in growing On partnership. profitability of understand this confident to was

player end long official of Football League been DataCo. to the has season. tracking utilized technology broadcasts towards the the technology also augment provider recently, Most matches last of Premier Spectrum fully of we Second this

fourth part the expanded renewed we've the of ESL latest championship, in powered this broadening the watch English this Spectrum. Europe, tracking AI League and As with Second distribution further for technology lead extension, partnership Premier most the of

and renewed NFL. our also with partnership extended the strategic We

initial As this six renewal and of four-year a the one-year partnership NFL period a was by years increments. in turn reminder, the five and

reaffirms also profitability the to solidifies our Again, betting like market the the renewed XXXX, rights commercial seasons visibility NFL in our view of and years partnership, the our with five six, added securing gives have two Bowl. through but years us a much go, life our XXXX position partnership grow to our still full into sports exclusive our has only seventh, our we two NFL in Super Now, this seasons. partnership not two and we our through that continue of through and first just fees high

potential early so fans The has should and us, process, the the the the validate we've partners without that just the fact NFL years and for NFL deal two its strength the and built and of extended years. the next renewed in five and over relationship it intended

our wide Our media the it of strategic distribution its examples NFL and to integrity of marks on components and industry alone. of the beyond deal next Slide gen to Bet the to powering partnership official official meaning betting can engagement sportsbooks latency data through betting tools, many live US feeds exclusive with include Spectrum sportsbooks, and sports a Among at now a broadcast audience. exclusive Canada, stats technology low monitoring X, of logos the helping technology services, and grow distribution range and innovative to initiatives distribution core. exclusive you main augmentations markets, global game interactive and NFL's see including has advertising Second digital partnership broad-based Watch fan and global the & globally, covers of other

established just a years, innovation. we've two strong for In foundation

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betting. to result, capture the opportunities As best future come broadcast, spanning that across are we it, positioned sports revenue significant with sponsorship and a

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capabilities. with the is we advertising sponsors base, client What the mainly some already have gives us this aforementioned confidence creative brand opportunities our in through of programmatic done work with and

unique to Historically, seeking been our behalf tech ad enables Our bookmakers to of with customers. on successful manage data digital sports-centric customers. campaigns platform us set advertising we've acquire of and most cost-effective

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opportunity Genius giving prove delivering are to us for In quality most cases, an with the partnering first brands results. time, our these value by

now campaign success Following the their many Genius. of campaigns, or are second initial with third booking customers these

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a partnered demonstrating us Florida, tickets the of of sell breadth again range and to create with we their This help food further wide in quarter, the to wine Orange capabilities. can content on Bowl event

opportunity ad and our Our an and retention media to customers customer tech every platform, land of these new the represents expand. strength of validates

we've For And of and X, for on unique of quarter a is instance, these alone, how successful with their and the get Jeep, Puma, on the events. audiences many this you live others. creating Slide we're sense target Bayer, types interact by understanding behalf. audiences a dynamic campaigns Tour content managed success sports driven in The of can PGA

this We moments that to deliver key game. are to data automatically contextually during behalf customers our relevant a on content dynamic leverage able of of is

with This to customers is continue and set step long-term the first time. together of over building it this in an working relationships important sets foundation new

a advertising strong focus also the sports. a it in space helps Importantly, with broader establish us in reputation digital niche

with client partners. manage this as support number believe for an can continue base, also tools our projects and only but growth programmatic us media league within with touch to products in with we and other credibility our sustainable points long-term not this with stickiness more key engagement advertising it ecosystem sponsors, we we we Spectrum increasing greater our digital build Second offer. services, business, Equally, the lead to even have As more gives of fan

In summary, about business. I'm potential long-term our more the for excited than ever

positioned uniquely are the We global to capturing of market. betting growth the continue sports

long-term base our of extensions. visibility following greater fixed have recent We cost rights our

are We across new streams. Second broadcasters and the to technology Spectrum with unlock revenue distributing globe leagues

confidence few quickly improving expanding as that and EBITDA revenue our margins model client our and betting, from and base the generating now leverage EBITDA sports the operating are we near-term business in beyond broadcasters expand the things on are We free of long-term sponsors just to flow of in beyond. in exceed cash year ability our inflect and margin target our These the this excess a of give us XX%. rapidly

Nick results that the note, to on the detail. more discuss And I'll turn financial in call now to

Nick Taylor

Thank you, Mark.

pleased We the are business. areas to quarter all outperformance of of report across another

ahead the million, margin the well group our of our to We the of adjusted XX% revenue which seeing in XX% million. was as of at business further EBITDA half are grew also first of the to year-to-date contribution betting this operating $XX incremental model quarter our leverage our growth $XX year-on-year over contributed of product, Most a evidence year. guidance of outperformance

customers improving for alongside mutually secular increased to benefit GGR the contracts betting bookmakers commercial instance. grow growth, margins, us Our including and sports win the our tailwinds allow from in betting in-play industry, and with

Our increasing beating major million. also to $XX year-on-year product XX% guidance of by our outperformed million, expectations, $XX

methods will You continue betting over customers our and growth and quarter beyond customer heard so Meanwhile, and winning sports continuing the has to Mark clientele, this and engage new successful in next our the to on to base expands. our success customers. touch creative absolutely well, betting do supported in traditional campaigns for several them our years with major as execute providing acquire as our customers are also sports we dynamic

this and guidance guidance. revenue, of of in of million beating sports product reported EBITDA, also also group adjusted group resulted revenue, ahead million Lastly, well in $XX guidance Collectively, million $XX our million of in $XX million. $XX slightly our ahead in our $XX

As worth reflect half our on we the EBITDA the of of it's year, profitability. acceleration first contextualizing rapid

flat base more have a supported of year. Slide of to This has the right-hand function multifaceted you'll the EBITDA on at XX, the revenue adjusted a margin. half a that our high growth, As first drop side relatively our quadrupled cost of see through by we enables revenue through been than

for is profitable just you've we half the our fact, see operating considerably X% growth higher. ahead. with of in continued EBITDA from in our clear HX year-on-year is improvement In XXXX. expansion X% with the runway to revenue This expenses this, of are Mark, raising first the XX% compared and exciting margin gross and margins developments year, evidence year, down through half first approximately driving gives guidance our This, down for the our operating of cost through of heard the XX%, of us along leverage, Because confidence our adjusted group the steady year. a margins

XX% increasing million are outperformance remainder million will we million trends meaningfully based year. We this from to to date initial our year. drop incremental up are group and through changes guidance This cost as base. $XX additional the of revenue our should of the our of from on we $XXX XX%, and the our million $XX much expect any our last EBITDA growth positive margin adjusted margin anticipate significantly adjusted and of $XXX don't from revenue our X% adjusted and implies EBITDA raising ahead guidance the guidance Similarly, to to through XX% of to EBITDA, we revenue persist

to free $XXX we the mentioned million exactly approximately begin the line are also QX positive year. in quarter cash maintaining expectations. that that with cash, quarter We of in last closed On the note, half in I flow expectation with we generating our and second finish would

cash will an of be forward. giving the next greater and now marks for the the milestone and before business beyond. point increased HX visibility to flow positive broadly going we Many renewed inflection in turning and an this feel as sustainable of in sense in in This accelerating generation us flow beginning going dynamics the ahead, XXXX for of even of our two inflection is the years. free competence cash important we driving forward, breakeven cash Looking remain HX flow largest in we several deals, expect rights our place that QX

have matter regarding following questions received As extension. warrants housekeeping, we of of few final announcement the the a a our renewal and NFL

as slightly want we since to a nuanced be So as this point. clear possible is

with deal X% of XX.X the part on vested, the diluted warrants, fully them them fully issued shareholder a basis. equity which now NFL, making an we original As are million

a our warrants outer Under the of X additional X issue course agreed fixed six, rights the years we've original position. and revenue the be additional of years six cash warrants incremental replaced terms them of This deal fees EBITDA had cost our new adjusted across of an spread renewal five years and five each removed we terms the cost cash our will recognized million and of deal, within as now and for the and of to Under upon with normal the renewal. million consideration. data the

this years. largest life secured interest shareholders our our is mutually cash pleased We of be the dilutive our the leaves have strategic and in growing next to in less it otherwise, perspective been the fees beneficial predetermined which will as a our financial a with than ability and and the terms the position on included we've through rights remains outcome believe deal. shareholders one confident NFL this that from continue as five it profitability would is us We're our in have amount, and of for of we agreed

us objectives. continue runway for flow progress The financial our heard each clear to cash of we profitable Close, sense excitement even business. and towards outlook strategic growth gives long-term for of you've of and our today the acceleration execute an remains as updates greater and the

will With the that, open Q&A. remarks conclude our line and we to prepared

Operator

line [Operator Bazinet the Instructions] Please of Your first question of Citi. ahead. comes from Jason go

Jason Bazinet

quick margin question Thanks. long-term EBITDA had I one just targets. the on

sort Investor XXs. I and the of XX% high think XX% to I you was say range, targets your the were think at heard I Day,

know didn't I'm of out that sort or was something if I So nothing? change a making if of

Nick Taylor

No, there's targets. Nick. in change Hi, no our long-term Jason, it's

-- think long-term that think, I north I XX% as had we of position. it, described would it said we've it March, previously that our be remains and

Jason Bazinet

Okay. sort of generation, cash Great. 'XX, as all there way And capitalized sort size long-term we any expenses out could model 'XX? then of free try you of and of in free the is software frame regarding cash sort

Nick Taylor

on Hi, previous software, on cash in say cash this thing is Nick expecting free that earlier I've calls just flow Capitalized a I HX is to be positive. point we're year-on-year. generation, I think first It’s Yeah. terms the inflection as mean, now Jason. again. at reiterated to flat that said call of we

it's at So a quarter $XX running around million about currently.

not a and expected get revenue and percentage and that's get come little leverage I'm of you'll in grow cash XXXX sense as the operating bit it’s to of So you expecting that reduced gap but a and a to generation. therefore, been then grow, our of reduce revenues in year-on-year, -- widening off XXXX, continue to sense a

Operator

you. Thank

comes Please Your of Bernie ahead. from go & line next Needham question the of McTernan Company.

Bernie McTernan

the questions. taking Great. Thanks for

why So prepared through the striking with assuming the coincidence, NFL DataCo being key after term. for Football especially long just with inflation investors, After in the focus confidence long-term over and remarks it's not had rights deals the going a the you talk think margins confidence profitability -- your and just with the your most you'll and your able partners, greater between can this leagues your important in position to of sportsbooks about two round time? over generate be renewals positioning you your

Nick Taylor

got year, seeing indeed, now XX%. in Nick. which last you over anything as NFL else the will look continue revenue if last, right and to there's if FDC EBITDA start months, Bernie, XXXX I the and I to I add. XX months. to way join and this XXXX significantly way specific beyond XX It’s of rest both account the around market. think in that. guess, And operating know, by I Bernie. we that, the impossible grown But Hi, rights think to it's go it's I not at Mark leverage to beyond mean within that dynamics but obviously just we've can [indiscernible] the last say fair guess we're I'll you

can you continue. that having again, today that we're will those see So operating dynamics leverage

I far very as the confident from ability that our think to to perspective NFL NFL continue prepared deal. and the delighted in life of I financial strategic is as we're and in I grow profitably said extension, concerned, think are through both the comments with that we that a

Mark Locke

There good that. early really Yeah, the to to a example mean, think the renewals here, think wasn't of always process wasn't do there for good and a tech had that. that. of really this competitive -- just was a it and and we've to I no example is tender, add I scenario I and said them wins those we actually rights as in it rights RFP where necessary renews

that we market. feel signal through to the we've increases, and see a lot -- Separately, having which conversations at strong conversations the something margin the strong middle in feeling a obviously very to been about. should obviously, bookmakers. calls of moment, the So pretty very that's that, Again, be price That's we're in about time. coming over the clear of strong, previous the positive we're we'll in growth

Bernie McTernan

a just higher growth better betting to back technology guidance. the and of bring of maybe market quarter, this outperformed a increase expectations versus this the it revenue to that attributed much was take How rate? And Great. follow-up to to

Mark Locke

that's more seeing job, of doing DraftKings. I we good better also market with we growth. both. seeing mean, to down. I do and is a We're coming don't through operators recent the it's operating it profitably, Yeah, including the earnings, We're -- clearly some and answer break mean

remember, the So stuff their all market improved comes flowing to this of on of through. I well share us. a we increase performance and take directly the as mean that's bookmakers as share profitability in

Operator

you. Thank

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

Ryan Sigdahl

extend Good just the I to guys. process, ask FootballCo Nice with a idea Data on job. through NFL going process longer? one. earlier and whose on have then I was follow-up each the morning, quick And to want it

Mark Locke

that mutual very the to get conversations. view relationship built are these they strong their In conversations partnerships. -- mean, that future and requirements. productive we it's cases, I sort technology time, them always based very the Hi, Mark. providing the of of sorry, Look, around Ryan, are over providing got We've both that we're

Obviously, is in contract will addition due new features, the also really And & course. with sharing of taking exciting. some the Watch seen to which which market we the that has NFL be Bet we're exciting

and been business, this us guess, really the do. market were just the the part and said going to presented the I of time, we So operate of we that result way course doing that it's has way over to what a, a we we've this

Ryan Sigdahl

was assuming kind NFL, reiterated EPL, full the forward now on this and that one? guess, that contract margin just Then an of of And add-on to years secondly, contract. one-year I that targets three Great. margin one. But going then NFL? that cash it least EBITDA your is presumably is longer guess shifting the on a long-term not to I why Thanks. long-term for at on all-cash deal, the for the last you

Mark Locke

DataCo through currently EPL, goes to the mean, on So I XXXX.

extend to longer So it wasn't that. possible than

Nick Taylor

of do, XX% a What all of drop we bit are December XXXX it’s to not a beyond I Yeah. over and 'XX guess in repetition Nick. I to twofold. NFL, little what got in And XXst NFL we've XX, going is on out the business felt right already and will thing had, say way last XXXX. two operating about in the terms of that the just stepped of those to through on I spoke the the we've Hey, Bernie warrants today. And seasons as dynamics the rights that up months. that to the course the stop having XX it's you we're have Ron, the it's of know, a leverage the

and as from long-term First all, a that very shareholder that were we it less dilution those just an will given. we're within means live still perspective, our on also, it means means EBITDA projections of And from confident perspective. it margin we've

Mark Locke

Yeah.

itself Ryan, doesn't And should XXXX, than XXXX. go really DataCo to longer clear Mark. helps. the be when clarify, go Football Hopefully I say it's just DataCo I entity Sorry. just doesn't than that longer of

Ryan Sigdahl

assume to form guys. to in have first. some fashion, for -- That's they just it the it's extend will, Reasonable me. Thanks league or some it

Operator

Thank you.

Please line question next Kelly Oppenheimer. comes of of ahead. Your go Jed from the

Jed Kelly

for taking thanks Hey, my question.

closer Just you special the an betting opportunity economics? their like, looking them? about contract. -- of YouTube, circling can ability to of the more descriptors you back on the products participate talk like go is more develop property or where as And there special products the things, NFL on then to work streaming, Two to opportunity thinking in the with can

Mark Locke

great bang question. And Watch & contract we're the it's going. which where on be the that’s Watch step comes able we're I lot usual, the innovations first When of there. & the to really, the to product see that as signed that along lot features, mean And new quite shortly. actually Bet that Bet we'll work a line, you'll do is that out, I with bringing and because of NFL, money, Second we that done Yeah. exactly of mean, market a Spectrum you're that's really exciting -- we've

the those we the way clearly for as products as take always, we're charge come we So market, this you that and the out are rates charging. that to reviewing know,

coming that see to expect through. we So

compounding if might not product The to effect worth, straight Watch Bet other we come aspect people's necessarily a there's relationship. the NFL minds to is is from probably our &

advanced compounding, that bets are is I which now That what platform site, money. their is, streaming NFL. for is where the making offering on interaction by user's mean NFL the also with we're clearly, sportsbook that on So operators

a take So in where strong we're has the sort of rates. on effect -- an our future impact compounding certain seeing this sports

Jed Kelly

one quick for, Nick. Thank you. then follow-up just I for guess, And

of at implies a is US the like look deceleration, Just I tech, for in in rate going grow growth looking somewhat teens But probably still like think you to if the XQ fourth growth. the betting high XXs quarter. at the

can how So XQ about Thanks. talk betting just of for rate the tech the growth you much dynamics conservatism? some is around and

Nick Taylor

[indiscernible] Jed. Jed. conservative we are Hey, anyway,

position. that confident So given. QX We're I just very confident guidance our mean we're we've about the with

talked already all great about segments is We also leverage, XXst 'XX growth, fact, prepared a dynamics, as further of are that operating stop is, QX question both terms and across, three and the December have in the in in top-line decent in rates ongoing running and that out. thing in strong revenue but but doesn't of growth remarks, those XXXX, of we've position, at at terms both QX beyond

Operator

you. Thank

of question Your go of ahead. Clark line comes from Please next the BTIG. Lampen

Clark Lampen

of if guys does on talked terms allocation, trends, the what's the improving customer what Hopefully, have Good Thanks. or this juxtapose shareholders? going this with or Mark, spend sort for those translate give of campaign standpoint spend a or Could And whether activity to of within opportunities, ad from business. the inorganic to what an you find maybe Thanks. I'm recurrence from guess about really in commentary existing adjustment not business you on would to around with excess back flexibility, you expectations distributing capital you're I of of look far But I facts. misreading of of a the that media avenues improve on guess, wins then, the call to and other you an guys comparison can't, opportunities from lot some call morning. customers? visibility, for cash some I the of side-by-side improving sort that us sense of as of margins, the flow at back-half sort sort experiencing you so new customers, for exploring market cash it's

Josh Linforth

take Hi, the Josh. question on Clark, this the media is fee. I'll first

seeing operators sort a we we're with on chasing a the first So there's of things things. line of ambitions budget of there's sportsbook sort seasonality few In all, profitability in their shift essentially. side But sort on that and going saw of of QX, of here. casino impact

really results rates in seeing player in conversion were terms market. overall values, we strong some the of So

NBA So into operators some playoffs just products more QX shift we and around saw budget casino heavily. pushing

So the that's for sort the of shift there. reason

really XX% wins our mentioned of shift of that year, expectations seasonality. also will year. a a non-betting new And are the end mentioned. media couple of about business then with the budget But and also, prepared new we've up Overall, there year traditional last reactivation happy that on Those we sort just the sort really, of and overall a of there. in it's sort really slightly for number of the brand we're sort signed campaigns sponsors of ahead of as remarks, we of

We're And it. good market pretty a overall from really side on very things. about here. low So brand starting we're the of isn't the feeling ad us base impacting

So to all there's good about feeling it. And after. go stuff plenty we're of for us all, in

Mark Locke

Yeah.

And achieve to add to the Just that actually number to to what number us. they're a obviously of year. before as next the sort well, well, of in to that targets spend which as be is a the looking benefit we a of think that advertising noticing into end will end increase of the we're space try operators we financial towards and of net have certainly year, expect year generally will the happen early

in techs second time, everything feel and to in well, of and your very that about what we we've going and sort with said mean, need answer that we've we're got we're allocation we order goals to stated the I do look, achieve capital that I've long the have. we the position the with a money, To question for comfortable

You specifically plans any to the no, cash shareholders moment. is to to the to no, answer that are at return and there asked not if

the so for. as at the the generating money, and balance need use therefore, all the Well, got we're said, we cash and what that that the we've sheet will I of tech the we moment. And cash

complete very and But is those for up, remain very we of And opportunities. are market. of the increase, a to view. sheet in continue from in the to the from yet market view, from we us of us, we're feeling opportunistic involved continue point we a technology get a view, position to which out that We're cash point position However, opportunities come I'm in, should there none in allows I point seeing balance number opportunities have with in of to comfortable some generation about that that a on. of sensible will increasingly decided we're the strong what's wish, think say

Operator

you. Thank

line Jordan Bender comes of Your Securities. JMP of the from next question Please go ahead.

Jordan Bender

The Great. XX%. XXXX flow-through assumes around guidance that Thanks for taking of of kind my questions.

the two years? XX% hitting is contracts be coming shouldn't So the you in flowthrough longer term, up anything saying there with locked now that that

Nick Taylor

Jordan. how no, we It’s exactly Yeah, that's it. about Nick. Hey, think

question, earlier our great is XXst the said that dynamics previous in contracts seeing finances extending thing now gives about the stop two the these we're like. the XXXX on them of to and I visibility future don't it what of greater doing and look As December, us even

Jordan Bender

Great. quarter, so. the then, in coming months or give has you And it but down last didn't coverage center been event XX this

just events, to these can to starting however of or unprofitable maybe upside, positive quantify some events? kind you're of some margin, whether those talk can prune scaling you the the As cash flow it's you of back

Nick Taylor

Yeah, you're Jordan, right. Nick. Hey, it's

I think to the from XXX,XXX come sort we've of, it's XXX,XXX think I [indiscernible]. down

double what basis. a in that you this packages we're double spending] on or the we indeed (ph) that we cost. it people announced you I we've removing right think non-US if events revenues our events, the there therefore, And trading from because some and -- particularly saving cost believe not [double work, sort is quarter. therefore, we way, just is deposition of we've substitutional, And if the not reduction cost last And obviously, about is by about that profitable are way are us. really think these any think of pruned seen contracts take

increase So don't of margin just small where but pruning we'll it's a number too we we're many are by today, our bets, seeing of a I think from dropping portfolio. drop slight more sensible

Operator

Thank you.

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

Mike Hickey

Josh, Thanks for afternoon strong Nick, good our questions. Congrats on Brandon. Mark, morning, taking a quarter. guys. Good Hey,

two baskets. or kind Just questions of

So topic forgive me or But question the first here, guys. here.

seeing partners their click business. Obviously, curious quarter. Just results on you your pretty June strong from double your US if you're could operator in

-- and of and strength of US on you're quarter operators share then sort In leverage moving other your and seeing and your the business a the just year the the So consolidation of wondering about Mark, business market with the that rate curious the rest thinking through the pieces lot partners. take forward? we're your impact impacts here how of your the of on

proof technology. on renewals. tech your working. here, looks congratulations point question real Obviously, like a your It -- on Second it's is

Dragon than here? if remind different us from thinking Obviously, how guys. try curious Just your can you you tech you. are lead? your competitors, Thank some you to set this with your to catch there's you And can tech up investment peer ensuring how is keep

Mark Locke

on it. [indiscernible] and US, well we continue Hey, extremely to products them Mike, for the obviously, lot that we as continues -- out be to operators hinted have terms particularly and Mark. with that. And that placed, The It the in opportunity this renewal Thanks seen that we're US helpful, especially in recent you Look, is announced additional we've detail the it's of be a giving from strong. we strong. of call.

think I feeling we're very about So good that.

better Obviously, us. the an for it profitable the more is operator,

to ultimately mimic betting much market. see came in players the lot the the market another sport. trends of So are customer customers with to improve they much we -- And shift to from theory and to These the the to continue pre-match we to from a excited good to shift and for sport really, another we're a with spend us. very the in-play very trends was raise that very while ago, to which from sport these see same around to align continue operators of European one to and continue what

So I how happy the with think overall, US is we're moving.

-- In second terms Mark, your your question, of around? was sorry -- so

Mike Hickey

was It share the the key Yes. just consolidation, yeah. to US --

Mark Locke

renew of we've tech learning, business the AI some well retain video increasingly question, single our in a any much computer market. we've as that's to machine live quite involved Look, sports without We've -- powerful leading, I talked Yeah. sport and only, customers every obviously, if the differential, credible it in which mean, armory, got with not pretty vision conversation about number times. the allowing an the becoming league is And as and it’s tool in anywhere. got us

actually we're no seeing space the where seen looking of of a for wider sort lot the this are And we're what seeing much We're AI, have sports And desire machine seeing mean looking you've this. differentiation. learning solutions, AI huge is to different. from a this. a that's now active now and I solutions. CV actively sports So more in for companies are

said this have already Already of and And revenues position but real strength, numbers, already I'll a numbers. millions in a our directly new coming us live getting of our real that giving in costed millions. have develop it's again, it's already we need before, We've of it again, future We're And coming from that's don't through differentiator. product it say of I in spend this. We hundreds contracts to to we stuff. hundreds into spent because growth. hard

confidence lot us that the a of gives really, something us a forward. gives position really market competitive this and going So strong is in

we're we really, our You I asked conversations about Dragon. going operators that's hope how line. -- well really, with the are news pleased Dragon our down sports some mean, really We're sort pretty are of well. with to the is partners really And well. having going, going, brilliantly have exciting coming

Operator

Thank you.

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

Unidentified Analyst

share you for Artina morning. this you in-play and and in Thanks, mix is ones. betting quick play any you have half? how back mix two that quarter Robin. for for This Do quantification have good kind could I out to that of the expect specifically

Mark Locke

going we've mean with out growth a earnings forward. this Yeah. I to -- the the And of coming DraftKings and new year-on-year shift it a of last again, saw products we year news operators, that's of definitely lot seen there's year. XXX% [indiscernible], a as about lot I but to mean, these

Unidentified Analyst

year half is that in previously? Okay. given FX it, there to in from if the Apologies guidance tailwind been that obviously quarter you find this for unchanged couldn't. if but [$X.XX] the are a we slide, changed tried I (ph) general. And your has this, Or for from had your but USD and FX back the I in FX actually includes the upside rate missed pound Wondering for some coming assumptions? revised

Nick Taylor

Nick. it's Robin, Hey,

noting as That that Robin, if just you about our as updated X.XX:X. is follow A that, long around couple guidance is that I don't to GDP. as extended, don’t probably it's So worth on things through the mind, of obviously obviously, is think as is. half to sensitive keep particularly and business. of We're dollar of sort rates obviously, trying the it second the flexibility simple year is US as less the exchange seasonality that US to given possible, of the the of given business

underlying the just the is But to HX thing is note I business. and indeed the quarter that important both performance outcome of gone, in the predominantly the guess

also small foreign guidance increase As the tailwinds underlying our and you an has say, for in is exchange but been guidance, that's a the in revenue of business. level there updated from

And now The the to -- lift think, [indiscernible] call reminding and other exchange on million not worth million EBITDA. just the the point, anybody on Robin, is EBITDA $XX therefore, revenues I EBITDA really that that's impacts original only adjusted $XX from, generation.

Operator

you. ahead. Thank of question Please of the line go Markets. And your Capital last Martinuzzi comes Street Lake from Eric

Eric Martinuzzi

to league increased here? this across available you're the Curious strictly Or making you content of in with see, Yeah. mentioned event existing -- utilization of is business customer growth customers. the the technology, a observation kind that or Is and this the X in agnostic? betting -- Tier primarily

Mark Locke

management of what we mean part shareholders' our a -- that look, offering, on making money everyday running we're this where really our tight we're it. spending how is and I sure we're we're just business. of It's Yeah.

but about at sports, treat So way we at lot sport, treat think Xs game. at Xs, we all we X, differently. the a is we we sort obviously, look pretty it are we Tier about league, every Tier this that think of Tier there look every across But look of every we

at leagues. we cover fact, -- we In look our to obligations those

the active we that that complicated are actually the it's basis sure we as manage it's do fact something operating that phenomenally possible. and as In calculation, expenditure business make efficient to an way our but on

Eric Martinuzzi

programmatic advertising or Okay. driving Are that And upside? here there. -- there concentration services a richness segment about DSPs particular of the the talked targeting then of business, is seeing you in Technology you with the here? What's the Media

Josh Linforth

apply group. And The we're fan of deep is market this to with fan campaign. main unique in sports is to our to Eric, our access essentially the upside firstly, the our Josh to data relationships Hi, to leagues, that the Genius we've able brings first-party that USPs here. got three access data. targeting Through the technology it's

Genius fandom. technology insight we've betting the has in roster they're part programmatic that is that The the business information, technology doing points a lot as years all drive unique then own lastly, pull data handle, leveraging of our into at this second from a our a for that the And ultimately been this point. We of sort ecosystem, interesting of that stuff into terms bid XX developed XX fact on perspective. this we've all of top can of XX, years. decisioning sort

So trade to this we've lot actually with in-house team of experience a got stuff. our

that's driving coming together things success here. three those our it's So

Operator

today's Thank And this no further at conference concludes questions you. call. There this time. are

now disconnect. may You

Genius Sports Limited (GENI) 7 Aug 232023 Q2 Earnings call transcript