Genius Sports predicts NFL contract to be cash generative from 2022
Data giant’s senior leadership team champions ability of official data agreement to leverage future business
Genius Sports has hailed the impact of its NFL product as a key driver for future business opportunities following its Q2 2021 results announcement. The supplier posted a 84% year-on-year constant currency rise in group revenue to $55.8m, while increasing full-year 2021 financial guidance. However, the Nasdaq-listed firm racked up losses of $464.2m for the three months to the end of June due to the costs associated with the warrants as part of its official NFL data deal. Genius Sports expects to generate revenue of between $255m and $260m (previously $250m-$255m), while it has raised its EBITDA projection from $10m-$20m. Speaking on a results call, senior members of the Genius Sports team championed the addition of the official NFL data rights, which it secured in a deal in April 2021. This week, the data giant signed up three new partners for its NFL betting feed in the shape of Caesars, WynnBET and the new 888-powered SI Sportsbook. This followed a similar arrangement with DraftKings. Nicholas Taylor, Genius Sports CFO, revealed the supplier’s hopes in terms of ROI on the NFL deal. He said: “We’re anticipating it to be broadly breakeven in 2021, and then cash generative from 2022 onwards. And, if we look at the contract as a whole, we’re expecting it to be profitable as a whole contract, if we look out to the end of the six-year period.” Mark Locke, Genius Sports CEO, went on to state how official NFL data was allowing the supplier to bolt-on further products with its sportsbook partners, citing the allure of official data as a key driver for developing commercial relationships. He said: “We’re seeing large proportions of our customers taking more than one or two products and increasing the number of products that we’re seeing. “Our business is about adding value added services to our sportsbook partners, but there’s also a fair degree of business, it’s about leveraging, and having the NFL allows us to increase the amount of products and services that we’re able to provide to our sportsbook partners and really sort of help drive their growth.”