Rivalry Corp Announces Strong Performance and Strategic Growth in 2023

These results highlight the company’s robust growth trajectory and diversified expansion across various segments.

Diversification and Growth

Steven Salz, the Co-Founder and CEO of Rivalry, emphasized the company’s dynamic expansion over the past year. “Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite,” he noted.

This diversification, particularly into traditional sports, casino, and fantasy segments, has broadened Rivalry’s market opportunities and set the stage for sustainable growth.

Operational Excellence and Strategic Investments

Salz also pointed out the strategic capital deployment during the first quarter, aimed at bolstering customer acquisition and revenue. This includes enhancing marketing strategies, launching higher margin products, and developing unique betting experiences. These initiatives are expected to significantly impact Rivalry’s financial performance in the first half of 2024 and beyond.

2023 Financial Highlights

• The betting handle surged to $423.2 million, marking an 82% increase from the previous year.
• Revenue climbed to $35.7 million, a 34% growth year-over-year.
• The casino segment emerged as a key growth driver, with revenues jumping by 92% to $6.4 million.
• Despite the challenges, Rivalry achieved a gross profit of $16.2 million, up 66% from 2022.

Q4 Insights and Future Prospects

The fourth quarter saw a modest increase in betting handle, with revenues facing a slight downturn due to less favorable sportsbook outcomes. However, the company’s gross profit margin is showing signs of improvement, with expectations for a continued upward trend.

Salz is optimistic about the future, highlighting upcoming product launches and strategic developments, including a new B2B vertical and ventures into the crypto ecosystem. “I have never had more confidence in our product roadmap and what Rivalry is building this year,” he stated.

Our Comment on the Article

Rivalry Corp’s 2023 performance underscores its resilience and strategic foresight in the rapidly evolving iGaming and sports betting landscape. The company’s focus on diversification, coupled with its dedication to the Gen Z demographic, positions it well for future growth.

With innovative products on the horizon and strategic initiatives in play, Rivalry is poised to further solidify its standing in the industry.