Second Quarter 2021 Earnings - September 8, 2021
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Second Quarter 2021 Earnings September 8, 2021
Disclaimer
Forward-Looking Statements
This presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements
other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,”
“believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on
reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: the
effect of COVID-19 on our business, risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events,
or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to
protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; risks related to our ability to achieve the anticipated benefits from the business combination with dMY
Technology Group, Inc. II; and other factors included under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 30, 2021.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements contained herein, to reflect
any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.
Use of Projections
This presentation contains projections, including revenue and Adjusted EBITDA. Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this
presentation and, accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being
indicative of future results. The assumptions and estimates underlying the projected information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results
to differ materially from those contained in the projected information. Even if our assumptions and estimates are correct, projections are inherently uncertain due to a number of factors outside our control. Accordingly, there can be no assurance that the
projected results are indicative of our future performance or that actual results will not differ materially from those presented in the projected information. Inclusion of the projected information in this presentation should not be regarded as a representation
by any person that the results contained in the projected information will be achieved.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP.
Adjusted EBITDA
We present Group adjusted EBITDA, a non-GAAP performance measure, to supplement our results presented in accordance with U.S. GAAP. Group adjusted EBITDA is defined as earnings before interest, income tax, depreciation and amortization and other
items that are unusual or not related to our revenue-generating operations.
Group adjusted EBITDA is used by management to evaluate our core operating performance on a comparable basis and to make strategic decisions. We believe Group adjusted EBITDA is useful to investors for the same reasons as well as in evaluating our
operating performance against competitors, which commonly disclose similar performance measures. However, our calculation of Group adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Group
adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measure.
We do not provide a reconciliation of Group adj. EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without
unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections..
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We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our businesses. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of
their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with us or an endorsement or sponsorship by us. Solely for convenience,
the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, their
rights or the right of the applicable licensor to these trademarks, service marks and trade names.
08/09/2021 |2
Contents
1. Business Overview and Updates
2. Financial Results and Outlook
3. Appendix
08/09/2021 |3
Business Overview & Updates
08/09/2021 |4
Second Quarter Earnings
Introductory Remarks
08/09/2021 |5
Business Highlights
• Second quarter group revenues up 108% year-over year to $55.8M
• Second quarter Group Adj. EBITDA up 126% year-over year to $5.2M
• Announced multi-year strategic partnerships with DraftKings, Caesars, WynnBET and 888
SI Sportsbook to provide our full range of official sportsbook data and content and fan
engagement solutions, including a complete suite of NFL-related products
• Bolstered balance sheet with pricing of upsized $435M follow-on offering, resulting in
$275M in cash as of June 30
• Continued execution of tuck-in acquisition strategy with announcement of Spirable
acquisition, following the successful close of FanHub and Second Spectrum
• Tightening 2021 Group Revenue guidance at the high end of the previous range from
$250-$260M to $255-$260M and reaffirming Group Adj. EBITDA guidance of $10-$20M
08/09/2021 |6
Accelerating pathway to our long-term targets
Number of events under official rights
Accelerated Official
increased 25% YoY to 189K
Rights Strategy
(>116K of which are exclusive)
Strengthened
Commercial
Partnerships with NFL-
related Products
/
Continued Expansion of
Media & Engagement Strategic partnership with MEDIAPRO Canada, to grow Canadian soccer fan engagement
Business
Won New Sports
Betting Deals with Among others…
Clients Worldwide
Acquired Leading Leading provider of automated social
Technology Businesses Transactions closed; integrations in progress
video and content creation solutions
08/09/2021 |7
NFL Rights are Revolutionizing Partnerships with Sportsbooks
End-to-end value creation through the customer’s revenue lifecycle
Packaged Offer
Leading Portfolio of Genius engages users with
Live Sports Data personalized, data-driven
content to the right audience at
Outsourced the right time
Bookmaking Tools
Growing Portfolio of
✓ Official Data for Global Live Streams
Sports Betting Market Genius
provides
Content Creation highest quality
✓ Official Data for Global data feed &
Media Market trading
Media Buying solutions
✓ Live Streaming for
International Sports Fan Engagement
Betting Market Products
Genius converts audience
✓ Sports Betting and iGaming Affiliate Management engagement into action
Advertising Partnership
Audience Insights …and more
08/09/2021 |8
Unrivalled Insight Powers Differentiated Fan Engagement
Proprietary to Genius
Advertisers & Campaign Execution
Publishers
Strategic Relationships
Odds Data Sports Data Audience Data
Ad $ Campaigns
Ad Tech Stack
DMP, DSP, Ad Server,
Personalization Engine
• Genius operates the largest independent media
buying trading desk for the gaming industry
• Campaigns focused on branding, acquisition & retention
08/09/2021 |9
Empowering Customers with End-to-End Content and
Engagement Tools
Content Widgets CRM Live Data on Social Media Free-to-Play
08/09/2021 | 10Investment in Growth Initiatives Accelerates Long-Term Strategy
Genius raised $238M in net primary proceeds in June, resulting in $275M of cash on the
balance sheet as of June 30
Enhance our Continue developing
existing sports, innovative Explore strategic
Accelerate our
media and betting technology to create and accretive
official rights
technology the next generation tuck-in M&A
strategy
solutions to of products and opportunities
customers services
08/09/2021 | 11Financial Results
08/09/2021 | 12Second quarter financial results
• Group Revenue increased 108% year-over-year to $55.8M
• Group Adj. EBITDA increased 126% year-over-year to $5.2M
Q2 2020 to Q2 2021 Revenue Bridge ($m)
C $55.8
A• Return of sports calendar, increased
B market share, higher share of wallet
$3.7 C $7.2
A through additional services for
$3.0 B $8.0 sportsbooks, and new customer wins
B• Increased advertising spend in the US and
$22.3 Europe alongside new key customer wins
A $40.7
$26.8
C• Inclusion of revenues relating to two
acquisitions, Sportzcast, acquired in
December 2020, and Second Spectrum,
acquired in June 2021
Q2 2020 Betting Technology, Media Technology, Sports Technology & Q2 2021
Content & Services Content & Services Services
08/09/2021 | 13Tracking Towards Full-Year Financial Outlook
Reiterating full year Group Revenue and Group Adj. EBITDA guidance
YTD Group Revenue vs. Outlook ($M) • Strong execution in underlying business in first
half of 2021.
1H 2020 Group Revenue $35 $27 $62
• Sports calendar rebounding in the second half
with NFL, NBA, major European football leagues,
1H 2021 Group Revenue $54 $56 $110
and others commencing in Q3 and Q4, leading to
increased sequential revenue.
FY 2021E Outlook $255-$260
$0 $50 $100 $150 $200 $250 $300 • NFL related commercial negotiations with
customers executed on mutually beneficial terms.
Q1 Q2 FY 2021E
• FanHub and Second Spectrum expected to
contribute $10-$15M of revenue and $0-$2M in
YTD Group Adj. EBITDA vs. Outlook ($M) EBITDA in 2021 following their June closes.
1H 2020 Group Adj. EBITDA $2 $2 $4 • Strengthened balance sheet enables investment
in organic and inorganic growth initiatives.
1H 2021 Group Adj. EBITDA $9 $5 $14
• Strong execution YTD, commercial momentum
FY 2021E Outlook $10-$20 and improving sports betting calendar gives us
confidence in delivering on our full year guidance.
$0 $5 $10 $15 $20 $25
Q1 Q2 FY 2021E
FY 2021 Target Range
08/09/2021 | 14Q&A
08/09/2021 | 15Appendix
08/09/2021 | 16Genius Sports P&L and group Adj. EBITDA reconciliation
Condensed Consolidated Statements of Operations Reconciliation of GAAP Net loss to Adj. EBITDA
(Unaudited, in thousands, except share and per share data) (Unaudited, in thousands)
Three Months Ended June 30,
Three Months Ended June 30,
2021 2020
2021 2020 Consolidated net loss $ (464,164) $ (7,486)
Revenue $ 55,849 $ 26,797 Adjusted for: - -
Cost of revenue 240,192 22,847 Net, interest expense 663 1,912
Gross profit (184,343) 3,950 Income tax expense (benefit) 381 (1,187)
Amortization of acquired intangibles(1) 7,391 5,191
Operating expenses:
Other depreciation and amortization(2) 5,073 3,644
Sales and marketing 6,982 2,705
Stock-based compensation(3) 414,505 -
Research and development 6,881 2,153
Transaction expenses 6,081 -
General and administrative 224,832 6,386 Litigation and related costs(4) 822 753
Transaction expenses 6,081 - Change in fair value of derivative warrant liabilities 38,867 -
Total operating expense 244,776 11,244 Other(5) (4,428) (535)
Loss from operations (429,119) (7,294) Adjusted EBITDA $ 5,191 $ 2,292
Interest income (expense), net (663) (1,912)
Gain (loss) on disposal of assets (1) - (1) Includes amortization of intangible assets generated through business acquisitions, inclusive of
Change in fair value of derivative warrant liabilities (38,867) - amortization for data rights, marketing products, and acquired technology.
Foreign currency gain (loss) 4,867 533
Total other income (expenses) (34,664) (1,379) (2) Includes depreciation of Genius’ property and equipment, amortization of contract cost, and
Loss before income taxes (463,783) (8,673) amortization of internally developed software and other intangible assets. Excludes amortization of
Income tax benefit (expense) (381) 1,187 intangible assets generated through business acquisitions.
Net loss $ (464,164) $ (7,486)
(3) Includes restricted shares and stock options granted to employees and directors and equity-classified
non-employee awards issued to suppliers.
Net loss per common share:
Basic and diluted $ (3.08) $ (0.11) (4) Includes mainly legal and related costs in connection with non-routine litigation matters including
Sportradar litigation and BetConstruct litigation.
Weighted average common shares outstanding:
Basic and diluted 150,854,888 70,040,242 (5) Includes gain/losses on disposal of assets, gain/losses on foreign currency and expenses incurred
related to earn-out payments on historical acquisitions.
08/09/2021 | 17GENI share count build
As of
Total Capitalization (shares in millions) June 30, 2021
Genius ordinary shares issued and outstanding post de-SPAC1 167.9
Common shares issued in connection with acquisitions 5.6
Equity offering 13.0
Ordinary shares issued and outstanding 186.5
Additional Securities
Management restricted shares and options 11.2
NFL Enterprises LLC vested Warrants2 11.3
Public Warrants 9.2
Private Placement Warrants 5.0
NFL Enterprises LLC unvested Warrants2 7.3
Total Additional Securities 44.0
1Includes 79,587,346 Genius ordinary shares converted from existing classes of shares of Maven Topco and 20,766,840 Genius ordinary shares related to vested rollover
Incentive Securities
2 11,250,000 warrants were vested in the three and six months ended June 30, 2021. Pursuant to the License Agreement, the Company, agreed to issue the NFL an aggregate of
up to 18,500,000 warrants and 2,000,000 additional warrants for each annual extension (4,000,000 total)
08/09/2021 | 18You can also read
