GENI - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by today's conference call. We'll begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. Thank you for standing by. and be Pam, today. conference is name I your will operator My this to Quarter Sports like I XXXX everyone Results. At would Genius welcome time, to the Earnings First background placed to have on lines been prevent All any noise. mute [Operator Instructions] turn over the to like the conference company. would I now to

may You begin.

Brandon Bukstel

Thank good morning. you, and

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

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

Mark Locke

momentum a we for positive today on begin year and across morning, you business. thank as Good us the Hello. note with strong another joining

APAC our support like by thanking results, for the years. investment dive to over we partners into the X last we'd their Before and begin at

their Genius as of and have expanding $X.X representatives from through stepped revenue in we seen Directors. in a may to period a that valuable Board $XX they where XXXX. in growth, insight have expertise of forecasted our provided XXXX month Board million from holdings to APAC down level now transformative APAC reduced of billion You have last The went from

a In equity to we the We we and our our to public are to that, years demonstrating to and we X have our company are investors grew consecutive happy of $XXX cultivate again others years guidance, to model working shareholders of hard many who great we beating with very predictable the by report outperformance consistent a to public revenue in Genius XX% And group over working million, proud spent them quarter, million. very ninth forward call look the with once first ahead. guidance Sports, and strong last execution. year-on-year business quarter and relative of our $XXX as

quarter, and $X in whilst becoming our delivering also $X distributors, of content for the adjusted We sportsbooks, must-have sports outperforming focused digital Our consistently on million million. on our the core partner objective leagues, was of brands. guidance group remain EBITDA exceeding financial targets strategic

distribution these is growth and to cash the ecosystem. positioned of excellent products profitability we The as over first sports highlight have league continue key and quarter wide-scale our years value-enhancing each our This technology model an flow. we and of how for example retained the across sustainable commercial partnerships was areas exactly in

makes year start confident even the us outlook. to strong Our more in our

EBITDA improvement. million adjusted points revenue XXX margin representing growth group from begin implies guidance and the XX.X%, up million, group to revenue $XXX $XX XX% raises and $XXX XXXX to million adjusted group our and raising and year-on-year year. XX%, EBITDA million of to basis $XX and respectively, we're our of This respectively, So EBITDA and adjusted

reaffirming which are will into to continue year, XXXX. full We the strengthen also positivity for flow our cash

deploying a capital Therefore, as public range that to we ourselves in important annualized any company. arise this as of share reach or initiatives, may such potential we position As across the we continue for to M&A, in otherwise. mature we more a proactive want as milestone, opportunity be repurchase may future

As flexibility with financial such, few optimize carrying out steps a our are to we capital. relatively overall low-cost

have we Citibank closed cash combined to capital be $XX which, Firstly, us balance with Deutsche and million Bank, agreement a access our additional credit level revolving gives flexibility on sheet with necessary. greater

remarket our matter housekeeping, file S-X intend to a corporate Wix anniversary following accordance statement of now with general eligible Therefore, week. this X-year as registration an Genius shelf cost is Sports practice, in listing. Second, we

Genius Our intention that the with follow SEC eligible. is filing this is housekeeping shelf in simply ordinary now practice Wix best to

be steps particularly because near term, as and financial these taking opportunities our improve, potential the are to towards nimble flexibility growth arise greater our continue gained fundamentals to further business and long-term on medium to We when the we profitability clarity want we prospects. in

objectives, not fundamentals confidence by from our strategic reinforced, is Our underlying in the for the results, of example. just business core our successful execution financial but

vision struck utilize that League technology we The notably, Lithuanian few wide-scale computer AI likes and standard to globe the the is launched last across basis. technology successfully tracking. which for We our several federations continuing leagues betting U.S. months, our foundation first Basketball The in the the professional is we with league-wide more with as media data we've and expand, WNBA, leagues Genius and in reach to new establish optical with Most the next-gen of Sports continue the around distribution and strong long-term the broader globe. and to sports partnerships league the fever, women's on technology reach, and of products the collection.

women's a technology bet data really then tracking new example the today. deal broadcasters, a We how leagues are of and and as growth technology. augmented products, social and point this capturing launching in power Genius taken Each foundation highlights we've empowering real-time month, enabling sports. sponsors, such step broadcast insights as NCAA women's marks are proof new the one on on monetized rich which last forms important fans, of focusing how for team, an media. also optical the in explosive increasingly our deployed for and final Sports outlets new fan Premier further This on for new becomes solutions, vision all Club built on forward analytical League media exciting of and which One augmentation GTECH we Brentford to being partnership are to with is Football its stadia X

We sponsorship tools entirely have naming now augmentation tracking Brentford to technology Stadium's combined inventory and broadcast our create our player with partner. new advertising for

with ShopSpeed goal. of new like point the data match, represents most engaging Brentford for interesting for opportunity brand an GTECH, an a sponsble asset their and becomes to the moments associate on shots it Now

through level product become vision and League this to scale and integral and provide. our and data we is all the fans. This is how of Our graphical AI Sports more in type overlay, time. over sponsors at to for increasingly the themselves. monetize that differentiated like and can is more distribution, the into time a transform the unique it connectivity front technology, successfully leagues, we ability capture English lead have computer NFL of to we another this relationships, lead value we and and leagues completely In in Technology is Premier to creating key partners retained center the the Genius creative summary, greater automatically real our

the DataCo, agreement summer, In also and U.K. we're our X all rights football, discussions which instance, the XX/XX we including Premier exclusive For now we announced March, of English season. football our extended most data governs important in to agreements, last DataCo League. Football extend that the NFL through

with to final delighted work this that While us for have they we agreement negotiations, chosen is years. still are another X under

has relationship sports Given basis, the improved offering betting of commercial the U.K. the massive football importance this in a over years. materially on our market global global

growth the of of decade. end Looking this key that through expect be ahead, a strategy continue we to will the pillar our

had terms of enable the cash we deal, that address While specific envisaged. want a head we expect proven always over on relationship. with this us with expanding NFL we trajectory the what have we increasing our relationship of to we will continue FDC obviously margins Like to disclose our length strong and flows and cannot partnership, from business long-term with what the

than near more momentum given positive sustain our this structural revenue for our And in the this now and tailwinds don't ability envisage strong in are term We foreseeable business. growth the future. the in ever confident to growth slowing

sports immersive data These and power business how now experiences. that The our deeply data audiences we to advertising, in least markets, increased and to QX can cost benefit poised the ecosystem benefit of in we more to but the sponsor affords enables with XXXX data access whole, leagues after X become the I'll strong X viewing agreements data XXXX. of ways. growth integrated betting indicative rights next largest X the trajectory Not next-gen call infrastructure secured enables the engagement, proving sports which the be digital are years access as tailwinds we gives greater digital it's and of X to remainder higher sports betting, converting commercial and achieve multiple year, cash its to activate at detail. sports even the more guidance the in many marketing from in our just many in activation, the our more our target announced model. us or to Whether fact, X the betting. for increased not been access leagues. fueling betting margin sports. we've sports core to leverage a reach and and also are it Year a to over Ultimately, the growth continue visibility fan is rights live different for our engagement in services even the broader feeds us deals and the to different our growth content, of is in-play an sports ways of base to data spend, to we pace model flow. into this to built spinning able with we this to discuss results XX%, increased to our us This should to technology in apply world degree growth in having years where now long-term broadcast, Nick In for gives more data-driven in in years. how of us online confidence turn EBITDA momentum advertising This to of market, results ultimately at ways, mention, exist the

Nicholas Taylor

you, Thank Mark.

to demand or expectations. Each cross-sell for are whether town, in-play improving digital a many which the additional in betting, growing to outperformance another report margins, win that's products happy of discussed content and we betting outperform, ways higher we services. can We higher our very of sports quarter advertising quarter, relative from

campaigns year-on-year to by in quarter revenue by was nearly operators in relatively X overall was as which Carolina XX%, around marking brands and online the you've reacceleration by increased seen the beverage share executing media driven spend contributor our a growth to well, on This betting betting digital strong small events, individual our performance the revenue in teams major the outperformance sporting primarily significant sporting business, year-on-year, just key March from as revenue increased anywhere U.S., a we meaningful and quarter, strongest This U.S. of launch are from around by X, years. also Slide events Betting Super our quarter. the prudent driven the nonbetting these and well quarter. driven in sports sportsbook in themselves. albeit Madness many North of largely key Bowl namely And as NFL brands XX% the as by advertising Playoffs, ranging for leagues

EBITDA We guide. of ahead group reported of also approximately slightly million, million $X adjusted $X our

are adjusted there quarter, to it As points relates X this noting. our worth EBITDA

expanded Sportsbook equally rights expensed NFL we which include XXXX, XXXX season, to last including summer in during January month project First, as quarter, and season. our was new I our domestic in These powers rights, February. each the NFL for last entirely partnership and vision streaming mentioned the bet were

the on this to full a despite season. this new being has outsized of there course an games the generate revenue were As accretive set over effect NFL XXXX QX because our of rights result, fewer profitability simply

is revenue betting typically the was with a margins. incremental betting the Media largely this to and media of outperformed contributing therefore, our between higher flow-through significantly XX%. and incremental adjusted outperformance function in Second, approximately EBITDA mix of profitability outperformance QX, to

be our balance with in sets our the us expected on finish sheet, to conclude, Turning confident increased to of long-term our and positive revenue million about path adjusted the in to EBITDA are the XX% than quarter to and year trajectory. results million, our cash from and the roughly on for and and respectively, ever steady quarter $XXX finished we confidently quarter, where EBITDA $XX full plus, the with to We are cash. we flow a line million expectation XXXX. To reaffirming guidance and our $XX more we HX target

And Q&A. future remarks to of our we guidance are structural be cash about look excise our a XXXX flexibility, business, expect to XXXX conclude we're and relationship extend we continue just into on additional not momentum we result, across in we the with execute And XXXX important sports flow. continued We our to line most sharing open core globally. Therefore, and expansion prepared the strong yet, the working financial margin our increasing With arguably as updates. we strategic increase growth, formal to feeling well. our objectives. With and as guidance believe very issuing as momentum to optimistic while this heightened we revenue that, representative now have and assets a broadly forward are center we

Operator

question from [Operator Instructions] with the line Jed And your first comes Kelly of Openheimer.

Jed Kelly

I if X, Just may.

Mark, increase Just tech guidance, the betting or the implying media, services. tech the you Or acquisition? around content confidence up in portfolio? appreciate most Where and opening potentially on the would the And for raising is in contract coming on momentum some technology services do an where renewals opportunity back more I the comments is you do or the of that in in see opportunity potentially half most the then that capital. growth your actually

Mark Locke

renewals stuff it's the the that much This business and extremely account moment, going half. really momentum the not momentum. what seeing well. taking as general question, it. got the the increase not on we're focusing contract too awful we've are an of at about back lot On part business, into we're of is really in the your in half, back first Things We're in

with have potential said, in in The which terms well. firepower, share potentially progressed we're want and this M&A strong that capital, see why is the one We revolver. the a think at of a and we've optionality In I main step time. as X we areas really is look, future. But place, I to businesses taking performing buybacks it's are business, that and

Operator

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

Bernard McTernan

on XX% a the DataCo talk data get plus negotiating wanted start, given to competitive rights exclusive profitability sense how to a your getting then, just and to and maybe Just EBITDA and about the to rights was for get margins. it Football Mark, long-term comments

contracts insights Basically, year impact if any going on those backwards occur, given happen? be EBITDA should rights costs for into Just expect to to the commentary And and if X want step-ups I the on have large cash year these a do if profitability. step-ups? ask they generally we and

Mark Locke

with absolutely Aston Look, the won happy the deal said that's along on really very we we've and position a proven we're with been in that basis that strong we've we're We're it done. very, delighted.

negotiations. technology And said of really coming that that. feeling the again, that along partnership deployment technology drivers is becoming in appreciate I about One broader impact market talk to feeling lot that a the don't led a thing the people with opportunity deal people, relationship key that We're a use that technology become and really have relationship. the the all of clear is these lot and business. lot we guess, listen to on the strengthens of is that just business. technology-led rights our we're And good from than We've are that has DataCo new and totally a a the as market. good the part of position we're and data So the the that about deployment we and

Nicholas Taylor

up part, pick just I that think. I'll second

remarks, we is 'XX all gives we've to And to FTC I strong us albeit it expansion as on but the the on expect about continued said the in years said comment out our done I the I which the prepared optimistic, the great very negotiations, continued And just way not XXXX really 'XX. Bernie, growth, and continued in about in 'XX, now is it that seen XXXX, deal, terms, think through actually rights obviously we double-digit specifically and for it's visibility 'XX continue although can't those the throughout about flow margin XXXX in major is to deals. cash what prepared year following revenue XXXX, 'XX, as well. this and but we've increased remarks, thing

Mark Locke

deal, we the the other gave were that pretty opportunities of And proven the thing is we did Nick the strong years profitability the we One we about margin the that, NFL as is that deal, that categorically same and data was expansion. continue and really worth going NFL I us to to ago. a see very, I'm about very future. off all back with those excited think our that's us, adding deload clear We're when way. and that, it, allowed said, And exactly

Operator

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

Ryan Sigdahl

a just Data to with percent expect rights contract get revenue with a next data do Football data that the on rights to direct last Maybe Co, leverage of But new year? question. Bernie, follow-up as you operating

Nicholas Taylor

of to 'XX increases. in know, 'XX, margin through concentrating some last X those and the double-digit and continued business years, guess X couple continue success expansion to cash and impacts of had in concentrating on things I XXXX. first revenue myself that any the is extent, to But is all continue to to The I of some second beyond. that XXXX. I'm some everybody new the and on financially we're expand profitability what slightly repeat deal one, currently rights over you current relationship just that And to on that going we've we said as half runs exclusive key growth, a Ryan, expect obviously deal I'm to Bernie data we the remind is, as to

Mark Locke

I From to Also, position largest sports us good our to in well, winning long-term really in that just for basis world to X basis. with in position count it's a clients data that stable. leading really the view, us a long-term and puts And for the a We've commercial a think there. partnership as conversations gives strong our us add a got in. of point on be really

Ryan Sigdahl

and Just follow-up, with lot NFL, great spectrum, coming EPL for on. a partnership leagues, my so and products in of second innovation

partnership You exploratory had with an BetXXX.

any to so But an more do update the potential customer and unique So some standpoint? operator spectrum from you switching side. there accelerate can stuff the and second to operator really

Nicholas Taylor

side Yes, a our That's the big of awful this year. results we time moment. I an and that lot focus what operator of is of spending really delivered proven. part this We're at that investment of on were ahead It's the anticipated guess, vision.

that I I've before said calls. of think these in one

a we're that. point think the of of putting And made. focus So lot on has vision I been proof that

on job rolling an our is now on delivering this to wider product focus So the out execution, focus community on bookmaker additional to just a and basis.

Operator

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

Robin Farley

ask asking in increase think U.S. a about When revenues. the it maybe DataCo about and slightly of Football in the way the we Going revenue rate a much agreement generally at to expect different than growth back be than questions. previous U.K., lower to I the

will from reasonable expectation growth what in has been than rights expense cost about your commentary betting be an finalized margin expense, EPL expansion wouldn't So to be yet, of growing in the more conclude increase more pay not increase about should sports faster increasing not the to of the U.K. sports that we sports rights your expecting Is that that the you be think at? revenue than would not I but revenues that U.K. which rights in realize you expect

Nicholas Taylor

to you me hand Mark start give I'll on more then that over a to bit Let color. and

understand I think the I question.

right betting world You U.K. largest is example the is global the must right. betting is great It that. U.K.-centric soccer a not right. and A sport remember, in for a betting

latest marquee well is the back where of U.K. the Brazil, out that as was year, the is for of as significant, a year that many the Of opening revenues up. part this course, are half numbers know, U.K. a coming you the we'll parts event earning and attraction LATAM be just of of major world other world, major as be and soccer will not And

perhaps hypothesis. missing the that's I So that's your in bit think

Robin Farley

get you U.K. faster Is increase in it maybe those And your sports you clear be that it's than or but a more be more that other would obviously, to should from not your it I expectation? from globally. expect expense would reasonable in not would grow countries, that rate than rights, phrase that sports growth greater revenue increase specifically revenue whether rights revenue that the

Nicholas Taylor

Yes.

is just with be all, we obviously, go of of clear, to to X/X don't First rights. just market

XX.X% Ryan 'XX. and Bernie I'm margin Indeed, we've year. course 'XX way U.K. soccer As margins to expanded the from our those guidance increase that XX.X% again U.K. else. is that NFL I you of package XXXX know, to we XX% in said that really and fully bit say to changing the I is in no to extended to different beyond. guidance in don't a our iterate was or anything I'd this What up margins increase expecting and over and same through soccer. And rights and little our And 'XX, in contract envisage out continue to and the we 'XX what that to move our just

extent, covered that more deals stop shouldn't SDC strengthening for that us to therefore, than life across I'm new of to the So have then rights FTC to any continuing margin contract. EBITDA expecting a the and be

Robin Farley

you in a us a Can give total? follow-up. quick one just then percent as And play of change

Nicholas Taylor

NFL specifically in you in-play, I play. No, of in terms can give

NFL the look mix, it year-on-year. up look I year-on-year at asking was at was in-play probably basis, which you're is XXX% XX%. I if for you And on think If the mix, GGR NFL-leGTR a is

Operator

question Ben of Goldman line the Miller next from Sachs. with comes Your

Benjamin Miller

that's about you out think the consolidation fill. whether level, data other consolidation. I'm holes organic through you'd how to you see playing like industry Football the or ongoing, through data more today rights negotiations DataCo and inorganic portfolio over rights at With that wins curious of And time, any how broadly an

Mark Locke

we've that not everything second number basis, short, long-term own And more the got like the that and feel roll spectrum distribute we products rights the have technology, need. more that means a if actually in the and the in other we after. and The DataCo we a we we of the of we need that increasing. our into anything, to going opposite on sports years NFL with to or position out Yes, we've this the actually We're got rigs with feel effect we you've through stuff. the relationship that terms position have we seen feel feeling on that number over in the of want be we previous really, really strong decreasing,

Benjamin Miller

And BetVision. utilize opportunity just books larger how sports on the number of of more additional expanding that or it grow BetVision that, that prioritizing curious I'm as follow-up terms a adopting of you that the to do the in to product like see is product? are sports you're

Mark Locke

is answer both. The

We adding the BetVision, can't months focused you it And news see with if at increasingly a got watch are on be But right. we're time, over that. space, the rolling the content coming is the one what to get actively therefore, it to sportsbooks just products. additional on products. new doing additional only. you'll And We've same trick BetVision

again, cautious So our of execution. big that's being a focus about the But we're business.

Operator

the comes question next line Riley. Bain of from with Your David B.

David Bain

industry. wondering quarter I'm quantify this, sure and that. impact believe you I I XQ can but if the for And question. I'm the from if missed a what wake OSB one beat of of not had was hold nice the Just low

Mark Locke

one a we to. call through of quarterly times, Obviously, revenue. levers growth this you'd you Brazil somebody questions is check hear And name in as results is as us the but over-deliver guidance that this one. which just about previous same we and not Obviously, TAM, on that, well many you're on world you know, has used thing the clearly as outside right. said U.S., does just the take as impact this larger in mix, the the be position I previous the in-play business. think, said Genius You're us call. we Having underwhelming, I think But operating wind And have U.S. for great gaming that in right the a I've different of of because, to allowed the media, quarter. that listening know,

So but of margins we give. operating number guidance is to on outperform we've our a win helpful us for levers got us, different that yes, allow that

Operator

Your BTIG. Lampen next comes of from with line question the Clark

William Lampen

one on specifically exactly lot guess, the momentum to media from be Could the us you earlier Mark, later that or in that remarks, mean that to it contract? to dontribute your how step-ups And based nail idiosyncratic prepared understand, help you to maybe question, a I talked as earnest the this But could engage outlook, relates have down It my in that late does with up, past partners of that the business. road? seems standpoint what on in season? renegotiations. number conjunction guess I most that, your with XQ I you in showing a And now. you about expect the than you in down start guess, And remind it realized with focus for sounds on when much is I will could like of or that business. the that's come be second And we a us is remind to? Is right cycles, obviously XQ rather football not a eventually systematic? just us, to that

Nicholas Taylor

media year-on-year. XX% over that. of and Mark the things a We're growth absolutely I'll of delighted really question. to a perhaps that in have of hand business driven then that on There's number the start reacceleration part second I'll

Madness. seen spend think in places North for March I example. like we've seen some particularly Carolina, some in We've really spend strong great launches in Florida, good of

based that of if in As you the you into remember, moved some know, December, there's things from like holiday that January that state. season said through was a lot Bowl was of there we we the also, sport in And when and cold talked spend Super Christmas timing playoffs.

So definitely sustainable. very strong and

as that's the agree still and I've But will really, generation year-on-year running through a the terms bit growth, the And a you part probably increased north XX% look the in double-digit hot of to 'XX media a Clearly, of if significant of pay margin, year-on-year that. been said guiding in talking a previously, that I in on XX% cash Now continue Media we've I at guide, 'XX think about. that growth. is increased revenue space. increased increase us to

Mark Locke

only. you're escaped on that are is I of the again, good lines. aware into existing different which year that that the the putting that softer But we've additional got look also pretty showing before and thing side media again, to starting I that's you other call, you're is products, and from space. to really coming some in which, we view, guys revenue It's we've in moment, at launch won't new well. another media through growth in one phase quite until business not this that the money the, There's we've the client split which you, getting about also is revenue that it been view that we're say it's promising the getting. what that given delivering We've the seeing really delivery think talked the well, of been areas the of because in And point be the building of really HX business is in product fair that is and media to our up really and literally is from is we're I seeing it all have about think the won't

outside in in more growth mentioned quite starting and to revenue. the through we're this about calls different I've all the looking attractive. And historically, Sportsbooks at in And between from additional Sportsbook numbers, been a come revenue that number really media that. has looking times bringing split see of we're that's is something these business and brands book that sportsbook nonsports aggressively driving really So

So but we we're strong board. not that clients bring feel we've media new about side, place like excited on the and only also a to new started we're the on in the products

partner relationships renegotiations. start good where the Look, there's have support And is have to conversations. be job those to continually on suddenly a date our Just drop-dead those and we not to and to a conversations.

definitely really, to numbers moment, correctly we've really of which not there on that's And too forecasts of identified, the which changed. not some feed released market. partners. much you've that are sport, our again, Clearly, into weight around in But any will putting to the talking always dates we're point. we're at new So the that the at seasons

Operator

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

Jordan Bender

We Rock have one missing performance the really a of lot is of good Hard we data the the in piece Florida. have betting U.S. don't in but sports terms market, in

improvement in in state that, any into without the maybe Florida does that can year? them just about the how business? So back of you've of the this you half play does the guidance helped Or talk of that? getting financials build And within have

Nicholas Taylor

the success the great Hard and the underlying Genius for the is we're a as what There's lot questions there's Floridian do the specific in on Florida, model the events they quarter through have business media. but I of Florida also their there's And in just one of amount funnel if doing Rock social work they betting, market, into is doing Caesars lot been Hard of of customer driving solidify exactly bigger that a become continue details, media I Look, we're hard a the of I we're based Rock well everything Hard go of media example is have a juniors. called Florida. Rock or market. out providing. the for a or can't of think professional to in obviously position. within spend particularly first Obviously, now, sports significant that teams right over of as Florida

Jordan Bender

the here. be Where of growth. sake comfortable debt on taking the could to picture now be And you leverage the the in up could then for follow-up,

Nicholas Taylor

in be on. Mark It filed is just changes early Nothing touched just another be this able business. This to maturing We've actually to as a in our building and block think our opportunistic. want firepower what exhibit on us of do. we gives I the today. terms asset to

stands can I as straightforward. and used be everyone So say, to it's go as as and look, ciltake. it circumstances pretty have million any It's when as opportune and a $XX

Operator

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

Chad Beynon

the to more. little a into I wanted drill mix in-play bit

we're data So states of if have the sure detailed growth behaviors. you states vintage in ones newer just in the that is North trying your are you just and a play? betting point to in think of what figure the some in all and 'XX, I you I'm still at seeing Are with in Carolina number. said seeing you not starting the like fingertips XX% older out terms higher was ceiling U.S.

Mark Locke

Let me give you a color.

questions First of all, there. couple in there's of a

in States. publicly The more They're the to states, we significant available. continue first yes, mature around one growth see

it's continues legalized and the New meaningful any see that I Jersey, grow state it think way, first that can in significantly. wasn't to You

grow, doubled I think, Kansas its things year think year. first I that you look its second if in at to year-on-year like

we see absolutely, can yes, So continue grow. to

a sophisticated, continue also inevitably basis in-play which sports to betting. well. become seeing behavior, more on drives We're state-by-state guess, see as We that I customer

that As third example, early which of and continue evolution over touched just a ubiquitous some example product we statistics to that Mark become years. we'll you vision very but following of of the BetVision, more enhancement spec. product course of is how is in really is in to our that leg this good see about know, And growing, the of going nearly terms gained the

in anywhere as the up we've to that position ultimately are sports will betting. terms mature sports that anticipate U.S. market, to in betting we said of XX% well. markets U.S. And around terms this of in place So XX% go confident is we ensure in-place in end level in does where absolutely of consistently that

Chad Beynon

market you've half? how launch of on to expected half when And said the the details times. a then and back that in the back of meaningful of 'XX I factored into the is on in believe it Brazil, you've guidance. this be couple touched this could terms is Any

Mark Locke

Yes.

a in amount amount latest small not XXXX, The very truth. the it's for a to are there. have licenses awarded It's being dial is so change We not half using really Brazil. for be end year, the with this of QX in be fall probably back of expected to betting legalized QX, second of in revenues sort the actually their going material we to that have and in

there's game of annualized certainly of Brazil, the going out drive significant are TAM, XX/XX to September but carried away sports numbers NFL wouldn't an an you there in significant in-place awarded. really But of billion XX, of and As betting, to for for Sao Paulo and be basis are really happening understand quite time some on opportunity that's licenses beyond. we're that in number coming that a are of worth get help dollars certainly we anticipating. significant that in I several know, terms the something that's

Operator

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

Eric Martinuzzi

to Sportsbooks go wanted new you February, revisit looking January, of that seasonality a media the with and macro just you is the we perspective, a as as from around do acquisition, I the this strength that customer emphasizing to Bowl the out new more was Super one-off, had, just modeling XXXX, normal? view to should there speak? consider a something ban March so issue Or a

Mark Locke

Yes, QX traditionally XX% been be strongest really delighted following increase. with our as for Look, case earlier, and that's I we're going Eric. U.S. calendar, the XXXX. sporting meter segments, think QX the said have year-on-year to the I

annually but we're probably of that's still a little just major we've call, a year we're the be in be given think to this uptick given in I expecting XX%. north that to hot guidance growth for sustainable, the forecasting bit

a of that seeing So reacceleration we're business. certainly

X cash And continue about, in which those pay and are in XXXX is we're insignificant say, that medial that the I shape for of and on the we're we in XXXX. expecting As part to financial talked number ongoing on giving a not questions continued metrics double-digit through 'XX. not revenue and margin EBITDA talked yet that of 'XX how seeing of the guidance But we've growth, we're increase, an of terms should the basis, tailwinds the drive key 'XX that. expense about it

Operator

of question the line Knoblauch. Your next from Brett comes

Brett Knoblauch

you guidance revision that maybe the confidence segment mainly could due between greater the was outperforming? parse well? the to it the or on growth as Or out technology segment expecting was Media revision, the you're some On also bedding

Mark Locke

all, confidence in what the we've of across is XXXX strength looking business, first like. whole Look, right real got

from QX the QX, of following on next of in therefore, XXXX majority confidence we performance is numbers, media terms position. the the specific makeup media of obviously, and and particularly of it revised terms based the the guide. In That's have, question media QX on, in the

Brett Knoblauch

then margins, I And incremental Technology segment versus just, the flow-through again, of Technology Media guess, us of you on I guess, the Bedding that the margins remind the could of segment?

Mark Locke

in-place that's for a but that in simple go whether dollar increases a drops that really better the extra nuances. It extra mix, layers The different margin the dollar, sports to because we it's close operating sounds of so that very like of is XXX%. or headlines your every up lot question, of are or majority betting, TAM through, earn

Now basis, that's will products obviously, broad vary headlines. betting on individual but that the

Brett Knoblauch

just then last. And maybe guess one I U.S.

the guide the of or betting Forest now? I And and U.S. what your sports are has percent business in? what quarters. is what full past the growth over guess the included GGR few decelerated is for year into on that, baking you

Mark Locke

in Sorry, question, terms banking the we're relation to first what GGR? of of it Brett, you the as say the terms in, was a in year do rest of

Brett Knoblauch

Yes.

Mark Locke

what conservatism, i.e., a out in X is, that we're is of very our that XX of of kind before, said say be of I'd are and about conservative guidance tend don't course, around kind of detail. aggressive. of I've terms And give very We being to level it one philosophy

terms So things we're GGR outside not are in-play TAM of or growth market. of out the the like anticipating forecast any growth, mix, conservative into in significant that more upturn certainly

pretty sit confident here So of today. we're where we

Operator

Your next of comes Lempen Clark BTIG. from question the line of

William Lampen

really priority acquire high or your cash flow I back is to like would because whatever and flow the for reason might around advantage obviously and lean over I I to of be possible. capacity of into as propensity the that not increasing next doesn't wanted about guess, present year sheet and itself balance you How as to up, your should this have if think like. we or available, the the balance understand cash especially buyback, this momentum universe into large year? sort as take we with free ROI come that flexibility. M&A to businesses as momentum high picking ROI many But And point of the financial where

Mark Locke

obviously, I main won before, potential buyback. M&A fares, The just I is but is we on M&A. reasons mentioned this X said the before, and as

M&A, got We've happy I've it with of times. of of the for in that M&A the need. for level all business there's very that really us. the a technology on lot the operate. it is making we extremely So the bar again. high that an we're investment I'll And say said we way

drive So lot in our of a be they've M&A, are really that value accretive got businesses to of for terms that shareholders.

that numbers, over as coming We've assessed in seeing of got a of good again, through delivery. new distribution, good products really buybacks, terms lot in We about business be going time. getting momentum. is the positive business our this pipeline. to We're really the is technology great come the In feel a The live.

we'll from the point So are my assess buyback and of the vast view, as appropriate. quite opportunities

Operator

and joining. Ladies all for gentlemen, Thank you today's concludes call. that

disconnect. may You now

Genius Sports Limited (GENI) 8 May 242024 Q1 Earnings call transcript