Business Wire | Apr 28, 2021 06:10AM EDT

Genius Sports Reports Strong Fourth Quarter and Full Year 2020 Results

Apr. 28, 2021

LONDON & NEW YORK--(BUSINESS WIRE)--Apr. 28, 2021--Genius Sports Limited (NYSE:GENI) ("Genius" or "GSL" or the "Group"), the official data, technology and commercial partner that powers the global ecosystem connecting sports, betting and media, today announced financial results for its fiscal 2020 fourth quarter and full year ended December 31, 2020.

"2020 was a landmark year for Genius, with outstanding performance amidst the challenges presented by the global pandemic," said Mark Locke, GSL Co-Founder and CEO. "We have entered 2021 with great momentum, bolstered by our recently-completed merger with dMY II and NYSE listing, as well as our exclusive partnership with the NFL. I am more confident than ever about the opportunities ahead as we continue to leverage our unique technology and scale to grow alongside the rapidly expanding global sports, betting and media ecosystem."

$ in thousands 4Q20 4Q19 % FY20 FY19 %

Group Revenue 47,017 36,847 27.6% 149,739 114,620 30.6%

Betting Technology, 35,265 28,580 23.4% 110,618 88,370 25.2%Content & Services

Sports Technology & 4,258 4,333 (1.7%) 16,066 14,367 11.8%Services

Media Technology, 7,494 3,934 90.5% 23,055 11,883 94.0%Content & Services

Group Adj. EBITDA 4,034 (1,214) nm 17,510 (6,208) nm

Group Adj. EBITDA Margin 8.6% nm nm 11.7% nm nm

nm = not meaningful

4Q 2020 Financial Highlights

* Group Revenue: Group revenue increased 27.6% year-over-year to $47.0 million. On a constant currency basis, revenue increased $9.3 million, or 24.8% year-over-year. Betting Technology, Content & Services: Revenue increased 23.4% year-over-year to $35.3 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. Sports Technology & Services: Revenue declined by (1.7%) year-over-year to $4.3 million. Media Technology, Content & Services: Revenue increased 90.5% year-over-year to $7.5 million, driven by the acquisition of new customers in the Americas and Europe, primarily for programmatic advertising services.

* Group Adj. EBITDA: Group adjusted (non-GAAP) EBITDA increased to $4.0 million from ($1.2) million. Group adjusted EBITDA margin was 8.6% in the quarter.

Full Year 2020 Financial Highlights

* Group Revenue: Group revenue increased 30.6% year-over-year to $149.7 million, with strong growth across all product lines. On a constant currency basis, revenue increased $34.5 million, or 30% year-over-year. Betting Technology, Content & Services: Revenue increased 25.2% year-over-year to $110.6 million, primarily driven by growth in business with existing customers resulting from Genius' official data rights strategy, expansion of value-add services, and new service offerings. Growth was also supported by new customer acquisitions and increased utilization of Genius' available event content. Sports Technology & Services: Revenue increased 11.8% year-over-year to $16.1 million, driven by expanded services provided to existing sports league and federation customers across all tiers of sport. Media Technology, Content & Services: Revenue increased 94.0% year-over-year to $23.1 million, driven by the acquisition of new customers in the Americas and Europe primarily for programmatic advertising services.

* Group Adj. EBITDA: Group adjusted (non-GAAP) EBITDA increased to $17.5 million from ($6.2) million, driven by strict cost controls and reduced sales and marketing expenses in the wake of the COVID-19 pandemic, offsetting increased data rights costs. Group adjusted EBITDA margin was 11.7% for the year.

Business Highlights

* After the reporting period, announced a six-year strategic partnership with the National Football League (NFL), through which GSL will be the NFL's exclusive distributor of real-time official play-by-play statistics, proprietary Next Gen Stats (NGS) data, and the NFL's official sports betting data feed to media companies and sports betting operators globally.

* Acquired Sportzcast Inc., a leading U.S. manufacturer of sports scoreboard data distribution systems, deepening GSL's reach with sports leagues and federations to drive growth across data, streaming and media.

* Genius is now permitted to supply in thirteen U.S. states after launching operations in Michigan and Virginia in January 2021. Genius also has permission to supply in three tribal jurisdictions in the United States.

* Extended official data partnership with the National Basketball Association (NBA), granting GSL non-exclusive rights to distribute NBA and WNBA betting data to licensed sports betting operators in the U.S.

* Entered into a two-year marketing partnership with FanDuel to deliver data-driven, targeted advertisements in U.S. states where the company operates.

* Announced exclusive sports betting data and betting streaming partnership with Major League Rugby to help grow the league's presence in sportsbooks around the globe.

Financial Outlook

GSL anticipates revising its full-year 2021 projections in its first quarter earnings, to be reported in the weeks ahead.

Financial Statements & Reconciliation Tables

The following table summarizes Genius' consolidated results of operations for the periods indicated.

Maven Topco LimitedCondensed Consolidated Statements of Operation(In thousands)

Year Ended December 31, Three Months Ended December 31,

2020 2019 2020 2019

(Unaudited) (Unaudited)

Revenue $ 149,739 $ 114,620 $ 47,017 $ 36,847

Cost of revenue 114,066 89,311 37,024 28,988

Gross profit 35,673 25,309 9,993 7,859

Operating expenses:

Sales and marketing 13,176 17,711 3,152 7,055

Research and development 11,240 13,290 3,006 1,724

General and administrative 31,623 29,492 10,281 8,968

Transaction expenses 672 1,005 619 499

Total operating expense 56,711 61,498 17,058 18,246

Income (loss) from (21,038) (36,189) (7,065) (10,387)operations

Interest income (expense), (7,874) (6,840) (2,075) (1,728)net

Loss on disposal of assets (8) (7) (8) (10)

Gain on fair valueremeasurement of contingent 271 - 271 -consideration

Gain (loss) on foreign 114 (2,537) 356 (1,555)currency

Total other income (7,497) (9,384) (1,456) (3,293)(expenses)

Loss before income taxes (28,535) (45,573) (8,521) (13,680)

Income tax benefit (1,813) 5,366 (4,984) 3,898

Net loss $ (30,348) $ (40,207) $ (13,505) $ (9,782)

Maven Topco Limited

Consolidated Balance Sheets

(In thousands, except share data)

December 31,

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

$

11,781

$

8,228

Accounts receivable, net

24,776

18,376

Contract assets

10,088

5,654

Prepaid expenses

4,107

3,207

Other current assets

10,584

3,276

Total current assets

61,336

38,741

Property and equipment, net

5,002

4,882

Intangible assets, net

114,542

126,440

Goodwill

200,624

192,980

Deferred tax asset

5

173

Other assets

9,496

12,080

Total assets

$

391,005

$

375,296

LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' DEFICIT

Current liabilities:

Accounts payable

$

10,106

$

13,292

Accrued expenses

35,220

21,861

Deferred revenue

26,036

16,015

Current debt

10,272

25

Other current liabilities

3,714

3,461

Total current liabilities

85,348

54,654

Long-term debt - less current portion

82,723

73,166

Deferred tax liability

8,097

6,223

Other liabilities

3,589

3,810

Total liabilities

179,757

137,853

Temporary equity:

Preference shares, $0.0001 par value, 218,561,319 shares

authorized, 218,561,319 and 218,561,319 issued and outstanding

at December 31, 2020 and 2019, respectively

350,675

318,805

Total temporary equity

350,675

318,805

Shareholders' deficit

Common shares, $0.01 par value (A1 Ordinary Shares -

1,568,702 shares authorized, 1,568,702 and 1,568,702 issued and

outstanding; A2 Ordinary Shares - 158,778 authorized, 158,778

and 158,778 issued and outstanding; A3 Ordinary Shares -

145,943 authorized, 145,943 and 145,943 issued and outstanding

at December 31, 2020 and 2019, respectively)

24

24

Additional paid-in capital

2,393

2,393

Accumulated deficit

(153,237)

(91,019)

Accumulated other comprehensive income

11,393

7,240

Total shareholders' deficit

(139,427)

(81,362)

Total liabilities, temporary equity and shareholders' deficit

$

391,005

$

375,296

Note: Maven Topco Limited is a non-cellular company limited by shares incorporated in Guernsey on July 18, 2018 ("Maven Topco") in connection with the investment by Apax Funds in Genius Sports Group Limited (the "Apax Investment"). Maven Topco and its wholly-owned subsidiaries are collectively referred to as the "Group". Genius Sports Group Limited, is a private company incorporated on July 28, 2015, and headquartered in London, England ("Genius Sports"). In connection with the Apax Investment, on September 7, 2018, Genius Sports and its wholly-owned subsidiaries became wholly-owned subsidiaries of the Company.

Maven Topco Limited

Consolidated Balance Sheets

(In thousands, except share data)

December 31,

2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 11,781 $ 8,228

Accounts receivable, net 24,776 18,376

Contract assets 10,088 5,654

Prepaid expenses 4,107 3,207

Other current assets 10,584 3,276

Total current assets 61,336 38,741



Property and equipment, net 5,002 4,882

Intangible assets, net 114,542 126,440

Goodwill 200,624 192,980

Deferred tax asset 5 173

Other assets 9,496 12,080

Total assets $ 391,005 $ 375,296

LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' DEFICIT

Current liabilities:

Accounts payable $ 10,106 $ 13,292

Accrued expenses 35,220 21,861

Deferred revenue 26,036 16,015

Current debt 10,272 25

Other current liabilities 3,714 3,461

Total current liabilities 85,348 54,654



Long-term debt - less current portion 82,723 73,166

Deferred tax liability 8,097 6,223

Other liabilities 3,589 3,810

Total liabilities 179,757 137,853



Temporary equity:

Preference shares, $0.0001 par value, 218,561,319shares

authorized, 218,561,319 and 218,561,319 issued and 350,675 318,805outstanding

at December 31, 2020 and 2019, respectively

Total temporary equity 350,675 318,805



Shareholders' deficit

Common shares, $0.01 par value (A1 Ordinary Shares -

1,568,702 shares authorized, 1,568,702 and 1,568,702issued and

outstanding; A2 Ordinary Shares - 158,778authorized, 158,778 24 24and 158,778 issued and outstanding; A3 OrdinaryShares -

145,943 authorized, 145,943 and 145,943 issued andoutstanding

at December 31, 2020 and 2019, respectively)

Additional paid-in capital 2,393 2,393

Accumulated deficit (153,237) (91,019)

Accumulated other comprehensive income 11,393 7,240

Total shareholders' deficit (139,427) (81,362)

Total liabilities, temporary equity and $ 391,005 $ 375,296shareholders' deficit

Note: Maven Topco Limited is a non-cellular company limited by shares incorporated in Guernsey on July 18, 2018 ("Maven Topco") in connection with the investment by Apax Funds in Genius Sports Group Limited (the "Apax Investment"). Maven Topco and its wholly-owned subsidiaries are collectively referred to as the "Group". Genius Sports Group Limited, is a private company incorporated on July 28, 2015, and headquartered in London, England ("Genius Sports"). In connection with the Apax Investment, on September 7, 2018, Genius Sports and its wholly-owned subsidiaries became wholly-owned subsidiaries of the Company.

Maven Topco LimitedConsolidated Statements of Cash Flows(In thousands)



Year Ended December 31,

2020 2019

Cash flows from operating activities:

Net loss $ (30,348) $ (40,207)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 35,043 27,974

Loss on disposal of assets 8 7

Gain on fair value remeasurement of contingent (271) -consideration

Non-cash interest expense (income), net 6,835 6,440

Amortization of contract costs 538 231

Deferred income taxes 1,304 (5,480)

Loss on foreign currency remeasurement 464 2,023

Changes in assets and liabilities, net of effect of Business Combinations

Accounts receivable, net (5,046) (7,408)

Contract assets (4,030) (1,872)

Prepaid expenses (749) (537)

Other current assets (6,682) (1,728)

Other assets 2,321 (4,413)

Accounts payable (3,384) 7,136

Accrued expenses 11,930 10,164

Deferred revenue 9,021 8,598

Other current liabilities 520 1,189

Other liabilities (401) 375

Net cash provided by operating activities 17,073 2,492



Cash flows from investing activities:

Purchases of property and equipment (1,464) (3,217)

Capitalization of internally developed software costs (15,920) (20,756)

Purchases of intangible assets (1,389) (279)

Acquisition of business, net of cash acquired (3,934) (470)

Proceeds from disposal of assets 51 99

Net cash used in investing activities (22,656) (24,623)



Cash flows from financing activities:

Proceeds from issuance of common shares - 79

Proceeds from issuance of preference shares - 6,079

Proceeds from deposits on incentive securities 93 66

Proceeds from borrowings 10,024 1,394

Repayment of loans and mortgage (21) (21)

Payment of contingent consideration - (666)

Net cash provided by financing activities 10,096 6,931



Effect of exchange rate changes on cash and cash (960) (408)equivalents



Net increase (decrease) in cash and cash equivalents 3,553 (15,608)

Cash and cash equivalents, beginning of period 8,228 23,836

Cash and cash equivalents, end of period $ 11,781 $ 8,228



Supplemental disclosure of cash activities:

Cash paid (received) during the period for interest $ 1,039 $ 400

Cash paid (received) during the period for income taxes 891 876

Supplemental disclosure of noncash investing and financing activities:

Preference share accretion $ 31,870 $ 28,322

Deferred offering costs included in other current assets $ 2,093 $ -and accrued expenses

Contingent consideration for acquisition of business $ - $ 2,385included in other liabilities

Note: Maven Topco Limited is a non-cellular company limited by shares incorporated in Guernsey on July 18, 2018 ("Maven Topco") in connection with the investment by Apax Funds in Genius Sports Group Limited (the "Apax Investment"). Maven Topco and its wholly-owned subsidiaries are collectively referred to as the "Group". Genius Sports Group Limited, is a private company incorporated on July 28, 2015, and headquartered in London, England ("Genius Sports"). In connection with the Apax Investment, on September 7, 2018, Genius Sports and its wholly-owned subsidiaries became wholly-owned subsidiaries of the Company.

The following table presents a reconciliation of Group adjusted EBITDA to its net loss for the periods indicated.

Maven Topco LimitedReconciliation of GAAP Net loss to Adjusted EBITDA(In thousands)Unaudited

Year Ended December 31, Three Months Ended December 31,

2020 2019 2020 2019

Consolidated net loss $ (30,348) $ (40,207) $ (13,505) $ (9,782)

Adjusted for:

Net, interest expense 7,874 6,840 2,075 1,728

Income tax expense (benefit) 1,813 (5,366) 4,984 (3,898)

Amortization of acquired 21,571 21,412 5,626 5,443intangibles (1)

Other depreciation and 14,010 6,793 4,105 2,593amortization (2)

Transaction expenses 672 1,005 618 499

Litigation and related costs 2,295 516 750 383(3)

Other (4) (377) 2,799 (619) 1,820

Adjusted EBITDA $ 17,510 $ (6,208) $ 4,034 $ (1,214)

(1)Includes amortization of intangible assets generated through business acquisitions, inclusive of amortization for data rights, marketing products, and acquired technology.

(2)Includes depreciation of Genius' property and equipment, amortization of contract cost, and amortization of internally developed software and other intangible assets. Excludes amortization of intangible assets generated through business acquisitions.

(3)?Includes mainly legal and related costs in connection with non-routine litigation matters including Sportradar litigation, BetConstruct litigation, and litigation settlement with Couchmans LLP and Couchmans Data Services limited.

(4)Includes gain/losses on disposal of assets, gain/losses on foreign currency, gain on fair value remeasurement of contingent consideration and other restructuring costs.

About Genius Sports

Genius Sports is the official data, technology and commercial partner that powers the global ecosystem connecting sports, betting and media. We are a global leader in digital sports content, technology and integrity services. Our technology is used in over 150 countries worldwide, empowering sports to capture, manage and distribute their live data and video, driving their digital transformation and enhancing their relationships with fans.

We are the trusted partner to over 400 sports organizations globally, including many of the world's largest leagues and federations such as the NFL, NBA, EPL, FIBA, NCAA, NASCAR, AFA and PGA.

Genius Sports is uniquely placed through cutting-edge technology, scale and global reach to support our partners. We are more than just a technology company, we build long-term relationships with sports at all levels, helping them to control and maximize the value of their content while providing technical expertise and round-the-clock support.

Non-GAAP Financial Measures

This press release includes certain 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.

Constant Currency

Certain income statement items in this press release are discussed on a constant currency basis. Our results between periods may not be comparable due to foreign currency translation effects. We present certain income statement items on a constant currency basis, as if GBP:USD exchange rate had remained constant period-over-period, to enhance the comparability of our results. We calculate income statement constant currency amounts by taking the relevant average GBP:USD exchange rate used in the preparation of our income statement for the more recent comparative period and apply it to the actual GBP amount used in the preparation of our income statement for the prior comparative period.

Constant currency amounts only adjust for the impact related to the translation of our consolidated financial statements from GBP to USD. Constant currency amounts do not adjust for any other translation effects, such as the translation of results of subsidiaries whose functional currency is other than GBP or USD, as such effects have not been material to date.

Forward-Looking Statements

This press release 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 28, 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.

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CONTACT: Media Chris Dougan, Chief Communications Officer +1 (202)-766-4430 chris.dougan@geniussports.com Tristan Peniston-Bird, The One Nine Three Group +44 7772 031 886 tristan.peniston-bird@the193.com Investors Brandon Bukstel, Investor Relations Manager +1 (954)-554-7932 brandon.bukstel@geniussports.com