Genius Sports Limited
Mr. Irrelevant… It Doesn’t Take a Genius
Download Report
Genius Sports Limited
Download Report 2
Genius Sports Limited
Download Report 3
Genius Sports Limited
Download Report 4
Genius Sports Limited
Download Report 5
Genius Sports Limited
Download Report 6
Genius Sports Limited
Download Report 7

Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
Aug 5, 2021

After conducting a forensic financial and accounting review, Spruce Point believes Genius Sports (“GENI”), a provider of live sports data from its partnerships with sports leagues to sportsbook customers, is just another intermediary that provides similar data to its competitors and will likely fail to capitalize on the wider industry growth. Based on our investigation, we forecast 60% t0 80% long-term downside risk, or $3.25 - $6.50 per share.

The report highlights several key concerns with the company, including:

  • We have concerns regarding Genius’ revenue growth and multiple signs of potential financial strain
  • We view Genius as an intermediary that provides data from sports leagues to sportsbooks which, as a result, will likely be subject to margin pressure from both sides as well as potential risk of disintermediation
  • An analysis of revenue attributed to “noncash consideration” as a result of value-in-kind / contra deals raises significant concerns regarding Genius’ revenue recognition and growth
Downloads & More

Research Assets & Releases

Join The Mailing List

Spruce Point Alerts & Updates

See the other side of the Wall Street hype machine.