GENI - Earnings call 4 2023 | Genius Sports Limited

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Operator

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to Genius Sports Fourth Quarter 2023 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.[Operator's Instructions]I would now like to turn the conference over to Genius Sports.

comments. your begin may You

Unknown Executive

Thank you, good morning. and

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

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

Mark Locke

consistent and thank outperformance. and execution of we as year morning, Good another you for today joining conclude us

of commercial as objectives reported clear beating The million we our revenue guidance last the well our is position a results present To carried of $XXX recap, and $XXX not positioned full of This represents the we brings now objectives expectations few that growth, QX of guidance cost line at XX% out EBITDA base leverage Over to XX% year-on-year. $XXX ahead a been. to a revenue to growth quarter these start our ahead in and financials model. grow compared year in million of are of today profitable that years, with demonstrating and ever business our anchored the consecutive we our for strong, as it's our strategic and which XXXX, our a sustainable full converted operational of to structural is clear XX% million, year eighth in $XX to does many announced business of representing year our and every incremental revenue adjusted dollar growth success. XXXX. have million, and we business

representing adjusted EBITDA million guidance, ahead $XX to QX million, margin of growth over expansion it XXX points basis EBITDA $XX also is nearly of full our and to Our X.Xx year adjusted brings XXXX. compared of

the million to expect for and cash an There this annual led our basis XXXX. that $XX as of have EBITDA point second Therefore, XX% as marks flow by XX% to half to to to have least $XX our a guided free XXXX XXXX. This drivers dynamics at and flow adjusted continue revenue at to XXXX, $XXX in meaningful expect in we in of million inflection to in same contributed positive the positive maintain our outperformance throughout free are grow will XXXX, year. the Importantly, least several million. by growth the we cash we business on

financial confidence with strategic these to passing each well. long and expect the We as long-term over goals. we in And near-term our growth dynamics more term year, persist grow

this events football monetization. different year a strength with of also and confidence partnership are Federations partnerships. expand gives but fan This notable to thousands announced and With strength our time. with also worldwide, channels XX-year scale expanding few global where our over and extensions engagement of tens distributors, our covering advertising are to as NFL not only and AI-powered XXX-plus league basketball forms the us we FIBA, broadcasters, This Our year. includes of Most our our relationships. solutions, technology plan lead best-in-class A a delivering co national from of diverse date vision deliver relationships capabilities recently, computer the we Sportsbook of and, examples content going per across partnerships technology retaining suite new ultimately our empowering unlocked opportunities technology from in technology of suite, have number monetize sponsors, customers. to of we course, strategic we

better we creates is of technology will new BetVision their Each betting our customers, position of these drive points at half this, Sportsbook great shortly. that For different to flow in importantly, of touch on. growth, the our revenue expansion we are solidifies cover improvement generation. which and control, and audiences engage value-enhancing this activity. same consistent products cash a more sustainable includes focused to translates the most cost metrics more digital sports free This ecosystem example disciplined margin and financial

are we in Given than drivers in margin our of ever of high EBITDA the our long-term more multitude excess XX%. of visibility base, achieving growth target confident cost and

Now some fundamentals the regular of in the NFL season. trends seen start betting quarter. We'll we've the positive let's U.S. with performed full review in sports how these the market through

to a outcomes that of betting in which expansion, from insulates we reminder, these from variables in a margins expect and betting, In third unfavorable agreements improvements diverse in-play to the where about proof from the Xx in higher with U.S. us share significant us you sports helped each U.S., our exceed our NFL earn drivers sportsbook enable relative The benefit where multiple growth rock of growth our customers. share over growth our point model, growth revenue which one including in our prematchgetting. broader higher season, business multitude operating heard may have and revenue have fueled time. drivers, expectations As us operators solid overall we market revenue quarter, is win of

is as has impressive GGR, form come we This regardless state ultimately operator well agnostic, out approximately see total market XXXX. grows, growth of calling First, wins. by is share market the It Genius betting existing in in as in growth continue which worth grow to continued meaning new as increased of long states. with sports the the U.S. as launches which will XX% we in it

in instance, back the uplift operator of only we where For immediate relaunch Rock in online moment, Florida, the revenue their quarter. betting sports off at realized the is Hard the

What's For XX% meaningful the that season NFL, by been the spectacular year margins to encouraging more across we've XXX% particularly first betting compared another board the GGR also year-on-year, NFL our handle specifically, seen and with it is in-play improvement on has in-play increasing and in win respectively. XXXX. a more and in front,

would said to always increase and matures, have in-play that now. as we beginning market are the naturally betting We see that

believe point odds, a team the next-gen we of betting we also in-play product-led that evolution that to highly is and valuable, this betting. season how launched a and to critical in-play BetVision enhances base. sticky We brings few, ardmmentation, name attract together we that proof project deliver the assets, to our discoverability a a many players will this more be of activates and first And the introduction Sportsbook engage experience. to of betting this tech product when this NFL and BetVision, in-play Geinus's engaging simplifies now expect of and on games. discussed would quarter, stats customer live a be best Last differentiated Betvision

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have and happy the value product Sportsbook very for of NFL. this our and are We early the created with we success the partners

to ahead us for new expand product and most the more what opportunity and However, road innovation NFL map this is even to features the sports. still develop excites the

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of betting, are and at providing media solutions are partners broadcast converging, keep trend. sports we to rapidly As our this key the the world forefront of

features BetVision to the launch fully to interactive create experience. product expect We and even more personalized a to

customers So to have stay succeed. tuned that for Sportsbook one BetVision to is just much come. more initiatives of to our delivered empower on many the we

record us a remember customers On time. them of metrics, and win As their years. revenue true model to you'll and highlights tools revenue been view few businesses. business multiple value increasing alongside this our of which last Sportsbooks, over growth customer output as are to that successful there retention help a to has over the Consequently, updated to ourselves such, steady important net more net customer. grow X, value-add providing to within contributing each we track inputs grow our find the retention positions Slide It's partner

large betting markets we include handful in when in-play agreements, the high have and example, a predominantly For values a based naturally TAM, U.S., have factors revenue win share of like margins. improving high-growth in the increased on

rights content content in BetVision range aim digital a just However, like simply help to our provide example, new form or tools services, growth time. and We also the of of grow offerings come partners advertising has offering for product or wide over differentiated to our portfolio. Sportsbook from

Our that share commercial us growth. then enable arrangements in to

have to exactly net forward. their time. of value-added renewals how achieved as of sports negotiations, we strong provide expect for historically and This over sustain success this to long of new ongoing how view fashion, success we going In enhance and you with to us retention we services that frequent should a contract offering partnering history expect our Sportsbook to opportunities to continued the context have and customers. hundreds in help our We these revenue books and is products new

in market. improve financial Equally, same in initial many in pass Nick developing in we've will success I continue our that to profitability revenue the no immediate our of opportunities incremental particularly these call continue now with how the more innovative drivers, profile profitability I'll exactly to to and growth into dynamics guidance many able have is as as XXXX which or financial mentioned, bring XXXX XXXX, that, cash little benefit resulted discuss With we in been and cost, to results detail. have to and Importantly, drive supported XXXX. these products growth flow

Nicholas Taylor

Mark. you, Thank

exceeded reiterating the throughout and You've to worth have year it's consistency already Mark, results the headlines Each we quarter of raised expectations outlook. heard year. but year, this the full our the

realized free initial EBITDA, $XXX million. $XX of us $XX we've was guidance in also guidance in high our adjusted For incremental year, $XXX of guidance we nearly heard growth. at happy Throughout updated milestone We of expectation our positive $XXX this X.Xx in flow we're million our HX. that revenue, we EBITDA $XX from QX, This growth reported well QX, an reported which generating revenue flow-through reiterate achieved we after in HX important our above XXXX, beating of of of basis million report have as was as to and for our also cash and true million million. very cash the also million adjusted

true we addition EBITDA the on Slide gross year, XXX materially illustrated EBITDA only points as to quarter margins revenue also year. a XX. drawing year-on-year. it's but we've and at also attention and gross the In margin each through have on by targets EBITDA to basis margin expansion exceeded quarter, In consistent least throughout have the adjusted our revenue margins in growth, our is basis improved as the This your expanded well. worth Not each our

X,XXX structure stable XXXX, margins nearly year by by visible gross driven that a our can significantly full highly higher This the cost basis support increased is For points. and revenues.

has discussed operating fundamentally, model. XXXX. the in dynamics point now the long of And the across XXXX. demonstrated for have full important marks XXXX leverage the will financial these an year which inflection business, We change been not

continue So momentum. this we to expect

blocks $XXX expect that XX% supported to from we XXXX. million, revenue growth the as in same revenue we of to building generate benefit XXXX, For good representing expect

new Florida, as Carolina such revenue new For the opportunities instance, potentially and growth we entirely TAM continued jurisdictions with XXXX. expect in in Brazil, North representing

we're of see example. as like encouraging a in-play Additionally, be as you've betting, products an to in heard which advertising to well as sports increased or as solutions. can by major buy whether no our to broadcasters require of Again, new about our engagement implied of of we Mark books renewals on the of spend buying excited cost. official more building for this always can continue customers. we're contract mean form accelerated growth be long With customers their these opportunities incremental record augmentation BetVision new products expanded come our based each course, more, And Genius and and winning with new value or track potentially blocks what services, as discuss, the needs, using content, our These who who little provide fan can in additional advertisers products, our growth customers. data,

revenue our adjusted we expect group this EBITDA. to So much contribute of to growth

of For noting. XXXX, margin. EBITDA course year as we bit adjusted million, of XX% a absolutely want That the worth XX% about there's group and representing seasonality $XX pacing said, of clear EBITDA be expect I the our the growth to profitability over a of

in higher in compared past, year. fees discussed And we've each of the XXXX. our in the to As increases predictable with fixed slightly increases magnitude those rights 'XX are are

NFL with BetVision marginally the partnership, video to We power driven our clear, be live season, recognized To X full product. QX were our domestic of NFL accretive streams. across Additionally, in been the there months fees as expanded NFL. full results we the rights of predominantly BetVision has as our associated business higher use part by

was fewer are QX fact there to it flow-through QX, in compared be the in to However, as meaningful simply EBITDA won't NFL incremental the that QX. given gains as

As and million group we expect EBITDA $XXX of million. revenue of a $X result, approximately QX

cash working the result, half $XXX of our key on wall-off in XX, as expect each for of growth to cash approximately cash growth of year and As XXXX, closing Slide and anticipate remainder the in year and second for XXXX, accelerate the clear, net you margin many see of cash full should year-on-year quarter be may can expect EBITDA we expansion capital XXXX. highly there a tailwinds second the a be confident convert drivers we to across positive expect some flow as in cash position achieving our to are To to positive outlays in are half. we result EBITDA the the other first half. flow be the fluctuations in QX entirety in balance mentioned finally, year which Like we million. recognized again we full in net Therefore, And targets. our those XXXX. I free And

stability approximate for expenses Lastly, moment cash given of I've base. in spent a of of bit predictable it taking our since a the to cost time review any worth our highly is year, discussing the shape it And operating is XXXX.

materially cost base and achieve As we don't in higher a relatively this increase adjusted reminder, to order revenues to our fixed, expect EBITDA is or year.

rights deviate whether For Equally, to other books. example, X,XXX and all direct fees unlikely else sports related are being on estimates, all our we're increased equal, total over of steady the XXX or from to our selling books as operating costs a year, expenses Slide presented last time. XX, that are sports cost in non-GAAP significantly basis relatively we've remained on revenue revenue beneath even have

the we our and better drive ways XXXX empower our across generation now engage XXXX their We XXXX. expansion expect we We've case with of new we business growth, And as to cutting-edge defensible will leads entering and in sense prepared multiple partnerships excitement from to multiple continued established result, a open conclude, to With deployment of our highly customers. globe. that, in growth competitive well. technology. poised line as great through products a win. and a Q&A. launched to strengthened position cash will margin our with the drivers, benefit exciting is the federations remarks expect which feel We've be flow this revenue partners conclude To We've to

Operator

first the Sigdahl question Group. Craig-Hallum from comes Ryan of from Instructions]Your [Operator's line Capital

Ryan Sigdahl

BetVision. to start want with I

original can biggest have to the difficult you efficiently similar how Why can you you're And can't challenge books the platform? that other standpoint launch across say and is do getting that? a technological X. faster? a you on appreciate sports what Curious then I get product Slide So of plans from and is what from non-Xkind on on you the that sports metrics others

Mark Locke

rolling it's us. over what would number straightforward, we sports integration a is see clear focus other build that mean, to of expect out was platform. this when sports development for always the rolling the XX next the to was a and we of Mark. a Ryan, That of fairly we out scalable plan months. did and I the started Technically, those and Yes, focus obviously, the

a of additional terms is sort sports the backlog pipeline. some the have of speed they a In think integration think of the of I books, integration, there's of I bit one of challenges the and in

we've with what doing been is So the concept. prove to working Sportsbook the

strong there lot that. out we think proof It's of I there's a and product that. undoubtedly very clear, of done can

working of case Sportsbooks new to the get live our with and their product. manage is these pipeline with this So integration partners the

Ryan Sigdahl

at one highest and cadence highest you. for Nick, triple the is be for quarterly When ever to this I quarter, year, up guidance going the look digits. QX

this the uneconomical ongoing will that and that never be for you to is NFL NFL. contradict there's QX So given the that guess profitable concern seems I with guys. some contract is

you NFL talk through to I can the risk. just So that and talk the respond puts through guess, takes, maybe and

Nicholas Taylor

just think XXXX. the margin loss-making year, the And that quarter can I'll of quarter we're XX% think performance margin reported, go the we're really, you're now X%. in I in And just forecasting but think everyone Ryan, XX% EBITDA were that we to knocking last about not guess the we're see for we you back margin NFL right, the a at guiding expansion, our XXXX. I a to point. just I QX. we X over This years if delivered margin point we XXXX, won I EBITDA since you in

what we're in to XXXX. already out I'll we that intended we've So what guess, counter to, and and point deliver guiding I Ryan, to to argument, just delivered

Ryan Sigdahl

assumed in Is a that Maybe quick contract cash QX? just a follow-up. full

Nicholas Taylor

Ryan, exactly right. that's Yes, yes,

for out contracts. cash. warrants the know, there As did of we we our 'XX, part in in the were years And you that midyear extension as contract original exchanged that full

into packed all those numbers. that's So

Operator

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

Bernard McTernan

just What maybe to detail access follow BetVision was all on had to U.S. to NFL 'XX do think start, Slide to nice operators the revenue NFL BetVision X, BetVision. given provided on for rolled you season. next the minority out was a betting To up be all the uplift operators of It sportsbook during you season. if

Mark Locke

not share. Yes. FanDuel. I market success in minority but probably of including had the terms I think with in mean some terms rollout, maybe numbers, good a of We've

we revenues vision, really profit it's compound. way the about that when think the think that about I from that the and

And so obviously, we're taking shares.

As a much you taking fact live know the top getting that at that focusing share of in-play on it's multiple rapidly. taking that, the the people come fact share. play, in well, through is We're pretty the live really Xx BetVision we're helps Xx the really betting lot is lot on the amount. on of of that we're a roughly in-play the And growing

Bernard McTernan

Got swinging puts our about kind revenue thinking Or think it. Technology more lot about this and been we 'XX. be grow? around we should as as XX% just has And models like of be then takes as XX% grower, any think Media a fine-tuning for a we're we Should contemplating you 'XX.

Nicholas Taylor

can of instead games Nick. the and a NFL games you spent in we it of that in know it's of saw the Christmas spend. books that the Look, of where some save in their sports QX. question be QX, some Bernie, We spend over timing playoff just media

of have can As million dollars way one swing the with cadence, couple other. quarterly a or the you know, that

around we're the thinking for I still today, sort there's the But to XX% guidance, about area. suggest conservative that you way of year-on-year giving things the not 'XX that in of XXXX. stand we're growth in lots think being as case. to as we here make forecasting at know, specific about but I 'XX would happen we're And we're moment,

Operator

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

Jed Kelly

if I may. X, Just

I of Going bigger question with XX%, technology like know, I It to on? going like than slide, headset, don't $XXX I talk the technology then revenue. don't like it, it seeing the looks innovation million. YouTV. Can know -- streaming, you costs, Mark. what's landscape? and Genius going they're rate Where your like maybe maybe the for faster the like but about looks are We're so have streaming on And all around a in growing, data slightly you, a what's fit particularly does lot and Apple think,

Nicholas Taylor

pass take back part. it one the I'll second to take Jed, the to Mark first and I'll

mean thing with I the delighted first say, in look, guess to So we've the experienced we're drop-through XXXX. I that

see you've to running I the think you you -- that And basis, second, When around park right motoring about cash it's lot. can of course we've operating can about on 'XX, last back at I'll really us really, see the XX a look you leverage XX%. for come And that's heard a talked 'XX talk over I'll but to months. and that. a

cost You remains flat can see year-on-year. that the base pretty

think I to something like $XXX $XXX million. million it's

to Jed, that again, something that's clear, XXXX to So through business be beyond the coming be is as And well. leverage operating clearly. case the should continue that

estimating clear, visibility. around around in let's and about linear. Hence, on is an 'XX specifically about right, step-up have Now not we in drop-through over lumpy. I But cycle. rights And to be 'XX. guidance to slightly will 'XX a margin first XX%. I right be right higher there But sometimes in to a in EBITDA from our -- Jed, 'XX a XX%. was They they're to 'XX still right, great in There delivering why than they're all, there's to lumpy remember, we're you're etail, expansion guess, that's of guess fixed

that think it's somewhere probably where And probably margin estimating of see 'XX. we'll and beyond to expect 'XX expansion, it we're beyond a drop-throughs EBITDA continue 'XX. I sustainable position the XXXX, for between

Mark Locke

Jade, it's Mark.

in and we've this really curve some sort been is coming of investing the And It ahead that these of clearly, the really we media fan developments ecosystem, the done exactly are exciting which, through. us look, investing gives where business really positions of a is the we've spectrum work second years wider future sports your digitization sports our the that for again, strongly of with I brings further and the for In super This another pay. well. question, engage. terms of really, and second output mean, over of on lot is very a is where way part of us to

that get be what's required content of The stuff. probably to a Some should this about. rights stuff are part you thinking still big

at work having a flow-through This be about still we're people stage. the way this bit fair with there's of lot a going on little revenue I of is really you Union, partnership as we're a to done of excited well, doing about a And that what terms Apple positioning be Apple So Apple in with the app think getting providing displaying sports. well, to the too with sort are Sports of caution I ourselves data. where like them bit

think this it position the data rights sort more more stuff strong when the featured. becomes in mainstream for of widely market bit I distribution a us puts becomes and this when of a

Operator

from of comes line from JMP. Citizens next Bender Jordan question the Your

Jordan Bender

question. follow to Jed's up on want I

Is 'XX? the So guys to are that costs rights there 'XX. investing you from margins outside in more in related business the the in any investment of XX% all business dropping the is of those kind incremental mid-XXs that the into for Or back, stepping increase? rights

Mark Locke

indeed, if cost the it's at can -- we I mean, cash look slide the at you go with on think you that well. in you broadly cost $XXX gave if XXXX as line $XXX year-on-year, to goes you our if think from to back I see, And -- deck the base I in look No. base. And include everything year-on-year. want a million right, specifically to of a it's I look basis, million -- outside think

in very driving cost got the revenues. those additional incremental you've business, little So

jump going the It XXX-odd saas to that slightly just to slightly the when 'XX lumpy XXX XX XXXX to from, at guided say, slightly less linear. that time. are 'XX. that. rights think, position 'XX. right a than As was is we'll really that's more, we beyond It's to There We're I we've as right years. in years and bigger bigger driving mean. And And to. I function less a guide 'XX from be get the short jump the

Jordan Bender

in in-play to but 'XX And that represent is GGR, Day rollout? help on the levels. ongoing to the second projected accelerating prepared by back kind that a the back outlook I that Mark, it price faster of improvement then XX% ball, And to that know the represented says would over it Understood. the shift or no gave your Investor at tying is crystal your significant slide play you guidance that in part of that your Does over fair in-play negotiations? those which product I with just the in to driven assume alluded the guess of remarks. question, you there's

Mark Locke

betting, I I Sure. that's strong being really us and you about a optimistic really, thing I'm And if this, growth. place. product good cautiously in-play think us seeing driven. the are think I a for And look, good really mean, again, sort look of numbers in it's at we then and of BetVision puts really and proportion the

the considering when improvement the think your well. in you're having margin other I as that's these mind is just thing worth things in

and You excited the that should do play very come been on with in generate is when focused things well. you about obviously, of the one we've And materially that through fact margin very anyway. always you we're -- as seeing better

this So vision and of addition to the margin sort of new like again, product our again, in pushing I increase about the play, talk the shift a really compounding lot or favor. of effect things in in that

a the such retornegotiations, in increasing partners built very as our our our contract do such margins, Betvision which our to everybody partners therefore, generally of the the share as it's bookmaker upside terms way be us bookmakers young. contract our it obviously, want seriously. to to good integrated that and with take have And in better launches puts even Edge, to though place successful deeper product is look, hopefully and this be we and over renegotiations, new being be we product business is industry. something think from sports, and a a job -- sportsbooks, as And we about very successful we In help when we

these time. investment over So strategy as I the And we've cautiously had I things think, all support and the yes, we optimistic. the feel business of said

Operator

from Your comes next Macquarie. line Beynon question from of the Chad

Chad Beynon

I about 'XX, the wanted the guide. guide, particularly ask to For sports betting

I you for XX% for American the GGR rose think, Nick, North market. said 'XX

NFL from obviously the that benefited You contract. given

I to North thinking low betting that XXs. or well of call singles, be expecting the how American let's the non-NFL for we're into teens think the piece But all continue U.S. you it, that GGR to the 'XX, market? high about are of Can grow, doubles up outside

Nicholas Taylor

strong see against be our was the looking some QX bigger Nick. think, it at it in showed broadly, well, say at in we're year-on-year as at it, really you lot our and much slowed bit mean as we've that earnings I Yes, business numbers XXXX. it's a a quite around about in because growing is about grow X our Europe and I'd we're commented XX% way this growth, QX to of U.S. expecting down in Europe call, year, a comping to Chad, can little I our European business probably around XX%.

Europe. So still coming very from healthy growth

Mark Locke

though betting positive the market. think left there's potential seeing at sort is in is macros mean, a one And of, the the coming signs. sorry in macro, sign. still guess, of over sort of still than you're interesting I the mean, think lot growth less quite to legalizing a Europe and I aggressive XX that good moment. in, there's And in I Belgium the even the I people States, of is jump I online the for

Chad Beynon

to kind then in et of just vision, second or market, there cetera, as look the you opportunities the public-private add of kind And of on bolt-ons, Are additional in tuck-ins seeing? you spectrum, you're overall Great. bad what are technology valuation kind seeing what spread? at to still

Mark Locke

has -- and it's acquisition. we -- obviously, positive, Look, through much great as question, Yes, a execute, of actually. the to cash sort potential on mind is business continue much moved focused flow growth to our we

of lot development, we ton got we've an we of other the a second as of is have of that One technology. with is be we've challenges spectrum stuff acquisitions as we well of to the some mean, and -- need. got our own have awful sort I honest, internal when

So technology gaps we're any in seeing not our stack. of sort screening

to We've generate real at compelling be the look of from that a we few and the M&A is bit the well a focus have we it. got on got required, it It's technology really on to of a and basis market, be when can level to compelling fronts. profitability deploy stuff. and quite got it's So on distraction the

think, And we're very so other of a some feel feel we're We good technology this parts these really we forward. in strong. the of ultimately, seeing, companies that the seeing like price are -- going And -- place, market. I and we're technology and

that few these a think technology are maybe harder is bit justify. areas to the the offering, I compelling combined of of really unless there's a a they're that these opportunity, with But bit deals -- struggling. price are

Operator

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

Robin Farley

out it's if in-play is growing GGR, you could only high think the rate. And I break sure, total growth we I'm So your your to, see NFL you. share coming thinking that wondering at a percent for just a was as GGR very of is I'm over to NFL/GGR. of that versus I year in-play of that's from period the see see last in kind this GGR change imply? about XX%. I total

Nicholas Taylor

Robin, up prepared well, out we up place. think margins XXXX were of the proportion well. in about bets play, the as I And remarks, in up 'XX compared the NFL on as called around is for XX% Yes, in margins I to in think, year were it's Nick. XXX%. win GGR the Yes, the was

Robin Farley

GGR year-over-year in-play grow share the from Did NFL? the for of coming GGR overall NFL Or

Nicholas Taylor

Yes.

inevitably, I NFL towards have therefore, will other outgrew position. think shifted GGR mix and in-play and betting on the the the in-play GGR

Robin Farley

to then Okay. clarify much revenue. QX QX you movement just your if added could since how FX And

Nicholas Taylor

a headwind, tailwind Yes. a in QX. not was exchange slight Actually, foreign

think guided we at was QX QX, we're X.XX the And in X.XX. average I when think I X.XX. rate for around

So QX. a it for not headwind, was about around to XXX,XXX GBP XXX,XXX GBP tailwind

Operator

Lake Your next of line Capital Markets. Martinuzzi Street from comes Eric the question from

Eric Martinuzzi

states emerging talk Yes, that What's XXXX of light any new potentially could about election betting? I wanted as year far kind to of as sports green some you the opportunities. to with your take

Mark Locke

new board, state. an of we And one Eric, and requiring particularly states holding we're view on particular terms coming in look, take a we take not of market the average therefore, on that.

in I it's opens I think think. we sit week, up, next Carolina As North

live expecting tons also really and name is onwards. the XXXX, always our And the interesting also the from a into business. numbers. global that's we to the And the a we Florida, given at be think not remarks, opportunity. on baked in with, being if but straightforward place that we're obviously that's baked sort to that's Again, at So continue do very cautious that's looking to around we're be moment, continues. broadly something betting September time into of Brazil, prepared basis. Brazil clear, But be fact it's most we're cautious I to checked and

Eric Martinuzzi

to the that market the comparison scale. what's opportunity a the market, U.S. just for that of And size Brazilian maybe in in sense of

Mark Locke

thing the around you think in opportunity I'll about I give I going billion Yes. great Brazil, about it's $X to the numbers. mean We exact be XXXX. mean a

we given the we the basis. likelihood lot that global customers better included without not the revenues you look fact significantly in sports go terms for because really relevant the us The customers a with be opportunity that plays really on model in really have will -- natural us fact that to really we business Genius, only in it's it anything that a it when books additional our So But events QX. they given of is for interesting books Brazil, additional it's for any our that worth in already probably would significant get in the also also Brazil costs sports the that having into have Brazil. meaningful for be that are of just a material numbers remembering it, in is

the So call. in it's we leverage operating of about a classic earlier example that talked that

Nicholas Taylor

NFL The calling Brazil thing September is focused is think as NFL pretty well on worth game, are in as a other the out all that. on obviously and they're I

there's a quite focus on about big it. cautiously So market, I and excited we're quite that think

Operator

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

Michael Hickey

Congrats on guys. 'XX

perfectly U.S. across kind consolidated obviously, product of getting seems and of is from it BetVision at on share the product, that just the play course, fits an there. on standpoint heat innovation market, lot Just like is looking a And vision of X primary in here. operators

about think is you exclusive sort as So And versus thought scaling operators? a follow-up curious, the selling M&A. question just the multiple it about selling it if you product, the second on across of then

tech. more for question somewhat that's I directed be and potential think I on the an core towards obviously, But was to openly transformative. of least that business one addition your sale more add-ons think asset there's at would

your sort just tech curious versus that for a deal add-ons. of like just So appetite

Mark Locke

of of as and mean nonexclusive, work got to the the can. one focus that with to to widely to model we're core sort We've really sports. looking I our the on so products our possibly sort Mike, of we bad engagement, is exclusive, is as to remember partners. our growth sports We're looking get of drive distribute

we from to that's opportunity, really when something be when rights. a as But look is comfortable at other sensitive price sensitive to consider feel So we're buying an We're think in not that going from we're From M&A an doing we're price-sensitive. said, come not obviously a of We're price pretty the sort I nonexclusive we'll up. pretty we pretty we come opportunities as and look, exclusive we point companies. come buying to they view, of that. good place something when on. tech And pretty I

companies profitable really way, we that. of sense it we'll they've do it's those if of whether if acquisitions, rights or on got make that sort a sense, makes So make sort can basis. to in whether it's But

Operator

Cantor Your from of next question Knoblauch Brett the line comes Fitzgerald. from

Brett Knoblauch

on quarter. the Congrats

they looking remain Or Just this just given we guys curious, do the rates we've may you increasing factored constant? Do the guidance in terms marginal But do percentage about XXXX, handle? win I XXXX, is at your in uplift of total some seen for in-play of rates win very guess what NFL. thinking you're well, as see particularly year? for assume that

Nicholas Taylor

pretty impact the question, Genius' impact win to would on do revenues, it's that win down, on they up have of consistent our worth or either 'XX just is about an around remembering say rates position. I specific that's a from particular and we've material just built forecasted to in therefore, specific U.S. 'XX. although or rate not But always XX% Yes. on and months

Mark Locke

quite Yes. interesting. I actually mean it's

we've If our you we about think business predictability a the sure things been quite we I a mean, and stability, that think on numbers. of about win of focused the I making as guess the rates, in one that is have and one lot things though

our of -- It regardless little bit was almost a regardless that. it it's was guess, come is you see rates. through numbers, of clients hasn't way think the industry-wide, But negatively way as the win got And Bowl And So I example we've business model that from really Super challenging. that good a can us. us. good a and and really we partner our I strongly for that that think underlying It make the very the with we the money affected light. in shows I

Operator

We does you today's you disconnect. participation, have Thank at no queue with may for that, this more further your conference that conclude our call. time. questions in and And now

Genius Sports Limited (GENI) 6 Mar 242023 Q4 Earnings call transcript