Genius Sports Limited

Thank you for standing by. At this time, I would like to welcome everyone to today's Genius Sports third quarter 2025 earning results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask the question during this time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Genius Sports. The floor is yours.

Thank you and good morning. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20F filed with the SEC on March 14th, 2025. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius' operating performance. These measures should not be considered in isolation or as a substitute for Genius' financial results prepared in accordance with U.S. GAAP. Reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com. With that, I'll now turn the call to our CEO, Mark Locke.

Good morning, everyone, and thank you for joining us today to discuss our Q3 results. We will keep our prepared remarks relatively brief this morning, as we look forward to hosting many of you at our upcoming Invest Today next month. There, we will share with you a detailed overview of our business, product demonstrations, industry trends, and our strategic and financial outlook. With that in mind, I will quickly touch on the key highlights from this quarter. First, we increased our group revenue by 38% year-on-year. making your strongest quarter of revenue growth since Q1 2022. This was led by a media segment up near 90% year-on-year, further validating our investment and excitement in the space. We also increased our group adjusted EBITDA by 32% year-on-year to 34 million, representing a 20% margin. Both betting and media contributed meaningfully to our revenue growth this quarter. I'll touch quickly betting to start. Betting revenue increased 28% year on year, predominantly driven by growth with existing customers. And there are a few specifics that are worth highlighting. First, we secured the exclusive rights to the European leagues and Serie A this quarter, further strengthening our existing portfolio of the highest quality football content globally. With our scale and distribution across hundreds of the world's largest regulated betting operators, we were able to generate immediate revenue uplift in this quarter through this additional content. Additionally, we announced the expansion of our partnership with Hard Rock this quarter. As part of our renewal, we are now providing Hard Rock with additional content and live trading services across the Premier League, Serie A, European leagues, NFL and more. Hard Rock is also now the latest Sportsbook partner to utilise our BetVision product across Serie A, NFL and over 23,000 other live betting streams. Our hard rock relationship is another example of how our picks and shovels positioning in the US betting market enables our revenue growth to outpace others in the ecosystem. Whether it is in a state like Florida or through a competing product, our portfolio of data and advanced product set is essential to the success for all operators, and we are confident this positioning will afford continued opportunities in an ever-changing and evolving industry. We've also expanded our partnership with ESPN BET this quarter, which now, for the first time, includes BET Vision, not just for NFL, but for our full suite of soccer and basketball content as well. And finally, we have seen positive in play betting trends to start the NFL season. Through the first six weeks of the season, in play represented 30% of total NFL handle, right in line with our expectations. We are encouraged by the continued growth of in play betting and expect this will continue to drive betting revenue growth through the remainder of this NFL season and beyond. This growth is a function of the continued evolution and maturity of the U.S. market, but equally it's driven by an improving set of in-play betting products. Our Sportsbook partners have done an excellent job of offering much wider range of in-play betting markets this year, and we are realizing the direct benefits of that. To add to this, we are empowering more in-play betting volume through the continued distribution of BetVision, which is now available on nearly every major sportsbook in the US and continuing to drive more viewership, increased in-play betting and more engagement overall. For instance, through the first six weeks of the NFL season, we have seen a 35% increase in the number of unique devices streaming NFL on BetVision. Additionally, we've seen a 25% increase in the average time spent on BetVision per device. So we aren't just seeing growth in the overall numbers, but also growth in the actual time spent interacting with the platform. This, as you know, is critical for the integration of our advertising solutions into the BetVision product, which I will touch upon shortly. And most importantly is that BetVision continues to be a consistent enabler of greater in-play betting. which represented 74% of total handle through the BET Vision platform so far this season. And within the last six months, we've launched BET Vision for soccer and basketball, meaning that we are now providing over 23,000 events per year, more than 200 global competitions through BET Vision, representing a rapid expansion of the product. As a result of this expansion, the number of Sportsbook customers utilizing BET Vision has exploded. This time last year, we had six sportsbook customers integrated with BetVision. As of today, that number has grown to over 100 sportsbooks, representing more than 350 brands. This kind of growth in just one year demonstrates our scale and distribution. So BetVision continues to drive more engagement in in-play wagering, which compounds our betting revenue growth. And as we have proven consistently, our betting revenue growth continues to exceed the growth of the overall market. This was the case again in Q3, with the growth of our betting revenue nearly doubling the growth of our US GGR. Now, as it relates to BetVision, this increasing engagement is also enabling opportunities in media, both as a source of audience information and as a source of unique advertising inventory. each of which makes our advertising services unique in the market. As such, our media business was the largest contributor this quarter, with revenue increasing nearly 90% year on year to 42 million. I'll pause for a moment to let that register. 42 million marks a new quarterly record of media revenue in absolute terms and 89% growth is our strongest year on year increase since Q1 2022, the quarter of our first Super Bowl for perspective. When we raised our guidance last quarter, we expected 50% to 60% revenue growth based on minimum commitments. So we are happy to see that level of spend in the quarter exceed even our own expectations. I want to take a moment to quickly remind you of what makes our advertising platform unique. We understand sports better than anyone, We know sports fans better than anyone, and we are leveraging our technology to create the next generation of fan experiences. So these are three distinct factors that differentiate us, and we've strengthened each of these even further over the last few months. The first is live sports data. We understand the exact moment of a heightened fan engagement and emotion and use real time data to trigger advertising content, improve campaign pacing, and informed bid optimisation strategies, all leading to better return on investment for our customers. The second is audience data, our understanding of who the fans are. We have several sources of first party data, and now we've acquired Sports Innovation Lab, which brings an even deeper understanding through their proprietary fan graph, which is built on real spending patterns compiled from billions of transactional data points. When combined with our league relationships, existing data sets and media buying platform, we can reach fans with even greater precision and at exactly the right moments, generating a higher return for our advertising customers. Third is our unique inventory. We're creating new ways for brands to reach sports fans that can only be executed through Genius Sports. Last quarter, We mentioned new inventory that now exists on BetVision and how quickly that that was monetized. Our latest example of new and unique inventory was seen on Fangio Sports Network for select WNBA games. We delivered broadcast augmentations to showcase next gen stats, such as real time short probabilities, three point distances and more. We transform these augmentations into high impact sponsorship opportunities. empowering brands like Shopify, NBA 2K, and Point3 to own these key moments of a game, fully integrated live on the broadcast. This has been highly successful for broadcasters and advertisers alike, so we expect more of this to come. So we are continuously improving each of the factors that make us unique, and we have built the most comprehensive real-time fan activation platform in the industry. Our media revenue growth this quarter is evidence of the progress that we've made. As always, our media revenue is driven by two important factors, growth in the number of advertisers and increase in total advertising spend. This is exactly why it's important for us to sign deals with advertising agencies, because they aggregate a large amount of spend across several individual brands. So our recently signed agency deals, including our new partnership with PNG, are driving significant growth in the media revenue through the second half of the year. We plan to cover the media business in more detail at our up and coming investor day on December the 3rd. But in the meantime, the key takeaway is simple. We have a unique set of sports data, audience data and inventory. and that enables us to deliver superior return on ad spend for our partners. We're gaining significant momentum with brands and agencies and remain optimistic about the long-term potential of this business. Before we conclude, I want to briefly address prediction markets, a topic of frequent discussion over the last few months. In an effort to preemptively address questions, let me share our perspective. We are observing the developments around prediction markets carefully. We must always comply with applicable laws and regulatory requirements, and we place a great deal of importance on the views of our regulators and commercial partners. As they evolve and mature, prediction markets may provide a meaningful new opportunity for Genius boards in expanding the addressable market. While these products are nascent, they are evolving rapidly, and the need for Genius official league data, marks and logos, and integrity solutions will only grow as prediction markets become more sophisticated. This means that we are extremely well placed should we decide to engage. With regard to timing, we are being extremely considered and deliberate in our approach. We will work closely with key stakeholders across the ecosystem, our lead partners, regulators, existing customers, and indeed the prediction markets themselves to determine the next steps. And we are confident in our ability to capitalize on this opportunity in a responsible and sustainable way if we feel all of the requirements we need to be in place to participate in this market are met. Given the early and evolving nature of this market, we won't be providing additional detail on this call, but I want to be clear. If we are confident that prediction markets will meet our robust regulatory and commercial thresholds, these developments could result in positive developments for Genius Sports and our future growth. And with that, I'd like to officially welcome Brian Castellani to his first Earnings Calls with Genius. And I'll now turn the call to Brian to discuss the financial results in more detail.