Rivalry Reports Record Q3 2023 Results and Maintains 2024 Profit Forecast
Rivalry Corp., a sportsbook and iGaming operator, recently disclosed its financial outcomes for the third quarter of 2023, along with the first nine months of the year. The company’s financial report indicates a significant increase in betting handle and revenue, along with a decrease in net loss compared to the same period last year. Rivalry’s strategic approach has been to reduce marketing expenses while still achieving growth, as evidenced by the reported figures.
For the third quarter of 2023, Rivalry reported a betting handle of $105.7 million, which is a 50% increase from the previous year. Revenue for this period was recorded at $8.7 million, showing a 22% rise from the third quarter of 2022. Gross profit saw a significant increase to $4.0 million, which is nearly double the figure from the same period last year.
A notable aspect of Rivalry’s performance is the growth of its casino operations, which contributed to about half of the company’s total betting handle. The company also emphasized its operational efficiency, as reflected in the reduced net loss of $5.6 million for the third quarter, a decrease from the $6.0 million loss reported in the previous year.
Looking at the nine-month period ending September 30, 2023, Rivalry experienced a 127% increase in betting handle, amounting to $338.1 million, and a 70% rise in revenue, reaching $29.2 million. The gross profit for this period stood at $13.2 million, marking a significant increase from the previous year. The net loss was reduced to $15.2 million, compared to $18.8 million in the same period in 2022.
Rivalry is on track to reach its goal of profitability in the first half of 2024. The company plans to focus on expanding its marketing, product development, and geographical reach. An investor day event is scheduled for January 17, 2024, to provide further updates on the company’s progress and future plans.
The financial report reflects Rivalry’s focus on balancing growth with operational efficiency, aiming to strengthen its position in the igaming sector.
“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies,” said Steven Salz, Co-Founder and CEO of Rivalry. “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 period gives me high conviction in Rivalry’s future,” Salz added. “It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fueled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance.”