Genius Sports (NYSE: GENI) experienced a significant 16% stock surge following an impressive third-quarter performance and improved 2024 financial outlook.

The sports betting data provider reported a net income of $12.5 million and EBITDA of $26 million on revenue of $120 million for Q3. This marks a remarkable turnaround from the $11.6 million loss in the same period last year.

Key Business Developments:

• Extended data partnership with ESPN for college sports, NBA, and WNBA coverage
• Established new collaboration with Reddit for enhanced NFL data integration
• Demonstrated significant reduction in operational and transaction expenses

Updated 2024 Guidance:

• Projected revenue: $511 million (up from $480 million)
• Expected adjusted EBITDA: $86 million (increased from $75 million)
• Anticipated year-over-year growth: 24% in revenue, 61% in adjusted EBITDA
• Margin expansion of approximately 400 basis points
• Confirmed positive cash flow expectations for 2024

The company continues to benefit from growing live betting and same-game parlay demands, particularly through its exclusive NFL data provider status. This marks the fourth consecutive year of 20%+ top-line growth for Genius Sports, with Q4 2024 expected to show 38% revenue growth and 900 basis points of margin expansion.

The strong performance and positive outlook reflect Genius Sports' growing prominence in the sports betting technology sector and its successful execution of strategic growth initiatives.

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