Rivalry has published its financial results for the second quarter of 2023. The company posted a 192% boost in its betting handle, along with 60% growth in revenue when compared to results from last year’s corresponding quarter.
During Q2, Rivalry’s betting handle reached $112.2m. The company reduced its marketing spread year-over-year by 6%.
Revenue during the quarter grew by 60% year-over-year, totaling $8.5m. Total gross profit in Q2 climbed by 86% when compared to last year’s second quarter and reached $3.8m.
Company Co-Founder and CEO Steven Salz said, “In Q2 we delivered a nearly three-fold increase in handle year-over-year. Increased marketing sophistication and enhancements to our core product have led to operational improvements, increased player wallet share, and a material year-over-year reduction in cost of customer acquisition, positioning us well in the coming quarters.
“The growing strength in these underlying fundamentals continues to validate Rivalry’s global brand leadership in esports betting, and more broadly, in delivering a world class online gambling experience for the next generation of fans.”
Salz went on to add that the company’s focus on appealing to a younger demographic contributed significantly to its growth during the second quarter.
He concluded by saying, “Our position among young Millennial and Gen Z customers represents one of our greatest competitive advantages but has also presented unique learnings regarding betting behaviors. Generally, we experience higher margin volatility within the sportsbook among this demographic, which impacted revenue this quarter.
“That said, challenges like this come with our position at the bleeding edge of a demographic shift in online gambling, and it has also allowed Rivalry to learn more than other operators about what is needed to succeed among this coveted cohort.”
