Genius Sports Limited (GENI) stock dropped over 4% today after the company, which provides technology and services to the sports betting and sports media industries, announced financial results for the fourth quarter and full year of 2021.
For the fourth quarter, the company posted revenue of $84 million, a 79% jump year-over-year.
Diluted EPS came in at $(0.28) compared to a loss of $(0.19) in the fourth quarter of 2020.
For the full year, revenue increased 75% to $262.7 million.
Diluted EPS came in at $(3.93) compared to a loss of $(0.43) in 2020.
Wide-Ranging Growth
Speaking on the results, Mark Locke, GSL Co-Founder and CEO of Genius, commented, “2021 was a transformational year that saw Genius form innovative new relationships with leagues, sportsbooks and brands alike, which allowed us to deliver record group revenue in the fourth quarter."
The company saw large revenue gains across all its key segments.
Genius' Betting Technology segment revenue increased 52.9% year-over-year to $53.9 million, driven by growth in customer utilization of Genius’ event content and new customer acquisitions.
Growth was also supported by price increases powered by Genius’ official data rights strategy, expansion of value-add services, and new service offerings.
The company's Media Technology division also recorded massive growth, with revenue more than doubling year-over-year to $17.1 million.
Looking Ahead
Going into the new year, Genius will be faced with the challenge of cutting costs in order to turn its record revenue into a profitable business model.
Locke added, “We are confident that 2022 will be another strong and profitable year as we capitalize on the growth opportunities ahead and continue to expand our services around the world.”
Genius will seek to build on its recent deals, which include a partnership with the Canadian Football League to grow fan engagement and extend media reach, as well as a partnership with CBS to launch new ‘RomoVision’ technology for broadcasts of the NFL.
