In the Q1 report, Genius highlighted its financial performance compared to its guidance for the three-month period ending on March 31. The company reported adjusted earnings (EBITDA) of $8.0m, a 166.7% increase from the expected $3.0m. The net loss also decreased by 37.4% from $40.2m to $25.2m. Genius co-founder and CEO, Mark Locke, expressed satisfaction with the continued momentum and expects significant growth in adjusted EBITDA profitability and margins in 2023.
In Q1 2023, Genius achieved $97.2m in revenue, a 13.2% rise compared to the previous year’s $85.9m. The Betting Technology, Content & Services division drove this revenue increase with a 30.2% rise to $64.7m. However, the other two verticals – Media Technology, Content & Services and Sports Technology & Services – experienced declines in revenue. The media business declined by 9.8% to $24.1m, and the sports segment fell by 11.2% to $10.7m.
Genius attributed the growth in its betting segment to new customer acquisitions and growth among existing customers, driven by price hikes on contract renewals and renegotiations. The declines in the media and sports verticals were due to lower advertising spends compared to Q1 2022 and the impacts of non-cash consideration contracts.
Genius also saw reductions in operating expenses during the period. Sales and marketing expenses decreased from $9.2m to $7.4m, research and development expenses declined from $7.4m to $6.3m, and general and administrative costs fell from $32.8m to $18.1m. The only expense that increased was transaction expenses, rising from $128,000 to $828,000.
