Genius Sports Limited · NYSE:GENI
Genius Sports — Investor Day (January 2022)
70 slides from Genius Sports's investor day presentation, Jan 27, 2022
Slide 1: Genius Sports Investor Day
Genius Sports Investor Day January 27, 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This 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
Slide 3: Welcome
‘SPORTS a
Slide 4: Today's Agenda
Today’s Agenda 1 Deep Dive On Three Business Segments Sports Technology and Services Betting Technology, Content and Services Media Technology, Content and Services 2 Financial Overview 3 Views From The Industry Veterans 4 Q&A |4
Slide 5: Executive Summary
Executive Summary 1 Genius Sports Group expected to be EBITDA positive in 2022 and 2023 and highly profitable over next 3-5 years 2 Core original business (pre-listing) already delivering healthy EBITDA profitability US business is an area of investment with strong growth opportunity and expected EB
Slide 6: Group Level Profitability in 2022 & Accelerating in 2023
Group Level Profitability in 2022 & Accelerating in 2023 2022 2023 Group Estimate Group Estimate $340m $15m $430-$440m $40-$50m Group Group adj. Group Group adj. Revenue EBITDA Revenue EBITDA $440-450m Group Revenue |6
Slide 7: Original Business Has Delivered Sustainable Profitability Growth
Original Business Has Delivered Sustainable Profitability Growth 2020 – 2022E Original Business 2020 – 2022E Original Business Revenue ($m) EBITDA ($m) $242 $52 $215 $38 $150 $17 2020 2021E 2022E 2020 2021E 2022E Original business defined as pre-existing operations prior to public listing |7
Slide 8: Investing in US Business – High-Growth Opportunity
Investing in US Business – High-Growth Opportunity Expecting EBITDA profitability by 2024 2020 – 2022E US Expansion 2020 – 2022E US Expansion Revenue ($m) EBITDA ($m) 2020 2021E 2022E $0 ($18) ($24) $58 $0 $25 2020 2021E 2022E Select US Assumptions 2021A 2022E 2023E US GGR ($b) $3.7 $5.5 $7.7 In-Pla
Slide 9: Acquisitions Unlock Strategic Opportunities and Synergies
Acquisitions Unlock Strategic Opportunities and Synergies 2020 – 2022E Acquisitions 2020 – 2022E Acquisitions Revenue ($m) EBITDA ($m) $40 $19 $2 $0 $0 $0 2020 2021E 2022E 2020 2021E 2022E Cutting-Edge Technology Acquisitions in 2021 |9
Slide 10: Genius is Central to the Sports Data Value Chain
Genius is Central to the Sports Data Value Chain Insightful data & analytics for Rights leagues, teams, and coaches Distribution Holders Channels 400+ sports 300+ sportsbooks leagues globally 100+ media & advertising customers Content Aggregators Live sports data Real-time odds Live video streams Da
Slide 11: Leagues and Federations Rely on Genius Technology
Leagues and Federations Rely on Genius Technology Technology-led partnerships support long-term retention LiveStats Coaching Integrity Competition Second FanHub Spirable Sportzcast Collection Tools Services Management Spectrum Technology infrastructure to support everyday operations Leagues access s
Slide 12: Sportsbooks Rely on Genius Data & Technology
Sportsbooks Rely on Genius Data & Technology Live data is the vital resource that sportsbooks cannot operate without Sportsbook Tech Stack Live data for 300k+ In-House In-House events annually Differentiation lies in managing Sportsbooks offer content Sportsbook Brand customer journey and establishi
Slide 13: Worldwide Breadth & Depth of Coverage
Worldwide Breadth & Depth of Coverage Leagues / Sports % of Events Rights Cost Genius Strategy Competitive market 6% High Selective rights TIER 1 acquisitions TIER 2 25% Long-term rights agreements in exchange for TIER 3 38% Low / software Contra deals and de minimis rights fees TIER 4 31% Having ac
Slide 14: Technology & Scale Provide Strategic Competitive Advantage
Technology & Scale Provide Strategic Competitive Advantage Technology Advantage Scalable technology becoming more advanced via Second Spectrum, FanHub, and Spirable Deep Integrations Technology exchange for rights means Genius is fully embedded and can grow partnerships for years to come Human Capit
Slide 15: Slide 15
Slide 16: Genius is Poised for Near, Medium, & Long-Term Growth
Genius is Poised for Near, Medium, & Long-Term Growth Secure long- Continuous Commercial Long-term Sustained term position at development of model to grow partnerships profitability in the heart of a innovative alongside with industry original high-growth technology partners leaders business industr
Slide 17: Sports Technology and Services
Sports Technology and Services
Slide 18: Second Spectrum is Highly Complementary to Genius' Platform
Second Spectrum is Highly Complementary to Genius’ Platform With Best-in-Class Tracking, Analytics, & Visualization Solutions Tracking Live Insights Augmented Video Providing tracking technology Translating tracking data into Personalizing fan engagement for machines to watch sports human understand
Slide 19: SERIESTIED2-2.
SERIESTIED2-2. _ SE) OI ETD 200 10:39 2+ a
Slide 20: Genius Supplies the Infrastructure to Power the World of Sports
Genius Supplies the Infrastructure to Power the World of Sports Live data collection Automated live streaming Anti-corruption integrity solutions Data-driven coaching tools Digital sports management Live scoreboard data | 20
Slide 21: Two Primary Business Models
Two Primary Business Models Contra Model Services Payment Model Description: Genius secures long term data / streaming Description: Genius acts as a technology partner to leagues rights deals (typically 4-5 years) in exchange for separate from any data / streaming rights embedded technology Customer
Slide 22: Genius Sports Powers the World of Basketball
Genius Sports Powers the World of Basketball ▪ Genius built, implemented and Genius developments Genius developments currently maintains the NBA’s Global Statistical System FIBA Organizer NCAA LiveStats ▪ Digital system for the management of any ▪ Official data collection software powering ▪ Used by
Slide 23: New Opportunities
New Opportunities Enable one-to-one sports viewing experiences at 1 convergence of streaming, media and betting (e.g., betting mode, coach mode, etc.) Leagues share in our vision and want to gain access to this technology to fuel their 2 Richer datasets increase in-play sports betting product opport
Slide 24: Betting Technology, Content and Services
Betting Technology, Content and Services
Slide 25: Mission Critical Data Around the Clock
Mission Critical Data Around the Clock Data Collection Data Monetization Genius technology deeply integrated across 400+ Genius technology integrally powers sportsbooks leagues and federations Real-time data, odds, and streaming Global network of 7k+ specially trained statisticians Fast, accurate, s
Slide 26: Official Data Content Enables Sportsbook Performance
Official Data Content Enables Sportsbook Performance Genius provides essential infrastructure for sportsbooks to win Benefits to Sportsbooks Speed of data More maximizes market-uptime Turnover Accurate data Higher Sportsbooks and pricing Margins Win Increased Live streams Engagement | 26
Slide 27: Genius Provides a Range of Tools to Manage a Sportsbook
Genius Provides a Range of Tools to Manage a Sportsbook, Starting with Data Live Data Feed Live Odds Feed Streaming Managed Trading Services All-encompassing suite of managed trading services; Fully outsourced back-end operation | 27
Slide 28: Sportsbooks Have Flexibility to Use What They Need Most
Sportsbooks Have Flexibility to Use What They Need Most Genius will always serve a crucial role to sportsbooks, even as preferences change Illustrative Sportsbook #1 Illustrative Sportsbook #2 Illustrative Sportsbook #3 All events Events for Leagues A, B, C Events for Leagues A, B, C, D Live Data Fe
Slide 29: Commercial Models Tailored to Individual Customers
Commercial Models Tailored to Individual Customers Illustrative Fixed Revenue Contract Illustrative Revenue Share Contract Common in mature markets like EMEA Common in maturing markets like US Regional expansion Variability to fixed revenue model Events/yr overage $140 $1.6m $120 $1.3m contractual $
Slide 30: Growth of In-Play Betting Creates Double Tailwind for Genius
Growth of In-Play Betting Creates “Double Tailwind” for Genius Illustrative Emerging Market Flow Illustrative Mature Market Flow $1,000,000 $1,000,000 Handle Handle 85% pre-match 15% in-play 50% pre-match 50% in-play $850,000 $150,000 $500,000 $500,000 Handle Handle Handle Handle 6% win rate 4% win
Slide 31: NFL Overview & Trends to Look out For
NFL Overview & Trends to Look out For 2021A 2022E 2023E 2024E In-Play as % of Handle Adoption Curve Assumption 80% US GGR ($bn) $3.7 $5.5 $7.7 $10.0 60% 40% 20% US Blended Tax 20% 20% 20% 20% 0% Rate Year 1 Year 4 Year 7 Year 10 In-Play Pre-Match NFL in-play as % of 25% 27% 30% 35% total NFL handle
Slide 32: Illustrative Revenue Share Examples
Illustrative Revenue Share Examples Illustrative Share of GGR Illustrative Share of NGR $100 GGR Promo deduction capped $100 GGR at 15% of GGR $20 ($20) 5.0% Share In-Play Tax $65 $15 Applicable Cap NGR $2.20 $13 5.0% Genius Revenue ($70) In-Play Share $80 Promos $1.43 Pre-Match $1.00 Genius $52 Rev
Slide 33: Fixed Revenue Model
Fixed Revenue Model Benefits Growth Drivers • Average 3 to 5-year commitments with • Contractual price escalators historically low churn • Customer expansion to new markets • Good earnings visibility with minimum revenue guarantees • Increased customer utilization of content • Upside potential as cu
Slide 34: Revenue Share Model
Revenue Share Model Benefits Growth Drivers • Sharing in customer and industry growth • Growth in industry gaming revenue • Immediate revenue benefit as market size • Higher proportion of In-Play betting expands • Increased customer utilization of content • Typically, higher average revenue share on
Slide 35: Multifaceted Revenue Growth
Multifaceted Revenue Growth Market Shift to Increased Increased Pricing Liberalization In-Play Betting Utilization and Share of Wallet • As new states and • Genius earns • Customers taking • Expanded value-add regions come online, significantly higher more events powered services support Genius bene
Slide 36: Commercial Model Positions Genius to Share in Industry Growth
Commercial Model Positions Genius to Share in Industry Growth ▪ Sports betting market Global Sports Betting GGR ($b) experiencing fast global growth ▪ Genius partners with regulated sportsbooks worldwide $96 $88 $71 $79 ▪ Expansion of total market $62 size and shift to In-Play $50 $53 betting has im
Slide 37: Genius Drives Growth Through Increased Utilization
Genius Drives Growth Through Increased Utilization Average in-play bookings per top 25 customer has grown from 81k events in 2018 to 142k in 2021 Top 25 Customers - Events Offered and In-Play Bookings 400,000 4,000,000 350,000 3,500,000 Customer Bookings 300,000 3,000,000 Events Offered 250,000 2,50
Slide 38: Demonstrated Growth with Existing Customers
Demonstrated Growth with Existing Customers Successful execution of ‘land and expand’ strategy and strong customer retention 2019 2020 2021 Dollar Based Net Revenue Retention 100% 130% 144% (Top 25 Customers) Dollar Based Net Revenue Retention 100% 129% 135% (All Customers) Customer Retention (All C
Slide 39: Media Technology, Content and Services
Media Technology, Content and Services
Slide 40: Genius' Unique Access Drives Differentiated Solutions
Genius’ Unique Access Drives Differentiated Solutions Rights acquired from sports are used We commercialize exclusive audience data and rights by selling a to build media products range of solutions to sportsbooks and other advertisers Programmatic Brands Leagues, Federations & Clubs Display Program
Slide 41: Product Overview – Programmatic Media Buying
Product Overview – Programmatic Media Buying We operate the largest independent media buying Unique Data Access Drives Better Returns trading desk for the gaming industry and intend to grow revenue outside of gaming by pushing into traditional sports advertisers. Mixture of 3rd party and in-house de
Slide 42: Product Overview – Dynamic Creative & Content
Product Overview – Dynamic Creative & Content | 42
Slide 43: Product Overview – Dynamic Creative & Content
Product Overview – Dynamic Creative & Content | 43
Slide 44: Product Overview Dynamic Creative & Content
Product Overview Dynamic Creative & Content | 44 | 44
Slide 45: Product Overview – Content Widgets
Product Overview – Content Widgets | 45
Slide 46: Product Overview - Free-to-Play Games
Product Overview - Free-to-Play Games In Q2 2021, Genius acquired FanHub the leading free to play games provider. This acquisition has enabled Genius to offer a whole suite of engagement solutions to capture fans interest while driving value for brands. Extensive library of quick to deploy templet d
Slide 47: Product Overview - Personalized Video
Product Overview - Personalized Video Through the Spirable acquisition in Q3, Genius gained the capabilities to produce personalized videos at scale. PlayStation created a bespoke personalized video showcasing a player’s greatest gaming moments such as hours played, top games, and rarest trophies. R
Slide 48: Product Overview – CRM
Product Overview – CRM An all-in-one digital customer engagement platform to target and reach 100% of audience Deliver highly personalized live odds and statistical content to customers in real-time pre, during and post-game Collect data in real-time without further backend integration, creating muc
Slide 49: Product Overview – Insights & Analytics
Product Overview – Insights & Analytics | 49
Slide 50: Case Study – Genius Delivers Better Returns
Case Study – Genius Delivers Better Returns Genius has begun successfully executing on $125m of committed media spend Cost for First Time Depositor Sportsbook Customer 12-Month Commitment vs. Actual Spend in First 4 Months Sportsbook Target $400 $169 Cost for Daily Fantasy Customer Sportsbook Target
Slide 51: Advertisers Increase Spending Through Genius
Advertisers Increase Spending Through Genius Genius earns greater share of wallet through efficient spend Growth in Programmatic Spend, 2017-21 200 $250,000 180 160 $200,000 140 120 $150,000 100 80 $100,000 60 40 $50,000 20 0 $0 2017 2018 2019 2020 2021 Number of Customers Avg. Spend per Customer |
Slide 52: Breakdown of Blended Media Margin
Breakdown of Blended Media Margin Genius earns an average 46% blended margin in its media business across all products 46% Blended gross margin Underlying Genius Sports Media | 52
Slide 53: Sizing the Opportunity For Our Media Business
Sizing the Opportunity For Our Media Business We believe our media customer base today $657bn represents a fraction of what it can become… global advertising Key growth drivers market Continued shift to digital advertising from traditionally offline channels Greater allocation of brands’ advertising
Slide 54: Financial Overview
_ al Overview. “Genius oe SPORTS
Slide 55: Group Level Revenue & EBITDA Reconciliation
Group Level Revenue & EBITDA Reconciliation 2020 – 2023E Group Level Revenue Bridge ($m) 95 81 109 430 - 440 340 259 150 2020 Revenue 2021 Growth 2021 Revenue 2022E Growth 2022E Revenue 2023E Growth 2023E Core Revenue 2020 – 2023E Group Level EBITDA Bridge ($m) 30 40 - 50 17 (15) 13 15 2 2020 EBITDA
Slide 56: Exploring Our Core Profitability
Exploring Our Core Profitability • The original business group, as presented at time of de-SPAC Original • Strong 2020-2022 revenue CAGR of 26% Business • 18% EBITDA margins in 2021, growing in 2022 and beyond, with a 50% incremental EBITDA contribution in 2022 • Includes the 2021 acquisitions of Se
Slide 57: Original Business Revenue & EBITDA Reconciliation
Original Business Revenue & EBITDA Reconciliation 2020 – 2022E Original Business Revenue Bridge ($m) 27 65 242 215 150 2020 Core Revenue 2021 Core Growth 2021 Core Revenue 2022E Core Growth 2022E Revenue 2020 – 2022E Original Business EBITDA Bridge ($m) 14 21 52 38 17 2020 Core EBITDA 2021 Core Grow
Slide 58: Acquisitions Revenue & EBITDA Reconciliation
Acquisitions Revenue & EBITDA Reconciliation 2020 – 2022E Acquisitions Revenue Bridge ($m) 21 40 19 19 0 2020 Acquisitions Revenue 2021 Acquisitions Growth 2021 Acquisitions Revenue 2022E Acquisitions Growth 2022E Acquisitions Revenue 2020 – 2022E Acquisitions EBITDA Bridge ($m) 2 2 0 0 2020 Acquisi
Slide 59: US Expansion Revenue & EBITDA Reconciliation
US Expansion Revenue & EBITDA Reconciliation 2020 – 2022E US Expansion Revenue Bridge ($m) 33 58 25 25 0 2020 US Expansion Revenue 2021 US Expansion Growth 2021 US Expansion Revenue 2022E US Expansion Growth 2022E US Expansion Revenue 2020 – 2022E US Expansion EBITDA Bridge ($m) 2020 US Expansion EB
Slide 60: US Betting Revenue Assumptions
US Betting Revenue Assumptions 2021A 2022E 2023E 2024E US GGR ($bn) $3.7 $5.5 $7.7 $10.0 US Blended Tax Rate 20% 20% 20% 20% NFL in-play as % of total NFL handle 25% 27% 30% 35% NFL in-play as % of total NFL gaming 13% 13% 15% 20% revenue Genius share of NFL pre-match gaming 1.75% 1.75% 1.75% > 1.75
Slide 61: Key Drivers Fuelling Healthy Growth Across All Three Business Segments in 2022
Key Drivers Fuelling Healthy Key Growth Drivers Growth Across All Three Market Liberalization Business Segments in 2022 US contracts in place to drive growth via: 1. North American TAM growth with continued legalization, including New York, Ontario 2. 3x revenues earned with any move to in-play bett
Slide 62: 2022 Segmental & Quarterly Guide
2022 Segmental & Quarterly Guide ($m) Q1 Q2 Q3 Q4 Full Year Sports Technology and $12 $12 $12 $13 $49 Services Betting Technology, Content and Services $48 $44 $53 $71 $216 Media Technology, $18 $12 $19 $26 $75 Content and Services Revenue $78 $68 $85 $109 $340 Adj. EBITDA ($5) $8 $9 $3 $15 | 62
Slide 63: High-Operating Leverage at Maturity
High-Operating Leverage at Maturity Target % of Revenue at 2022E Costs ($m) Maturity Rights costs 25-30% Cost of 2022E Revenue $340 Revenues All other costs of revenue 18-20% Rights Direct Media Investment in the US has Cost of Revenues $135 $56 $40 predominantly been made Sales and and therefore th
Slide 64: Investment Strategy
Investment Strategy We have defined our investment strategy to include only the highest ROI initiatives central to our mission of powering the global sports ecosystem. 1 2 3 Heightened discipline Payback periods of 2 to EBITDA accretion core around capital 3 years to target return allocation thresho
Slide 65: Investment Rationale
Investment Rationale Technology and Services Opportunity to develop products focused on sport fan engagement and consumption habits with increased focused on personalization and gamification Enhance products designed at accelerating shift to in-play betting Second Spectrum forms a core part of our i
Slide 66: Investment Rationale
Investment Rationale U.S. Expansion U.S. market is at a critical point in the early stages of maturity We have executed on three-year contracts with all major sportsbooks in the U.S. Variable in nature – enabling us to share in GGR growth 3x more revenue on in-play – enabling us to share in shift fr
Slide 67: Views from the Industry Veterans
Views from the Industry Veterans
Slide 68: Appendix
Genius ‘SPORTS
Slide 69: Genius Sports 2020 Group Adj. EBITDA Reconciliation
Genius Sports 2020 Group Adj. EBITDA Reconciliation Condensed Consolidated Statements of Operations Reconciliation of U.S. GAAP Net loss to Adj. EBITDA (Unaudited, in thousands, except share and per share data) (Unaudited, in thousands) Year Ended December 31, 2020 Year Ended December 31, 2020 Reven
Slide 70: Thank You
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