Genius Sports: Indirect Bet On The Growth Of Global Sports Betting Industry (NYSE:GENI)

Genius Sports (NYSE:GENI) is a company that provides sports betting companies with real-time data and technology. It has exclusive and non-exclusive data rights from sports organizations.

GENI is a sports data and technology firm that provides customer engagement tools to organizations like sports leagues, sportsbook operators, and media outlets. It also offers digital content to its clients to help them make products that are interesting and fun for their users.

Sports betting is a fast-growing industry. In-game betting will become the most popular form of betting as it's easier to watch the game in real time. Germany is seeing a growth in sports betting due to the government loosening controls. Europe is big opportunity for GENI to capture a large part of the market. GENi has made strategic investments across the sports gambling industry to generate revenue.

GENI has the most valuable rights to NFL, EPL, and NBA data. The company is able to develop beneficial partnerships with leagues globally. It is classifying the sports and related rights from Tier 1 to Tier 4. The sports betting industry is growing fast. DraftKings is a good example of the growth of this industry. GENi's technology and relationships are key to its ability to make money from the sport betting market. They are acquired through rights fees alone. Other rights are from regional leagues. In this model, GEN gets long-term deals in exchange for its technology.

Geni's core systems are highly scalable to provide real-time data to customers. Its main offering is captured by robust technologies, machine learning and complex analytical capabilities. It took years to build the company's technological prowess and relationships with sports leagues. 80% of all organized basketball competitions use GENI's basketball league technology. It is used by more than 180 leagues in 120 countries around the world. I believe this is a core competitive advantage that is hard to replicate or disrupt.

Geni is a business-to-business company providing sports data-driven technology and related services to sports and betting companies. Its main competitors are Sportradar (SRAD), IMGArena, and Stats Perform. GENI has extensive sports rights, partnerships with sportsbooks and leagues, seamless integration, trustworthy core services and a good company culture.

Genius Sports has posted a strong 3Q22 revenue growth of 28%, but media revenue was slightly below expectations. Media revenue fell short of expectations because of the loss of NFL contract. The company announced a multiyear agreement with Amazon to supply augmented video technology and data-related services for a supplemental feed of Thursday Night Football. New wins in the third quarter of 2018 totaled 27, more than doubling the number won in first and second quarters.

Genius Sports is a high growth company. It has been growing in the low-30s% until COVID gave it a boost. The company will continue to grow at a higher rate than historical figures. Its revenue will grow slower than the historical figure. GENI currently trades at 1x forward revenue. I believe it should be worth $7 today after discounting by 10%.

Genius Sports is a company that collects and supplies sports data to sports organizations and sportsbook operators. If the partnerships with sports organisations are discontinued or offered at terms that are not commercially viable, they will lose their competitive advantage.

Genius Sports is a company that focuses on sports betting. Its revenue comes from a few large companies. If these customers lose money in the betting market, GENI's revenue will be significantly lowered.

Genius Sports is undervalued. The sports betting industry is growing by the day. Sportsbook operators rely on trustworthy, experienced data and technology providers to stay afloat in business. GENI has proven to be among the leading providers.