I believe Genius Sports (GENI) could be a 5-10X stock in 2-5 years depending on market conditions and business execution. Prominent investors include Cathie Wood 😀 (Her cost basis is almost triple from current level, so its bargain at price of $6.53.
1.3 Bn valuation 5x of revenue (Q3 growth 70% YOY)
About:
Genius Sports is the official data, technology and commercial partner that powers the global ecosystem connecting sports, betting and media. We are a global leader in digital sports content, technology and integrity services. Our technology is used in over 150 countries worldwide, empowering sports to capture, manage and distribute their live data and video, driving their digital transformation and enhancing their relationships with fans.
Uniquely placed through cutting-edge technology, scale and global reach to support our partners, we are trusted by over 400 sports organisations globally, including many of the world’s largest leagues and federations such as the NFL, NBA, English Premier League, NCAA, NASCAR, PGA, AFA, and FIBA.
Partners:
Recent Q3 2023 Earning Highlights:
- Genius Sports Reports 70% Third Quarter Revenue Growth and Raises 2023 Revenue Guidance
- Delivered record high Q3 revenue of $69.1m, growing over 70% year-over-year
- Announced strategic partnerships with Entain/BetMGM, FanDuel, Golden Nugget, Hard Rock Digital, Penn/Barstool Sportsbook, and PointsBet, in addition to Caesars, DraftKings, WynnBet, and 888/SI Sportsbook, to provide our full range NFL-related products.
- Over 97% of the U.S. market now using NFL data exclusively through Genius
- Increasing 2023 Group Revenue guidance from $255-$260m to $257-$262m, equating to over 70% year-on-year growth at the midpoint
GENI is the backbone/infrastructure play on sports betting since they supply the data that major gambling companies use. GENI offers a suite of four products:
Genius Live: this is a vertically integrated video service that allows teams or sports leagues to launch something like League Pass so the platform supports payments, live statistics, advertising, live streaming, and video on-demand, without having to buy a bunch of extra software/hardware.
Sport tech: Data capture, management and analysis tools that help leagues run their sport, unlock new revenue streams, and protect the integrity of their competitions. This is essentially what turned Facebook into a company with revenues of over $10B a year. GENI collects all the data from degenerate bets, and provides the information gathered from them to their partners for future use.
Sportsbook: GENI provides the capability (but not requirement) to build out an entire sportsbook platform for their partners. This provides all the benefits of having a sportsbook with none of the risk of spending capital on a field GENI partners are unfamiliar with.
Media & Engagement: GENI has the platform capabilities to allow their partners sports betting experience to enter into the world of social media. You can chat in real time with other sports betters. Through this platform GENI can leverage their fan engagement capabilities to drive advertising revenue and also promote future bets that may be to your liking based on your prior activity.
New management on-board:
Genius Sports Hires Steven Bornstein (THE MASTERMIND behind ESPN and NFL CEO) as President of North American Operations.
According to GENI’s press release: As the head of the North American operations, Mr. Bornstein will optimise Genius Sports’ regional business infrastructure to position the company for accelerated growth in existing and new areas, including streaming. This will include the sourcing and unlocking of value with new and existing sports partners including the NFL, NCAA, NASCAR, and MLB. Additionally, Mr Bornstein will work closely with the executive team to identify innovative and revenue accretive acquisition targets.
“I look at Genius Sports, and I see ESPN in 1981 or 1982,” said Bornstein. “Your destiny wasn’t clear at the point, but you were able to influence it.”
Before Steve’s hire, GENI secured an exclusive 6 years rights deal with the NFL. Since Bornstein’s tenure, deals have been closed with most of the major sportsbooks and the rest should be completed in the near future.
NFL GROWS OVER LEAPS AND BOUNDS
In January 2003, Bornstein was named CEO of NFL Network and Executive Vice President of Media
“Steve certainly left a lasting impact on the NFL,” says NFL Commissioner Roger Goodell. “He launched the NFL Network and drove it to full distribution, but he did a lot more, He built out our entire media operation, which is very complex and includes all of our digital assets, and he was a key strategist in our television negotiations and sponsorship agreements.”
November 2003 the NFL Network was launched
Within 58 days they became the youngest network ever to win a Sports Emmy
In 2006 Bornstein presided over the first season of games on the NFL Network
Ultimately, Bornstein would bring the leagues internet and mobile assets in-house and help build NFL Media into a collection of league-owned media assets including NFL Network, NFL.com, NFL Mobile, NFL RedZone, NFL Now, and NFL Films along with the NFL’s social media platforms
After leaving the NFL, he went on to chase the next big market: esports. In May 2023, Gamestop launched their esports Twitter Account but please remember, Steven Bornstein was on it first
Final Take:
Genius Sports is pick & shovel play of a rapidly growing sports gambling segment. Steve Bornstein is going to create value and help foster growth. Everything this guy touches turns into gold.
Reports are coming in about sports betting record level growth https://www.axios.com/sports-betting-record-month-new-york-864df462-08ab-439a-bd5d-03191c801a9b.html
Sports betting is in its infancy stages where states like Texas (with the most valuable sports franchise in North America: Dallas Cowboys at $1.6b) haven’t even legalised sports gambling.
This is not pump post or financial advice.
I’ve been trading spacs since 2020 boom and made millions. Now I’m focusing on long term investment in growth companies that are down 50-75% from their high. I took profit from most spacs as I knew those level were not sustainable but now I do see great long term investment in some of quality growth company so starting some positions in coming weeks.
This post was written by u/fitmoney2020.
