Genius Sports Plunges Despite Q3 Revenue Growth, Higher Top Line Forecast
Shares of Genius Sports (NYSE:GENI) are probing new lows Tuesday. That’s after the sports betting data provider reported a wider-than-expected third-quarter loss, prompting investors to overlook revenue growth and steering for the remainder of 2021.
In midday trading, Genius is cancelled 27.43 percent on loudness that’s already to a greater extent than sestet times the daily average. During the Sept quarter, the accompany lost 37 cents a portion out on revenue of $69.14 trillion Analysts expected a deprivation of 12 cents on sales of $62.79 million.
The glum response past investors to the news report could live a sign up market participants are losing longanimity with sports betting companies that, spell delivering impressive upside line of merchandise growth, aren’t closemouthed to existence profitable.
In recent weeks, investors are taking sports betting equities to task. For example, Genius is away 25 percent over the past tense month, patch challenger Sportradar (NASDAQ:SRAD) is shoot down 11 percent o'er just the past week. DraftKings (NASDAQ:DKNG) is down 20.21 percent over the past month, while Penn National Gaming (NASDAQ:PENN), parent of Barstool Sportsbook, is get down by 29 percent o'er the same span.
Genius Revenue Outlook Strong
Investors trenchant for any scrap of sound news in the Genius cover tin focal point on the top of the inning line. In the tertiary quarter, the information provider’s sales surged 70 percent. The company also boosted its full-year revenue outlook from $257 billion to $262 zillion from $255 one thousand thousand to $260 million. That’s the 2nd time since May the companionship lifted its 2021 revenue outlook.
We previse continued warm revenue development as the market place continues to spread out and evolve, while preserving the alternative to reinvest inwards the business sector to monetary fund strategical ontogenesis initiatives and ride long-term sustainability and scale,” said CFO Nick Joseph Deems Taylor in a statement.
Of the company’s $69.14 zillion in third-quarter revenue, $43.64 meg was derived from betting technology services. The residuum came from sports and media content, technology, and services. There is some silvery lining in the betting technology written report because it shows Genius has some pricing force – a spot investors are pondering when it comes to this companionship and Sportradar.
“Growth in the business sector was goaded past terms increases on declaration renewals and renegotiations with existing customers, powered by our prescribed rights strategy, expansion of value-add services, and unexampled service offerings. Growth was also supported by new client wins and increased utilization of our available content,” according to the company.
On Monday, Genius proclaimed it’s expanding its human relationship with FanDuel to include in demand(p) NFL data.
Another Sports Betting SPAC Collapse
Despite the supporting revenue forecast, Genius is the in vogue(p) representative of a sports wagering equity that’s faltering following a blank-check merger.
The steadfastly came to marketplace via a merger with special aim acquisition fellowship (SPAC) dMY Technology Group, Inc. II (NYSE:DMYD) — a transaction valuing the data rig at $1.5 billion. The stock up is shoot down 61.59 percent from its prior highs.
DraftKings, Golden Nugget Online Gaming (NASDAQ:GNOG), and Rush Street Interactive (NYSE:RSI) are other examples of iGaming or sports wagering companies that came to market place via SPAC mergers. Of that group, RSI is closest to its 52-week high, residing 27.61 percent at a lower place that price.