RVLCF - Rivalry Reports Record Third Quarter 2023 Results Reaffirms H1 2024 Profit Guidance | Benzinga
- Betting handle of $105.7 million,1 up 50% year-over-year, while reducing marketing spend 13%.
- Revenue of $8.7 million, a 22% increase year-over-year.
- Gross profit of $4.0 million, up 90% year-over-year.
- Casino has grown to approximately half of the Company's betting handle in Q3, demonstrating ability to cross-sell next generation bettors and drive growth against unseasonably low viewership in select Q3 esports events.
- Year-to-date customer KPI's the strongest in Company history: all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition.
- Year-to-date betting handle has increased 127%, revenue by 70%, and gross profit up 175% over the first nine months of 2022. Achieved while reducing marketing spend, highlighting the inherent operating leverage in the business.
- Subsequent to the quarter end, Rivalry completed a $14M capital infusion that strengthens the balance sheet and provides the Company with capital to pursue growth and profitability at the same time.
- Company re-affirms guidance, anticipates achieving profitability in H1 2024.
- Announces virtual investor day to be held January 17, 2024.
TORONTO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Rivalry Corp. (the "Company" or "Rivalry") (TSXV:RVLY) (OTCQX:RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Millennials and Gen Z, today announced its financial results for the three- and nine-month periods ended September 30, 2023. All dollar figures are quoted in Canadian dollars.
"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."
Third Quarter 2023 Highlights
- Betting handle for Q3 2023 was $105.7 million, an increase of $35.4 million or 50% from $70.3 million in Q3 2022.
- Revenue was $8.7 million in Q3 2023, a record result for a third quarter, representing an increase of $1.6 million or 22% from $7.1 million of revenue in Q3 2022.
- Gross profit was $4.0 million in Q3 2023, an increase of $1.9 million or 90% from $2.1 million of gross profit in Q3 2022.
- The Casino segment generated approximately half of total betting handle ($50.4 million). Recent casino product launches including a custom-branded slots category, a new original game Cash & Dash, and the release of Casino.exe on our iOS mobile app in Ontario set the stage for continued growth and increased player wallet share.
- Modest decline in operating expenses sequentially continues the trend of effective cost management while still maintaining significant year-over-year growth rates at the Company.
- Net loss was $5.6 million for Q3 2023, a 6% reduction from the net loss of $6.0 million in Q3 2022 and 12% decrease sequentially.
- Rivalry launched an industry-first same-game parlay product for esports within the quarter, supporting an improved sportsbook product mix and contributing to an enhanced margin profile.
- The Company had $7.4 million of cash and no debt as at September 30, 2023.2
- On November 15, 2023, Rivalry strengthened its balance sheet with the announcement of a ...