Yahoo Finance Genius Sports Limited's (NYSE:GENI) Profit Outlook
We feel now is a pretty good time to analyse Genius Sports Limited's (NYSE:GENI) business as it appears the company may be on the cusp of a considerable accomplishment. Genius Sports Limited develops and sells technology-led products and services to the sports, sports betting, and sports media industries. The US$997m market-cap company’s loss lessened since it announced a US$593m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$96m, as it approaches breakeven. Many investors are wondering about the rate at which Genius Sports will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Genius Sports
Consensus from 8 of the American Hospitality analysts is that Genius Sports is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$129m in 2025. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 47% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Genius Sports given that this is a high-level summary, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Genius Sports, so if you are interested in understanding the company at a deeper level, take a look at Genius Sports' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:
Valuation: What is Genius Sports worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Genius Sports is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Genius Sports’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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