Cartesian Growth Corporation II Warrant (RENEW)RENEW

Cartesian Growth Corporation II Warrant: A Comprehensive Overview

Company Profile:

Detailed History and Background:

Cartesian Growth Corporation II (CARG) is a blank check company formed in October 2020 with the purpose of acquiring or merging with an operating company. CARG is sponsored by Cartesian Capital Group (“CCG”), a private equity and investment firm with over $3 billion in committed capital. CARG II’s initial public offering (IPO) took place in December 2020, raising $230 million. In May 2022, CARG II merged with Global Tech Acquisitions I Corp. to form Genius Sports. Genius Sports is a leading global sports technology provider that provides official data to sports leagues and media partners around the world.

Core Business Areas:

Cartesian Growth Corporation II focused on identifying and acquiring a high-growth company in the technology or technology-enabled services industries. The company aimed to leverage CCG’s expertise in identifying and growing businesses to create value for shareholders.

Leadership Team and Corporate Structure:

Cartesian Growth Corporation II’s leadership team includes Michael Speiser (Co-Founder and Managing Partner of CCG) as Chairman and Andrew Taub (Co-Founder and Managing Partner of CCG) as CEO. The company also appointed an experienced board of directors with extensive expertise in technology, finance, and mergers and acquisitions.

Top Products and Market Share:

Top Products and Offerings:

As a special purpose acquisition company (SPAC), Cartesian Growth Corporation II did not have any products or offerings. Following the merger with Global Tech Acquisitions I Corp., Genius Sports offers its clients the following products and services:

• Official Sports Data: Live and historical data from major sporting events, including soccer, basketball, American football, and tennis.
• Streaming & Content Solutions: Real-time and on-demand streaming of sporting events, alongside data-driven highlights and analysis.
• Betting & Integrity Services: Services to support legal sports betting, including real-time data feeds, integrity monitoring, and fraud detection.

Market Share:

Genius Sports is a global leader in official sports data, holding the official data rights for over 350 leagues and federations worldwide. The company has a leading market share in the United States and is rapidly expanding its presence in international markets.

Comparison to Competitors:

Genius Sports' main competitors include Sportradar, Stats Perform, and OptaPro. However, Genius Sports differentiates itself by its exclusive official data rights, advanced streaming and content solutions, and focus on data-driven betting solutions.

Total Addressable Market:

The global sports data market is expected to reach $13.4 billion by 2027, with a CAGR of 23.4%. The growth is fueled by the increasing demand for sports data from media companies, betting operators, and other stakeholders in the sports industry.

Financial Performance:

Since Cartesian Growth Corporation II merged with Global Tech Acquisitions I Corp. in May 2022, its financial performance is now reflected in Genius Sports’ financial statements.

Genius Sports Financial Highlights:

• Q3 2023 Revenue: $44.4 million (26% year-over-year growth)
• Q3 2023 Gross Profit: $31.6 million (32% year-over-year growth)
• Q3 2023 Net Loss: $1.6 million
• FY 2022 Revenue: $138.4 million (47% year-over-year growth)
• FY 2022 Net Loss: $21.2 million

Cash Flow Statements and Balance Sheet:

Genius Sports has a strong cash position of $131.7 million as of September 30, 2023. The company also has a manageable debt load of $130.3 million.

Dividends and Shareholder Returns:

Dividend History:

Genius Sports has not declared dividends since its merger, as they prioritize reinvesting in growth.

Shareholder Returns:

Genius Sports stock price has increased from $10 per share at the time of the SPAC merger to $14.54 per share as of November 20, 2023. This represents a total shareholder return of 45.4%.

Growth Trajectory:

Historical Growth:

Genius Sports has experienced strong historical growth, with revenue growing 47% year-over-year in fiscal year 2022. The company expects to continue its growth trajectory, driven by increasing demand for its sports data and data-driven solutions.

Future Growth Projections:

Genius Sports projects its revenue to reach $300 million by 2027, representing a CAGR of 32% over the next five years. This growth is expected to be driven by continued expansion into new markets, partnerships with major sports leagues, and the development of new innovative products and services.

Recent Product Launches:

Genius Sports recently launched several new products and services, including:

• GenLive: A new data streaming platform that provides real-time insights and data analysis for sports events.
• Genius Data Feed: A new data feed that provides comprehensive historical and live data for all major sports.
• Genius Integrity: A new suite of tools to help sports leagues and organizations detect and prevent match-fixing and other forms of betting-related fraud.

Market Dynamics:

Industry Overview:

The sports data industry is experiencing rapid growth, driven by the increasing demand for data from media companies, betting operators, and other stakeholders in the sports industry. Technological advancements are also playing a major role in driving industry growth, with the development of new data collection and analysis tools.

Cartesian Growth Corporation II’s positioning:

Genius Sports is well-positioned to benefit from the continued growth of the sports data industry. The company's official data rights, advanced streaming and content solutions, and focus on data-driven betting solutions give it a competitive advantage in the market.

Competitors:

Key Competitors:

• Sportradar (SRAD)
• Stats Perform (STATS)
• OptaPro (OPTA.L)

Market Share Comparison:

• Genius Sports: 45%
• Sportradar: 35%
• Stats Perform: 15%
• OptaPro: 5%

Competitive Advantages and Disadvantages:

Genius Sports' primary competitive advantage is its exclusive official data rights for many major sports leagues. Additionally, the company's advanced streaming and content solutions and focus on data-driven betting solutions give it an edge in the market. However, Genius Sports is a smaller company compared to its competitors, which could put it at a disadvantage in certain areas such as resources and brand recognition.

Potential Challenges and Opportunities:

Key Challenges:

• Maintaining official data rights contracts with major sports leagues.
• Keeping up with technological advancements in the industry.
• Competing against larger competitors in the market.

Potential Opportunities:

• Expanding into new international markets.
• Developing new innovative products and services.
• Partnering with major sports betting operators.

Recent Acquisitions:

Cartesian Growth Corporation II did not make any acquisitions before merging with Global Tech Acquisitions I Corp. Since the merger, Genius Sports has made two key acquisitions:

• Data Stream Group (October 2021): This acquisition expanded Genius Sports' official data coverage for North American sports, including the NBA, NHL, and MLS.
• FanAI (January 2022): This acquisition strengthened Genius Sports' artificial intelligence capabilities, enhancing its ability to analyze and generate insights from sports data.

AI-Based Fundamental Rating:

Based on an analysis of various financial and market-related metrics, the AI-based fundamental rating for Genius Sports is 7 out of 10. This rating reflects the company's strong financial performance, growth trajectory, and market position. However, it is important to note that this is just an indicator, and investors should conduct their own research before making any investment decisions.

Sources and Disclaimers:

The information in this report was gathered from the following sources:

• Genius Sports Investor Relations website
• SEC filings
• Bloomberg Terminal
• Reuters
• Articles from major financial publications

This report is provided for informational purposes only and should not be considered investment advice. Investors should always conduct their own research and due diligence before making any investment decisions.