Q1 2022 Genius Sports Ltd Earnings Call
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Ladies and gentlemen, thank you for holding welcome to the genius sports first quarter earnings results 2022 coal.
Throughout the call all participants will be in a listen only mode and afterwards, there will be a question and answer session.
To ask a question during the Q&A. Please press star followed by one.
Today, I am pleased to present genius.
Please go ahead with your meeting.
Good morning, and thank you for joining us today.
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.
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 filed on March 18th of this year.
During the call management will also discuss certain non-GAAP measures that we believe may be useful in evaluating the operating performance.
These measures should not be considered in isolation or as a substitute for <unk> financial results prepared in accordance with U S. GAAP.
A reconciliation of these non-GAAP measures to the most directly comparable U S. GAAP measure is available in our earnings press release and earnings presentation, which can be found on our website at investor <unk> Dot genius sports Dot com.
With that I'll now turn the call over to our CEO Mark lock.
Good morning, and thank you again for joining us today. So thank you apologies here over the past few months you may have heard us frequently referenced our investor day, we provided a deep dive on our business model and outlined our strategic plan supporting our outlook for 2020, Thank you for interest rate and beyond.
Our 2022 outlet also include the detailed quarterly guidance on a segmental level to demonstrate near term progress of that strategic plan.
We are pleased to share that we are successfully executing on that plan to begin the year and we have delivered financial results ahead of our expectations in the first quarter.
Our group revenues increased 60% year on year to $86 million exceeding our guidance of $78 million group adjusted EBIT was negative $2 $9 million in the quarter.
Well ahead of our expectations of negative $5 million.
While we maintain a long term view of the business and on Google Vision. This near term milestone gives us confidence in our ability to execute against our profitable forecast for the full year.
Yeah.
Much of our success. This quarter came from the continued execution of our core strategy of expanding our tech partners, specifically sports media partners and brands.
To start.
We continue to actively manage our portfolio of data and streaming lots in the quarter, but let me be clear, we have a deep portfolio of efficient content, including balance sheet assets, the carrying value in various regions across the world.
The NFL and the U S. English Premier League in the UK CFL in Canada will Argentinean Colombian football in Latin America, with Tonight and SKU.
This along with the long tail of other events under our efficient coverage gives us a competitive advantage and allows us to approach new rights deals from a position of strength in other words, we aim to only acquire new rights, where we see commercial value, particularly for sports all regions with strategic importance to genius.
We obtained rights because we are increasingly deploying our technology for the whole consignment overall opposite.
This is about much more than just data indexing.
<unk> are becoming more sophisticated and see the value in our technology I'm also full scale platform of solutions helped lead better engage and understand their audience, which enables additional monetization opportunities.
Let me walk through a few real examples from the quarter to illustrate the ways. We work quickly beyond just sports betting.
First we expanded our capabilities with the NCAA by powering augmented broadcast of the men's and women's basketball tournament in March will cover this in more detail shortly.
Also within college sports I'll deal with American Conference will leverage our full suite of services, including like data collection, and integrations second spectrum tracking and various span engagement marketing solutions and sponsorship inventory marks and logos.
In stadium signage and digital media and customer acquisition platforms.
NBA <unk> will also leverage second spectrum optical tracking system and advanced analytics to support players coaches fans and broadcasters.
We are also announcing a new partnership with Icelandic football with genius will provide the suites of free to play guidance to deliver engaging digital experiences for fans collectively we expect the partnership to help accelerate the growth of the sport in Iceland and internationally.
Lastly, we announced our first tracking and video augmentation partnership in Latin America with meager Amex franchise <unk>.
Sure second spectrum technology will capture transformative new data points slight clasby expected gold conversion rate shock for the state and more all of which powers immersive experience for fans and insights suppliers intentions.
So why are these partnerships are important.
Our unique capabilities gives us a differentiated approach and how does GM secure long term rights deals.
We integrate our technology, making a sticky part that they enable us to monetize data in more ways than just sports betting and our range of solutions Diversifies, our revenue streams generated from lead some clubs, even when data rights and not on the table.
While we are continuing to strengthen our league partnerships, we're seeing similar success with our sports with partners as well.
In this quarter alone genius acquired 13, new sports with customers that contributed to our financial results. Importantly, we have also expanded our relationships with existing customers by successfully cross selling various micro services and content, which provides incremental revenue uplift.
We also benefited from continued market neutralization, particularly in North America, which saw successful launches of New York in Ontario.
Which opened after the quarter.
The ongoing legalization of online sports betting is an important and unique driver of profitability for genius.
Unlike b to C sports books operating partners, you have to invest heavily to acquire customers and win market share in new states geniuses business model benefits from economies of scale.
What this means is that as soon as people in New York on carrier, Brazil, or any other state or province stopped wagering genius enjoys immediate revenue at little incremental cost, allowing those revenues to contribute meaningfully to our margins.
It is what it makes our business model so distinct in the sports betting ecosystem.
We also delivered strong results in our media and engagement segment. This was primarily organic growth driven by higher than expected programmatic advertising spend around the Super Bowl March madness.
Access to real time data Reynolds.
Combined with audience data obtained through the partnerships helped deliver strong results in our performance based advertising campaigns customers, which helped.
Drive increased spend in the quarter, we will touch on this again shortly.
Our execution in this quarter and momentum through the remainder of the year gives us confidence in reaffirming our guidance for 2022 in 2023, Nic will cover our detailed results and outlook shortly.
I've already spoken at length about the importance of our tech driven lead partnerships and second spectrum is an important pillar of our offering.
Our differentiated technology helps further embed genius in sports betting and media ecosystem and increases our competitive advantages.
Each quarter, we debit to show real life. Examples of how this technology is being used by <unk> and broadcasters.
Our most recent notable applications during the men's and women's Division one basketball tournament during March madness.
You may have seen ESPN mega cost presentation at the NCAA Women's final pools and National Championship game, which features real time data Visualizations and video Augmentations powered by second section.
For example, you would see turned into the ultimate forecast could track real time short probability player distances.
And other data driven graphical herbalife.
This slide tracking and video augmentation tool was also used in the broadcast of the men's mathematically, bringing fans even closer to the action on the floor.
This will contribute to a more personalized and engaging user experience, which brings increased value to me some forecast of the mic in fact, the NDA on the SDN and NFL on Cvs reached nominated Sports Emmy Awards with the support of genius and second spectrum. We are proud of our partners for their nominations.
The license to it being powerful.
I also discussed free to play games as another key tool to least digitally engaged fans and broaden our reach we've delivered this to meet and federations IP NFL MLB IFC and others. This is true not just the leagues and federations, but any brands seeking to connect to export.
Oems such as Jersey, Mikes, Buffalo Wild Wings will news UK.
Through the acquisition of <unk> hub genius strengthened as total offering with a suite of best in class free to play games and our solutions have driven our success for all customers.
Continued to deliver results to others in the space as we talk about this has not only helped us to secure long term technology partnerships with needs, but also diversifies our revenue streams.
I'd like to give you folks to look at how we drive success for our customers in this quarter.
First in partnership with the MLP, we launched a series of free to play games.
Which include the well known beat the street getting.
This was designed to help the MLP engage fans capture first party data their holistic views of that generates excitement to begin the <unk>.
With the addition of Pam hub genius has expanded its relationship with the MLP by further grading and south in the MLP why does tech ecosystem and strengthening its position as a trusted partner across multiple areas of expertise.
We also launched the NFL Super Bowl challenged which is healthily, reaching international audience across nine countries.
The NFL set our goals to acquire and engage new NFL fans in international markets and a free to play games are an important tool for them to achieve this lifestyle.
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The NFL can use the platform to better understand the international fan base, which can then be leveraged to better activate their own sponsors as you can see in the images on the slide.
Again, our partnership with the NFL expand well beyond just basic back then and this is an example of the important role we play in the broader fan engagement objectives.
Free to play games are just as valuable for brands as they often need and I'll work with that Victor is an excellent example.
Is the source book brands that utilize free to play games to convert to a wider pool of potential vesting customers.
Free to play contributed meaningfully to our results in the media and engaged infection, but the biggest organic drive our revenue was up performance space digital advertisers.
Genius is uniquely positioned to help brands acquired customers more efficiently.
As a result of our access to data real time sports data live on stage and audience data all of which is obtained in partnership with the leagues.
This enables us to deliver highly personalized content to the right. Some of these at the right time based on the unique understanding of Baidu and the relevant context from live sporting events.
What differentiates all programmatic advertising and how we have executed a highly effective and cost efficient kind of pattern.
This is exactly why sportswear customers continued to spend with us in the quarter, especially around key events like the Super Bowl March Madness.
To give you some context during the 2021 and 2022 NFL season genius across one new first time deposits up five minutes on behalf of our scores with customers.
And the 48 islands, leading up to the Super Bowl, we acquired a new class.
Every 24 seconds.
Importantly, we've done that as an average CPA of $225, which is 25% below the industry average.
Both the brands and rationalizing promotional spend GDP performance based digital marketing solutions presents a cost effective solution to acquire Plaid with long term value. This is separate and distinct from promotion sign up bonuses on national TV advertisement and this technology is a high performing customer.
Retention as the need for.
Customer acquisition. So we're optimistic about the opportunities ahead in this segment.
With that I'll now turn the call to Nick who will cover our financial results in more detail.
Thank you Mark.
As Mark mentioned, we are delighted to begin the year on a positive note.
First quarter group revenue and group adjusted EBITDA exceeding our expectations.
Remember on our Investor day, we set out full year guidance for profitable 2022 position.
Within the annual outlook, we aim to provide more transparency on a quarterly basis to give a near term view on how the business is tracking along our plan towards profitability.
As a step to that.
We also provided a quarterly view of each reporting segment.
To show seasonal trends and contribution throughout the year.
This quarter each segment's net all exceeded our expectations.
Firstly on <unk>.
<unk> revenues grew 28% year on year to $50 million.
This growth was primarily driven by price increases and existing contract renewals and renegotiations.
Along with new value added services and premium data and streaming content.
Including our expanded portfolio of U S content.
We also successfully executed on our cross selling opportunities with several customers in the quarter helping.
Helping to lift in revenues.
Patients.
And of course, we've continued to acquire new customers.
Which also contributed to the revenues in the quarter.
Our major segment with the most significant outperformer in the quarter.
Revenues increased by over two and a half times year on year to $24 million.
And represents the third consecutive quarter of a 100% and above year on year growth.
The success in this business continues to be driven by our performance based programmatic advertising.
Which has proven to be an effective method for us coastal customers to acquire new clients.
Lastly.
Our sports revenues more than doubled year on year to $12 million in line with our expectations.
This was primarily driven by ongoing integration and successful Rollouts of second spectrum technology.
As well as expanded services provided to existing sports League and Federation customers.
This all aggregates.
Revenue of $86 million.
Which was 62% higher from the same period last year and 10% above our guidance for the quarter.
Our group revenue performance.
Contributing to group adjusted EBITDA of negative $2 $9 million.
Which is roughly 40% better than our quarterly guidance.
The first quarter results relative to our guidance.
Demonstrates our progress along the plan, we outlined on our Investor day.
We remain confident in our execution as we look ahead to the remainder of the year.
Our strong Q1 results and enables us to reaffirm our full year 2022 guidance for approximately $340 million in revenue and $15 million includes adjusted EBITDA.
This is despite currency fluctuations and escalating war when Ukraine both.
Both of which impact our reported revenue.
From a currency standpoint.
Fluctuating GBP U S dollar exchange rate poses no operational risk to the business itself.
But rather just the conversion of revenues in Sterling.
Our presentational currency in U S dollars.
Given our media business is predominantly U S and therefore U S dollar focus.
Most of the currency, we'd like to presentation on risk is in our betting revenue, which you can see in the revised segmental guidance, we provided on the page.
We believe on a constant currency basis.
I E. If we used a fixed exchange ratio of 135 as we presented at the time of our January Investor Day.
Our strong Q1 results.
It would enable us to raise our guidance to approximately $348 million in revenue.
$17 million in group adjusted EBITDA.
So long as exchange rates remain volatile we will continue to provide this constant currency view in our business to amuse the presentational currency volatility.
So to recap.
Despite this presentational currency and other headwinds.
Based on our strong operating performance to date.
We are consequently, maintaining our full year revenue and adjusted EBITDA guidance.
Before we conclude.
I'd like to quickly touch on our liquidity position as well.
Youll see in our financial statements, we finished the quarter with $174 million on the balance sheet.
Approximately $28 million of the cash spend in the quarter related to various timing differences on non recurring one off events.
For instance, we had a working capital outflow of approximately $17 million in the quarter.
This was largely due to higher media revenues with direct variable cost and.
And a larger proportion of U S betting revenues on profit share contracts.
Typically paid at the end of the period compare compared to fixed fee contracts tied to the beginning.
We expect much of this timing to work back in our favor and constituted.
Additionally, it's worth calling out one off cash outlay.
Ultimately $8 million.
Relating to our investments in the CFL.
And our cash position was also impacted by a further $3 million presentational reduction due to exchange rates as the U S. Dollar continues to strengthen against the purchase path.
Lastly, you'll note that $10 million of capitalized development costs in the quarter.
Which we expect to remain consistent through the end of the year as we.
You need to invest in our technology platform.
We wanted to address this quarters cash flow, because it's primarily driven by timing as expected.
We anticipate net working capital to swing back in our favor next quarter.
We expect net cash flow to be broadly breakeven in quarter two.
Our projected closing cash balance of roughly $150 million by the year end as EBITDA and cash flow are expected to increase.
We are very comfortable with our capital position and have ample liquidity to continue funding the business under the plan as it exists today.
Particularly as we expect to be adjusted EBITDA positive for the remainder of the year.
And to generate positive cash flows.
By the second half of 2023.
And with that.
We conclude our prepared remarks and <unk>.
The line for Q&A.
Ladies and gentlemen, if you wish to ask a question. Please press star followed by one on your telephone keypad.
If you wish to withdraw your question you May press Star two.
Sure.
We kindly ask you to limit yourself to one question and one follow up.
There will be a brief pause for questions are being written.
Please hold until we have the first question.
First question is from the line spanning <unk> Tandon with Needham. Please go ahead.
Great. Thanks for taking the questions I wanted to focus on the media part of the business better than expected results in the quarter. Just was hoping you can dive in a little bit deeper in terms of if it was new customer additions or existing customers spending more I know that you called out the NCAA tournament, but any other any other details you could give on the outperformance and then also.
Just a follow up on some of the commentary that you gave mark appreciate all the details with the CPA about $2 25, which is about 25% below industry averages.
Can you talk about the sustainability of that especially as you think that as operators appear to be pulling back in terms of how much that theyre spending.
How long you can keep that 25% discount or so basically what's the run is supply.
A factor to consider in terms of being able to continue.
Grow that business substantially, but then also deliver the below average CPA. Thank you.
Hi, Jeremy This is Ed drops therefore, managing director for the media business genius.
So just to answer your question in terms of growth in the quarter really the growth was driven by three factors, one us winning new customers.
In Europe , and the U S as well as our existing customers increasing spend with us increase in spend is partly down to seasonality, but also partly down to us introducing new strategies with our customers to help them diversify the spend so ultimately helping them spend more to drive further layer acquisition.
Ed.
And in terms of those CPI numbers that we quoted and we see that as being sustainable I mean, all marketing business is very successful in.
Very mature markets, where we continue to exceed our customers' estimate target and these are markets that have been around for many many years. So we expect that exact to continue in the U S as well.
With additional space Rolling out each new state for us is a new market.
Customers need to spend with us again.
So that.
That continued growth for us there.
And in terms of operators discussing pulling back marketing and I actually spent a considerable amount of time with one of the one of the largest sports books. This week and we were we're discussing a very topic.
When it comes to looking at promotional spend and things like that the first thing.
B.
Promotional offers as well as sort of above.
Lower marketing spend in TV and print and things like that so the.
The marketing that genius offers to our customers is very performance driven so it's not something very good efficacy and really cutting back because it's directly attributable to two new.
New customer sign ups and player value and things like that.
Okay.
It makes a lot of sense I appreciate the insight Josh.
Hi, it's mark thanks.
Thanks for joining today is probably also probably can decided a few talked a few times today, but it's also worth highlighting.
Sure.
Our business model is obviously very different to a lot of the operators when new states come online that gives us a huge opportunity to get more spend through our media business, but that also applies to all the sports betting side as well.
One of the things that I think is sometimes missed.
I mean, you guys, but.
File on the market is is that we are net benefiting from new states coming online because.
Fundamentally we already have the technology in place and we don't need to spend more money to service status. So that's very high margin new business that flows through whereas if youre and operate these sites come online.
Spend marketing dollars you got to put more money at <unk>.
So I think at this stage.
Al.
As a footprint of regulated states increases we are going to be very well positioned to see that business flowing through and dropping through to our bottom line.
Mark if you don't mind, just one follow up on that because we've been getting a lot of questions on listen there's just some uncertainty in the market.
Did New York January positive revenue for you guys in the quarter in both media and bedding.
Yes.
New York coming online is hugely.
The beneficial to us in two ways.
Sure.
Spend that we put through the media business.
And obviously the data that we are setting to the sports books. There is no incremental cost to genius note this tiny incremental costs to genius.
So they are enormously beneficial if another major state comes all of California happens to come through.
There's a few bits and pieces going on with Florida, Massachusetts.
Minnesota, if any of that come through this.
And the next.
What we will see is we see great opportunity not only in fact more marketing spend to help those guys acquired new customers.
But also we will we will be selling that data.
Which will give us access to new betting.
Handle which fundamentally we benefit from and the key point to understand is that we do that without any real additional cost because we already had to do so from our point of view of New York was enormously beneficial as well all these other states that are coming through.
Does that answer the question.
Yes.
And the question was stemming from.
The operators <unk> operators, who are saying that New York was either net neutral to revenue to them are negative just because of the promotional aspects just wanted to make sure of that.
That the difference between <unk> and <unk>.
It was still beneficial to you guys I know, there's the cap so just wanted to see.
If that was impacting.
Sure.
Yes, Hi, Brian This is Chuck I think we've spoken before.
Yes.
We want to focus that on the cap so that self protection that so.
While we totally immune from marketing spend no, but we want our customers to spend marketing as we've discussed before because that drives ton handle them all to be sort of a good thing, but we are protected from the scale of <unk> while.
While the cash we have in our business so.
Give me wrong.
The tax was better attacks from a from an operating point of view in Europe that would be beneficial for us and it's high and that's challenging for us from Chinese urea prices, but it doesn't mean that we are unable to make money in that market.
We are.
Understood. Thanks for taking all the questions.
Next question is from the line of Ryan <unk> with Craig Hallum. Please go ahead.
Great. Thanks for taking the questions guys.
Maybe just following up on that New York just to be abundantly clear was it positive revenue in the quarter and then positive incremental to bottom line.
Yes, Brian Hey, it's Mark Yes, it was.
Thank you I appreciate that clarification.
Moving on so.
Looking at FX, I mean pretty material negative down about 10% relative to a couple of months ago. When you gave that guidance. So I guess.
A lot of good things happening at the business, we are expecting a lot of good things as were you back then so I guess incrementally what is going better relative to that plan to help offset that.
Unfavorable FX translation.
Yes.
Ron.
Okay.
I think we sort of touched on some of the things like.
From a marketing point of view.
Hedge of where we thought we would be with some of our sports relationships you should take delivery revenue in the media business. Some of the final time engagement part of it but fundamentally a lot of the outperformance was driven by the performance of the media business.
It's performance based marketing so if we continue to do which all of our customers continue to spend more we continue to deliver results for them. So that's been a big driver of it but the bank business.
Perform guidance as well.
Really a combination of all the sort of key lever that we have in our business to execute against some of that is.
New customer wins, some of that is existing customers utilizing our services.
More than we expected in the quarter.
Yeah.
Those are the two main levers that we have.
New customer wins and ensuring our customers uses to the maximum that's what we do.
That's where the bulk of what could be better.
Our competitor is done on a regular basis on desktop, but if we do a good job on our customers receive good results from the services, we provide to allows us to.
Our perform expectations and that's that's really happened despite the.
Currency headwinds.
The situation in Russia, Yes, Hi, Ron It's Nick here, you guys call out currency, but I think.
<unk> talked about it on the call, but it's worth just reiterating this is a presentational issue not an underlying issue in the business. This is only really impacting us because we happen to present.
Number two the straight in dollars.
Opposed to a functional currency, which is obviously GPP sterling.
So the underlying business does not change.
<unk>.
Called out earlier.
Actually.
Underlying constant currency.
Our guidance is up to three.
<unk>.
In 2017, it just the presentational currency position that that brings it down to the $3 $14 15 again.
Yes, absolutely no that's helpful.
Understood curious just to drill down on the media.
Business a bit more I guess very strong quarter for much of that was organic growth and the performance based marketing and AD tech side versus media versus maybe a couple of smaller acquisitions, how much did those contribute.
Hi, Ryan this is Josh.
The majority of the growth with oil.
Organic through our core programmatic business.
George do you have the growth through that through.
As I said before existing customers spending more and us winning new customers.
That core business continues to grow really really well for us.
Yes, Hi, Ron just to add just thoughts on let me just add a bit of.
So behind that as well.
The major business growth was up 50% over a 100% of that is in the organic nature.
Sure.
Great one more quick one for me and then I'll turn it over the others.
So Nick I appreciate your comments on the cash burn kind of structural versus timing items, there and I realize there is some nuance with accounting recognition of the equity grant to the NFL.
Amortization et.
Et cetera within Cogs.
Are you willing to comment when you think GAAP gross margin will inflect positively.
Okay.
Hey, Ron.
Yes.
When you're talking about in flex positive you're talking about the cash position.
I am talking about reported financials gross margin.
Yes, I mean, the first thing to say you're absolutely right. There are some nuances around some of the accounting for the fair.
Things to say on a gross loss position is that.
Im expecting the NFL.
To reduce in the next quarter and Q3 and Q4 on an ongoing basis that currently running at around about $22 million as youll see in our backup.
That will reduce the next quarter to about $6 million. So we're going to have a 60 million dollar improvement.
Coax basis simply because of the noncash NFL physician, but that will make a significant difference.
Obviously, the depreciation and amortization that will reduce as the town reduced significantly over the next couple of hours.
The quarters.
But obviously the acquisitions that we made we amortize over a short period of time, and therefore, we expect that to come back.
Thanks, guys. Good luck.
Next question is from the line of Jed Kelly with Oppenheimer. Please go ahead.
Hey, Greg.
Thanks for taking my question.
You look at the media business.
Strong b.
Then you apply like normal seasonality.
And advertising and it looks like.
That business could do well over $100 million.
Revenue. This year. So can you just talk about whats implied sort of in your back half guide, but with media is there anything.
You talked like is there anything youre kind of being conservative round terms of like inflation.
Potential political advertising that could boost up.
CPM and then I appreciate it like the betting operators are really leaning into your solutions, but can you talk about your success with.
Other sports related entities that might not be tied to bedding. Thank you.
Hi, Jeff, it's Nick I'll take that.
I'll, let <unk> take the specifics around the non sports book operators.
You are right there with seasonality.
There's two parts to place that I guess first of all is the natural strength of Q1 sports calendar.
We've already called out.
Paul and playoffs and state law March madness, all putting into the last quarter and you can see that as all major business last year as well, we can see that that Q.
Q2, and Q3, and then and then and then rises again in Q4, so thats the sports calendar I think previously in our segmental position, we talked about in Asia I think it was that we pulled out policy. This is on a one three.
<unk> a constant currency basis that was about 18 and down <unk> 12 from the 1926. So so that will absolutely play a part and although you're right. Obviously very strong very happy with the Q1 performance we are expecting it to drop in Q2s naturally because of the seasonality the second part which is a little bit more of an unknown.
Fluff.
It's just around the actual annualized nation of our contract positions with the U S portfolio. As you know we signed a lot of the books up kind of mid to late summer last year. They had minimum committed spend in the media with close to $125 million over that three year period, obviously, we're still only eight to 12.
So the way to move out of those contracts.
Therefore, we estimate that the timing around those.
Meatiest spend but we will Miss you still full year to understand exactly what that looks like in reality now.
Yes.
There's still a lot that we're learning on that basis, but rest assure that we're obviously very happy with the Q1 performance.
And as you've heard from Joshua already.
The rationale of how we continue to be successful in that place I'll handover to trust us to the second part.
Josh I think.
Yes, Hi, Jed.
Some extra.
Context on that.
One thing that a lot of it will be.
Don't realize we also do a lot of advertising for casino.
So when sports events dropped real estate continues to be a lot of casino advertising for our customers as well.
And then on the on the nonoperating side of things.
We've had great success in the quarter, we had a number of new customer wins.
A few names and if the destination, Canada clearly audible.
<unk>.
Rocket Mortgage's number of other customers that came through.
Two to us over the course of the quarter say non bedding side of things continues to continues to grow for us.
Got it and then.
Mark you mentioned the Mac conference it seems like.
The power five college football conferences, clearly see a way to you.
Use their data to get paid.
When you talk about how those contract negotiations are going with some of the larger college football conferences.
Hi, Jed, Yes look obviously the NCAA.
<unk> seen that bump that bylaw was asked was does.
Very big moment for us and a very positive thing.
To recap, we signed a deal or thinking about three years ago.
With the NCAA, which was a 10 year deal.
Yeah.
What we were doing or what we are doing is digitizing their entire.
State and that means that we're putting our technology.
Solutions, which predominantly mainly in large staffs, which lloyd.
Data collection tools into all of the NCAA schools and colleges.
That's been at.
A period of very heavy execution on our part we've done an awful lot of work. We've got it in I think I have a 5000 schools now and I can say with absolute confidence that we are the <unk>.
Incredible position as.
As a result of the distribution and the utilization of that technology stack.
Clearly the Mac deal is.
Very good for us with very very happy with that.
Obviously.
It seems a natural thing for <unk>.
Comprehensive to look to partner with technology providers, and that's not only a deal that involved the technology deal that we did three years ago that is also a big positive second spectrum.
Pulling second spectrum in that technology stack that we've already got putting it into into one deal and really leveraging the real strength is the full genius offering across across those commercial deals.
That'd be nice surprise to say that we've obviously got a keen eye on other conferences and it will be nice product I can't comment on what's going on that but suffice to say we have.
And absolutely unbelievable position, it's completely unrivaled.
And.
The deals that we will consider will be deals that will be profitable for genius and they will be the right deals.
Feeling very good about where we are.
Thank you.
Next question is from the line of Robin Farley with UBS.
Ed.
Great. Thanks.
Wanted to ask.
So my question about what percentage revenue growth was organic versus.
Acquisitions, I know you addressed that for.
The media placement business, but I wonder if you could give some color on the other side.
Thanks.
Yes, Hi, Robert.
Yes.
Yes.
Quite straightforward ticket.
First of all in the testing business. There is no inorganic growth in that so that is all in organic.
I think that gate jet Orion earlier.
India business.
The sports business is almost entirely organic as you know thats much more of an enabler for us and we report our second spectrum revenues in that the growth year on year, it's almost entirely certain spectrum.
I think you talked about.
I think I think it's just shy of 40% organic growth in the quarter.
Year on year.
Against the 60% growth on a total basis.
Okay, Great. That's helpful. Thank you.
Also just wanted to clarify looking at your full year guidance and you mentioned the FX issue.
Very rough back of the envelope it looks like maybe that would be a little less than $1 million difference FX. At this point is you also called out.
In your release, you mentioned exiting business in Russia would that be.
Another $6 million or two that comes out.
What keeps the guidance for the full year unchanged is that how we should think about the Russia impact. Thanks.
Yes, Hi, Robert Yes, I think I gave.
Posted the last quarterly earnings call that an indication of the sort of impactful at Russia, Russia, I think it was but.
$6 million I think I think I called out at the time.
I think we're getting to cut us around the sort of midpoint of that as being the impact that concluded within these forecast clearly in our job over the last couple of months is to look for substitutional content on that basis, which we've had some success in doing.
But any impact on <unk> results are included in the guidance we've set out today.
Maybe $1 million more impact than coronary comes from right.
Like I said at the time I mean, we set out the guidance.
Okay.
We havent made them.
Decision in Russia and India.
Yeah.
And then the my timing because I think we we announced when we made the decision to pull out of Russia in March I believe.
<unk>.
So actually the Amy.
Impact in Russia for the quarter is relatively minimal in the Q1 sufficient.
And we are turning the <unk> 40 of that today.
Okay, great. Thank you very much thanks.
Yes.
Mark Nick brand and Josh Jack Good morning, and good afternoon, guys nice quarter.
Thanks for taking my question.
First one.
First quarter.
<unk> versus your guidance I think you guided.
The quarter Middle of March.
March 12, or so looking at your other two segments youre pretty much in line.
Would you sort of curious why there's such a barrier.
With most of the quarter fully baked when you guided in the media side, if there was sort of a spot buy.
At the end of the quarter or you are being conservative for some reason just sort of curious the variance with them.
When you actually provided guidance.
And then follow up on that.
<unk> has been it feels like there is some longevity here just.
Hearing you this business for the remainder of the year.
That's sort of the right read through.
Yes.
On the first one.
So right on cue.
Q4 results we reaffirm.
Sciences, which again, we're doing today.
March is a significant lump sets obviously from the major sectors, you said, Josh Jack talk about the end of July .
I'm not smart enough.
And therefore.
That was it.
Good.
For us and therefore also given at the time given given the Russian impact on things. We felt it was the right things reaffirm guidance at the time and obviously very pleased to.
Outperform guidance as of today in terms of the rest of the year I think.
Back to what was saying I think in the prepared remarks.
On a constant currency basis.
Three five we would be upgraded our guidance to three full rate.
As opposed to taking at 340, but we're sticking at 340 predominantly because of the presentation of <unk>.
Our position.
In terms of any.
Upside in that from the media business I'll answer first Josh Jack talk about the specifics, but but again, we had a very good quarter I mentioned earlier a little bit.
Right.
Round timings vision for contractual position.
Mid summer so well.
Very happy with the way the major business is performing.
And.
Given all the foreign exchanges, we feel delighted to be reaffirmed guidance on at present.
Nick did you.
Reiterate Youtube.
Q guide 68 over eight.
Youll see in the back of our presentation that we have we haven't given that quarterly split it a little bit more nuanced around the the presentation currency position, obviously, given the currency is right now.
One two full.
Less than that.
Expect in Q2 on the intra quarter to probably most impacted by the foreign exchange position.
At least to which Q2 actually.
Ultimately this is the third.
Quarter that we anticipate to have at least the U S revenues, because clearly we've got a mix of U S revenue and non U S revenue the quarters can be most impacted are the ones that.
The high proportion of non U S. Let me switch as Q2.
So the 8 million dollar position from the 348 at constant currency to three fulfill the presentation currency I'd anticipate Q2 to be most impacted on that basis.
Okay. Thank you last question from me.
On <unk>.
Canada.
Feels like obviously it had a 16 now transitioning at least Ontario to regulated market from initial feedback.
That we've been hearing from operators is that.
Some restrictions.
On the marketing side that may be sort of impact.
Some of your partner's ability to sort of get out there.
We started.
Running some restrictions on market, so just sort of curious what youre seeing.
Well view on how.
That market would take shape now moving to a regulated market. Thanks guys.
Yes, hi, Mark its Chuck types.
Im going to touch this a bit earlier.
How we think about Ontario, all previous calls about how we think about Ontario.
And as you said Mark touched on earlier as new States open up.
Sure.
That gives us new opportunity for revenues without adding a ton of additional cost so that's opportunities across the banking business, but we sell across the.
Across the media business.
Sure.
We'd like to Samsung.
Yes.
To do so.
A view will impact the size of the state.
And it's not a huge amount we can do about that on a macro level. What we can do about it is ensure that we give them the different sorts of marketing tools and opportunities for them to acquire.
And we have lots.
Lots of different ways.
We do that a lot in the marketing business, obviously, the co packing business, which they all that.
As it pushes through.
So AUC enough.
Ontario, actually we just launched it.
How operators couldnt across clients and these content product to do so we've actually just launched a process around kind of.
Streaming rights.
Shipping out if that was a big part of of Canadians live et cetera, We think thats going to.
Drive.
We think it's going to help them drive acquisition. So you are right some of them.
We're seeing some good macro regulatory regulatory things do impact the success of our market.
There's plenty for us to do plenty for us to work with when we talked about prices in those markets.
Okay. Thanks, guys. Good luck.
Ladies and gentlemen that concludes today's session. You may now disconnect. Your telephone. Thank you very much for joining and have a pleasant day goodbye.
Okay.
Okay.
Okay.
Andrew.