Rivalry has announced preliminary and unaudited financial results for the fourth quarter and the full year of 2023.
Q4 23
Though the fourth quarter of 2023 saw a rise in betting handle for Rivalry, it was only a slight one compared to the year prior, going up by 1.5% to a total of $62.43m (CA$85.2m).
As a result, revenue and gross profit both hit a loss, with revenue decreasing 32% to $4.76m and gross profit going from $3.66m in Q4 2022 to $2.20m in Q4 2023.
Net loss, however, did see a reduction from $9.01m to $6.59m.
FY 23
Looking at the full year, the company’s overall results were a lot more positive.
Betting handle was up 82% to $310.1m in 2023 compared with 2022’s figure, while revenue and gross profit also significantly improved compared to the previous year.
Revenue increased from $19.49m in 2022 to $26.16m in 2023 and gross profit saw growth of 66% to a figure of $11.87m.
Net loss also positively shifted during the year as it decreased 22% to $17.81m.
Much of the reason behind Rivalry’s growth in 2023 was down to the casino segment, according to the operator, which saw increased revenue by 92% to $4.69m, with the company expanding its casino offerings significantly during the year, including releasing its casino platform, Casino.exe in Ontario.
Rivalry also referenced that it had diversified its revenue stream during 2023 through new segments including traditional sports and fantasy.
Comments
Rivalry Co-Founder and CEO Steven Salz gave some thoughts on the results: “Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite.
“Last year we gained meaningful traction in new segments such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium- to long-term.
“We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences."
In February, the company released its 2024 business update for its shareholders, outlining its recent progress along with an outline of Rivalry's “strategic priorities” for the 2023 fiscal year.
Salz continued: “During Q1 we have been strategically deploying capital from our fourth quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond.
“Our operational excellence across product and brand marketing last year are seen across positive KPI trends and continued year-over-year growth.
“Ultimately, we are proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”
