Ladies and gentlemen, welcome to the Genius Board Q1 Results 20 21 Conference Call. Throughout the call, all participants will be in a listen only mode and afterwards, there will be a question and answer session. Today, I am pleased to present Mark Lauck, CEO and Nick Taylor's CFO. Please go ahead with your call.
Good morning, everyone. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 20 F. During the call, management will also discuss certain non GAAP measures that we believe may be useful in evaluating Genius' operating performance.
These measures should not be considered in isolation or as a substitute for Genius' financial results prepared in accordance with U. S. A reconciliation of these non GAAP measures to the most directly comparable U. S. GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.
Geniusforce.com. With that, I'll now turn the call over to Mark Locke.
Good morning. Thank you for joining and welcome to our first earnings call as a public company. I want to start by extending my gratitude to everyone who has contributed to this moment, to our clients, customers, advisers, investors and of course our employees, we thank you. You all believe in our core mission of being the official data technology partner that powers the global ecosystem that connects sports, betting and media. You have enabled us to get at this point and I'm looking forward to using these quarterly earnings to update you on our business activities and progress towards our long term targets.
And to new potential investors, welcome and thank you for joining us today. Before diving into the results, I'd like to start with a brief overview of our business and the opportunity ahead of us. Genius is uniquely positioned at the heart of the sports ecosystem that connects sports, vetting and media. Over our long history, we've built a proprietary technology platform that our partners depend on to streamline data collection and distribution, engage audiences and ultimately monetize sports fans. By partnering with hundreds of sports leagues and federations, sports book operators and media brands across the globe, we are well positioned to capitalize on the growth in the sports betting market.
While our fast growing sports betting market presents the best opportunity to monetize Today, our vision stems far beyond the boundaries of sports betting alone. As the world of sports, Betting and media converge over the long term. We are focused on building a tech platform that enables our partners to monetize their audience in a multitude of ways tomorrow, whether through betting, ticketing, merchandising or others. Our deeply integrated technology and data partnerships puts us in the best position to expand our value added services and solutions and continue to grow as the industry evolves. Before we move on to the quarter, we would like to reiterate our long term financial targets.
We are adding more value to our customers than ever before and we are on a strong march towards our long term revenue target of 5% of industry gaming revenue. And we continue to target a long term EBITDA margin of 40%, reflecting the strong underlying unit economics of our model. With that, we are proud to share with you the fantastic momentum behind us at the moment and the significant steps that we have taken in the quarter to accelerate growth and capitalize on the enormous opportunity ahead of us. I'll quickly touch on the 6 key takeaways from the quarter before we dive into performance in more detail later on the call. In the Q1 of 2021, year over year, we grew our revenues by 52% to nearly $54,000,000 And our adjusted EBITDA by over 400 percent to $9,300,000,000 We are very pleased to have announced an exclusive six share strategic partnership with the NFL that is completely innovative in its structure and revolutionary in its potential.
This agreement combines our leading capabilities across sports, betting and media for the preeminent league in the world sports and is a major statement of intent for our entire industry. We also acquired 2 complementary and highly innovative technology companies, 2nd Spectrum and FanHub. These strategic acquisitions will both strengthen our core offering and benefit from our scale and distribution. Given the strong performance of the underlying business and following the aforementioned key transactions, we are revising our full year 2021 revenue guidance to a range of $250,000,000 to $260,000,000 up roughly 30% to 35% from where we guided the market to previously. Lastly, we are thrilled to welcome David Levy as our new Chairman.
During his 30 year tenure at Turner, he oversaw its leading portfolio of premium content. With his incredible that record working with many of the biggest names in sports and media, David's appointment is another strong statement of our ambition and position. So far, 2021 has been all about continuing to execute on our long held strategy. One of our most important differentiating factors is our steadfast commitment to official data. For those of you who are new to the space, this is the source of live sports information and facts that has been directly approved and sanctioned by the relevant sports league
or Federation. As more
and more sports proactively engage with the betting industry, official data is becoming increasingly valuable. Additionally, the rapid growth of Live Betting in regulated markets worldwide means that sportsbook operators place tremendous value on the speed and accuracy of official data. The scale of our portfolio built up over more than a decade puts us at the very forefront of this data trend. We've grown our portfolio by 25% year on year to 185,000 events under official rights, of which 112,000 of them are exclusive. This is included adding premium content such as MLB and a series of rapidly growing and thrilling events from Major League Rugby to Top Tier Japanese Basketball amongst others.
This number does not include the NFL, Which was added to our portfolio after the reporting period. As many of you know, our approach is unique We acquire a large proportion of our rights through contra partnerships with sports leagues and federations. We have supported sports at every level with our leading data technology solutions that help them to create new revenues, drive fan engagement and increase efficiencies. In the Q1, we demonstrated the value of our technology. Our live stats technology was caught Every March Madness game, capturing advanced team and player statistics that powered the NCAA's broadcasts, their websites and more.
You may have seen our Genius Sports logo at the end of every broadcast throughout the tournament. We also launched the ice hockey live stats solution, providing a valuable tool that will greatly strengthen our hand in negotiations with leagues across this sport. Our media operations also continued to accelerate. Our unique understanding of the sports and sports betting audience coupled with our exclusive ownership and control of live sports data and the ad tech platform enables us to offer personalized suite of solutions for our entire ecosystem. During the Q1, we announced a new marketing partnership with Fanjul to run personalized targeted ads in states where they operate.
We are also expanding our partnership with the MLB to continue using our digital marketing solutions to drive ticket sales for the leagues and its clubs. Our NFL partnership is huge for supercharging our media operations as we will represent their sports betting advertising inventory across all NFL owned and operated digital platforms. And through the quarter, we continued to grow our betting presence globally, winning new deals with clients, including WinBet, Taliente, Parimatch, Snai and Microgame. We're proud of our execution to date and a better position than ever to capitalize on the rapidly expanding legalized U. S.
Betting market. We've established a long term exclusive partnership with the NFL, building off our existing agreements with the NBA, MLB, NASCAR and more. This allows us to provide premium official content on the most popular competitions. The business model we have in place allows us to participate in the upside of the U. S.
Market. As the U. S. Market's revenues from gaming grow, our revenue also grows regardless of which B2C player wins share. We're currently permitted to supply data in 13 U.
S. States and 3 tribal jurisdictions and have a proactive U. S. License strategy, ensuring that there is no market in the U. S.
Where we will not be able to operate. Lastly, our data driven fan engagement and advertising solutions allow us to monetize the significant marketing spend that sports Genius uses its unique access to official live sports data and combines that with audience data, our technology platform and a comprehensive understanding of global betting behavior to offer advertising and fan engagement solutions that no one else can. Genius has a unique understanding of fans, live sports events and the sports book market, enabling us to offer large scale targeted advertising campaigns, which are delivered through cost effective, data driven, real time bidding for publishing space. As an example, our proprietary technology uses a combination of data sources to influence campaign pacing and target criteria in real time. This allows us to deliver personalized content to the right audience at the right time on behalf of our sportsbook partners, which optimizes their customer acquisition costs.
Genius also develops fan engagement widgets for sportsbooks and digital publishers, featuring live expand engagement solutions, which we offer our customers. In all cases, Genius is compensated through a performance based model, which fully aligns our interests with Acevar Partners. In the next few slides, I will go into more detail about the strategic transactions I previously mentioned, starting with the NFL partnership. This year, we signed an exclusive 6 year partnership with the NFL, a partnership that, as I said earlier, is completely innovative in its structure and revolutionary in its potential. So I'd like to take a moment to explain the core components of this agreement and why we're so excited about the value that it unlocks for Genius Sports.
It is crucial to understand that this is a true technology partnership, which will drive the global convergence of official data, betting, streaming and digital media. Our partnership falls under 4 categories. 1st, we will be the exclusive distributor of official data for sports betting for the NFL. Using official data is the only way for sportsbooks to guarantee low latency, accurate and secure data for their betting products. And now that the data for the NFL events can only be obtained through Genius.
This gives us tremendous ability to increase our utilization rates across all of our content. Since the contract is structured as a package deal that typically include a variety of content and services. 2nd, Genius will be the NFL's exclusive distributor of official data for the media market. This manifests itself as innovative, data driven, NFL specific product to support media partners to increase their audience engagement and drive monetization opportunities. Thirdly, we will be the exclusive distributor of live streaming for the international sports betting market.
Our streaming operations have grown rapidly over the last 18 months and adding such premium content will help to agree achieve new integrations with sportsbooks in the U. S. And worldwide. These integrations allow us to offer our rapidly expanding portfolio of streaming events across multiple sports. And lastly, as mentioned previously, Genius is now the NFL's exclusive sports betting and iGaming advertising partner.
So we are the exclusive provider of the NFL sports betting and iGaming advertising inventory in regulated states across the world. These exclusive rights to the NFL audience, live data and proprietary ad tech optimizes customer acquisition and retention and positions us well to take a significant piece of the marketing gold rush. It is important for me to reiterate that this is that this partnership is much more than a betting rights deal. The NFL has not just swapped out the incumbent to Genius Sports. This is a major partnership that Through Genius and the NFL's Joint Innovation Technology Center, we will develop the next generation of products and services for the NFL.
Genius has the unique capabilities to work with media partners to create engaging content by bringing data to life, integrate sportsbook brands across media platforms, addressing the right audience at the right time provide sportsbooks with data and technology to deliver a quality betting product to their end users. And finally, it allows us to unlock the true value of the NFL's official data. Genius is unique in its ability to take full advantage of its strategic partnership with the NFL. We expect new and existing customers to appreciate the step change in value of our official data rights portfolio, as well as allowing us to showcase our unique and broad value added services. Our suite of products and services are sold as a package.
So the addition of the NFL massively increases the overall value of our offering. Our deal with the English Premier League in 2019 allowed us to sell more to our sportsbook customers, increase our and take a greater share of wallet. We expect the NFL deal to do this and more. In particular, Our exclusive advertising relationship puts Genius in a unique position to acquire customers in the U. S.
In a differentiated and cost effective manner through the NFL season, which is the single largest customer acquisition driver in the U. S. This allows Genius to earn marketing spend by accessing this area. Concurrently, Genius will work with the NFL to develop the next generation of products to engage fans in both media and betting through its exclusive access to data and proprietary technology. Genius is unique in its ability to maximize the value of the NFL partnership shift through the wide range of services we offer.
This makes the NFO data deal more valuable to us Than it would be to anyone else because of the multitude of unique ways that we can monetize it. As I mentioned at the start of this call, our mission is to provide the entire sports, betting and media ecosystem. We can only do this if we continue to innovate and provide new levels of data, content and technology services to our partners. This has been central to our recent acquisition of 2nd Spectrum and FanHub, 2 highly complementary and innovative technology businesses. I'd like to take a few minutes to give you a short overview of both these acquisitions and how they accelerate the pathway to our long term targets, starting with 2nd Spectrum.
2nd spectrum is the world's most advanced data tracking technology provider with official partnerships with the NBA, English Premier League and MLS. They provide highly innovative tracking, analytics and data video augmentation solutions that will help us create an end to end data offering for our sports, betting and media partners. 2nd Spectrum has also established partnerships with several major broadcasters and media companies, including ESPN, BT Sport and Bali Sports. The acquisition accelerates our plans to converged sports betting and media to power the fan experiences of the future. Their best in class artificial intelligence technology team, computer vision and machine learning products will help bring together our data, betting, streaming, marketing and fan engagement solutions into 1.
Our relationships with hundreds of leagues worldwide and proven track record of delivering major technology products will unlock significant future growth at 2nd spectrum. This acquisition aligns with each of our key strategic goals and expands our long term addressable market. I'll now turn to FanHub. In the Q1, we were also thrilled to announce the acquisition of FanHub, a leading provider of free to play games and digital Like 2nd spectrum, FanHub will enhance our offering across our entire sports, betting and media ecosystem. FanHub's leading free to play solutions will be fully integrated and create greater engagement, which in turn will create new monetization opportunities.
Free to play has become essential for increasing fan engagement across second and third screens, allowing partners to deliver sponsorable digital assets that their fans love and drive demonstrable value for sponsors. As part of the push towards deepening its relevance and value to clients, Genius Sports identified an opportunity to acquire the market leader, gaining an early mover advantage And a pre existing technology suite with Tier 1 client set and a highly engaged user base in their millions. FanHub already works in partnership with some of the largest companies across Genius Sports Ecosystem, including the NFL, MLB, MLS, Direct fan engagement is a high priority Customers, clients, sponsors and media partners and our distribution network will generate significant growth opportunities disciplined acquisition strategy and we look forward to updating you further on their progress as we integrate them into our product offering. With that, I will turn it over to Nick to walk us through the quarterly financials and revised guidance.
Thanks, Mark, and thank you all for joining us on our first earnings call. We're delighted to start life as a public company with such great momentum across the business. Quarter 1 group revenue increased 52% year on year to $53,700,000 with each segment of our business increasing significantly. The company delivered well balanced performance across all segmental areas and all growth leaders. Firstly, our betting technology content and services revenue increased 42% year on year to $39,000,000 This growth was driven by a combination of underlying growth in the betting markets, new customer acquisition, price escalators in existing contracts as well as increasing our share of wallet through additional services to sportsbooks.
The Media Technology Content and Services revenue more than doubled year on year, growing to $9,400,000 in Q1. This increase was driven by continued growth in advertising spend in the U. S. And Europe from sportsbooks looking to acquire and reactivate customers. Lastly, the Sports Technology and Services revenue increased 42% to $5,400,000 Primarily driven by expanded services provided to existing sports league and federation customers across all tiers of sports.
Group adjusted EBITDA also grew over 400% year over year to $9,300,000 the result of our inherently strong operating leverage and disciplined cost control which allows our robust revenue growth to drop through to adjusted EBITDA. On the back of our strong underlying business performance and recent announcements, we are delighted to increase our full year 2021 revenue guidance. From the $190,000,000 communicated to you at the time of our de SPAC to a new range of $250,000,000 to $260,000,000 The key drivers for this increase Our underlying strong Q1 performance with the well balanced revenue across all segments as well as our continued growth in our official rights portfolio. As of March 31st, we have more than 185,000 events under official rights of which over 112,000 are exclusive. Together with the acquisition of the exclusive global NFL rights, this continues to drive our mission critical position in the global sports betting and media ecosystem.
These factors have led to a significant organic growth And the underlying business is steaming ahead to an expected revenue range of $240,000,000 to $245,000,000 for the year. Drivers that will determine whether we are at the high or low end of this range will depend on the pace of continued growth in the U. S. And rest of the world as well as our NSL go to market strategy. As a reminder, our updated guidance reflects our view of the 2021 calendar year, which includes only the 1st 4 months of the NFL season.
We expect NFL related gaming revenue to carry over into the Q1 of 2022, which is not included in our current calendar year outlook. As Mark mentioned, we are thrilled to welcome FanHub and 2nd Spectrum to the Genius family. For these acquisitions, both of which are expected to close in Q2. We estimated 2021 revenue contribution in the range of $10,000,000 to $15,000,000 On a standalone annualized basis, we estimate the acquisitions to contribute to revenue approximately $7,000,000 for FanHub $20,000,000 to $25,000,000 for 2nd spectrum. And this is before any revenue synergies which we will expect to generate predominantly from 2022 onwards.
We are also updating our EBITDA forecast from when we last communicated guidance during the De SPAC. The EBITDA from our underlying business continues to be strong as we've just discussed with our Q1 performance. And we anticipate our organic underlying business to generate adjusted EBITDA in the range of $35,000,000 to $45,000,000 this year. This compares to our previous guidance of $35,000,000 Our updated EBITDA guidance also includes a number of new items. Firstly, in relation to the acquisitions, as you can see, we are expecting both FanHub and 2nd Spectrum to be marginally profitable at an adjusted EBITDA level in 2021.
As you'll be aware, our previous guidance excluded the incremental costs of being a U. S. Public company, which we estimate to have a $10,000,000 impact in 2021. The main items of which are principally legal, professional and governance costs. Additionally, a significant advantage of our de SPAC is our new balance sheet strength and flexibility to support opportunistic investments.
As part of this, we anticipate discretionary investments of $15,000,000 in 2021 principally towards capturing long term streaming rights in order to strengthen our market leading portfolio. This capital strength following the close of the De SPAC allows us to invest ahead of the revenue curve where we feel it is appropriate and these investments will drive meaningful revenue contribution and strong payback over the next 3 to 5 years. Our increased growth capital puts us in a much better positioned to take advantage of these opportunities. We've called this out separately as it was not included in our original de SPAC guidance and therefore wanted to provide visibility so you can compare the underlying business performance on a like for like basis. These types of discretionary investments are something we will do from time to time when the opportunity arises and where we believe there is significant shareholder return.
Following the close of our business combination and 2 recent acquisitions, our pro form a net cash position at March 31st is approximately $41,000,000 I want to quickly touch on the financial impact of the NFL partnership, particularly as it impacts our quarterly position. To start, we want to reiterate that we will reflect the financial effects of our NFL partnership in our organic numbers. As this type of all encompassing partnership
is at
the very heart of our core business. That said, We are in the very early stages of discussions with our customers in relation to the NFL and it does seem likely that our revenues will become more seasonal than they have traditionally been due to the NFL's fixtures running from September through January. Looking at this on a quarterly basis, I am anticipating that our group's Q2 revenue position will be in line with that of Q1 this year, predominantly because Q2 is a quieter quarter for U. S. Sport.
Q1 has contained both the Super Bowl and March Madness, which has had a significant impact, particularly on our media revenues in Q1. We then anticipate continued quarterly growth in Q3 and Q4. On the cost side, we continue to finalize the various accounting aspects of our 6 year NFL deal. We currently anticipate recognizing the cash element of the consideration paid to the NFL during the NFL season only. And therefore, we'll start to recognize this from September through in January each year, mirroring the seasonality of the revenues.
In addition to the cash cost element of the agreement, we will also incur a non cash charge as it relates to the NFL's equity ownership in Genius. For accounting purposes, we will recognize these warrants issued to the NFL over their vesting period as a share based payment. With that, we conclude the prepared remarks of our Q1 2021 earnings presentation. Mark and I will be joined by Chief Commercial Officer, Jack Davidson and Commercial Director of Metering Engagement, Josh Lindforth to answer any questions.
The first question comes from the line of Jed Kelly with Oppenheimer. Please go ahead.
Hey, great. Thanks for taking my questions and Congratulations on getting to your first earnings call. So I guess, Mark, just touching on the NFL because Seems to be where a lot of the focus is. And one thing that's been interesting is since your deal, the NFL has signed sponsorships The 3 major sportsbooks and they've also given the rights holders a lot of flexibility on their streaming rights. So can you talk about how you can benefit, how Genius benefits from more Going streaming and some of the I think we've seen with Amazon potentially in 2 years could put a betting cast on Some of their Thursday night rights.
So can you talk about how you're leveraging the streaming opportunity with the NFL?
Sure. So I mean, I'll talk more generally. Our view is very much that the world of streaming and sports betting and frankly fan engagement are all converging over time. So part of the logic around the 2nd spectrum acquisition was really to sort of take a long term view on how this works and how this comes together. When we look at our streaming strategies, as you know, we've built up a reasonably large portfolio of streaming rights.
And as the industry continues to evolve and continues to grow, we're looking at putting those streaming rights together with a lot of the product innovations that are coming through on the betting side. Together with a lot of the product innovations that are coming through on the betting side to offer that technology service and that to the sports betting operators on a long term basis. The other part of it is really around customer acquisition, fan engagement, whereby the convergence of this allows us access to a lot of the data that means that we can put targeted offerings in front of them and really drive value for the sports that way.
And then as a follow-up, I guess, just on the back of the FanDuel access, do you eventually see more of your media opportunity Around Connected TV, OTT advertising and or is it going to be more in performance marketing?
Yes. I mean, look, when we think about all of the different platforms, What we're really thinking about is the underlying data that sort of sits underneath it or looking to think about audience data, we're thinking about how can we better target using the various different platforms that are out there. So as a business, we very much think about providing technology services to analyze and optimize the use of the underlying data. And as the industry evolves, as different platforms sort of emerge, we'll be focused on serving those platforms, again, using sort of intelligent processing of the underlying data.
Yes. Just one thing. Hi, Jed.
That's helpful.
Yes. Hi, Jed. Sorry, it's Jack Davidson, Chief Commercial Officer. I just thought it was worth jumping in. So specifically about the NFL stuff really, like your A question about Amazon and the kind of that convergence going forward is a really good one because although we clearly not a right holder of that content, what we are as part of the innovation hub with the It's kind of an enabler of that convergence.
So even and that's something which will come as a future and As the NFL's other partners think about that convergence and what they're doing, we are intending to be part of And our innovation hub with NetVR is really about joining the dots from a technology point of view to kind of further enable that convergence. Even with the sports betting partnerships that the We are an enabler of that. We're providing technology to the NFL to really help those partnerships flourish to help them succeed. So we're already doing that in some ways. But when you think about the likes of Amazon and what they're thinking about and the direction that could go, That's really the future and really one of the sort of key drivers of the partnership.
So does that make sense?
Yes, it does. Very helpful. And then I guess just one more For me, it's more for Nick. Hey, Nick, can you help us how we should think of your cost of revenue growing relative to your Cash operating expenses for your EBITDA range? And then on the revenue you gave from the acquisitions, was that on a full year run rate basis or Is that what they're expected to contribute going forward starting in 2Q?
Yes. Hey, Jed, let me take those the sort of reverse way around and talk about acquisitions first and then I'll touch on the operation leverage that we have. So in the deck that we've given in the guidance where we've guided to a $10,000,000 to $15,000,000 acquisition position. That is their contribution to our 2021 perspective and not their annualized position. We're expecting both acquisitions to close in quarter 2, although they haven't as yet closed.
In terms of an annualized basis, in the previous comments, I said that second spectrum, we're expecting on a standalone basis pre any revenue synergies to contribute $20,000,000 to $25,000,000 worth of revenues and FanHub to contribute circa around $7,000,000 worth the revenues. On a cost question, Jed, that you have, I guess, to look at 2 ways. Obviously, we've given a you can see our 2021 EBITDA margin is obviously given as part of our guidance that we've gone forward
with
Sorry, I'm not sure can you still hear me, Jed?
Yes, I can hear you fine.
Yes, sorry. We had some slight strange music at this end. So apologies for being put off there. So We've obviously got our EBITDA margin in the 2021 numbers you can see from our updated guidance. And Clearly, the rights are playing a big impact of that and they'll have a direct impact on our gross margin perspective.
We're not giving guidance for 2022 just yet as you'd anticipate. But what I can say is that we are reaffirming our long term position of a 40% EBITDA margin at a mature steady state position. And therefore, we would anticipate, I think in the deck of our de SPAC deck, I gave a view of what sort of Right. Direct costs and net staff costs and SG and A are likely to be as a position to reach that 40% position and that hasn't changed yet on a long term steady state position.
Thank you.
The next question comes from the line of Ryan Sigdahl with Craig Hallum Capital Group. Please go ahead.
Good morning. Congrats on the results and business trends and awards. First, Thank you for the detailed guidance reconciliation. That is very helpful how you broke that out. Within I guess on the NFL deal, which line is that included in within the EBITDA guidance reconciliation?
Is it The underlying business or is there some element within the investments there?
Yes. Hey, Ryan. Yes, let's just to be absolutely clear, the NFL is in our core numbers in our underlying business. So as part of the $50,000,000 to $55,000,000 upgrade on the revenue and part of the $0,000,000 to $10,000,000 on the adjusted EBITDA position, Those investments that I've called out separately are frankly because of our New Balance Street strength and our flexibility because of it, we are going to take the opportunity and that principally around streaming rights. So nothing to do with the NFL that we're going to take an opportunistic ability to invest really ahead of the curve.
So we're going to get the cost, but they'll make a meaningful revenue contribution and payback over the next 3 to 5 years, but we'll be contributing significantly in 2021. The reason why Ryan would call them out separately is obviously they weren't part of our de SPAC guidance at the 190 and the 35. So we wanted to give you an ability to compare on a like for like basis.
Helpful. And then on the guide, you can talk directionally. I know it's hard to bifurcate the 2 out, but are you able to talk so EBITDA on the underlying business raised ex the NFL and then the inclusion of the NFL? I guess what I'm asking is, is the NFL expected to be positive contributor this year?
Yes. Hi, Ryan. Well, as you know, we first of all, that's Not how we go to market. And secondly, obviously for commercial sensitivity reasons, I'm not going to give too much details on the NFL. What I can say to you is that on a cash basis, we anticipate the NFL to be breakeven in 2021 and cash generating thereafter.
And indeed on a across the life of the contract, we anticipate it to be profitable.
Excellent. Competitors SportRadar, which lost the NFL deal, they have said publicly To their customers that they plan to still distribute publicly available NFL data to their clients. I guess, how do you parse out what is exclusive versus what others can do? And then how are those conversations with the key sportsbooks going kind of relative to switching over to you guys? Yes.
I mean, we look, I think the conversations we're having with the sportsbooks are in early days. And I mean, I can let Jack, give you a bit of a flavor for how some of the conversations are going on, if you like.
Yes. Hi, Ryan. So as Mark said, we're Quite early on in that, we've always anticipated that SportRADO will and others, I guess, will be offering an unofficial product From the NFL, that's something we expect. I think that the market is such that there's a real demand For operators to work with the official data wherever they can. In fact, the NFL's partners, the 3 partners that have been named have actually have an obligation to use the official data as part of But I think it's worth going back a bit of a step on this stuff where we are on a commercial level, we're not going to sports book operators and saying, Do you want to buy some official data from us?
What we're talking to them about is really helping them with their entire kind of customer journey of How they engage their players with the NFL. And that starts from how do they acquire a player using the NFL How do they engage with that player? How do we use things like free to play in order to drive their engagement and drive their retention metrics as well as Use the streaming in there for their international markets as well as the kind of core thing, which is I guess what you're getting out about are using official data to drive their betting market. So from our point of view, we're quite early on in those conversations, but the response has been fantastic. So for us, this isn't really about worrying about whether other parties in the market are going to offer And unofficial product because there's so much more to what we're able to offer an operator as part of the deal that's really we tried to highlight on this call.
So I hope that makes sense.
Yes. I mean, is it useful for us to sort of give a go slightly more granular on exactly what the deal is with the NFL is as well because we've heard lots of different reports about what's included in it and a lot of people I've reported that it's a sort of almost a direct swap for the incumbent. But actually, if you break down what we've actually done with the NFL, it really sort of falls into 4 buckets. I mean, the first is simply everyone very clearly understands the inclusion of the official GAIN data. The second is official data for media purposes.
It gives us the ability to build up products around the media space. The third is around international streamings for betting, so for the rights to do that. But the important part of this deal, which It's unique and it's something that we work very hard with the NFL to create a structure, create a deal that added a lot of value to the NFL, but also worked very well with the products and the services that we offer as a business is really around the ad the tech space. And what we have there is an additional effectively an additional pot and an additional revenue. So when we're going to market, as Nick alluded to earlier and Jack Again, we're not going with just a sort of sale of NFL data.
The conversations don't work after that, we go to our sports book partners and we say, look, we can add value with the NFL in lots of different ways, but we can also add value across other sports. But on top of that, what we can do is we can help them reach their customers better. We can engage with them on the marketing side. So we're looking And I forgive the word, but we were looking for much more sort of holistic deals with our sports book partners that really allow us to access different pots of budget within each of those operators, hopefully driving a lot more value for them in return for doing so and having much larger relationships. So It's a much it's a very different type of deal than I think is sort of more widely reported, but it does give us an access to a sort of much larger revenue
call. Very helpful. Just as a follow-up on that, Mark, any way to kind of bifurcate the expected revenue across each of those 4 buckets? Or said differently, kind of across each of those 4 buckets or said differently kind of which of those are the most valuable. I know the sports betting has historically been the biggest part of Your revenue mix, but how do you think about this deal specifically?
I'm sure it will be no surprise. I don't want to go into too much detail about Because it's fairly commercially sensitive. And again, I don't think I'm giving away too much by sort of saying, look, I think from a revenue point of view, sports betting It's clearly very important, but so is the advertising, the ad tech market. And as you'll have heard on the earnings earlier, that business is growing incredibly well The acquisitions we've made to help support that growth and we're adding a lot of value to our customers in that way. So I think that's probably where I'll leave it on that.
Great. Nice job, guys. Good luck.
The next question comes from the line of Mark Hickey with Benchmark Company. Please go ahead.
Hey, Mark, Nick, Brandon, congrats guys. Awesome job on the quarter, Q1 and congrats on the NFL deal. You touched on it, but I I guess it was sort of a big surprise at least for us that you got this deal. SportRadar was sort of the incumbent. It seemed like they're pretty tight.
There's some equity involved. So just sort of curious and I know you've sort of hit on this, but what was it that really got you to win this deal? And how sticky is it now With you moving forward, I realized it's a 6 year deal, but maybe it's for fixed with a couple of year, 1 year options. So just curious the longevity of the deal. And then I have a follow-up.
Thanks guys.
Yes, sure. So I mean, look, we worked very hard with the NFL to create a structure that allowed us, As I said before, to utilize a lot of the technology assets that we have as a business. But I think really where I I think the NFL and us had a very similar vision about what the future look like, what the requirements for products in the future are. I mean, again, You'll know from the work you've done already that we're very focused on product. We're very focused on delivering value to our customers and our partners.
And really, I think the NFL, when they were evaluating that, they did an awful lot of work on it, realized the amount of opportunity and the fact that our visions, I guess, we're very much aligned. So I think that the Technology Innovation Center is an incredibly exciting an important part of this partnership. It gives us the ability to build out new and exciting cutting edge next generation technology, help the NFL to access that next generation of fan and to engage them and really gives us a platform for what we're expecting to be an extremely long term partnership. We believe that this is a foundational deal. It's transformational.
It's not been done before in the market. And really it's giving us that opportunity to build that very long term partnership with the NFL through providing those technology services and providing that partnership.
Glad to hear that you sort of reiterated on your long term financial goals. Just curious How the NFL deal sort of accelerates maybe the bridge to that long term view and part of the puzzle Was originally your assumption 40% share of events powered by Genius. Is that The same assumption that changed and I guess, does the NFL accelerate your opportunity to that long term goal?
Yes. Look, that's exactly right. We believe it does accelerate Our journey to that long term goal, I'll steal your words. And really, as you know, our business is about being able provide multiple services to our partners. It's about leverage.
It's about having that availability for our customers. We have reaffirmed our long term financials and we believe that this does accelerate us towards them. It provides us with that platform for that growth.
Nice. Last question from me. You have your I think a 10 year exclusive The NCAA, just sort of any thoughts around the possibilities of them sort of endorsing data for sports Betting, obviously, there's a lot of betting already happening around collegiate sports, but do you think that relationship Would the NCAA kind of evolve to official data endorsement from them? Thank you.
Look, I mean, it's It's probably no surprise. I can't comment on what the NCAA's view on betting is on a long term basis. Suffice say that we do have a very close relationship with them. We're providing a lot of services. We've rolled out our live stats with data collection technology and huge numbers of their events.
I think I mentioned it in the call that you'll see the Genius Sports logo on the back of the CBS broadcast from the NCAA. So I think we're feeling like we have a good relationship. We've got those technology partnership in place. We've rolled out our technology. And again, how the NCAA chooses on the betting space isn't for me to comment on.
All right. Thanks, guys. Best of luck.
The next question comes from the line of Stefan Grambling with Goldman Sachs. Please go ahead.
Hey, it's Steven. Thanks for taking the questions. I'm going to throw one more on the NFL in there. As you look at some of the past marquee league signings you've had perhaps in Europe, How do these contracts typically translate or ramp as you look at the revenue and cash ramp over the contract terms and what might make the NFL similar or different than that roadmap in other markets?
Yes. Look, I mean, hi.
The way that we
have structured our Partnerships on a I guess outside of the U. S. Has always been generally around technology partnerships with sports leagues. So our core business model is about swapping or contouring technology in exchange for the right to collect data. And we provide those services on a very, very, very wide Ranging basis to many global sports leagues.
The NFL is while the quantum It's different. The theory behind our partnerships and the relationships remain the same. We as a business we look to partner with sport. We look to take those services and products and provide them to our partners In exchange for the right, now clearly there's some cash elements in and of the equity involved in the NFL. But we believe that this deal is On a cash basis, it's breakeven in 2021.
It's going to be profitable over the life of the contract. And As a result of the type of relationship that we have, we believe it accelerates our sort of global growth. So we see it very much in the same vein we see most of our sports partnerships.
Yes, I guess what I was trying to get at without trying to get too specific with guidance was just As you look at these other signings, I imagine that you have the conversation with customers, there's both the opportunity for having more events within the contracts that you have and then also Adjusting your existing contracts and having these the new services that are attached with it. So I was just trying to think through how quickly we can start seeing those. It sounds like you'll be having those conversations in advance of this upcoming NFL season, But perhaps is it normally like a 1 to 2 year, 3 year ramp up or could this just be faster because it's Either larger or just the way it's structured.
Yes. I mean, I'm not sure I Totally follow the question. But if you're asking how we see the ramp, I mean, our revenues are related to the growth in the market as well. I mean, our business model is Consists of sort of 2 different parts. 1 is a fixed part, which is for the provision of the services.
And then we also, as I'm sure you're aware, take a slice of the gaming revenue. So we sort of see the ramp to achieve the 5% that we've stated to the market really coming as a result of increased partnerships, increased And provision of content, increased utilization and obviously an increase in the size of the market as well.
Yes. Hi, Stephen, it's Nick. And the other important thing to note is that in every contract With our sports book customers, we have upside levers. Regardless of what nature of that contract looks like, whether that's on a variable basis whether that's on a sort of fixed basis, we have the ability to go back to sportsbooks where we acquire material Assets like the NFL. And therefore, we will expect to be monetized in the NFL immediately in season 1.
But as Mark says, and then ultimately, obviously, the TAM will grow as the natural U. S. Focused TAM growth across the 6 years.
That's helpful. And one other one that's maybe a longer term question. You talked about the long term EBITDA targets. I guess, what would what is the long term cash conversion from EBITDA look like? Effectively, I know that you've got limited CapEx requirements, but do You generally think about software investment as being relatively fixed as well in that long term assumption?
Yes, that's right. We don't have a we capitalize a certain level of internally generated software. I think it was round about, top of my head, round about $10,000,000 to $15,000,000 in 2020. So and going forward, it's not going to ramp in any way linear to any revenue or EBITDA performance. It will stay at a relative absolute number as we continue to develop new products.
So the cash conversion on any EBITDA perspective will be pretty strong.
Awesome. Thanks so much.
Ladies and gentlemen, there are no further questions at this time. Thank you for your attention. The conference is now concluded and you may now disconnect your telephone. Thank you for joining and have a pleasant day. Goodbye.