Genius Sports Limited Ordinary Shares

Q3 2021 Earnings Conference Call


spk_0: what come clean genius boy quickly two thousand twenty one financial results throughout the call all participants will be in a listen only mode and afterwards there will be a question and answer session so ask a question doing the queue in a press star followed by one today i'm pleased to present brenda bosco investor relations manager please go ahead
spk_1: good morning everyone and beg for joining us today before we begin you like to remind you that thirty statements made during this call may constitute forward looking statements that are subject to risk that could cause our actual results to differ materially from our historical results are from our orca we've seen no responsibility for updated forward looking statements and if such been and should be considered in conjunction with cautionary state within our earnings really and a risk factor discussions that are finally get the at fifty including our last annual report on form twentieth piled on april thirtieth during the call management was so disgusted non gap measure that we believe may be useful in evaluating genius and operator of born these measures should not be considered in isolation or as a substitute for jp financial results prepared in accordance with us gap the reconciliation of the non get measured for the most directly comparable us got measured in available in our earnings gradually and earnings for education which could be found on our website at investors that for dot com with that on out during the call over the mark luck
spk_2: good morning and thank you for joining us today we're thrilled to announce geniuses growth is accelerating an unprecedented level and we have delivered another strong quarter with record revenues growing over seventy percent year on year on today's call in addition to updating your on performance in the quarter i'd like to focus on three key updates first we'll provide wants to detail on the recently announced agreement without sports but partners of the back of our exclusive nfl contract restructured mutually beneficial partnerships which fuel industry wide growth and accelerate our journey to meeting long term targets second we plan to formally from the size of the market opportunity for our media and engagement business on our previous earnings cause we've outlined or differential fan engagement solutions and now we hugged around it out by articulating the total addressable market and our place in it bird will discuss our vision for the future and highlight some of the incredible opportunities that we have in front of us we're excited to share the work we've done and be areas and investment that will enable genius to continue to fulfill it's place as be technology leader in the sports ecosystem i'll cover each of these topics in more detail shortly but first i'd like to quickly recap on some of the highlights from the third quarter we're very excited about the progress we've made since our last call and this court is strong results reflect our teams continued execution first we reported record revenue of sixty nine point one million dollars in the third quarter this represent another quarter a strong revenue growth increasing by over seventy percent year on year shouldn't buy well balanced growth across from a business segments while adjusted ebitda was broadly breaking as we've mentioned in the past or cool business structure life in our approach to official data and are deep longstanding partnerships with needs and federations worldwide this quarter alone we signed over thirteen he writes deals with leaves as global and buried as kazakhstan football federation canadian soccer premier league china super league creation basketball federation israeli volleyball association drone racing need international pool association swedish basketball federation and a person of faith my professional pick up with association i could go on each new league partnership expand the breadth and depth coverage of high quality events and supports our customers provision of content around the clock as to three all leading right portfolio includes a hundred and ninety two thousand events and your official rights of which over one hundred and twenty thousand or exclusive we are the leading technology provided in the confederations around the world as an example we recently announced the second spectrum was appointed the exclusive official tracking data provider of danish super league and says division the second spectrums cutting edge technology genius will be able to provide danish pokemon fans with transformative new statistics including play speeds a celebration deceleration shot blah state park on the guillotine expected goals beat in science will be made readily available across multiple platforms combining tracking data visualizations augmented reality and customizable graphics live a truly immersive fan experiences this demonstrates are successful integration of recent acquisitions and a unique ability to create value across the sports and entertainment ecosystem we've also continued to leverage our exclusive nfl partnership to build upon a key sports but relationships lead agreements in able to provide a full range of officials sports but content and fan engagement solutions to help our customers better engage in ny times that as while we're still in the early stages are nfl partnership with very excited about the vision to enhance the value of nfl consent and we imagine the way the sports is consumed as we discussed in more detail sure a or recently announced deals said that a brilliant foundation to achieve our longer term ambitions in addition to the key sports book announcements we've also announced our first team based partnership with the philadelphia eagles while deliver real time betting odds to dry fan engagement in lincoln financial field sports betting lounges a fundamental part of our nfl partnership is to provide innovative platforms the teams to engage would legalize sports betting and so we're excited about this new development additionally as possible disciplined and then a strategy we remain focused on the efficient integration of newly acquired businesses for example spy rebel held companies like hennessy pringles and heineken increase brand awareness with sports fans through dp person like dynamic video content responsible technology allows brands to automatically deliver custom tailored data driven content into sports fans in real time which we look forward to rolling out to an even wider range of partners at part of our broader genius thoughtful additionally using fan hops platform we launched new free to play experience experiences to partners across different verticals including sports leagues sports betting clients and even brands outside of sports betting such as jersey mike's and buffalo wild wings we leaning technologies like and fan hub geniuses broaden the options available to wide range of customers who is seeking to connect with a sports audience in a purposeful and efficient way with the commercial progress we've made this quarter and the positive global sports betting market backdrop were raising our twenty twenty one revenue guidance to a range of two hundred and fifty seven to two hundred and sixty two million dollars equating to over seventy percent year on year growth nicole cobbled financial aspects in more detail shortly a cool focus of the business this quarter was to structure commercial agreements with our sports but partners to include the nfl often as many of you know our partnership with the nfl is far more innovative than any other right steel in the market and differentiated from the nfl previous right deal
spk_3: with his income incumbent
spk_2: we're extremely happy with the commercial deal we've made so wanted to provide bit more detail on our success these are all encompassing strategic deals that include of full suite of products let me give you an example of a typical deal that exemplifies how we are engaging with us sports books they typically include an absolute commitment to use genius data while yeah if she writes
spk_4: streaming
spk_2: outsource manage trading and other value and technology services a commitment to advertising spend across our media products including fan hub and spiral and an average three year term providing a perfect balance between short and visibility and medium term flexibility at the marquis evolves the nfl agreement has only increased our opportunity to successfully expand our commercial partnerships to include all encompassing sweetest solutions as we passing through our first nfl season were happy to provide more color on a specific nfl component of these wide ranging deals to start over ninety seven percent of nfl best place in the united states are powered by genius sports we the great commercial terms that properly reflect the bar leaks if we were to isolate pacific's around nfl gaming it in line with our current global blended average while up in play take right either weighted average in excess of our stated goal five percent they set genius up to benefit from both the grace of the nfl sports betting markets and the continued shift to imply a better it's worth noting that the elements of the deal structure will vary by contract but we often structure deals to limits are downside exposure by creating minimum revenue guarantee flaws which allow us to reduce some of the inherent volatility so in periods with low assholes and significant promotional spend like we've seen recently details structures he of our revenues some protection overall the commercial agreements support an accelerated path to our long term target of an average of five percent take rate of global gaming revenue lastly our customers have committed to spending an initial minimum of one hundred and twenty five million dollars across our media products including fan hub and spiral i the average of the three it turns the certain major customers will spend their and within the first four months of the country that the majority of these commitments come from customers we were already working with and they have therefore had the confidence to trusting is in the long term thanks to excellent results that we delivered to date this confidence is proven by draft kings making genius their preferred programmatic partner and back again making genius their exclusive pragmatic partner as a reminder genius was named the nfl us exclusive sports betting and i gaming advertising partner
spk_5: a new components are right steal it doesn't exist anywhere else in the market and is completely
spk_2: unique our capabilities this gives us access to the nfl audience and select digital advertising and been trait that when combined with our like data and deep understanding sports fans put this in a unique position to drive better it turn on our partners customer acquisition spent again the breadth and depth and agreements we've reached or exactly what we envisaged when we first structures such an equally innovative and wide ranging nfl partnership so we touched on the committed advertising spend two are nfl deals and now we'd like to provide more detail on the market opportunity and a key growth leaders for business all media business provide services is that extend beyond just sports i'm betting and allow us to catch or share a digital marketing budgets across a range of customers representing an entirely new address the market we see our addressable opportunity as the sixty billion dollar global digital sports advertising market now this is obviously highly competitive and include search engines traditional ad agencies and other solutions developed in house however we believe that are unique access to the data in inventory through are exclusively pawnshops nice to a differentiated offering with high rates of return for our customers that said debate them are penetration to date predominantly with sports but customers we believe the market share of seventy five to one hundred bits is achievable in the long term for the entire digital sports advertising market in order to reach this long term market share and the five hundred million dollar revenue opportunity it represents we believe will need to broaden and diversify our media customer base our advertising solutions available to any brand seeking to connect with sports orleans using contextually relevant data driven consent for that reason we believe our media customer base today represents a fraction of what it can become while city's most certainly early innings this is a business that has doubled year a year who's made strides in diversifying a customer base to include brands outside of sports betting that are interested in leveraging i'd meet accessed sports audiences like data and content distribution capabilities i'd like to conclude my remarks by clearly defining our vision for the future takes a slice of every sports related transaction globally whether that tibet a ticket sale a livestream purchase of a hot dog in a stadium or jersey sale genius exists to provide the technology platform that by powers these transactions and enables true global fun monetization the investments we've made both organically and three second set from fan hot and spiral have created the world's leading sports technology platform nothing in the market comes close to what we have a million miles ahead of our competition as a result of that the commercial conversation the we're having with our existing part in such as the nfl have taken on an entirely new meaning
spk_1: not a single conversation with the league or federation goes by without discussing the massive opportunities for them to tap into our vision and cutting edge unique technology services the only we can deliver therefore we have defined a more aggressive investment road map that will naval us to
spk_2: continue to put play water between us and the rest of the industry through are truly differentiated cutting edge technology platform this strategy will not only deliver the world's greatest integrated solution but also give us a phenomenal advantage in on negotiations with leagues they will strengthen our long term petitioning and reduce the risk of rights inflation to reiterate one of the main reasons that the nfl chose to partner with ask was because of the shared vision around our technology capabilities this shared vision is now coming to life as we're beginning to deliver on it we have absolutely no doubt if we invest now this vision can be delivered to every lead and every fan worldwide this is such a unique opportunity that we simply must take advantage of it therefore we plan to reinvest heavily in the business to continue delivering on our vision and strengthening our competitive advantage
spk_6: i'm with that are now tend to nyc to discuss our financial results and outlook in more detail
spk_7: tags not a lot of mentioned ah q feverish results reflect our solid execution in the underlying didn't third quarter group revenues increased by over seventy percent year on year to record sixty nine point one million dollars with each business line increasing significantly demonstrating another quarter of diversified and well balanced growth first are backing technology content and services grew forty eight percent year on year to forty three point six million dollars gluten this segment with driven by increased pricing with existing customers new customer wins an increased utilization of available contact in the third quarter we also recognize revenue for the first three weeks of our inaugural nfl season our major technology content and services retinue continues to increase at a phenomenal pace more than doubling year on year to thirteen point nine million dollars strong growth in our media business with driven by new cutler when both within sports betting and non sports betting sectors and lastly the sport technology and services were new increased a hundred and fifty nine percent two eleven point six million dollars once again getting from michigan contribution from sport cut off the second spectrum i were new to date is trending positively towards our fold your outlook look and we've made exactly the right kind of commercial deals in the quarter to continue our momentum through year end it could have great confidence to increase our revenue outlook to range of two hundred and fifty seven to two hundred and sixty two million dollars equating to over seventy percent year on year growth at the midpoint
spk_8: we also revising i'll just repeat our target to be broadly break even for the yeah
spk_7: as we expect to reinvest in the business to cheat the long term vision the markers just spoken about if not mentioned earlier restricted our commercial agreements in line with our expectations i wouldn't more excited than ever about our opportunity to generate solid recurring reach current that allow us to earn a significant share of gaming revenue we really leveraged are unique position to increase kept me like they shun and take market share and our partners have contractually committed to spending at least one hundred and twenty five million dollars in marketing spend through our cat platform the business is poised for continued revenue growth of the sports backing market continues to expand and evolve broadly speaking with in the u s and globally we feel confident in our ability to continue taking market share achieving premium pricing for value added content and services and executing on our partners committed you spend
spk_9: this coupled with the dynamic growth the majority of the global sports betting market should drive well balanced revenue growth over the next several years
spk_7: with meaningful contribution from multiple leaders as market just touched on we also recognize that we're in a unique stage early and our growth cycle the present a window of opportunity to be from footed and financially flexible in order to fund the long term scale and build the infrastructure to achieve our vision the mob described we think about those strategic investments in three categories firstly technology development we are transforming global sports betting and media too loud technology and we're focused on continuing improving our existing tech platform for example continue to innovate seconds back from technology to reduce latency improve tracking an expansion you sports such as american football secondly we also focused on accelerating are right strategy
spk_10: to continue building a best in class portfolio of beta and streaming right
spk_7: as noted previously many of our data and streaming rights generating generate meaningful near to medium term pay back to investing ahead of the revenue code in many instances and thirdly
spk_11: we continue to build out our youth infrastructure to support our expanding local operations
spk_7: additionally then they always be other opportunities outside of these three categories where we see potential for shareholder what'd and to improve our competitive position to recap our global business continues to perform strongly a we expect continued revenue growth through the you have twenty twenty one and beyond
spk_12: on an adjusted a bit dull basis
spk_7: we expect the business to be broadly breakeven or better on an ongoing basis in order to maximize the potential of ah strategically investments of underlie profitability to conclude we are excited i'm focused on the big picture opportunity ahead of us we believe that we're in a strong position to capitalize on this rapidly growing market we also believe that the disciplined reinvestment of near term earnings if the best use of capital at this stage in our growth cycle the position us for success of it
spk_8: time and achieve our long term vision
spk_7: in fact a code market position and fulfil deployment of capital gives us even more confidence in achieving our previously communicated long term as palatial target or forty percent market share five percent of gaming revenue and forty percent adjusted ebitda margin at scale
spk_0: thank you again for your participation
spk_13: we'd like to open it up to queue and i
spk_0: thank you if you don't wish to ask a question express star followed by one the thousand keypad if you wish to withdraw your question you may do so by pressing star fellow by can't cancel
spk_14: there will be a brief pass why christians are being the just that
spk_1: the first question that from the line of chad kelly from oppenheimer please god hat
spk_15: hey i'm a thanks thanks for taking my question and dog i scored on you if i may just just mark eye on your five per cent comment on a global gg our kids can you kind of expand our we should think about it you know we we try to hear from the operators
spk_16: that app that that might be a little too aggressive the made more oversimplifying it and then on just just on the guidance on a quarterly it can you give us an update on our you're betting revenue is trending in october and november relative a guy
spk_7: hodges neck let let me take the the second or third from than and perhaps we did we might not be able to pick up the first that been a whole other second one an audio i i understand the question on another market has been some noise around operate of debilitate it in october am i think mark hurd and
spk_2: on the cool we certainly have some downside protection that there was talk study of to such that we have that in our deals and and any views on where we sit in october and and the perk of the weeks november have been taken into consideration when we got done with new guidance to the to five seventy two sixty on at that age and how are you thankful and only and on your first question if you're asking if five percent of black global gaming revenues to graphic a thing that question and right yes direct yeah yeah yeah yeah i'm struggling with eerie elses yeah yeah i mean we we we we don't we don't think that we we think of a long time basis is eminently table and you know what we were saying in the yeah in the earnings was was really that we're on a moronic as know very strong journey
spk_14: probably slightly ahead of where we thought we would be towards reaching yeah
spk_17: i think i didn't need owning a lot of the deals from striking on and on the imply when for the nfl are inaccessible november olds we've we've seen some mean reversion there and then one more question
spk_18: nick nick on the arm third quarter media revenue very strong i mean it's third quarter going to be the peak quarter for you guys for media just given the our case and how the all at the address cause on the operators advertise thank you
spk_7: yeah did
spk_19: it may are currently come to the november position our just kind of with it but my comment i said i think i made on the october position in terms of major yeah very very strong lebanese
spk_7: and with an element of of inorganic in organic growth in there but on the underlying basis
spk_0: the revenues are still significantly are you on yeah
spk_2: ah i'm actually poco to isn't a high class i'm anticipating actually or fourth quarter to the is a slightly higher position than what would come out on acutely and over again built into the the two five seventy two sixty god
spk_20: thank you the next question from the line of stephen kamkwamba length from goldman sachs please go ahead
spk_9: thank you for new clarifying i gets a couple things one
spk_15: i get to the nfl transaction training to the cash breakeven even that you thought and when you're referencing some of the the reinvestment into the business where are the biggest buckets
spk_7: that is he being allocated to and just to confirm i think he said that you're commit in his to a break even going forward to that on an annual basis thanks
spk_19: the ice even think let let me have forgot that and then i i guess mirken and the guy comes chicken as they wanted so it is that is a couple questions that you're right
spk_9: just on that love point of the yeah yeah we leave the bullet management team yeah are united in in managing the business in the short term twenty the da break even or better position and that will be on an annual basis that will over to the ups and downs on a quarterly basis as we go
spk_15: in terms of where we're looking to invest that it i i think your mouth a clear on the on the cool yeah when a really early position in auckland cycle in the opportunities in front of us really accelerate were significantly and that being front foot inability to to invest now we think get the right decision that practically what that means
spk_7: is really three areas for to ah hillah called out right
spk_21: the of this for main theme that be foundation of our growth and you will continue to and a have done historically computer to invest in the area and like a lot of right field not just an arm and history in any industry
spk_15: some of those white tailed mean investing ahead of the left new curve
spk_7: but we will only do so right field that we think of the long term value for the business the secondary attack
spk_19: and yet again it you've heard from mark about also leading tech position in the market but as you know do we can't be standstill the and we will look into to chart investment in and outlook look optically call our acquisition the the great example of that
spk_7: the complexion technology yeah what we're look into to invest in such areas is your look at the low latency improving the tracking building out the products and other sport for they don't currently have a significant to contain for things like us football i guess good example i get to just be able to tension yet to show sort of lee dividend of our investment that were making that you might have been on the cbs cool cause they will not couple weeks the an infection visual overlays though the along that sniff them out the technology will come and then really that last area with him but continuous operations we were
spk_15: we would be very careful of the last two years i think not not to put too much infrastructure into the us on the ground too early
spk_7: the but what the given are phenomenal us growth that with thing and and you'll you'll you'll see what you get into the detail in the quarter the us is actually twenty one person and of our revenue for the quarter that the first time that fact significant and i expect that to grow again and in queue for your now the right time to really be putting in the infrastructure to buy commercial teams you seen i went out with of the bomb the and and way to optimize that growth so that the of them and that will really across the income
spk_15: i'm state will be the number of areas both intend to sell the marketing but but also impact sg in a little bit as well so that the i mean that what we're really investing in to three original question around here to help
spk_7: and how we getting on i made yeah i think we said last time you ate the it it can be increasingly difficult given the nature of these deals to separate out a particular sport an individual possibilities you know how we go to market and i think particular us and harm fails because they're so wide and encompass all encompassing like across or food products and are free to put up can't media data trading streaming and then the also console properly and not just the two hundred and seventy two nfl event it's it's gonna be increasingly difficult what i will say statements were learning every week
spk_2: we are what are we now and nothing will to we can never know a six year deal philly willian still in the very much the foothills of this deal and will learning a lot when learning a lot about
spk_22: pool full things not just handled by the in terms of will ending about revenue makes we're learning a lot around sports book proportion that proportionality which if the has an impact we would imply this is pretty play it could jets question operator profitability as well this is we're learning what what i can say
spk_20: why is that this deal is driving that he and phenomenal us and growth courtroom quarter you on yeah and up with the two hundred percent and and this bill about three cornerstone of the and and will be significantly profitable the us contracts over the course of the life of of the next week five year and so perhaps one follow up there since you mentioned right is being effect
spk_23: we the the primary focus i'm married you could just touch base on the n b a deal that was recently signed in a high you thought about that potential partnership than the impact but that could have from the the agreement with one of your competitors the i hardly even that subject i personally am that if commercial officer of i think it's you it's a really interesting question them into to give away the background on on are they are kind of where we are on how to at this point i mean clearly the m b a is important and the we will power that process and something that a day if you're having didn't be a part of off that able of of of right in that way would be something the that would clearly be good for the business and that the flip side to that is the vast the be balanced process balance judgments around the viability of any beer we do with any my shoulder weather can be i or anyone else and we've gotta be prudent and small about how we do that i don't want to specifically around judo elements that that that the all prospect in fact that ugly web articulating it would be to sort of compare a little bit to the nfl and and that relationship because yeah we see complementarity but also quite a lot of different situation at and ultimately you know we have to find a way to make sure that we would like a enough to the business so good differences that the nfl feel that we have gives us as you talked about and and make a market the articulated a lot of benefit in the media spies we get lobbying bunch we we get it all that is part of that relationship the enable us to to show the saw growth that we we talked about to die in the be that be part of ecosystem none of that stuff with where the available as part of the n b a dynamic partly because of a dumpster rebel know that at evo devo jp with with we turn out for some that digital asset so the that that doctors wasn't on the table that made it quite difficult from our point of view and the the other part of it and we talked a lot about it is usually the old innovation patient and that was the allowing us to move and do all of the thing that we wanna do and why this both technology ecosystem food and we at and and do that and and and the again wasn't really available as part of the deal it's been the it's been signed the final pol pot the most important part from our point of view and really where we we we you know a wallet we we wouldn't pretend that we wouldn't want the and be i as part of our portfolio we couldn't wait a square the circle on was that the the structure of the deal with the all understanding that the the and the i will continue to maintain a direct relationship with all downstream sports betting operators that we see them continue to take a share with hand directly from those off right should not be either that the hit outside of ecosystem effectively from our point of view
spk_20: you that very much about like operators getting charged twice once for the data and once for from matt
spk_0: from from the and be i directly to be papa ecosystem and we just couldn't quite a circle on on their numbers in and make it make sense from our point of view so we will be thrilled with her to have the and be pop a product that hadn't happened but it's also
spk_24: through the it all back in revenue to the mb i am i'm and are extremely limited and so the impact of of not winning that the or on all business is is very very small at this point got take a huge impact me too
spk_25: the next question of from the line outsmart he get from benchmark company please go ahead
spk_24: a mark name brand in the morning or afternoon guys can grab from a quarter just curious on the out your here the comedian opportunity looks like obviously they're moving to regulated market the beginning ontario uncertainty alex expansionary that could be obvious
spk_23: assigned book grey market there in an awkward hear from a new your fine yeah operators going the market yeah hi yet shocked i can get you must have having to pick this happen to me that for for a regulation is always been a good thing right everyday what what you're going to see ah a business that going to come out the shadows and we know that they exist there you know there's an equity markets something that's going to become more mainstream of starting with ontario for us we been only the like as as those be and as ontario and and and and in in time
spk_26: other me if they can canada that regulate and regular in a in a more traditional why i guess is the us and where the us both the us states said to make it i think that's a good thing from our point of view it's opportunity i like suddenly that with that we'll opportunity in terms all
spk_23: you know from from both a the size of the market that can globe and i both free from a day when trading point of view and more those things up we'll see like opposition terms of the nfl could involve us and we like that from that point of view but also from a mocking point of view it create the whole new opportunity for us to work with wake related operators who can spend properly on marketing and we weekend the is
spk_24: you know it it's it's more opportunity in areas that we feel very very good about the business
spk_0: not only just into sports betting spite but all of those relationships will be able to be filled with media partners that publishes that all of that stuff fluid able to execute
spk_27: in the us we hope to be up but that expect to be up to mirror in the united states is as as they open up so hopefully the answers your question yeah nice things got a luck the next question from line of david pain from are right please go ahead
spk_28: great thank you and i first question is if we're seeing a shift to longer term data right agreement and have given a length of hello larger deals that were thing
spk_2: peter the potential disruption to the to prep display and they commit it today versus let you envision three to four years now and your technology and had a tentacle plan major pricing went with their partners actually flattery the decline multiple years from our how do you view that
spk_29: a lie
spk_30: yeah a little bit it can really good question and answer that we think about a law and frankly the lot of what's driving the the know about our technology investments
spk_2: we we we believe the and as as this market evolves state the sports league there been need he that much different it's a difference in college specialized technology sets and and what we're seeing in our business actually is and since the acquisition of second spectrum
spk_31: wait wait wait increasingly humming i think almost every single league conversation we're having now includes elements old and second spectrum and some about next jen technology for the way that we see this evolving over the time is is is an increasing reliance on those technologies and again that will be reflected in nice rights these going
spk_2: ford's so part of the gathered and part of the and part of thing with so excited about me and the opportunity we see is is really getting a technology widely distributed making sure that we keep the adam considerable distance and we have second spectrum the day turn the truck yeah
spk_27: that case but also the marketing side as well why we got him getting unita and abuse it audience
spk_23: and and it and they continued investment in nash should give us that position in the future to teacher have significant leverage as conversations around right face
spk_32: okay great how point of my second one would be you mention of a very significant tam in you're prepared remarks that you're entering specifically the advertising market with not betting platforms
spk_23: more color what type of platforms you're having traction weapon is a something like a fear of the deal on night the early next year or as or for a longer term up to it
spk_33: thank you i gave this is josh a the managing director for the media it the yeah
spk_27: exactly the in terms of the address for market do it for the media business we're already seeing a lot of traction that faith in terms of the platforms that were that were branching out the it's really an expansion at what we're already doing for operated in the in the programatic fear and rolling in the technology from fan have and and spiral attention we believe that
spk_34: ultimately that technology applied equally as well
spk_23: two major brands around scored beer a coca cola and either bush and it will ultimately drive the same fantastic results that horse but customers have the okay great and something wicked the devour up
spk_27: some of them announcement on early next year or the something we should think about having really back to the model
spk_0: sometime in the but i fear too
spk_35: yeah i mean we're already winning a number of contract been in this pay up or the most recent one i a jersey mike's with where we provided them with their tailgate trivia agree to play game we provided a lot of advertising services around that her to promote the game and so days there's already a few customers that are there and
spk_22: we got a really strong pipeline as we head into twenty two so i think that to be here making making plenty announcements around new wins in a in sorted out thought of the sports betting beta a the next year and the beyond
spk_23: okay great thanks how much
spk_33: the next question from the line of burning mctiernan from need a company please go ahead
spk_35: great at a second the question maybe to start the the hundred and twenty five million commit advertising span just find the clarify the that's in i get over the next three years and if it's only in the us and then i'm assuming these deals and base even struck over the last three months to just wondering how they came in verse your initial expectation
spk_7: and i did i josh and and forth again ah yes that correct the deal they're structured over three years
spk_15: in terms of the market than the the majority
spk_35: our across the north american market added a few new on his were some international spend the majority the is focused on on the north black market
spk_15: i understand you can use your minus about how big the media revenue stream is outside the u s currently
spk_36: yeah i've been in think of a traditionally we've been around about fifty fifty intended to us vs
spk_7: unless the world and on a media bases that not have any more slanted toward the the us right now and that thirty where the focus of growth is over the course of the next eighteen months to two years in is just as talked about those deals yeah that they are predominately north american focused understood thanks thick and in nyc this to follow up on on fan door struck and agree with them yesterday was luxury to see that was just wondering if there was a how you guys were i believe you are supplying them with nfl official data in the third quarter so just wondering how that was book from our a revenue standpoint yeah yeah cause they are you actually right and he and and prevalent else than felt the cool and yet we continue provide fangio with a with the citizens throughout the period is a of the long term sustainable partner with it with fangio
spk_35: the announcement added that we issued forty hours ago that that if i respect the deal to take us back the started the nfl season and what we've done it with they will they an element of the deal the was recognized
spk_0: in the quarter because we already had a pre agreed deal with them for that been recognized for the first weeks of the nfl and then we will recognize the remainder of the deal retrospect little those put two weeks
spk_37: what what i will say though the fit one operator for three weeks now the material number bernie and and at the new deal
spk_1: metrics or be built into the provide guidance of the to fight them to sixty on your said thanks very much
spk_23: the next question as an ally now fry sit down for my column ethical crew please go ahead
spk_38: oh good
spk_23: they stick our questions curious on there's going to trend towards in how sports trade in services
spk_39: time for handle in that agreement you're just talking about expanded it's pay grade of your life trading solution because where you seen the most headwinds is was tailwind from a management training services standpoint
spk_23: ah yet an hour of on his job famous and and i think in in will we see here he is a a kind of the at a what what your thing with the find you deliberately lie is a at a comfort of their come for in outsourcing elements solve that was backing operations to a company like ours so so you're you're seeing a will balance of some stuff being in into of currently and but also i will focus on what is being a do for them but they at the same time they'll they'll out
spk_1: so elements of that
spk_40: oh you you will end up i think singer
spk_33: a combination of these things that the the trajectory of the industry i think we to be my about much more efficient in terms of where they spend money where they get the much bang for their power and i think there our view and and and i've played out with our custom agreements is increasingly large wave of that are question functional wouldn't indeed be outsourced and then on ad tech have any comparative metrics or customer acquisition costs improvement or anything
spk_23: can he can compare internally on how your solutions are carrying vs traditional sources and then secondly i do you feel about years human and technical resource is brad tech and marketing he goes missing anything their thanks
spk_33: i write it's just simple again yeah happy to provide them to contact in terms of the the results are we delivered give you specific example of one operator that we've been working with defend it felt the than and the road with the result they've been through key to that tech solution
spk_23: if been really strong t to give it to give you an idea that on average that customer thief the first the positive value breakeven against the title add spend thirty tbd ten to feed their by the that
spk_33: around about two hundred eighty five
spk_41: percent return on add spend in subsequent other values of
spk_42: the needed the day you know
spk_0: there's a there's a person pretty strong result and the individual of the customers is a very happy about the results

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