Genius Sports Limited (NYSE:GENI) Q3 2024 Earnings Conference Call November 12, 2024 8:00 AM ET

Company Participants

Brandon Bukstel - IR Manager
Mark Locke - CEO
Nicholas Taylor - CFO

Conference Call Participants

Ben Miller - Goldman Sachs
Bernie McTernan - Needham and Company
Jed Kelly - Oppenheimer & Co
Ryan Sigdahl - Craig-Hallum Capital Group
Jason Bazinet - Citi
Eric Martinuzzi - Lake Street Capital Markets
Jordan Bender - Citizens JMP

Operator

Thank you for standing by. My name is Jeanne and I will be your conference operator today. At this time, I would like to welcome everyone to the Genius Sports Third Quarter 2024 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. [Operator Instructions]

Thank you. I would now like to turn the conference over to Genius Sports. You may begin.

Brandon Bukstel

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 statement 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 20-F filed with the SEC on March 15, 2024.

During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius's operating performance. These measures should not be considered in isolation or as a substitute for Genius's financial results prepared in accordance with the US GAAP. A reconciliation of these non-GAAP measures to the most directly comparable US 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 over to our CEO, Mark Locke.

Mark Locke

Good morning, and thank you for joining us today. We are very pleased to report another quarter of financial results, once again exceeding our expectations and highlighting the strength and predictability of our business model and our consistent execution to-date. To begin, we delivered group revenue of $120 million, representing an 18% year-on-year growth. This revenue growth contributed to our group adjusted EBITDA at a 43% incremental margin, as a result of our largely fixed cost base and disciplined control of operating expenses. This translated to group adjusted EBITDA of $26 million in the quarter representing 45% growth year-on-year and 400 basis points of margin expansion to 21%.