Why Genius Sports Shares Are Shooting Higher Today
Portfolio Pulse from Shivani Kumaresan
Genius Sports Ltd (NYSE:GENI) shares rose after reporting Q1 FY24 sales of $119.72 million, surpassing the $116.89 million analyst consensus. The company saw a 34% increase in gross profit to $12.8 million and expanded its gross margin. However, its EPS of $(0.11) missed estimates by $(0.02). Segment revenues varied, with Betting Technology, Content & Services up 14.1%, Media Technology, Content & Services up 63%, and Sports Technology & Services down 3.5%. The company forecasts FY24 revenue of about $500 million, above the $480.82 million estimate, and adjusted EBITDA of $82 million. GENI expects positive cash flow in FY24 and shares increased by 4.80% to $5.68.
May 08, 2024 | 3:18 pm
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POSITIVE IMPACT
Genius Sports reported higher than expected Q1 FY24 sales, a significant gross profit increase, and optimistic FY24 revenue forecasts, leading to a 4.80% share price increase.
The positive reaction in GENI's stock price is directly attributable to the company's Q1 FY24 performance exceeding analyst expectations, particularly in sales. The optimistic revenue forecast for FY24 further bolsters investor confidence, despite the EPS miss. The detailed segment revenue growth and the company's strategic focus on expanding its technology footprint and extending key partnerships contribute to a positive outlook, supporting the stock's short-term upward movement.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100