Rivalry reported several records in Q1 2023, as the esports and sports betting firm continues to march towards profitability.
Publication of financial results for the period ending March. The Toronto-based company reported that it had reduced its net losses from CAD$6.6m (4.84m) to CAD$3.3m (2.42m) during the last quarter.
Rivalry has set some quarterly records, including a bet handle of CAD$120.2m (88.17m). This is up from CAD$40.2m (29.49m), in Q1 2022, and from its previous high of CAD$83.9m (61.54m) in the Q4 of 2022.
Last quarter, the company posted a record gross profit of CAD$5.4m (US$3.96m), an increase of 9% over its previous record of CAD$5m (US$3.67m) set in the previous quarter.
The revenue of CAD$12m (8.8m) was up 151% YoY, and 27% quarter-on-quarter.
Steven Salz commented on the impressive results of the company’s most recent quarter: “Our position as the intersection between esports, entertainment, and business continues to drive organic growth.”
The firm also revealed that the number of registrations has doubled, from 1.5 million to 1.5 million, and Millenials, Gen Z, and other active users represent 97%.
The company also acknowledged the efforts of esports and influencers to help bolster activations for customers during “tentpole” events. These partnerships and holdings have helped reach 85 million followers despite a reduction of 5% in marketing spending YoY.
“Rivalry’s content and branding strategy sets the industry standard for betting entertainment. It allows us to acquire profitable customers and engage them with authentic touchpoints, without having to spend additional money on marketing and promotion.
This approach is what is driving industry economics and user engagement to new heights. It is also helping the company chart a path towards profitability. We are extremely bullish about this.”
Rivalry also highlighted the proprietary sportsbook and online casino products that contributed to an increase in site traffic and user engagement. The firm’s own technology allows for customisation of their products in order to create a ‘original, engaging and entertaining betting experience tailored specifically for next-generation users’.
Salz said that “Building innovative product, which will add to the overall unique and interactive betting experiences on Rivalry in 2023, will continue to be a strategic priority.”
“The competitive edge of engaging and fun product is increased user satisfaction and activity. When combined with a successful acquisition strategy, it creates a “flywheel” effect that generates organic momentum in the business and enhances our operational efficiency.”
Rivalry closed Q1 with CAD$17.85m (13.1m) cash and no debt. It also raised CAD$10m (7.3m) via a private placement, led by global bookmaker Pinnacle, last month. After that, it invested $10m in product innovation.
