GENI - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. My name is Liz, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Genius Sports Second Quarter 2024 Earnings Results Call. [Operator Instructions] I would now like to turn the call over to Genius Sports. Please go ahead.

Unknown Executive

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 XX, to remind Any SEC filed to considered call such our factor differ subject Annual our from We that our with risks discussions begin, results no in SEC, may that on statements our filings XXXX. should Form statements March the constitute

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

Mark Locke

Good morning, and thank you for joining us today.

$XX and scale the But from to of and highlight of data to has We I'd mind, line our entire adjusted growth million, content never half through This been have commercial footprint and first, I'd of as us $XX which points margin and year million, raise with our cash nearly position rights, the results the year, in in ecosystem. value-enhancing has respectively. the flow. On half EBITDA behind in expansion and our also of remain year-on-year momentum topics representing of expect expanding our for million, to the a with XX% and of group we our U.S. are $XXX the guidance. The and few and a $XX across today's for to products, adjusted cover to strong stronger, growth clearly first is EBITDA XX% our growth quarter, revenue our XXX revenue sell continue exceeding our second technology been expectations unique the pleased by driven our the to group step including services we business basis like sports optimistic confidence adjusted been the which gives ability revenue our million the quickly momentum group EBITDA guidance call, and technology and and to up like top to quarter,

partnership [ we Premier most is the have officially which Football DataCo, football, the exclusive sports with the League, extended Next, U.K. English of ] bet-on including our holder the of one in rights data world.

secured our greater on our exclusively the strategy, technology even is by led extension visibility rights our now through next data that of cost for the have strengthened these We combined within well sports betting commercial years terms range This with in are position supply expectations. X XXXX highlight medium-term which our success and our confidence us unique gives also in to commercial important Football of now chain that near offering. our demonstrates the outlook. It's perfectly DataCo

officiating, spanning of data, reach ways foundation game the captured this rely engage next-gen infinite sports to technology an initiatives football and more. leagues engagement to immersive technology, be fan for Our several betting, can provides and which on AI power our and experiences using broadcast, only fans. U.K. analysis, level unmatched

computer selected semi-automated As the to League partnership the technology unique by we to off-site technology match designed This Genius's season. get today showcased complete the players, recent capabilities, the will in to fans. much which of enhance that officials we detail AI most experience closer our Premier can greater deploy landmark only through as in vision and of examples confirm this, tracking and is be been off-site we a available English have

further #X Fantasy the another gain the Game, further app the sports first-ever day, tool Football Sports English giving free became U.K. the football. fans ecosystem These We its Within Football and our League Fantasy downloaded iOS App and technology-led engage across have all also in to apps. #X digital insights audience. app the Store U.K. of for digital Genius ESL launched initiatives EFL embed X on

unlocks Importantly, alone. this streams betting new sports also beyond revenue

that our want end XXXX give cash we extended an due for specific will growth at positions be flow partnership of the margin a clear this now through the case, and on continued base annual to business We guidance least decade. in as basis course. But expansion

data relates in are increasingly to it noting moving it we forward, As worth that an is rights environment. also competitive duopolistic operating

was Sportsbooks. sit As rights data we all where not years ago, a sit case the here only fragmented as led competition rights of the balance market major today, as a with with This holders to largest global players the the more decade. X well greater few for the both

forward, rights this major expect operating technology a prices over key still said, more and successfully should We work choose is to why at federations reason moving a Genius Sports, agreements is That tension which support landscape. retained improved competitive reduced how with leagues and time. predictable stable we've and

are engagement the fan to of digital leagues quickly empowering the ahead curve. and technology realm, we As stay sports the to world of shift

This use enables never distributed has applied already types and data, are computer market. ever vision data technology, being and collected, been new which many AI which next-gen today. the for scale analyzed in at are of we cases, which the example, speed of have at Our and capable

interfaces, is creating new sponsorship federations with innovating fan revolutionizing much and are unlocking expand inventory, augmenting their to experiences, more. partnerships new live advertising Genius We betting sports choose so opportunities, exactly broadcasts, and insights leagues performance and activating why often Sports. extend This

and now have with Football NFL, X the with rights the We proven strategy world, important in DataCo. data this most the

use some may a as thoughts creating ago. This as trusted that next few this see turning our U.S. remind in into now the U.S. moment we a organizations focused football recently, that Sportsbooks. expected to the which most season, for just commercial categorically monumental will typical. But so Additionally, a on the foundation for adoption for which over who signed We NFL betting and European Sportsbook infrastructure the contract of which have topic, not specific given which the call. WNBA let media on the the venues, renewals, These are UEFA, of products become signed, ecosystem sports FIBA, ongoing of in I Genius deep we understand me I few get will the to to which and not distribution Sports me technology, a technical mentioned integrations world. U.S. is and technology and monetization a share our of partnerships. venues. With AI are individual data importance be the our proves details days some a set corner football most investors and been I has significant have position computer technology other wide-scale also vision like you are this, into continued in as and is the these brings but from XXX contracts, would across the such our my the clubs betting on of underpin model UEFA, these top-tier leagues federations partner for European the technology installed entire business well-respected

offer that We to the we have Premier English products strong other for and events a our developed of data value of suite annually. League the amplify NFL, the

Our over for ability to cross-sell we've increase additional services, of which our sustained is wallet time exactly how continue last content years, gradually foreseeable revenue XX% future. over and plus utilization the will share expect and growth our we grow the

the this business focus with and negotiations categorize this are topic, these investor we despite progressing. are increased on So, will how as usual, happy we as

us. surprised And so far, nothing has

growth As our always, on success the of goal offer now to are support tools is our before. engage platform help more customers, continued acquire and the longer them we for partners, than providing and products to ever them innovative more Sportsbook and

our and success model structured We line outpacing revenue that our growth GGR in in modestly and is least partners, not rate. are a to at with Sportsbook U.S. that way fully committed supports growth their if

we you suggest progress reasons that the renewal year this the from multiple business many We we are least X% support aligned NFL in us which completely with structural as who outlook in wide that tech-enabled growth benefiting and continue data-driven to through the of not well this we the process, is confident confident own process have keep feel U.S. of this framework of we're range feel we So offering. and the for about drivers. positioned remainder with who that mind, of the to our business products in as is in Sportsbooks. With mind

million, increased annual Our and of EBITDA margin our points us excess and guidance growth a revenue XXX revenue expansion, year margin XX%. of to respectively, of $XXX an long-term last and closer XXXX million up target bringing represents XX%, of rate step basis adjusted meaningful from in XX% $XX

cash the to Additionally, be our flow expectation for XXXX. year reiterate positive we full

ecosystem, free want Nick, margins foundation to technology-driven across years generating Before confidence our to of the most products We've continue in our in cash ability future reinforcing much our turning thus important now in I to continue expanding sports our reiterate significant sports the the and the per ahead. call the end betting we have rights deals the greater and position solidified long-term strengthened to chain decade, advantages. the competitive and full through that supply lay flow share visibility for

strong turn discuss the financial guidance results will are will detail. to come. I the We many and for continue our in Nick support business to call years which now our excited quarterly to momentum more flexibility to

Nicholas Taylor

Thank you, Mark.

As year. our quarter QX predictable in a the is fiscal most reminder,

the the and throughout year-on-year. sports revenue we a growth quarter increased of our quarters other XX% betting the rest technology calendar revenue of to represented outside Therefore, largely given in calendar were the major with in on from quarter for contracts we we content. since dependent less have the somewhat is our most results enabler this in its lower quieter lower spend derived managed prior in overall quieter own. revenue our group fee was the unchanged year-on-year, mind, but ] on of predictability, an lower live And for our revenues revenue betting our than summer as were on revenue mentioned primarily much the fixed spend year. Sports and sporting share U.S. as U.S., driven in the the a relative months, overall in Given revenue, bit that where revenue we've expectations from largely by also rather contracts marketing higher line quarter. With is total the which we was quarters, driver [ year-on-year. Media business sporting sports XX% view [ our ] slightly products, the earned and

us initiatives, Our helps of partnerships, which funding then monetize products. we sports as suite several technology media solutions tech-enabled our deepen and league betting

to represents margin relatively our on This We to operating compared XX% revenue in our margin QX cost in which margin model adjusted held years. delivered that XX% Moving the X in grown cost to in X% as from expansion EBITDA our and and This XXXX. was line in growth. 'XX in we XXXX of quarterly margins were due highest to in profitability. XXXX control revenue business our inclusive demonstrates a XX% of expenses, also disciplined in QX, our now consistent have XX% to

year. have a the Hopefully, confidence for in remainder and underlying guidance. have the the for appreciation now the strength you to we business of the Turning better

sporting is we of specifically revenue the growth HX believe NFL, leverage. fact, strong sporting profitability is because represent is many the and calendar. we QX This demonstration others. realized peak of and XXXX calendar, What the from means In benefit this operating half of second and full inclusive a soccer U.K. a our

We recognized also each increase increase incur in which seasons the fees, in and by rights a full during the predetermined annual amount contractually are year.

our we have HX each well. [ adjusted in X implies EBITDA the model compared operating constantly QX HX Look over guidance, nearly years revenue of growth continue doubling XXXX of on of period. trajectory and same leverage see, our ] and that [indiscernible] the the in to can of for XXXX and QX demonstrated as you further to last this As which business XX% expect

year. XXX this revenue we Importantly, EBITDA we margin expansion. On X.X our [ half annual in to ], over expect meaningful grow expect by cash nearly year-on-year, in QX, in of resulting adjusted and both times of consecutive also flow basis, strategically another expect bps QX fourth the an the second by XX% marks future. To expect Based execution, we revenue consistent this momentum XX% fundamental culminate our the in growth. business to and and of quarter year to this industry overall conclude, pace growth, exceeding financially. sustain for on foreseeable Particularly we

for from our confident time, for multiple our offerings in positioned better product the And period long footprint we revenue agreements of have the the media to the now sports, across bolstered year Q&A. and that, of expanded our remainder benefit most of flow We is and open as our betting, technology ecosystem to broadcast. and and for excited remain growth expect secured rights a We important particularly conclude continued line business prepared U.S. growth, margin moving expansion drivers, than our forward, and now cash we'll remarks ever generation. With the

Operator

of Our Capital question Group. Ryan first Instructions] Craig-Hallum line Sigdahl [Operator with from comes the

Ryan Sigdahl

that are I pricing implies, on guess from but be renewals question. customer on last given else? they're specifically willing renewals, given [ anybody year. guidance talk overall growth comment season, that acceleration willing not to to conversations? NFL for the X revenue going you BetVision start said those customer want directly talking it. or relationship to to that? And I you and DraftKing the of maybe then the improving on with seems ] add it you're secondly, the customers comment about I basis, I QX, know directionally or in had Are with bet-and-watch with you to upcoming said BetVision, guess, an

Mark Locke

It's Mark.

surprises So as [indiscernible] bluntly, renewals, I we in is just everything here. expected. in no There's customer going mean,

We progress. are time, progressing summer summer in

look, of over the features. at period. little at improvements. And product. said, trial. product we was we're customers lot lot will exciting said lot was time, on of We've also it out On our always we've work But of the and as be the a it As NFL there's X.X doing a bit to some a year, that's last surprised signed season. been rolling of a new set It a We're going probably next of new on. a BetVision, into anything not kind new the

tune live you the when in it So see site. on

Ryan Sigdahl

and you And the is with Olympics your about maybe X you for my kind follow-up how going? Genius Trend can with it's know question, that potentially talk that but I -- curious if and just see and partnership starting where of product early,

Mark Locke

monetizing opens this Yes, has words, way opportunities data, focus. in sure. monetize other I really our another the the frankly, clients, It new which been to is to mean, up platform. big non-betting just us, also, a

talk before. about it me You've heard

result the it's guess, really, work. especially you of about of I years, a interesting lot we're of a is things, investment in technology, a and heard years quite investment in new couple it's just really on start doing last So new the guys products. rollout a have out. what rolling of customer talk them the I execution And us mean over focus that is of our of last, over me now couple

it seeing here Adtech You're the side. with

at I'll You're question I'm ] sure it in few sell the seeing with minutes. release, a [ get which a

as the tech result in it revenue Edge. seeing a betting increased the You're betting our of launch of we've front,

and a again, driving making the coming which fruition, lot business technology investment so of improving thesis is in to we've our really, really lot and that the and been now is talked So of and long about. sort of we've a our investments rollout

Operator

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

Bernard McTernan

year, Nick, Both revenue guys just next strong comments just of -- that's in XX% the expectations. -- growth these and to outlook Mark our able both you're maintaining growth terms and maintain if for even rates. you revenue That's made above

if plus major expected heads So U.S. whether could drivers seeing our to you really what what you guys us the wrap can are, talk sustain -- renewals, help growth? just about internationally, the this maybe whether business XX% are around it's

Mark Locke

going, where coming how it's everywhere. optimistic is about obviously really the and -- things Really we're probably we're from with future. super Look, are pleased

of the over drive is the All and both we've are positioned. execution well. investments years period. said, couple sort come just And to last nicely Obviously, coming through. revenue really talked just our I renegotiations growth looking to about starting focus really of going over on the had margin We're that of is the I as

good. feeling we're So

Bernard McTernan

deals terms could risk guys through box you grow opening And the place, maybe you the kind to the parameters in But that rights 'XX? provide at with any Pandora's expect of at now X costs again. what of of in largest

Mark Locke

to calls it's said mean, repeat [ on that what going look, need. a really we've I'm dozens Yes, before diluent really I probably be is just everything we of times question. I've good ], slightly these got

On the rights feel strategic right most another side a up long-term global now And we've set about, strong period. we that got a basis really very very, we've FIBA got important probably as long the rights well. of on things very X like locked including for

not look as deals really in So anything rights adding. compelled from new we're rights or I of do at it, space, terms the to

main what So that sense means as deals flow, that is make shareholders. that And concerned, to and that our sense profitable, they're far doing sense. focusing the make driving driving cash focus and really margin. really I'm on accretive they means means that margin deals as on, they're really makes drive sorry, And is, doing

very very where laser -- and we shareholder we're very, be can on really we're in focused position value. picky a So now fortunate very be

Operator

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

Robin Farley

One this on filing the morning. questions. Two is

wanted and I'm changed then currency. You've wondering my morning, into in the to currency? And the question, change that this did other your change the your functional EBITDA little functional bit revenue from impact guidance how dig EBITDA. I just a just

million. at your million your $X up loss went net but adjusted looking $XX widened EBITDA by year-over-year, Just by

added your you about quarterly of more of significantly comping stock-based looking kind suggested comp line think million the would so year-over-year, added back, stock-based what be at cadence. had was And up $XX what than kind back was I

equity pay so with your to versus to comp just focus. it may employee stock-based stock-based come to just pay is kind and in you higher? instruments, I -- comp expenses add you vendor your why of how about some Can much much equity or since is of that clarify vendors giving line using of think -- shares guess, just equity vendors So back have that

Nicholas Taylor

Rob, first in kind stock-based of all, take it's all, no I mean, at that's for X this comp I'll that in of there's Nick. orders. reverse vendors number.

right, the to We And But you the issue. actually You're year. this compare year. in issued timing higher we in We've We program that XXXX. issued it actually that's is year numbers really management was QX. it a April. this in than QX substantially it in XXXX, [indiscernible] in issued QX when last issued

of like. like you not with So said, quite comparing sort

a reversed is this increment So QX. QX lot of what that means that is actually in

forecast comp stock-based example, this million For $X charge, QX charge. [ year, being where [ $XX last an was it million be to about ] around ]

reversing So you that out. can see

of in how functional same, will up in there ] to [ to our sterling you technical. increase EBITDA the U.S., continue actually it so first continues numbers, impacts as ] whether or strength numbers. as build our functional when currency, we the a dollar-denominated all, On a base the it no get [ just dollars, do cost or is ] on I means business become But revenues you is, All really itself the answer it more to our to to that but [ switch U.S. dollars. at of as getting on increase is, revenues currency do with it we accounting all has

So there's ongoing indeed both at our all no actuals difference to guide. to or

Mark Locke

of the moving our a lot base away to just switch. ] the doing what U.S. is from staff the comment, seeing is anyone actually we've that our side actively which of it you're one with runs increasing [ let's And reasons mark just European base before U.S., across been

Robin Farley

That's add-backs, dollar a to equity so that to clarify use classified the just to it can is what vendors, language, schedule referred classified stock-based you clarify? in to a of And dollar awards comp amount you I -- can suppliers, call Is you equity suppliers. to just clarify? awards your amount your that

Nicholas Taylor

about Robin, there, you're Robin? just which checking talking in which -- line

Robin Farley

some you're amount filing, it as it's of equity classified comp the about you your what the includes you stellar stock-based suppliers. It's -- increasing [ in stock-based comp add to awards talking says that where ] year-over-year. footnote includes It that -- back

of awards? much it that is just So wondering versus employee how stock-based

Nicholas Taylor

referring current to not That's prior the understood. the to Yes, year, year.

last the that warrants NFL that's So of pushed part the in were XXXX. through

employee in award whole XXXX is all the So to relation base. for

Operator

question with And from comes of next your Jordan Citizens JMP. line Bender the

Jordan Bender

margin you some in I'm as to have the get reiterated it to GGR Is just the that everything within piecing you target XX% or line XX% that grow together of you and that. need assume EBITDA business made. just you U.S. that that But margin you EBITDA today Mark, need beyond target? fair comments attainable your trying -- even I'm with to to your to

Mark Locke

finishing question. has -- Yes. But as obviously growing getting product Great kind new ] that this in going [ forward. incredibly in-play, things which and Look, the I X that things reasons delivery I of of of and not to [indiscernible] lot of at is ] like sort those growth. with about talking business version only call my visibility moment, the beginning doing what the driving that refer of the the those line GGR slide at deal, products a where one good we're of [ of [indiscernible] is one are that the it's of that, all the was distribution,

sort the feeling again, we're of thing, just not business. So which GGR. good And it's wider It's is one it. about

Jordan Bender

through seasonally kind happened for then guess, quarter? from in single-digits, or period. down, the quarter second what U.S. a high year-over-year on dollars And know slowest what's I of U.S. the the But walk the perspective, [ during us you going ] I is just the can second

Nicholas Taylor

it's Yes, right. Nick. you're Jordan,

like and things it right QX. states can that, our [indiscernible] I year-on-year ] betting the think for mean, look you then of I relation in guide the the is quarter out and [ quietest And spend slightly of actually up media QX Sportsbooks total to call that is pace that up think, new $X U.S. you I U.S. that know, at betting, as see programmatic in and in to you QX I you're relates But really accelerates that's us, year-on-year. was both by and, the when media opening in million, think, terms to in

Operator

question line the comes from next Kelly your Oppenheimer. with And of Jed

Jed Kelly

the Just from being by talk increase Florida XQ, you of versus being betting driven maybe Can pricing engagement much about just what's looking kind more color, little give going at us going you of live that more live? in benefiting is a and can there? on or how

Nicholas Taylor

It's Yes. Nick.

I think referred sports first isn't of just in that the announced the I to all, of in think growth. it's QX helpful, sports last feed increases. We've ones relation couple into betting. just the way, but see all also major deals the you are weeks to betting, By can also you tech. It's few a as that actually tech will

different heard me, the Jed, the [indiscernible] those And in. we of levers growth So all frankly, before it's talk in adding of have. you've all about

plays namechecked TAM, say, of sports as in-play betting, Florida, well into you it, that So pricing, the, as all [indiscernible] sports.

this not So all it contributing. able particular. it's maintain the one why we're to It's growth, reasons all

Jed Kelly

talk some be I sports an to BetVision, is this the in that full live year. expecting you introduce think your should products on the we providers might going on that betting? be uptick some of just second just then of Can mean And could create you

Mark Locke

it lot we've out [ made we've business, Yes. side look, really drive to of I well. personalization. which of the -- Obviously, Adtech a the of as got new said technology including on across features that this, as I lots lot a we're earlier, more mean, ] rolling helps

customer-and-customer and and to focus been obviously, some on and scientist doesn't that U.K. addition well and a immersive going as rolling BetVision, possible. of basketball, really of key as like it just being a by [ is products on what there's heavily engaged we've base, efficiently is base products. as a rights The we're very what and as on product that of launch So bookies driven kind that the on. our it that of as the in a we've the There's and they're getting the on it's to lot out about, -- we're sort right, sure was lot for ]. all on I user-by-user customers making take around football make the on, deals I to follow good a announcements the focusing it really of necessity got quite keep things sports we've feeling a new That And something business. mean rocket right, about NCAA work really made said, And to now. new

Operator

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

Michael Hickey

for here I topics maybe markets cash you're a confident Mark, volatile on no in and about have are me. follow-up. and opportunity And sort doubt, Obviously, X first Just flow. allocation. guess, thinking you driving in? capital growth How of environment we're a I here, your given pretty some here buyback the that

Mark Locke

don't market fun of Yes. a I is mean [ think it's not lot anyone. ] -- I for the

So feel I kind of for you.

their that's opportunity entire that some is sold and we were make On to point now that this really the mean, questions I share stake. actually Apax wanted I Apax heard to cleaner buyback, sold really yes, stake. have the there a have I entire answer out mean, -- they've their got I or really we've consider that think -- a not, whether about sold

from should transaction definitely think a we in position, I to really strong choose for cleaner position, up opens So door we're and it do capital-based so. a the

Michael Hickey

next guess the on [ like topic looks CAC I a media -- pointing really increased UA of your reduction U.S. business, spend. them correspondingly, most in operators big they've sort So and of pretty ] also ad out are

on as for as you you used sort guess, operators? Just you're you that media still ROI of segment? to curious your if that impacting competitive baking I And dynamic see in feel CAC in be how that you're

Mark Locke

and got them one acquisition. think, with products customer got using Once the things them remember the were them. ad the keep from sure making more making and talk products, retention a that's you -- that lot you've way came in technology We've once retention sure it. people better. customers customers, European in really fundamentally, and markets. you keep And -- don't those just you're ] originally this We keep is their with to about is our engaging is relaxed [ the, good often about people were to pretty we're about of advertising Yes, than And where you that actually, got I customers. about of

relaxed. top additional both base ways. product customer The And product across expect strong we're pretty So of of rollout functionality that we've of lot introduced. works the that to again, on we our a see

Operator

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

Chad Beynon

Mark, and in games I seems know the Germany more year every wanted Brazil London. to -- It I year, ask NFL just and expanding. like this internationally about there's

firstly, markets NFL? So appreciate what could I this of as guess, where do for And continue kind in what does Brazil, like you then, these this illegal in viewers success? mean set to up I the does your markets to future gambling guess, business, be just secondly, for

Mark Locke

was and thing first from say the betting time. We've incredibly exciting a going to Brazil well very opportunity. long positioned been obviously for have there is So is I been a

about recall, if there think wouldn't I lot I And ago, quarters think X you your buzz was Brazil. I I of breath. a said, hold

the the probably I it think be towards end of will year.

the to that's think case. proving be I

in them in team, of the very doing European expansion. And are focus obviously point job, and big And enormously of to a Brazil So it's a good big to of games very a really It's for therefore, ]. There's NFL a heavily London mean guns senior present Germany, involved us. market great be of and help in his a focus lot the games I NFL [ beneficial. the we're being and interesting very about commissioner the that And the do many expect a us. the we for technology yes, is it. view, is facilitate absolutely packed. buzz from great there

be good So there, base to really and from. it's starting opportunities we're excited about a the

Chad Beynon

with look at kind strategically, does at small I change, how you -- But organization, several of then you're anything equity? deals. their position, exiting the yes, know kind within of guess, this And over Apax the you're change next how years? anything business the always the anything about thinking I M&A does looking

Mark Locke

that came are everything partner, were Apax No, wanted business. to a of the look, great the supportive incredibly They certainly, of execution we to do. we and

they're -- form. doing on we carrying any so or were way, And before. our doesn't really in it just just shape impact strategy what They're doing

the technical from think really for I a the especially in, with materially a it very to the I to and really I stock of think actually, certainly, And have, a position thing. On the people that mentioned about, take also position need we in removal I really and oversubscribed. lot of like guess, ceiling, gives really positive but be that's good ] the think because of, of again, think don't us Apax blast think, share And base good improves M&A with hold, capital as sell-down that that looking about I to and there I to us top reiterate, buybacks, I really as base that's But the to just that, flexibility things buy longer position, when. positions. was feel combined business. we of of decisions, make interesting we [ was sort good previously Apax a anything. somewhat We're a

Operator

Markets. Capital Street Martinuzzi of next Eric question And Lake the line with comes from your

Eric Martinuzzi

expecting expense EBITDA. I had to the adjusted you're and your anything would top a -- that through. the beat the QX what upside point revenue flow line, regarding carry-through but small question on in a expected didn't It's to was on unanticipated? have relatively structure see the I in density versus there I Is the

Nicholas Taylor

Yes. It's unexpected. No, nothing Nick.

I directly one of think will EBITDA. in we and terms we in line by put guidance beat the in that

they look strong. for if nothing And So unexpected. no, at indeed, pretty guide the look the flow-through both QX and over you QX,

through XX% again of drop I guide, said to that sustainable which XX% where basis. is start a we'd is a the year, QX a want of is kind the we on be and drop through QX think unlike at the in about

Eric Martinuzzi

business? tracking does that the player by for into be -- revenue guess, on there. How translate -- there Is offset monetize, I cost stadiums UEFA far my -- as to And agreement does just that the congratulations the or as Is the question? there is then by a UEFA? how going

Nicholas Taylor

Yes.

user multiple to there's We for cameras level as numbers it's from a that's countries, deal executing The multiple the level, grounds. important player gone is will reality months. gain earlier, or us, talking from actually, said strategic very a the those a in then demonstration of just because and tracking CapEx major or specific is is in which we've cameras been whether that revenues smaller or exciting but multiple ability all it's that and clubs [ see those or a sports initially ] what an very in of technology tracking, have therefore, brings deal. that's whether for as the putting revenue UEFA, plugging essentially is revenues it various is that the leagues us, terms of ] about leagues the putting from deal association know, as you'll which stadiums, federations and broadcast those Mark those XX strategy. It's This not that across of great great that, UEFA. QX, from through stadium [ and of you technology opportunities is, media or the part on whether of that's and strategic teams the And into

Operator

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

William Lampen

-- have Mark, I the up, guess, sort far to or I secondarily, I have medium-term and I of as cap to so to CAGR Or date dynamics? free that to solely threshold partners, contributing for that, we that we And partners Nick, I what CAGR think pay have opposed minimum to translate translates Is through sort follow think working ad renewals on of the then XX% you as your cash CAGR looking meaning to XX% to higher your a your you of guess, seen are meeting willing other does negotiations, because higher or guess, differently, business that X. about? guess, to you or I pay top-line cash and basis? of commitments off XX% on I should wanted been a guess, about from exceeding as the clients of plus free think a share basis we your GGR? top-line something there a about,

Mark Locke

about products, And the to book our that say of I ] maths head our in think to the it. relationships. the most have Yes. my need [ bookmakers we've don't I providing continue I mean, the got Sportsbook most renewals. -- And

as Genius work both those we've we're at job right deals of doing it's the make interest the good and what sure and clients to got we're with the them doing. that partners of to So of the shareholders heart our

Nicholas Taylor

the one. visible, of as pretty and Yes. EBITDA [ the just end And I on decade. up the hugely to anticipated base second And soccer the first now had of ] Clark, mean, our your all particularly to and months continues deal all, having naturally cash cash XXXX. I if $XX you've that in mean of operating year this the first a the flat follow. you flow cash half operating this seen the announcement again this X U.K. predictable done as naturally, our we way margin is know, actually think, flows in in look year, the you it's cost for certainly I improve, of as guidance with at compared first loss the flow XXXX, million of of to, business

So you're today. being reiterated improvement real in we've and again seeing that, is cash XXXX that cash positive

flow the revenue basis. would anticipate free increases to cash flow would naturally that through So I therefore, a

Operator

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

Unknown Analyst

impact the me. This seasons? Thomas recession pressures, I and into on. with NFL one and do the potential you on jobs activity EPL Considering guess inflation is betting any numbers, current the for even macro anticipate just coming

Mark Locke

been but we with be pretty the we're and you. I conservative that with -- before fans be within through anything gone mean, have online states, overall sort would we've that only we're states improvement in the look, forecast in growing, cycles is to mean by not And a the expecting and -- I the it's The quality these not better the of it's -- macro coming of particularly that, new kind honest in the on states way. growing, the cyclical, products of online. unusual, way

becomes tailwinds So time all holds, quality as to the really strong are the the quality the as trading improve, products of of should over improves, the of and efficient, more the way as we the industry in more rational the as improve of improves, data are improves the in market industry see the that you as quality frankly, should same operating much duopolistic. our bookmakers -- advertising more a

Operator

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

disconnect. now may You

Genius Sports Limited (GENI) 6 Aug 242024 Q2 Earnings call transcript