Genius Sports Retail Traders Look Past Surprise Loss To Focus On Q4 Revenue Beat, Stock Slides After-Hours

Shares of Genius Sports Ltd. fell more than 2% in after-hours trading on Tuesday after finishing the regular session 12% higher, driven by strong fourth-quarter revenue that surpassed expectations.

The results lifted retail sentiment, with Stocktwits data showing a shift to 'extremely bullish' from 'bearish,' accompanied by a surge in message volume.

The company posted a surprise fourth-quarter loss of $0.12 per share, falling short of Wall Street estimates, which had projected earnings of $0.01 per share.

Despite the earnings miss, revenue surged 38% year-over-year to $175.53 million, slightly exceeding analysts' expectations of $175.44 million.

Genius Sports' betting technology, content, and services segment saw a 48% revenue jump to $128.2 million, driven by price increases on contract renewals and renegotiations with existing customers.

The sports technology and services segment posted a 47% revenue increase to $17.6 million, benefiting from products built on GeniusIQ technology.

Meanwhile, the media technology, content, and services segment grew 4% to $29.8 million, bolstered by expansion in the Americas.

The company expects to generate approximately $620 million in revenue for 2025, reflecting a 21% year-over-year growth rate. This forecast surpasses the consensus estimate of $590.6 million.

"2024 was a defining year for commercial execution, with the renewal of key contracts and reinforcement of our solid infrastructure that lays the foundation for sustainable growth and profitability over the next several years," said Mark Locke, Genius Sports co-founder and CEO.

Retail traders reacted positively to the results, with one bullish commenter speculating on the stock's potential to rise 30% in a favorable macroeconomic environment.

Genius Sports is a key data partner for over 400 sports organizations, including the NFL, English Premier League, FIBA, NCAA, NASCAR, AFA, and Liga MX.

The stock is up 7.6% year-to-date.