Genius Sports Raises $144M, Confirms 2024 Outlook

The official data, technology, and broadcast partner that powers the global ecosystem connecting sports, betting, and media, Genius Sports, has announced the pricing of its underwritten public offering. 

Namely, the trusted partner to over 400 sports organizations aims to raise approximately $144 million in net proceeds by selling 17,647,059 ordinary shares at $8.50 each. 

The offering is anticipated to close by the end of US markets today, January 16, pending customary closing conditions.

No Transactions Set in Stone Yet

The company mentioned that while it plans to use the funds for acquisitions or investments in more technologies, such as its 2024-launched automated pricing solution Edge, no current agreements are pending.

Following the announcement, Genius Sports’ share price saw a 5.3% drop. 

Despite this, the offering attracted participation from institutional investors, including Caledonia, an FTSE 250 self-managed investment trust company, and Wellington Management, one of the leading independent asset managers on the planet, along with existing and new stakeholders.

BTIG is leading the transaction as the primary book-running manager, with Goldman Sachs and Deutsche Bank Securities also serving in book-running roles. 

Additional co-managers for the offering include Oppenheimer & Co., Citizens JMP, The Benchmark Company, and Craig-Hallum.

In a related move, London-based private equity firm Apax Partners, which initially acquired a majority stake in Genius Sports in 2018, completed its divestment from the company last year. 

Apax’s exit follows Genius Sports’ transition to a public company on the New York Stock Exchange in 2022 when it acquired its stake from Three Hills Capital Partners.

Genius Sports has also reconfirmed its financial guidance for 2024. 

The company that partnered with X (formerly Twitter) last year to launch an innovative advertising tool called Trend Genius expects group revenue of $511 million and adjusted EBITDA of $86 million. 

The company also reported an improved cash position of $135 million as of December 2024. 

The figure reflects a spike from $69 million reached at the end of the third quarter in 2024 and $126 million at the end of 2023. 

This progress aligns with its target of achieving a positive net cash position for the year.

Discussing Geius Sports’ trajectory, JMP analyst Jordan Bender argued that “management has positioned itself for revenue acceleration” while focusing on improving margins and bringing in more free cash flow.

Bender added that demonstrating strong free cash flow generation could significantly ease valuation concerns, estimating Genius Sports’ potential worth at $2.7 billion at $11 per share.