UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
November 12, 2024
Commission File Number: 001-40352
Genius Sports Limited
(Translation of registrant’s name into English)
Genius Sports Group
1st Floor, 27 Soho Square,
London, W1D 3QR
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K
On November 12, 2024, Genius Sports Limited (the “Company”) issued an interim report for the three and nine months ended September 30, 2024. A copy of the interim report is attached hereto as Exhibit 99.1. The information contained in Exhibit 99.1 is incorporated by reference into the Company’s registration statements on Form F-3 (File No: 333-265466 and 333-279227) and on Form S-8 (File Nos: 333-264254, 333-266904, 333-269093 and 333-278001).
In addition, on November 12, 2024, the Company issued a press release announcing the third quarter 2024 financial results for the Company. A copy of the press release is attached hereto as Exhibit 99.2.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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GENIUS SPORTS LIMITED |
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Date: November 12, 2024 |
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By: |
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/s/ Mark Locke |
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Name: |
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Mark Locke |
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Title: |
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Chief Executive Officer |
Exhibit 99.1
PRELIMINARY NOTE
The unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2024 included herein, have been prepared in accordance with accounting principles accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, with the exception of certain note disclosures, which have been omitted. The condensed consolidated financial statements are presented in United States Dollars (“USD”). All references in this interim report to “$,” and “US dollars” mean US dollars and all references to “£” and “GBP” mean British Pounds Sterling, unless otherwise noted.
This interim report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains or may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify the forward-looking statements. The risk factors and cautionary language referred to or incorporated by reference in this Report provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described in our forward-looking statements, including among other things, the items identified in the section entitled “Risk Factors” of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 (“2023 20-F”), as filed with the SEC on March 15, 2024.
Genius Sports Limited
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
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(Unaudited) |
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September 30, |
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December 31, |
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2024 |
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2023 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
42,314 |
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$ |
100,331 |
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Restricted cash, current |
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|
26,761 |
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|
|
— |
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Accounts receivable, net |
|
|
73,033 |
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|
|
71,088 |
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Contract assets |
|
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49,924 |
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|
38,802 |
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Prepaid expenses |
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25,998 |
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|
27,231 |
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Other current assets |
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6,351 |
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|
|
7,329 |
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Total current assets |
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224,381 |
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|
244,781 |
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Property and equipment, net |
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|
16,857 |
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|
11,552 |
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Intangible assets, net |
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115,131 |
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|
129,670 |
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Operating lease right of use assets |
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|
8,075 |
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|
|
7,011 |
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Goodwill |
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|
326,011 |
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|
326,011 |
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Investments |
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30,736 |
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|
26,399 |
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Restricted cash, non-current |
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— |
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25,462 |
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Other assets |
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3,687 |
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|
|
4,838 |
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Total assets |
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$ |
724,878 |
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$ |
775,724 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
26,409 |
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$ |
57,379 |
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Accrued expenses |
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67,813 |
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56,331 |
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Deferred revenue |
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40,299 |
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44,345 |
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Current debt |
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23 |
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7,573 |
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Operating lease liabilities, current |
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3,238 |
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|
3,610 |
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Other current liabilities |
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11,312 |
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|
13,676 |
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Total current liabilities |
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149,094 |
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182,914 |
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Long-term debt – less current portion |
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4 |
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19 |
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Deferred tax liability |
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15,623 |
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15,335 |
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Operating lease liabilities, non-current |
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4,892 |
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|
3,501 |
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Other liabilities |
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— |
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|
936 |
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Total liabilities |
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169,613 |
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202,705 |
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Commitments and contingencies (Note 16) |
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Shareholders’ equity |
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Common stock, $0.01 par value, unlimited shares authorized, 215,245,703 shares issued and 211,139,755 shares outstanding at September 30, 2024; unlimited shares authorized, 213,224,868 shares issued and 209,118,920 shares outstanding at December 31, 2023 |
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2,152 |
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2,132 |
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B Shares, $0.0001 par value, 22,500,000 shares authorized, 18,500,000 shares issued and outstanding at September 30, 2024 and December 31, 2023 |
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2 |
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2 |
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Additional paid-in capital |
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1,678,736 |
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1,646,082 |
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Treasury stock, at cost, 4,105,948 shares at September 30, 2024 and December 31, 2023 |
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(17,653 |
) |
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|
(17,653 |
) |
Accumulated deficit |
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(1,059,315 |
) |
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(1,024,487 |
) |
Accumulated other comprehensive loss |
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(48,657 |
) |
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(33,057 |
) |
Total shareholders’ equity |
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555,265 |
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|
573,019 |
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Total liabilities and shareholders’ equity |
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$ |
724,878 |
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$ |
775,724 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
Genius Sports Limited
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except share and per share data)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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$ |
120,198 |
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$ |
101,729 |
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$ |
335,363 |
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$ |
285,805 |
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Cost of revenue |
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80,116 |
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|
77,446 |
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254,106 |
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|
227,316 |
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Gross profit |
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40,082 |
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24,283 |
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81,257 |
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58,489 |
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Operating expenses: |
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Sales and marketing |
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9,455 |
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5,827 |
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27,531 |
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19,807 |
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Research and development |
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5,848 |
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6,115 |
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19,683 |
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18,196 |
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General and administrative |
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30,403 |
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20,399 |
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82,855 |
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|
58,091 |
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Transaction expenses |
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432 |
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|
832 |
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2,524 |
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|
2,156 |
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Total operating expense |
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46,138 |
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33,173 |
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132,593 |
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|
98,250 |
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Loss from operations |
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(6,056 |
) |
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(8,890 |
) |
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(51,336 |
) |
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|
(39,761 |
) |
Interest (expense) income, net |
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(13 |
) |
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|
1,157 |
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|
1,001 |
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|
1,373 |
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Gain (loss) on disposal of assets |
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1 |
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(10 |
) |
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(18 |
) |
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|
(32 |
) |
Gain (loss) on fair value remeasurement of contingent consideration |
|
|
— |
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|
|
— |
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|
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— |
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|
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(2,809 |
) |
Change in fair value of derivative warrant liabilities |
|
|
— |
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|
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— |
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|
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— |
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|
|
(534 |
) |
Gain (loss) on foreign currency |
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|
21,099 |
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(4,210 |
) |
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|
17,190 |
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|
|
(1,913 |
) |
Total other income (expense) |
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|
21,087 |
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|
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(3,063 |
) |
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|
18,173 |
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|
|
(3,915 |
) |
Income (loss) before income taxes |
|
|
15,031 |
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|
|
(11,953 |
) |
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|
(33,163 |
) |
|
|
(43,676 |
) |
Income tax expense |
|
|
(4,618 |
) |
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|
(1,163 |
) |
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|
(4,404 |
) |
|
|
(5,763 |
) |
Gain from equity method investment |
|
|
2,092 |
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|
|
1,500 |
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|
|
2,739 |
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|
|
2,357 |
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Net income (loss) |
|
$ |
12,505 |
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|
$ |
(11,616 |
) |
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$ |
(34,828 |
) |
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$ |
(47,082 |
) |
Earnings (loss) per share attributable to common stockholders: |
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Basic |
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$ |
0.05 |
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|
$ |
(0.05 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.21 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.21 |
) |
Weighted average common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
|
229,588,604 |
|
|
|
227,257,564 |
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|
|
229,460,263 |
|
|
|
225,343,728 |
|
Diluted |
|
|
233,730,434 |
|
|
|
227,257,564 |
|
|
|
229,460,263 |
|
|
|
225,343,728 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
Genius Sports Limited
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)
(Amounts in thousands)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income (loss) |
|
$ |
12,505 |
|
|
$ |
(11,616 |
) |
|
$ |
(34,828 |
) |
|
$ |
(47,082 |
) |
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(18,488 |
) |
|
|
(17,266 |
) |
|
|
(15,600 |
) |
|
|
4,033 |
|
Comprehensive loss |
|
$ |
(5,983 |
) |
|
$ |
(28,882 |
) |
|
$ |
(50,428 |
) |
|
$ |
(43,049 |
) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Genius Sports Limited
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(Amounts in thousands, except share data)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock |
|
|
Amounts |
|
|
B Shares |
|
|
Amounts |
|
|
Additional
Paid-in
Capital |
|
|
Treasury
Stock |
|
|
Amounts |
|
|
Accumulated
Deficit |
|
|
Accumulated
Other
Comprehensive
Loss |
|
|
Total
Shareholders’
Equity |
|
Balance at January 1, 2024 |
|
|
213,224,868 |
|
|
$ |
2,132 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,646,082 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(1,024,487 |
) |
|
$ |
(33,057 |
) |
|
$ |
573,019 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,541 |
) |
|
|
— |
|
|
|
(25,541 |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,712 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,712 |
|
Vesting of shares |
|
|
1,797,493 |
|
|
|
18 |
|
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,656 |
) |
|
|
(3,656 |
) |
Balance at March 31, 2024 |
|
|
215,022,361 |
|
|
$ |
2,150 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,652,776 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(1,050,028 |
) |
|
$ |
(36,713 |
) |
|
$ |
550,534 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,792 |
) |
|
|
— |
|
|
|
(21,792 |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,100 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,100 |
|
Vesting of shares |
|
|
78,451 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,544 |
|
|
|
6,544 |
|
Balance at June 30, 2024 |
|
|
215,100,812 |
|
|
$ |
2,151 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,669,875 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(1,071,820 |
) |
|
$ |
(30,169 |
) |
|
$ |
552,386 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,505 |
|
|
|
— |
|
|
|
12,505 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,862 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,862 |
|
Vesting of shares |
|
|
144,891 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,488 |
) |
|
|
(18,488 |
) |
Balance at September 30, 2024 |
|
|
215,245,703 |
|
|
$ |
2,152 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,678,736 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(1,059,315 |
) |
|
$ |
(48,657 |
) |
|
$ |
555,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock |
|
|
Amounts |
|
|
B Shares |
|
|
Amounts |
|
|
Additional
Paid-in
Capital |
|
|
Treasury
Stock |
|
|
Amounts |
|
|
Accumulated
Deficit |
|
|
Accumulated
Other
Comprehensive
Loss |
|
|
Total
Shareholders’
Equity |
|
Balance at January 1, 2023 |
|
|
201,853,695 |
|
|
$ |
2,019 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,568,917 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
(938,953 |
) |
|
$ |
(55,169 |
) |
|
$ |
576,816 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,168 |
) |
|
|
— |
|
|
|
(25,168 |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,543 |
|
Vesting of shares |
|
|
953,117 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Issuance of common stock in connection with business combinations |
|
|
1,677,920 |
|
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
8,423 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,440 |
|
Issuance (acquisition) of common shares in connection with warrant redemptions |
|
|
7,668,280 |
|
|
|
76 |
|
|
|
— |
|
|
|
— |
|
|
|
31,877 |
|
|
|
(4,105,948 |
) |
|
|
(17,653 |
) |
|
|
— |
|
|
|
— |
|
|
|
14,300 |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,968 |
|
|
|
8,968 |
|
Balance at March 31, 2023 |
|
|
212,153,012 |
|
|
$ |
2,122 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,619,750 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(964,121 |
) |
|
$ |
(46,201 |
) |
|
$ |
593,899 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,298 |
) |
|
|
— |
|
|
|
(10,298 |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,614 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,614 |
|
Vesting of shares |
|
|
187,313 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Issuance of common stock in connection with business combinations |
|
|
385,777 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
1,713 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,717 |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,331 |
|
|
|
12,331 |
|
Balance at June 30, 2023 |
|
|
212,726,102 |
|
|
$ |
2,127 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,625,076 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(974,419 |
) |
|
$ |
(33,870 |
) |
|
$ |
601,263 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,616 |
) |
|
|
— |
|
|
|
(11,616 |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,059 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,059 |
|
Vesting of shares |
|
|
301,300 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,266 |
) |
|
|
(17,266 |
) |
Balance at September 30, 2023 |
|
|
213,027,402 |
|
|
$ |
2,130 |
|
|
|
18,500,000 |
|
|
$ |
2 |
|
|
$ |
1,630,132 |
|
|
|
(4,105,948 |
) |
|
$ |
(17,653 |
) |
|
$ |
(986,035 |
) |
|
$ |
(51,136 |
) |
|
$ |
577,440 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
Genius Sports Limited
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
Cash Flows from operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(34,828 |
) |
|
$ |
(47,082 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
57,208 |
|
|
|
53,025 |
|
Loss on disposal of assets |
|
|
18 |
|
|
|
32 |
|
Loss on fair value remeasurement of contingent consideration |
|
|
— |
|
|
|
2,809 |
|
Stock-based compensation |
|
|
32,955 |
|
|
|
19,248 |
|
Change in fair value of derivative warrant liabilities |
|
|
— |
|
|
|
534 |
|
Non-cash interest expense, net |
|
|
— |
|
|
|
187 |
|
Non-cash lease expense |
|
|
3,431 |
|
|
|
2,941 |
|
Amortization of contract cost |
|
|
939 |
|
|
|
743 |
|
Deferred income taxes |
|
|
— |
|
|
|
710 |
|
Allowance for expected credit losses |
|
|
(122 |
) |
|
|
1,441 |
|
Gain from equity method investment |
|
|
(2,739 |
) |
|
|
(2,357 |
) |
(Gain) loss on foreign currency remeasurement |
|
|
(16,940 |
) |
|
|
1,224 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
Accounts receivable |
|
|
(3,933 |
) |
|
|
(32,285 |
) |
Contract assets |
|
|
(11,122 |
) |
|
|
(4,555 |
) |
Prepaid expenses |
|
|
1,233 |
|
|
|
(22,056 |
) |
Other current assets |
|
|
2,480 |
|
|
|
562 |
|
Other assets |
|
|
(1,287 |
) |
|
|
1,547 |
|
Accounts payable |
|
|
(30,970 |
) |
|
|
10,529 |
|
Accrued expenses |
|
|
11,482 |
|
|
|
8,767 |
|
Deferred revenue |
|
|
(5,485 |
) |
|
|
(268 |
) |
Other current liabilities |
|
|
(3,579 |
) |
|
|
(1,865 |
) |
Operating lease liabilities |
|
|
(3,516 |
) |
|
|
(2,982 |
) |
Net cash used in operating activities |
|
|
(4,775 |
) |
|
|
(9,151 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(9,446 |
) |
|
|
(2,480 |
) |
Capitalization of internally developed software costs |
|
|
(38,110 |
) |
|
|
(33,004 |
) |
Distributions from equity method investments |
|
|
1,561 |
|
|
|
1,555 |
|
Purchases of intangible assets |
|
|
— |
|
|
|
(240 |
) |
Proceeds from disposal of assets |
|
|
10 |
|
|
|
53 |
|
Net cash used in investing activities |
|
|
(45,985 |
) |
|
|
(34,116 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Repayment of loans and mortgage |
|
|
(16 |
) |
|
|
(16 |
) |
Proceeds from exercise of Public Warrants |
|
|
— |
|
|
|
6,812 |
|
Repayment of promissory notes |
|
|
(7,575 |
) |
|
|
(7,387 |
) |
Net cash used in financing activities |
|
|
(7,591 |
) |
|
|
(591 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
1,633 |
|
|
|
1,229 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(56,718 |
) |
|
|
(42,629 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
125,793 |
|
|
|
159,020 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
69,075 |
|
|
$ |
116,391 |
|
Supplemental disclosure of cash activities: |
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
579 |
|
|
$ |
3 |
|
Cash paid during the period for income taxes |
|
$ |
1,596 |
|
|
$ |
4,132 |
|
Supplemental disclosure of noncash investing and financing activities: |
|
|
|
|
|
|
Acquisition of common shares by subsidiary in connection with warrant redemptions |
|
$ |
— |
|
|
$ |
17,653 |
|
Issuance of common stock in connection with business combinations |
|
$ |
— |
|
|
$ |
10,157 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Genius Sports Limited (the “Company” or “Genius”) is a non-cellular company limited by shares incorporated on October 21, 2020 under the laws of Guernsey. The Company was formed for the purpose of effectuating a merger pursuant to a definitive business combination agreement (“Business Combination Agreement”), dated October 27, 2020, by and among dMY Technology Group, Inc. II (“dMY”), Maven Topco Limited (“Maven Topco”), Maven Midco Limited, Galileo NewCo Limited, Genius Merger Sub, Inc., and dMY Sponsor II, LLC (the “Merger”). Upon the closing of the Merger on April 20, 2021 (the “Closing”), the Company changed its name from Galileo NewCo Limited to Genius Sports Limited. The Company’s ordinary shares are currently listed on the New York Stock Exchange (“NYSE”) under the symbol “GENI”.
The Company is a provider of scalable, technology-led products and services to the sports, sports betting, and sports media industries. The Company is a data and technology company that enables consumer-facing businesses such as sports leagues, sportsbook operators and media companies to engage with their customers. The scope of the Company’s software bridges the entire sports data journey, from intuitive applications that enable accurate real-time data capture, to the creation and provision of in-game betting odds and digital content that helps the Company’s customers create engaging experiences for the ultimate end-users, who are primarily sports fans.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements are presented in conformity with US GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, with the exception of certain note disclosures, which have been omitted and therefore these financial statements do not include all information that would be provided if prepared in accordance with US GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes thereto included in our 2023 20-F as filed with the SEC on March 15, 2024. The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements of the Company as of that date.
The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of September 30, 2024, its results of operations, comprehensive loss and shareholders’ equity for the three and nine months ended September 30, 2024 and 2023, and its cash flows for the nine months ended September 30, 2024 and 2023. The results of the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ended December 31, 2024 or for any interim period or for any other future year.
The condensed consolidated financial statements include the accounts and operations of the Company, inclusive of its wholly-owned subsidiaries.
All significant intercompany balances and transactions have been eliminated in consolidation.
Functional Currency
Due to the change in the primary economic environment in which the Company operates in, the Company reassessed its functional currency in 2024. As a result, the Company determined that the functional currency of the Company changed from GBP to USD. The change in functional currency was accounted for prospectively from January 1, 2024 in accordance with ASC 830, Foreign Currency Matters, and consolidated financial statements prior to and including the period ended December 31, 2023 were not restated for the change in functional currency.
Transactions denominated in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate in effect on the date of the transactions. At each consolidated balance sheet date, monetary assets and liabilities denominated in currencies other than the functional currency are remeasured using the exchange rate in effect at that date. Non-monetary assets and liabilities and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the dates of the respective transactions. Any gains or losses arising on remeasurement are included in the condensed consolidated statements of operations within gain (loss) on foreign currency.
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Reclassifications
Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. There is no change to the Company’s historical revenues, operating expenses or net loss, nor any change to any balance sheet account, the Company’s liquidity, or cash flows in any period.
Revisions to Previously Issued Financial Statements
During the fourth quarter of fiscal year 2023, management identified a misstatement related to the omission of the impact of vested warrants on the calculation of basic and diluted weighted average common stock outstanding and thus impacting loss per share. The Company assessed the materiality of these misstatements on prior period financial statements in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification (“ASC”) 250, Presentation of Financial Statements, and concluded that these misstatements were not material to any prior annual or interim period.
The Company revised the calculation of weighted average common stock outstanding for the three months ended September 30, 2023 to include the impact of vested warrants and adjusted loss per share from $(0.06) to $(0.05). The Company revised the calculation of weighted average common stock outstanding for the nine months ended September 30, 2023 to include the impact of vested warrants and adjusted loss per share from $(0.23) to $(0.21). See Note 11 – Earnings (Loss) Per Share. There is no change to the Company’s historical revenues, operating expenses or net loss, nor any change to any balance sheet account, the Company’s liquidity, or cash flows in any period.
Revenue Recognition
ASC 606 requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires more detailed disclosures to enable readers of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company determines revenue recognition through the following steps:
•Identify the contract, or contracts, with the customer;
•Identify the performance obligations in the contract;
•Determine the transaction price;
•Allocate the transaction price to performance obligations in the contract; and
•Recognize revenue when, or as, the Company satisfies performance obligations by transferring the promised goods or services.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company primarily recognizes revenue from the delivery of products and services to customers in connection with the major product lines described below.
Nature of Products and Services
Betting Technology, Content and Services
The Company primarily provides official sports data for in-game and pre-match betting, outsourced trading and risk management services through the Company’s proprietary sportsbook platform to sportsbook operators. Customers access the Company’s sportsbook platform and associated services through the cloud in a hosting service over the contract term. Customers do not take possession of the software. The Company stands ready to provide official sports data and services on a continuous basis through the platform over the contract term.
In conjunction with the platform, the Company also provides customers with software updates to its sportsbook platform and technical support. These services are provided to customers on a continuous basis over the contract term, and therefore, revenue is recognized on a consistent basis with the platform hosting service.
Customers contract for the platform either under fixed fee or profit share arrangements. In fixed fee arrangements customers generally pay a fixed price for access to the official data and services platform. The fixed fee covers a minimum number of sporting events, and
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
customers pay overages for events above the minimum. Payments are generally made either quarterly or monthly in advance. For overages, the Company estimates these amounts as variable consideration and applies the constraint to the extent it is probable there will be a significant reversal of cumulative revenue. The Company uses a time-elapsed measure of progress to recognize revenue as the Company provides access to the platform over the contract term.
In profit share arrangements, the Company generates revenues based on a percentage of sportsbook operator profits. These arrangements generally do not specify a minimum number of sporting events. The Company generally invoices for these arrangements monthly in arrears. Variable consideration is allocated to distinct time increments of the service and recognized over the contract term as the Company satisfies each time increment of the service. Certain profit share arrangements also contain fixed fees but no minimum number of sporting events. In these contracts, the Company recognizes the fixed fees as revenue using a time-elapsed measure of progress to recognize revenue as the Company provides access to the platform over the contract term.
Media Technology, Content and Services
Media Technology
The Company primarily provides advertising services to sports leagues and federations, along with sportsbook operators, and other global brands in the sports ecosystem. These services generally include personalized online marketing campaigns in which the Company, through its cloud-based marketing platform, uses real-time sports data to identify target audiences, manages the acquisition of digital advertising space, and transmits advertisements on behalf of its customers.
The services are generally provided over a contract term of one year or less. The arrangements contain fixed fees, which are generally prepaid by customers. Revenue is recognized over time as the services are performed using an input method based on costs to secure advertising space. The Company is the principal in these arrangements as it is primarily responsible for delivering the advertisements, and bears inventory risk; therefore, revenue is presented gross.
Creative Video Marketing
The Company provides customers with data driven video marketing capabilities through a creative performance platform. Customers generally access the Company’s SaaS creative performance platform through a fixed fee annual license model. Customers do not take possession of the platform’s underlying software. Revenue is recognized over time as the Company stands ready to provide access to the platform on a continuous basis over the contract term.
Customers may also choose to engage the Company and leverage the creative performance platform to create bespoke, scalable video marketing assets for campaigns. Campaigns are short-term in nature, covering a period of one year or less. Customers do not receive access to the platform, instead, taking control of the video marketing assets created by the Company upon delivery and acceptance. The Company recognizes revenue at the point in time at which control of the video marketing assets transfers to the customer.
Fan Engagement
The Company provides customers with a suite of technology solutions for digital fan engagement products and free to play (“F2P”) games. Customers subscribe to the products through a fixed fee annual license model, subject to certain variable components. The customers do not take possession of the products and F2P games as they are accessed through a hosted service over a specified number of events or defined sporting season. Revenue is recognized over-time on a straight-line basis as customers receive and consume benefit of the products and F2P over the course of the number of events or defined sporting season.
Sports Technology and Services
Sports Technology
The Company provides technology that enables sports leagues and federations to capture, manage, and distribute their official sports data, along with other tools and services and updates and technical support. These software solutions are tailored for specific sports. Customers access the Company’s sports technology through the cloud in a hosting environment over the contract term. Customers typically do not have the ability take possession of the software. Depending on the service, the Company either stands ready to provide the hosting service on a continuous basis over the contract term or offers the hosting service for a specified number of events or defined sporting season.
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
In connection with these hosting services, the Company primarily receives noncash consideration in the form of official sports data and streaming rights, along with other rights. The Company expenses the data and streaming rights in costs of revenue as “data and streaming rights”, which fully offsets the revenue recognized from the noncash consideration (i.e., the official sports leagues data and streaming rights) in the Sports Technology and Services agreements. Because there is not a readily determinable fair value for these unique data rights, the Company estimates the fair value of noncash consideration by reference to the estimated standalone selling price of the services promised to the customer maximizing the use of observable inputs. Revenue is recognized either ratably over the contract term or as the services are provided by event or season, depending on the nature of the performance obligation.
In conjunction with the hosting service, the Company also provides customers with software updates and technical support. Revenue is recognized for the services on a consistent basis with the hosted service.
The Company also provides sports leagues and federations with integrity services inclusive of active bet monitoring solutions that flag suspicious betting activity, along with educational and other consultancy services. These services are often bundled in arrangements for other Sports Technology and Services where the Company receives noncash consideration. However, integrity services are also sold on a standalone basis in fixed fee arrangements. Revenue is recognized either ratably over the contract term or as the services are provided, depending on the nature of the performance obligation.
Tracking, Analytics and Video Augmentation
The Company provides sports teams and leagues with player tracking systems that capture and produce fast and accurate location data used to power new ways to understand, evaluate, improve and create content for their game. Customers generally contract for the combined output of the tracking service and the tracking data platform under a fixed fee arrangement. Customers access the Company’s tracking data platform through the cloud in a hosting service over the contract term. Customers do not take possession of the underlying software for the tracking data platform. The Company stands ready to provide tracking services and access to the tracking data platform on a continuous basis through the hosted service over the contract term. The tracking equipment is generally leased to customers in an operating lease arrangement, with equipment rental income accounted for under the scope of ASC 842 Leases rather than the ASC 606. Equipment rental income, if material, is disclosed separately as other revenue in Note 2 – Revenue.
Sports teams and leagues can purchase access to separate data analytics programs through a fixed fee annual license model. Customers access the Company’s data analytics programs through the cloud in a hosting service over the contract term. Customers do not take possession of the underlying software in the data analytics programs. The Company stands ready to provide access to the data analytics programs on a continuous basis over the contract term.
The Company provides sports leagues and media partners with real-time video augmentation services that allow for the production of informative and visually appealing content to drive fan engagement. Customers generally agree a fixed fee and a fixed number of matches for which augmented video streams will be provided. The video augmentation services are generally provided over a contract term of one year or less. Revenue is recognized over time using an output method based on video augmentations delivered.
Other Policies, Judgments, and Practical Expedients
Arrangements with Multiple Performance Obligations
The Company’s contracts for Betting Technology, Content and Services and Sports Technology and Services often involve multiple performance obligations. For these contracts, the Company applies judgment and accounts for individual goods or services separately if the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling price of goods or services based on an observable standalone selling price when it is available, as well as other factors, including standalone sales of similar goods or services, cost plus a reasonable margin, the price charged to customers, discounting practices, and overall pricing objectives, while maximizing observable inputs.
Significant Financing Components
In certain contracts, the Company receives payment from a customer either before or after the performance obligation has been satisfied. In these instances where the timing of revenue recognition differs from the timing of payment, the expected timing difference between payment and satisfaction of performance obligations for the Company’s contracts is generally one year or less; therefore, the
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Company applies a practical expedient and does not consider the effects of the time value of money. Any other differences between receipt of payment and satisfaction of performance obligations do not include a significant financing component because the primary purpose is not to receive or provide financing to customers.
Contract Modifications
The Company may modify contracts to offer customers additional goods or services. Each of the additional goods and services are generally considered distinct from those goods or services transferred to the customer before the modification. The Company evaluates whether the contract price for the additional goods and services reflects the standalone selling price as adjusted for facts and circumstances applicable to that contract. In these cases, the Company accounts for the additional goods or services as a separate contract. In other cases where the pricing in the modification does not reflect the standalone selling price as adjusted for facts and circumstances applicable to that contract, the Company accounts on a prospective basis where the remaining goods and services are distinct from the original items and on a cumulative catch-up basis when the remaining goods and services are not distinct from the original items.
Judgments and Estimates
The Company applies judgment in determining whether it is the principal or agent in providing products and services to customers, particularly for Media Technology services. The Company generally controls all products and services before transfer to customers as the Company is primarily responsible to deliver the products and services to customers, bears inventory risk, and has discretion in establishing prices.
Accounting for contracts recognized over time under ASC 606 involves the use of various techniques to estimate total contract revenue and costs. Due to uncertainties inherent in the estimation process, it is possible that estimates of variable consideration or costs to complete a performance obligation will be revised in the near-term. The Company reviews and updates its contract-related estimates, and records adjustments as needed.
In fixed fee Betting Technology, Content and Services arrangements the Company applies the expected value method to estimate variable consideration in the contract, primarily factoring its historical experience with similar contract-types and customer relationships, along with expected market activity and customer forecasts. In applying the constraint, the Company considers susceptibility of variable consideration to factors outside the Company’s control (i.e., market volatility and actions by customers). Additionally, the Company considers historical experience with similar contract types and customer relationships, as well as the broad range of possible consideration amounts associated with overages for a given customer contract.
For fixed fee Betting Technology, Content and Services arrangements with variable consideration associated with overages, the Company records a cumulative-effect adjustment to adjust revenue recognized to date when there are constraint changes that impact the Company’s estimate of the transaction price. For those performance obligations for which revenue is recognized using an input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. The impact of application of catch-up adjustments were immaterial in the periods presented.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09, which is intended to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. ASU 2023-09 is effective for the Company beginning January 1, 2025, with early adoption permitted. The Company is currently in the process of evaluating the effects of this pronouncement on the Company’s consolidated financial statements and does not expect it to have a material impact on the consolidated financial statements.
There are no other accounting pronouncements that are not yet effective and that are expected to have a material impact to the condensed consolidated financial statements.
Recently Adopted Accounting Guidance
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which is intended to improve the accounting for acquired revenue contracts with customers in a business combination. ASU 2021-08 is effective for the Company beginning January 1, 2024, with early adoption permitted. The Company
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
adopted ASU 2021-08 on January 1, 2024. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for the Company for the annual reporting period beginning January 1, 2024 and interim periods after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 on January 1, 2024. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.
Note 2. Revenue
Disaggregation of Revenues
Revenue by Major Product Line
The Company’s product offerings primarily deliver a service to a customer satisfied over time, and not at a point in time. Revenue for the Company’s major product lines consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue by Product Line |
|
|
|
|
|
|
|
|
|
|
|
|
Betting Technology, Content and Services |
|
$ |
85,625 |
|
|
$ |
65,927 |
|
|
$ |
226,646 |
|
|
$ |
187,529 |
|
Media Technology, Content and Services |
|
|
22,126 |
|
|
|
22,938 |
|
|
|
75,554 |
|
|
|
63,059 |
|
Sports Technology and Services |
|
|
12,447 |
|
|
|
12,864 |
|
|
|
33,163 |
|
|
|
35,217 |
|
Total |
|
$ |
120,198 |
|
|
$ |
101,729 |
|
|
$ |
335,363 |
|
|
$ |
285,805 |
|
Revenue by Geographic Market
Geographical regions are determined based on the region in which the customer is headquartered or domiciled. Revenues by geographical market consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue by geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
$ |
68,365 |
|
|
$ |
56,211 |
|
|
$ |
182,055 |
|
|
$ |
163,973 |
|
Americas |
|
|
43,782 |
|
|
|
37,781 |
|
|
|
131,929 |
|
|
|
104,421 |
|
Rest of the world |
|
|
8,051 |
|
|
|
7,737 |
|
|
|
21,379 |
|
|
|
17,411 |
|
Total |
|
$ |
120,198 |
|
|
$ |
101,729 |
|
|
$ |
335,363 |
|
|
$ |
285,805 |
|
In the three months ended September 30, 2024, the United States, Gibraltar and the United Kingdom represented 29%, 17% and 13% of total revenue, respectively. In the three months ended September 30, 2023, the United States, Gibraltar and Malta represented 28%, 15% and 10% of total revenue, respectively. In the nine months ended September 30, 2024, the United States, Gibraltar and the United Kingdom represented 31%, 14% and 11% of total revenue, respectively. In the nine months ended September 30, 2023, the United States, Gibraltar and Malta represented 28%, 15% and 11% of total revenue, respectively. No other countries represented more than 10% of revenues.
Revenues by Major Customers
One customer accounted for 10% and 11% of revenue in the three and nine months ended September 30, 2024, respectively. No customers accounted for 10% or more of revenue in the three and nine months ended September 30, 2023.
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Revenue from Other Sources
For the three and nine months ended September 30, 2024 and 2023, revenue for the Sports Technology and Services product line includes an immaterial amount of revenue from other sources in relation to equipment rental income.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods and excludes constrained variable consideration. The Company has excluded contracts with an original expected term of one year or less and variable consideration allocated entirely to wholly unsatisfied promises that form part of a single performance obligation from the disclosure of remaining performance obligations.
Revenue allocated to remaining performance obligations was $245.7 million as of September 30, 2024. The Company expects to recognize approximately 56% in revenue within one year, and the remainder within the next 13 – 99 months.
During the three months ended September 30, 2024 and 2023, the Company recognized revenue of $20.4 million and $17.4 million, respectively, for variable consideration related to revenue share contracts for Betting Technology, Content and Services. During the nine months ended September 30, 2024 and 2023, the Company recognized revenue of $56.7 million and $49.6 million, respectively, for variable consideration related to revenue share contracts for Betting Technology, Content and Services.
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables (see Note 4 – Accounts Receivable, Net), contract assets, or contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to the right to invoice or deferred revenue when invoicing occurs prior to performance obligations being met. Contract assets are transferred to receivables when the rights to invoice and receive payment become unconditional.
As of September 30, 2024, the Company had $49.9 million of contract assets and $40.3 million of contract liabilities, recognized as deferred revenue. As of December 31, 2023, the Company had $38.8 million of contract assets and $44.3 million of contract liabilities, recognized as deferred revenue.
The Company expects to recognize substantially all of the deferred revenue as of September 30, 2024 within the next 12 months.
Note 3. Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash as of September 30, 2024 and December 31, 2023 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
Cash and cash equivalents |
|
$ |
42,314 |
|
|
$ |
100,331 |
|
Restricted cash, current |
|
|
26,761 |
|
|
|
— |
|
Restricted cash, non-current |
|
|
— |
|
|
|
25,462 |
|
Cash, cash equivalents and restricted cash |
|
$ |
69,075 |
|
|
$ |
125,793 |
|
Restricted cash relates to a guarantee issued by the Company to Barclays Bank PLC in connection with a letter of credit that Barclays provided to Football DataCo Limited for and on behalf of the Company for an aggregate amount of £20.0 million as of September 30, 2024 and December 31, 2023 ($26.8 million and $25.5 million as of September 30, 2024 and December 31, 2023, respectively).
Note 4. Accounts Receivable, Net
As of September 30, 2024, accounts receivable, net consisted of accounts receivable of $77.0 million less allowance for credit losses of $4.0 million. As of December 31, 2023, accounts receivable, net consisted of accounts receivable of $76.2 million less allowance for credit losses of $5.1 million.
Genius Sports Limited
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 5. Intangible Assets, Net
Intangible assets subject to amortization as of September 30, 2024 consist of the following (in thousands, except years):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Remaining Useful Lives |
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net Carrying Amount |
|
|
|
(years) |
|
|
|
|
|
|
|
|
|
Data rights |
|
4 |
|
$ |
67,064 |
|
|
$ |
40,797 |
|
|
$ |
26,267 |
|
Marketing products |
|
9 |
|
|
59,099 |
|
|
|
43,957 |
|
|
|
15,142 |
|
Technology |
|
2 |
|
|
107,279 |
|
|
|
106,268 |
|
|
|
1,011 |
|
Capitalized software |
|
2 |
|
|
192,164 |
|
|
|
119,453 |
|
|
|
72,711 |
|
Total intangible assets |
|
|
|
$ |
425,606 |
|
|
$ |