NEW YORK & LONDON - In a significant shift in its ownership structure, Genius Sports Limited (NYSE:GENI), a prominent data and technology partner for the sports, betting, and media ecosystem, announced today that Apax Partners LLP has divested its entire equity stake in the company.
The Apax Funds, which first invested in Genius Sports in September 2018, have sold all their shares, ending a six-year partnership that supported the company's substantial growth.
During Apax Funds' tenure as a majority stakeholder, Genius Sports experienced transformative expansion, solidifying its position in the market by leveraging advanced technologies such as big data, computer vision, machine learning, and augmented reality. This has enabled Genius Sports to offer immersive products enhancing fan experiences across the sports industry.
Mark Locke, the Co-Founder and CEO of Genius Sports, expressed gratitude for Apax's contribution to the company's journey, stating, "Apax has been a tremendous partner to Genius Sports, and we are grateful for their valuable insight and expertise over the last six years." Locke also indicated enthusiasm for the future, noting the continued support from the company's institutional shareholders.
Genius Sports has established itself as a key player in the sports technology field, partnering with over 400 sports organizations globally, including major leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA, and Liga MX. The company's technology is utilized in more than 150 countries, underscoring its extensive international reach and the scalability of its solutions.
Today's announcement marks the end of a chapter for Genius Sports as it transitions to a new phase without Apax Funds' ownership. The company's focus remains on enriching fan experiences and serving its partners with innovative technology solutions that connect the sports ecosystem from rights holders to fans. This news is based on a press release statement from Genius Sports Limited.
"In other recent news, Genius Sports has reported notable developments. The company exceeded its first-quarter earnings expectations for 2024, with a 23% increase in revenue to $120 million, surpassing the projected $117 million.
Furthermore, the Group adjusted EBITDA also beat forecasts, coming in at $7 million against the expected $6 million. As a result, Genius Sports has raised its revenue and adjusted EBITDA guidance for 2024 to $500 million and $82 million, respectively.
In addition, Genius Sports announced the appointment of Kenneth J. Kay as the new Chair of its Board of Directors, with Claire Valoti joining the Board as an Independent Director. The company also secured a $90 million revolving credit agreement with Citibank and Deutsche Bank (ETR:DBKGn), bolstering its financial flexibility. These recent developments are part of Genius Sports' ongoing growth and expansion efforts."
InvestingPro Insights
In light of the recent developments at Genius Sports Limited (NYSE:GENI), investors may be keen to understand the financial health and market position of the company as it embarks on a new chapter without Apax Funds. According to InvestingPro data, Genius Sports holds a market capitalization of approximately $1.15 billion USD. Despite the company's significant revenue growth over the last twelve months, with an impressive 23.59% increase, it is important to note that Genius Sports is not currently profitable, with an adjusted P/E ratio of -15.59 as of Q1 2024.
One of the key InvestingPro Tips for Genius Sports highlights that the company holds more cash than debt on its balance sheet, which could provide a level of financial stability and flexibility moving forward. Still, another critical point to consider is the company's weak gross profit margins, standing at 16.61% for the same period. This could be a concern for investors looking for sustainable profitability. Moreover, the stock has experienced considerable volatility, and analysts do not expect Genius Sports to be profitable this year.
For those interested in a deeper dive into the company's financials and further strategic insights, InvestingPro offers additional tips that can be accessed at https://www.investing.com/pro/GENI. Currently, there are 5 additional InvestingPro Tips available that could help investors make more informed decisions. To gain access to these tips, users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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