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Second Quarter 2021 Earnings September 8, 2021

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Page 1: Second Quarter 2021 Earnings

Second Quarter 2021 EarningsSeptember 8, 2021

Page 2: Second Quarter 2021 Earnings

08/09/2021 | 2

DisclaimerForward-Looking StatementsThis presentation 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 30, 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.

Use of ProjectionsThis presentation contains projections, including revenue and Adjusted EBITDA. Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation and, accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being indicative of future results. The assumptions and estimates underlying the projected information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projected information. Even if our assumptions and estimates are correct, projections are inherently uncertain due to a number of factors outside our control. Accordingly, there can be no assurance that the projected results are indicative of our future performance or that actual results will not differ materially from those presented in the projected information. Inclusion of the projected information in this presentation should not be regarded as a representation by any person that the results contained in the projected information will be achieved.

Non-GAAP Financial MeasuresThis press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP.

Adjusted EBITDAWe 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.We do not provide a reconciliation of Group adj. EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections..

Trademarks and Trade Names We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our businesses. This presentation also contains trademarks, service marks and trade names of third parties, which are the property oftheir respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with us or an endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names.

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1. Business Overview and Updates2. Financial Results and Outlook3. Appendix

Contents

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Business Overview & Updates

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Second Quarter EarningsIntroductory Remarks

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Business Highlights

• Second quarter group revenues up 108% year-over year to $55.8M

• Second quarter Group Adj. EBITDA up 126% year-over year to $5.2M

• Announced multi-year strategic partnerships with DraftKings, Caesars, WynnBET and 888 SI Sportsbook to provide our full range of official sportsbook data and content and fan engagement solutions, including a complete suite of NFL-related products

• Bolstered balance sheet with pricing of upsized $435M follow-on offering, resulting in $275M in cash as of June 30

• Continued execution of tuck-in acquisition strategy with announcement of Spirableacquisition, following the successful close of FanHub and Second Spectrum

• Tightening 2021 Group Revenue guidance at the high end of the previous range from $250-$260M to $255-$260M and reaffirming Group Adj. EBITDA guidance of $10-$20M

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Accelerating pathway to our long-term targets

Accelerated Official Rights Strategy

Strengthened Commercial

Partnerships with NFL-related Products

Acquired Leading Technology Businesses

Continued Expansion of Media & Engagement

Business

Won New Sports Betting Deals with Clients Worldwide

Number of events under official rights increased 25% YoY to 189K(>116K of which are exclusive)

Strategic partnership with MEDIAPRO Canada, to grow Canadian soccer fan engagement

Among others…

Leading provider of automated social video and content creation solutions Transactions closed; integrations in progress

/

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NFL Rights are Revolutionizing Partnerships with Sportsbooks

Genius engages users with personalized, data-driven content to the right audience at the right time

Genius converts audience engagement into action

Genius provides highest quality data feed & trading solutions

Leading Portfolio of Live Sports Data

Content Creation

Media Buying

Fan Engagement Products

Affiliate Management

Growing Portfolio of Live Streams

Outsourced Bookmaking Tools

✓ Official Data for Global Sports Betting Market

✓ Official Data for Global Media Market

✓ Live Streaming for International Sports Betting Market

✓ Sports Betting and iGaming Advertising Partnership

Audience Insights …and more

End-to-end value creation through the customer’s revenue lifecycle

Packaged Offer

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Unrivalled Insight Powers Differentiated Fan Engagement

Advertisers & Publishers

Ad $Ad Tech Stack

DMP, DSP, Ad Server, Personalization Engine

Odds Data Sports Data Audience Data

Strategic Relationships

Campaigns

Campaign Execution

• Genius operates the largest independent media buying trading desk for the gaming industry

• Campaigns focused on branding, acquisition & retention

Proprietary to Genius

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Content Widgets CRM Live Data on Social Media Free-to-Play

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Empowering Customers with End-to-End Content and Engagement Tools

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Investment in Growth Initiatives Accelerates Long-Term StrategyGenius raised $238M in net primary proceeds in June, resulting in $275M of cash on the balance sheet as of June 30

Accelerate our official rights

strategy

Enhance our existing sports,

media and betting technology solutions to customers

Continue developing innovative

technology to create the next generation

of products and services

Explore strategic and accretive tuck-in M&A opportunities

08/09/2021

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Financial Results

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Second quarter financial results

$26.8

$55.8

$22.3

$3.0$3.7

Q2 2020 Betting Technology,Content & Services

Media Technology,Content & Services

Sports Technology &Services

Q2 2021

Q2 2020 to Q2 2021 Revenue Bridge ($m)

• Group Revenue increased 108% year-over-year to $55.8M • Group Adj. EBITDA increased 126% year-over-year to $5.2M

A

B

C • Return of sports calendar, increased market share, higher share of wallet through additional services for sportsbooks, and new customer wins

• Increased advertising spend in the US and Europe alongside new key customer wins

• Inclusion of revenues relating to two acquisitions, Sportzcast, acquired in December 2020, and Second Spectrum, acquired in June 2021

A

B

C

$40.7A

$8.0B

$7.2C

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Tracking Towards Full-Year Financial Outlook Reiterating full year Group Revenue and Group Adj. EBITDA guidance

• Strong execution in underlying business in first half of 2021.

• Sports calendar rebounding in the second half with NFL, NBA, major European football leagues, and others commencing in Q3 and Q4, leading to increased sequential revenue.

• NFL related commercial negotiations with customers executed on mutually beneficial terms.

• FanHub and Second Spectrum expected to contribute $10-$15M of revenue and $0-$2M in EBITDA in 2021 following their June closes.

• Strengthened balance sheet enables investment in organic and inorganic growth initiatives.

• Strong execution YTD, commercial momentum and improving sports betting calendar gives us confidence in delivering on our full year guidance.

$54

$35

$56

$27

$255-$260

$0 $50 $100 $150 $200 $250 $300

FY 2021E Outlook

1H 2021 Group Revenue

1H 2020 Group Revenue

YTD Group Revenue vs. Outlook ($M)

Q1 Q2 FY 2021E

$110

$9

$2

$5

$2

$10-$20

$0 $5 $10 $15 $20 $25

FY 2021E Outlook

1H 2021 Group Adj. EBITDA

1H 2020 Group Adj. EBITDA

YTD Group Adj. EBITDA vs. Outlook ($M)

Q1 Q2 FY 2021E

$14

FY 2021 Target Range

$62

$4

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Q&A

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Appendix

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Genius Sports P&L and group Adj. EBITDA reconciliation

Three Months Ended June 30,

2021 2020Revenue $ 55,849 $ 26,797 Cost of revenue 240,192 22,847 Gross profit (184,343) 3,950 Operating expenses:

Sales and marketing 6,982 2,705 Research and development 6,881 2,153 General and administrative 224,832 6,386 Transaction expenses 6,081 -

Total operating expense 244,776 11,244 Loss from operations (429,119) (7,294)

Interest income (expense), net (663) (1,912)Gain (loss) on disposal of assets (1) -Change in fair value of derivative warrant liabilities (38,867) -Foreign currency gain (loss) 4,867 533

Total other income (expenses) (34,664) (1,379)Loss before income taxes (463,783) (8,673)Income tax benefit (expense) (381) 1,187 Net loss $ (464,164) $ (7,486)

Net loss per common share:Basic and diluted $ (3.08) $ (0.11)

Weighted average common shares outstanding:Basic and diluted 150,854,888 70,040,242

Three Months Ended June 30,2021 2020

Consolidated net loss $ (464,164) $ (7,486)Adjusted for: - -

Net, interest expense 663 1,912 Income tax expense (benefit) 381 (1,187)Amortization of acquired intangibles(1) 7,391 5,191 Other depreciation and amortization(2) 5,073 3,644 Stock-based compensation(3) 414,505 -Transaction expenses 6,081 -Litigation and related costs(4) 822 753 Change in fair value of derivative warrant liabilities 38,867 -Other(5) (4,428) (535)

Adjusted EBITDA $ 5,191 $ 2,292

(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 restricted shares and stock options granted to employees and directors and equity-classified non-employee awards issued to suppliers.

(4) Includes mainly legal and related costs in connection with non-routine litigation matters including Sportradar litigation and BetConstruct litigation.

(5) Includes gain/losses on disposal of assets, gain/losses on foreign currency and expenses incurred related to earn-out payments on historical acquisitions.

Condensed Consolidated Statements of Operations(Unaudited, in thousands, except share and per share data)

Reconciliation of GAAP Net loss to Adj. EBITDA(Unaudited, in thousands)

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GENI share count build

Total Capitalization (shares in millions)As of

June 30, 2021Genius ordinary shares issued and outstanding post de-SPAC1 167.9Common shares issued in connection with acquisitions 5.6Equity offering 13.0Ordinary shares issued and outstanding 186.5

Additional SecuritiesManagement restricted shares and options 11.2NFL Enterprises LLC vested Warrants2 11.3Public Warrants 9.2Private Placement Warrants 5.0NFL Enterprises LLC unvested Warrants2 7.3Total Additional Securities 44.0

1 Includes 79,587,346 Genius ordinary shares converted from existing classes of shares of Maven Topco and 20,766,840 Genius ordinary shares related to vested rollover Incentive Securities2 11,250,000 warrants were vested in the three and six months ended June 30, 2021. Pursuant to the License Agreement, the Company, agreed to issue the NFL an aggregate of up to 18,500,000 warrants and 2,000,000 additional warrants for each annual extension (4,000,000 total)