Genius Sports (NYSE: GENI) experienced a significant 16% stock surge following its impressive third-quarter results and improved 2024 financial outlook. The sports betting data provider reported a notable profit turnaround, with net income reaching $12.5 million compared to an $11.6 million loss in the previous year.

Key Third Quarter Highlights:

• Revenue: $120 million
• EBITDA: $26 million
• Net Income: $12.5 million
• Significant volume increase: 4x average daily trading volume

Strategic Partnerships:

• Extended data relationship with ESPN for college sports, NBA, and WNBA coverage
• New partnership with Reddit for enhanced NFL data integration

2024 Updated Guidance:

• Revenue projection: $511 million (24% year-over-year growth)
• Adjusted EBITDA: $86 million (61% growth)
• Margin expansion: 400 basis points
• Expected to achieve cash flow positivity

The company's growth is driven by increasing demand for live betting data, particularly in NFL games, where Genius Sports serves as the exclusive data provider. CEO Mark Locke highlighted the growing popularity of in-game wagering and same-game parlays as key drivers for data service demand.

CFO Nicholas Taylor confirmed Q4 expectations of 38% revenue growth, with adjusted EBITDA growing more than 2.5 times and 900 basis points of margin expansion, leading to positive cash flow for the full year.

This marks the fourth consecutive year of 20%+ top-line growth for Genius Sports, solidifying its position as a high-growth player in the sports betting technology sector.

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