Genius Sports Limited Q2 FY2025 earnings call

• Achieved 24% growth in group revenue and a record high group adjusted EBITDA margin of 29% in Q2. • Raised full-year guidance driven by continued momentum and major deals. • Major deals include winning exclusive data and streaming rights to Serie A, signing with Belgium Pro League for semi-automated offside technology, winning exclusive rights to European leagues from IMG Arena, and extending and expanding partnership with the NFL. • GeniusIQ platform is powering various solutions for leagues, teams, sportsbooks, broadcasters, and advertisers across soccer, basketball, etc. • Media revenue returned to growth, with expectations of strong growth in the second half due to peak sporting events and new deals like with PMG.

In the second quarter, betting revenue increased 30% year-on-year to $88 million. Media revenue returned to growth, increasing 4% year-on-year to $19 million. Sports tech revenue increased 22% year-on-year to $13 million. Group revenue grew 24% and achieved a record high group adjusted EBITDA margin of 29%. Betting revenue contribution: ~30% of group revenue; Media revenue contribution: ~3% of group revenue; Sports tech revenue contribution: ~2% of group revenue.

• Now expects group revenue of $645 million and adjusted EBITDA of $135 million for the full year. • Media revenue expected to grow in the low 20% range, betting revenue expected to increase by about 30%. • EBITDA margin is expected to expand to 21% with over 400 basis points of expansion. • The increased guidance is driven by newly announced partnerships and strong underlying business performance, not FX impact.

• Certain statements made during the call may constitute forward-looking statements subject to risks that could cause actual results to differ materially from historical or forecasted results. These should be considered in conjunction with cautionary statements in the earnings release and risk factor discussions in SEC filings.

Q: Jordan Bender from Citizens asked about where the tie-up between ESPN and the NFL enhances technology offerings.

A: Mark Locke said they see it as positive, investing heavily in media tech, and expect positive conversations around areas like BetVision and ad provisioning.

Q: Barry Jonas from Truist asked about financial or ROI expectations for Serie A and European leagues contracts.

A: Mark Locke said they have a high bar for deals to generate positive return, these deals meet criteria, are immediately accretive, and prove the model.

Q: Ryan Sigdahl from Craig-Hallum Capital Group asked about the bridge for increased guidance related to new league partnerships.

A: Nicholas Taylor said the new announcements are built into the guide, with some Euro leagues already kicking off and commercial guys having funding games, and they are immediately accretive to EBITDA.

Q: Ben Miller from Goldman Sachs asked about expanding on the bridge for increased guidance.

A: Nicholas Taylor said it's both the new league partnerships and broader organic trends in betting and media, with media showing acceleration and betting having momentum in H1.

Q: Jed Kelly from Oppenheimer asked about timeline for negotiations with European sportsbook operators and FanHub contracts.

A: Mark Locke said they're under contract with most operators in Europe, and Nicholas Taylor said the PMG deal is about media products, with self-serve likely net revenue and managed spend gross revenue.

Q: Bernie McTernan from Needham asked about media revenue growth and bottlenecks.

A: Nicholas Taylor said Q3 and Q4 media growth is strong with tailwinds, and long-term they're well set up with sports being a sweet spot for advertising.

Q: Steve Pizzella from Deutsche Bank asked about fixed revenue growth and options for cash.

A: Nicholas Taylor said fixed revenue growth is from non-U.S. with SaaS-style contracts, and they're looking at M&A and share buyback with cash.

Q: Michael Joshua Nichols from B. Riley Securities asked about market share increase and GeniusIQ deployment.

A: Nicholas Taylor said they're in a strong position in European soccer, expect rollout back end of year, and Mark Locke said market share is increasing as the market consolidates.

Q: Michael Joseph Hickey from Benchmark asked about CFO selection and skillset.

A: Mark Locke said Bryan Castellani's media background and experience in global rights and public markets are key, with smooth transition planned.

Q: Chad C. Beynon from Macquarie asked about emerging markets.

A: Mark Locke said there are big opportunities in emerging markets like Brazil, with strong growth in Rest of World revenue and focus on regulated markets.

Q: Gregory Thomas Gibas from Northland Securities asked about BetVision rollout timing and FX impacts.

A: Nicholas Taylor said BetVision is being rolled out, with Serie A and basketball, and FX impact is immaterial as guidance assumes sterling appreciation.