Rivalry Announces Record Q3 2023 Financial Results
Published: Nov 29, 2023
Despite spending a significantly reduced amount on marketing, betting and entertainment company Rivalry has announced a record set of Q3 financial results.
Investors will be delighted to see that despite a 13% reduction in marketing spend, the company has recorded an increase in revenue, betting handle and gross profit considerably.
So far, in the current financial year, Rivalry has seen its strongest performing year to date with its customer key performance indicators all reaching an all-time high.
Key Pointers from Rivalry’s Q3 Results
Let’s take a look at some of the highlights of what will be a positive report for investors and shareholders of Rivalry.
- The cost of marketing spend has been reduced by 13% since last year.
- Betting handle is up 50% year-over-year reaching $105.7m
- A 22% increase in the revenue generated up to $8.7m year-over-year.
- Gross profit up 90% year-over-year to $4m
- Rivalry Casino has grown to provide approximately 50% of the company’s total betting handle in Q3. This demonstrates the ability to offer alternative betting options to esports, where viewership over Q3 in some events has been unexpectedly lower than in previous years.
- Key performance indicators regarding customers are on course to be the best ever for Rivalry with record low cost of acquisition being combined with average highs for betting handle per customer and revenue generated per customer.
- Betting handle year-to-date has increased by 127%.
- Revenue is up by 70% and gross profit is up by 175% over the first nine months of 2022.
- A further capital infusion of $14 has been confirmed by the quarter’s end. This will allow Rivalry to continue to pursue growth in key markets and also increase profitability.
- Company reaffirms first half of 2024 profitability guidance.
A Virtual Investor Day has been announced for Jan. 17, 2024.
“Go Back on the Offensive”
The positive set of results is certainly a boost for CEO and Co-Founder of Rivalry Steven Salz, who stated:
“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies.”
“Now, with our recently announced capital infusion, we will be able to go back on the offensive while still maintaining our path to profitability.”
“Years of consistent performance, flattened opex multiple quarters in a row, demonstrated triple-digit growth year-over-year across core metrics year-to-date with all-time high average handle per customer, average revenue per user and record low cost of customer acquisition over that same time period gives me high conviction in Rivalry’s future.”
“It is this proven operative leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fuelled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us the confidence to reaffirm our first half 2024 profitability guidance.”
The company reported revenue of $29.2m across the first nine months of 2023, a 70% increase from the previous year. It also reported cash reserves of $7.4m and no debt as of September 30th 2023.
Read more about Rivalry:
- Rivalry Unveils Same-Game Parlay Product
- Rivalry Launches New Online Casino Product in Ontario (March 2023)
- Rivalry Shareholder Update (January 2023)
Since: August 10, 2015
