NorthStar announces $19.4m in 2023 revenue
Company exceeded $1bn of total wagers since the launch of NorthStar Bets in May 2022.
NorthStar has released its financial results for the end of the 2023 year, including Q4 and data of how much the company made over the entire fiscal year. Please note all dollar figures presented have been quoted in Canadian dollars.
In Q4, company revenue including managed services fees, net of bonuses, promotional costs and free bets was CA$6.5m (US$4.73m) compared to the CA$3.2m NorthStar took home in Q4 of 2022. NorthStar also saw year-over-year improvement in key performance indicators (KPIs) during 2023, including a 31% decline in cost per acquisition of a customer (CPA) and an 18% increase in estimated 12-month player values.
“We delivered very strong growth in our first full year of operations, with revenue and customers increasing sequentially in every quarter. Key accomplishments during the year included the public listing of our shares, numerous product innovations to enhance our online betting platform, a strengthening of strategic partnerships, implementation of a marketing plan that has yielded an excellent return on investment and the Slapshot Media acquisition which has enabled us to expand our addressable market through a First-Nations managed services arrangement,” NorthStar Chair and CEO Michael Moskowitz said.
“Our financial results and KPIs are beginning to demonstrate the strength of our business model. We have the people and systems in place to support considerable expansion. As we scale the business, we expect to realize operating leverage as revenue continues to grow faster than expenses.”
The company revenue came in at CA$19.4m (US$14.1m) for the end of 2023, a 240% increase over the CA$5.7m reported at the end of 2022. Much of this can be attributed to the furthered development of NorthStar Bets, which saw a gross gaming revenue of $22.5m and a gross margin of $7.1m, increases of 208% and 492% respectively over the 2022 numbers. Total wagers placed were $648.8m for 2023, nearly a $500m increase over the reported $184.7m placed in 2022. It should be noted that the 2022 numbers count for only May and on as the company was first beginning, so the heavy growth figures are an anomaly of sorts.
“NorthStar is a rapidly growing company in a relatively new sector with a lot of runway ahead. We have a differentiated offering and, as a locally-based company, a distinct familiarity with the Canadian market. We are small and nimble enough to introduce innovation to our platform, while at the same time having access to world-leading technology and services through our committed partners. Our business model is gaining traction and has the potential to deliver strong returns,” Moskowitz said.
Mr. Moskowitz also published an inaugural Letter to Shareholders from the Chair and CEO, summarizing the company’s recent progress and strategic priorities for 2024.
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