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- Genius Sports, which provides real-time sports data, reported overall revenue rose 65% in the second quarter.
- The company is moving beyond supplying data to sportsbooks, as CEO Mark Locke told CNBC it’s now using that information to help advertisers change campaigns based on what is happening during a game.
- It also closed its acquisition of sports and gaming media company Legend in the quarter.
watch nowVIDEO06:25Genius Sports is turning live sports data into an advertising businessCNBC Sport
Genius Sports is broadening its business beyond supplying data to sportsbooks, using its real-time sports information to build a fast-growing media and advertising platform.
The shift was visible when company reported second-quarter results Thursday. Revenue for the company’s betting technology, content and services division increased 28% from a year earlier to $117.4 million, while revenue for its media technology, content and services segment surged 193% to $78.2 million.
The reported media increase reflects the addition of Legend, the sports and gaming media company Genius acquired in a deal that closed May 1, but the company said the legacy Genius media business and Legend each grew organically by more than 20%.
Genius has historically collected official data from sports leagues and sold it to sportsbooks, helping operators set odds and manage in-game betting. CEO Mark Locke told CNBC that the company can now monetize that same data through advertising.
“We’re using the data that we collect to do a better job and generate better ROIs for brands and agencies using our media transaction services,” Locke said.
The company’s Moment Engine uses live sports data to help advertisers change campaigns based on what is happening during a game. Genius said it added 174 customers during the quarter, including McDonald’s, YouTube TV and DoorDash, and plans to extend the product into NFL-related campaigns this season.
Legend added an owned audience of roughly 118 million users, according to the company. That allows Genius to sell advertising against its own media properties and reduce the amount it spends on outside platforms. Genius executives said revenue and integration synergies from the acquisition are arriving faster than expected.
Genius is also extending the model into prediction markets. The company recently announced deals with Kalshi and Polymarket covering official data, integrity services and customer acquisition. Locke said Genius can make money by supplying data used to settle markets, providing pricing services to market makers and helping prediction platforms attract users.
Overall revenue rose 65% in the second quarter to $195.5 million, while adjusted earnings before interest, taxes, depreciation, and amortization increased 54% to $52.6 million. Genius reported a net loss of $76.7 million, which it said largely reflected costs tied to the Legend acquisition.
The company raised its full-year revenue forecast to between roughly $1 billion and $1.03 billion and adjusted EBITDA guidance to between $285 million and $295 million.
Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
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