Genius Sports Soars on Surprise Profit, Upped Outlook
Shares of Genius Sports (NYSE: GENI) surged Tuesday after the company posted a surprise third-quarter profit while upping its 2024 financial guidance.
On a day when most gaming stocks succumbed to some profit-taking, shares of the sports betting data provider were up almost 16% on quadruple the average daily volume in late trading. Genius told investors that it notched third-quarter net income of $12.5 million on earnings before interest, taxes, depreciation, and amortization (EBITDA) of $26 million. Revenue for the period was $120 million. The company previously forecast third-quarter EBITDA of $25 million on sales of $119 million.
The net income figure was likely a significant factor in today’s bullishness for Genius stock. That metric is a truer sense of a company’s profitability than EBITDA and in the case of the sports technology firm, its third-quarter net income figure this year was a $24.1 million reversal from the year-earlier period in which it lost $11.6 million.
