There is a “big focus” on finding acquisitions for Genius Sports, given its accelerating cash flow, but the company has not yet found the right fit.
“I think M&A is obviously a big focus, but we have to be very careful about what we’re buying and, you kiss a lot of frogs, I think, is the phrase, and we’re doing a lot of kissing, but we expect some of them will turn into princesses at some point,” CEO Mark Locke said on Tuesday’s first-quarter earnings call.
This year is the beginning of strong “financial and strategic execution” for Genius, which reported $20 million in adjusted EBITDA for the quarter, up 188% from the same period in 2024. That came from $144 million in revenue, which jumped 20%.
In addition to searching for the right M&A dance partner, Genius will focus heavily on BetVision and its rapidly expanding schedule of events.
Genius sees ‘several opportunities’
The company is sure one or more princesses are out there waiting to be found.
“To be very clear, our capital allocation strategy is primarily focused on tech investment and M&A since we see several opportunities to drive growth and accelerate our long-term profitability target,” Locke said.
Along with the search for add-ons, Genius announced it will buy back up to $100 million of its shares. The announcement is bullish on the company’s future, with the release noting the buyback comes amid a “strong business performance and confidence in the long-term profitability and cash flow outlook.”
“We believe implementing a repurchase program is just good housekeeping, and this provides us with the ability to be opportunistic, especially in a volatile market as we have seen,” Locke said.
Soccer now available for BetVision
There will be thousands more events available for bettors to watch through BetVision with the addition of soccer, Locke said.
So far, Genius has only had BetVision for the NFL, which meant around 270 games a year. With soccer now on board, Genius is adding around 18,000 events, which will increase again with a basketball launch around the corner.
In the US, that should help increase live betting, Locke said. In-play betting delivers margins three times higher than other bets, he added.
As for Europe, where live betting is already the majority of the market, BetVision is about continuing to innovate, Locke said.
“BetVision is powerful because it is now becoming the destination for millions of fans to fully immerse themselves in live sports content, creating a highly engaged audience,” Locke said.
Guidance includes upside for BetVision
Genius is known for conservative forecasts, and this time is no different, CFO Nick Taylor said.
“We’re aware that this was obviously launching when we gave the guide,” Taylor said. “So, we have a base in there. But as always if we’re able to accelerate this commercially, then there might well be some upside for 2025.”
BetVision can also be a source of “proprietary ad inventory” as brands can integrate directly into the stream.
Genius not worried about macro issues
Genius reaffirmed its 2025 guidance of $620 million in revenue, $125 million in adjusted EBITDA and an increased positive cash flow.
Locke noted the company is “largely unaffected” by current macroeconomic conditions as there is almost no exposure to issues like global trade.
The confidence in reiterating guidance is partially based on history. Data shows the UK and Europe still saw strong online sports betting behavior during the global financial crisis in 2008, Locke said.
