Genius Sports Reports Full-Year Loss Despite Partnerships In US Market

• Even though revenue increased year-on-year, staffing costs were ultimately responsible for much of the new costs of the company.
• Partners of Genius Sports include the NBA, NCAA, and FIBA.
• Genius Sports is a sports data company that also provides services to maintain the integrity of partnered leagues and organizations.

TALLAHASSEE, Fla. – Genius Sports Group, one of the world’s most prominent sports data companies, has reported a loss of $9.5 million for 2018. Ironically enough, the company also saw 23.9% year-on-year growth in revenue for the same 12-month period.

Genius Sports has been actively growing and partnering with major organizations since the start of last year. In May of 2018, the company partnered with the NCAA as part of a transformative statistics initiative.

During that same month, Genius Sports also partnered with NASCAR in order to develop an official NASCAR gaming product to be sold to legal sportsbooks around the world.

One of their biggest partnerships came later in the year when the NBA announced that Genius Sports, along with Sportradar, would have the ability to distribute official league data to sports betting operators in the U.S.

With all of those initiatives comes the need for a larger staff. Staffing costs could be pointed out as one of the leading factors as to why the company reported a loss.

Genius Sports grew from having 669 employees to 901 during the year which resulted in an increase in costs from $28,481,560 to $ 37,932,840. Cost of sales also increased by 52.4% and administrative expenses increased in millions as well.

According to iGamingBusiness, “Loss for the full year stood at 7.6 million pounds ($9,706,720), down from a profit of 4.8 million pounds ($6,130,560) in 2017.”

While this may be alarming to some, Genius Sports is still growing at a rapid pace. In July, the company partnered with The Basketball Tournament (TBT) in order to launch a real-time data-driven fan engagement strategy.

Legal sports betting in the U.S. is also continuously growing, which means that the market for which Genius Sports can sell its data is growing.

Genius also saw an increase in revenue from its operations in the rest of the world. Revenue went up from $25,544,000 to $39,976,360 for the year ending December 31, 2018.

News tags: Genius Sports | NASCAR | NBA | NCAA