Genius Sports board member to step down after share sale By Investing.com
NEW YORK & LONDON – Genius Sports Limited (NYSE:GENI), a global leader in sports data technology, announced the upcoming resignation of Gabriele Cipparrone from its Board of Directors. Cipparrone, a partner at private equity firm Apax Partners LLP, will step down effective April 8, 2024. His departure follows a secondary sale of Genius Sports shares by funds advised by Apax Partners on April 1, 2024.
Cipparrone has been a key figure on the Genius Sports Board since the Apax Funds’ investment in the company in 2018. During his tenure, Genius Sports experienced significant growth, with its revenue expanding from $85 million in 2018 to $413 million in 2023. The company has also marked the third anniversary of its public listing on the New York Stock Exchange.
In a statement, Cipparrone expressed confidence in Genius Sports’ long-term financial and strategic position, highlighting its market leadership and profitable growth. Mark Locke, CEO of Genius Sports, acknowledged the critical role played by Cipparrone and the Apax team in the company’s development over the past six years.
As Genius Sports continues to evolve, the company is conducting a comprehensive search for additional independent Board members to replace those designated by Apax representatives. Genius Sports serves as the official data, technology, and broadcast partner for sports, betting, and media, operating in over 150 countries and partnering with more than 400 sports organizations, including major leagues and federations.
InvestingPro Insights
As Genius Sports Limited (NYSE:GENI) navigates the transition period following Gabriele Cipparrone’s resignation, investors and stakeholders are closely monitoring the company’s financial health and market performance. According to recent data from InvestingPro, Genius Sports’ market capitalization stands at approximately $1.15 billion. Despite a solid revenue growth of 21.1% in the last twelve months as of Q4 2023, the company’s gross profit margins remain thin at 16.71%, reflecting some of the operational challenges it faces.
The volatility of Genius Sports’ stock price, as indicated by a 1-month price total return of -21.57%, suggests that investors may be reacting to both market conditions and company-specific news. This is further evidenced by the stock’s performance, which has fared poorly over the last month, yet showed a positive return of 7.13% over the past six months. The company’s price-to-book ratio as of Q4 2023 was 2.01, which could be of interest to investors seeking to gauge the company’s value against its net assets.
From an analytical perspective, InvestingPro Tips highlight that Genius Sports holds more cash than debt on its balance sheet, which is a positive sign for financial stability. However, analysts have tempered their expectations, with two revising their earnings estimates downwards for the upcoming period. The company’s profitability is also a concern, as analysts do not anticipate Genius Sports will be profitable this year, and the company has not been profitable over the last twelve months.
For readers interested in a deeper dive into Genius Sports’ financials and market prospects, InvestingPro offers additional insights and tips. There are currently 7 more InvestingPro Tips available for Genius Sports, which can be accessed at https://www.investing.com/pro/GENI. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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