Genius Sports Limited · NYSE:GENI
Genius Sports — SPAC Merger (October 2020)
29 slides from Genius Sports's SPAC merger presentation, Oct 27, 2020
Slide 1: Genius Sports Group
Genius Sports Group October 27, 2020
Slide 2: Disclaimer
Disclaimer This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between dMY Technology Group, Inc. II (“dMY”) and Maven Topco Limi
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Non-GAAP Financial Measures This Presentation includes certain financial measures not presented in accordance with U.S. or UK GAAP including, but not limited to, Adjusted EBITDA and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not meas
Slide 4: Experienced, Founder-led management team
Experienced, Founder-led management team • Pioneer in the sports data industry • Joined Genius in 2019 • Launched Betgenius in 2000 and in 2015 • Previously CFO at Wagamama Group; led created Genius Sports Group (“Genius”) public bond refinancing and company sale • Has held senior finance roles in P
Slide 5: Genius – Powering the sports data ecosystem
Genius – Powering the sports data ecosystem Our Mission To be the official data, technology and commercial partner that powers the global ecosystem connecting sports, betting and media Our Business We collect official live sports data, and we provide that data and mission critical technology to spor
Slide 6: Key investment highlights
Key investment highlights 1 Leading sports data provider, mission critical data for sportsbooks 2 A unique position with scale and technology leading to high barriers to entry 3 Multiple growth levers in a market with strong tailwinds 4 Attractive financial profile with strong operating leverage 5 F
Slide 7: The leading exclusive content and data provider…
The leading exclusive content and data provider… 1 Data Acquisition Data Monetization • Partner to sports leagues globally • Mission critical supplier to sportsbetting operators • Acquires exclusive, official rights to sports data from • Provides exclusive, official data to sportsbetting major leagu
Slide 8: …that sits at the heart of the sports ecosystem
…that sits at the heart of the sports ecosystem 1 Sports – 11% of Revenue1 Data & Streaming – 74% of Revenue1 Player Live stats engagement In-play data / lines Integrity services Automated trading Competition management Player props Technology Fan engagement Streaming Media – 15% of Revenue1 Coachin
Slide 9: One of two players of scale providing full service provision
One of two players of scale providing full 2 service provision Sportradar Stats Perform IMG ARENA # of events covered Genius’ official rights and # of sports covered technology strategy differentiate it from competitors Sport league services Only 2 companies One stop shop betting possess the sca
Slide 10: Technology and scale provide high barriers to entry and low churn
Technology and scale provide high barriers to entry 2 and low churn Scaled and technologically focused organization ~1,500 ~450 ~7,000 650+ $110m+ Employees across Employees in technology Statisticians Long term partnerships with Invested in 6 continents and trading and agents sports and sportsbooks
Slide 11: What is official data and why does it matter?
What is official data and why does it matter? 2 What is official data? Official data is the feed of live sports statistics that is sanctioned by the sports for collection and distribution Why official data matters It matters to sports – it goes to the very heart of their funding It matters to sp
Slide 12: Unique rights strategy with worldwide breadth and depth of coverage
Unique rights strategy with worldwide breadth and 2 depth of coverage Genius Leagues / sports % of events Rights cost strategy Competitive market Tier 1 6% High Selective rights acquisitions Football Tier 2 25% Long term rights Low / agreements in Tier 3 38% contra exchange for software deals and de
Slide 13: Successful execution of official data strategy proves concept
Successful execution of official data strategy 2 proves concept Events covered 240k Of which 110k+ 172k 1 Acquisition of official rights are exclusive 147k 104k 2 Monetization of official rights Events offered with official rights 70k 45k 38k 1k 2014 2015 2016 2017 2018 2019 2020F 13
Slide 14: Strategy strengthens partner relationships
Strategy strengthens partner relationships 2 Increased content & Official rights engagement Sports leagues Sportsbooks Technology Low churn & sticky More demand for relationships official data & services 14
Slide 15: Uniquely positioned in a fast-growing market
Uniquely positioned in a fast-growing market 3 Global sportsbetting market, 2020F – 2025F (GGR in $bn) $2 $ 59bn $5 The sportsbetting $ 12 12% market is CAGR experiencing fast $8 worldwide growth 13% $ 26 $ 31bn $6 CAGR Genius’ unique $3 11% CAGR positioning means 31% that it is not reliant $ 14
Slide 16: Well positioned to capture the US market
Well positioned to capture the US market 3 Out of a possible 19 states, Genius is live in 10, has submitted applications for 2, and has begun the pre-application process for the remaining 7 1 2 3 4 Strong partnerships with Business model perfect for Revenue share model and B2B Proactive US state hig
Slide 17: Multiple levers for growth
Multiple levers for growth 3 Increase number of Increase Increase number Increase share official rights liberalization of partners of wallet 2020F rev.1 Opportunity Potential • Newly regulated sportsbetting markets • US, LATAM and Asia • Data and odds market under-monetized • Online casino providers
Slide 18: Strong, consistent growth in the past 5 years…
Strong, consistent growth in the past 5 years… 4 Group Revenue +~250% Note: Reflects Revenue Breakdown1 performance despite sporting events cancelled $ 145m due to COVID-19 $ 130m $ 116m ~40% Recurring 2 Other ~60% $ 85m $ 68m $ 42m Top 10 ~30% customers Other ~70% 2016 2017 2018 2019 LTM 2020F June
Slide 19: … with a clear path to forward growth and profitability
… with a clear path to forward growth and profitability 4 Group Revenue $238m CAGR +29% $190m $145m ~60% of revenue $116m from contractual $85m minimum guarantees 2018 2019 2020F 2021F 2022F Group Adjusted EBITDA1,2 29% $68m 18% Path to 6% n.m. 10% $35m 40% Adj. EBITDA margin at scale $14m $5m ($9m)
Slide 20: Business model leads to high operating leverage
Business model leads to high operating leverage 4 Operating Cost description leverage Commentary • Data production and trading costs • Range of variable and fixed costs • Media direct costs • Expected data production, trading and Direct costs 29% • Hosting costs hosting costs growth well below expec
Slide 21: Additional growth opportunities outside the plan
Additional growth opportunities outside the plan 4 Accelerated rights • Target multiple sports that need financing or revenues via innovative investment models strategy Tech & • Acquire emerging tech companies to deepen reach into key sports content M&A • Acquire large scale, highly synergistic busi
Slide 22: Genius' long-term opportunity
Genius’ long-term opportunity 4 $60bn GGR Revenue Adjusted EBITDA² global sports $ 1.5bn betting market Virtually all $ 1.2bn sportsbooks powered by Genius $ 0.9bn 40% market share of events powered by Genius $ 0.6bn 5% $ 0.5bn share of sportsbooks’ GGR $ 0.4bn (from Genius events) 40% long-term Adj
Slide 23: Transaction overview
Transaction overview
Slide 24: Proposed transaction summary
Proposed transaction summary Illustrative sources and uses ($m)3 Sources Uses 4 Cash in trust $ 276 Cash to balance sheet $ 153 Founder shares 69 Founder shares 69 Sellers' rollover equity 997 Sellers' rollover equity 997 dMY Technology Group, Inc. II (“dMY II”), led by Niccolo de Masi and PIPE 33
Slide 25: Comparable company benchmarking
Comparable company benchmarking Revenue multiples 2022F YoY revenue growth 25% 7% 47% 21% 14.8 x 11.7 x 11.0 x 11.8 x 1 12.2 x 7.4 x 8.3 x 5.9 x Genius Info & Data Analytics Online Gaming Online B2B 2021F 2022F Adjusted EBITDA multiples 27.1 x 24.7 x 25.2 x 21.2 x 18.4 x 14.7 x NA NA Genius Info & D
Slide 26: Comparable company benchmarking (cont.)
Comparable company benchmarking (cont.) Closing Equity Adjusted Enterprise Value Multiples (2) 2021F YoY 2022F YoY 2022F Price Market Enterprise Revenue EBITDA Revenue Revenue EBITDA Company 25-Sep-2020 Cap (1) Value (1) 2021F 2022F 2021F 2022F Growth Growth Margin Genius Sports Group (3) NA NA $ 1,
Slide 27: Appendix
Appendix
Slide 28: Business model set up for growth
Business model set up for growth Genius provides a broad portfolio of events to sportsbooks under a mix of contractually guaranteed revenue and growth upside Guaranteed revenues from sportsbooks • Fixed minimum guaranteed payments, which may include escalators over the contract term • Typically 4-5
Slide 29: Reconciliation to UK GAAP
Reconciliation to UK GAAP USD 000s 2018 2019 Operating profit / (loss) (5,443) (39,309) Plus / (less): D&A 16,949 23,571 Extraordinary items1 (650) 2,358 Share based payments - 4,830 Reported EBITDA 10,856 (8,550) (adj.) Like-for-like capitalization2 (6,214) - Adjusted EBITDA 4,642 (8,550) Note: 1.3