01.12.2023

by Antoni Majewski

Rivalry Corp: Setting New Records in Q3 Amid Cost Discipline

Rivalry Corp. (TSXV: RVLY), a premier sportsbook and iGaming operator focused on Millennials and Gen Z, today reports a record-breaking third quarter, demonstrating exceptional growth and efficiency.

Rivalry Corp

Financial Highlights:

  • Betting Handle: Skyrocketed to $105.7 million, marking a 50% year-over-year increase.
  • Reduced Marketing Spend: Achieved growth while cutting marketing expenses by 13%.
  • Revenue Growth: A significant 22% year-over-year increase, totaling $8.7 million.
    Gross Profit: Soared by 90% compared to the previous year, reaching $4.0 million.
  • Operational Achievements:

Casino Segment Growth:

  • Now accounts for about half of the company’s betting handle in Q3.
  • Customer KPIs: Reached all-time highs in average handle per customer, average revenue per user, and record low cost of customer acquisition.

Strategic Milestones:

  • $14M Capital Infusion: Post-Q3, Rivalry secured significant funding to fuel growth.
  • Profitability Outlook: The company reiterates its anticipation of achieving profitability in the first half of 2024.
  • Virtual Investor Day: Scheduled for January 17, 2024, to discuss future strategies.

CEO’s Perspective:

Steven Salz, Co-Founder and CEO of Rivalry, expressed pride in the company’s record Q3 performance amidst a challenging capital market. He emphasized the disciplined cost management and robust operating leverage that have positioned Rivalry for sustainable growth. Salz is confident in the future, given the triple-digit growth across key metrics and the recent capital infusion.

Our Comment on the Article:

Rivalry’s Q3 results are nothing short of impressive. In an industry where aggressive marketing is the norm, Rivalry’s ability to reduce marketing spend while simultaneously achieving substantial growth is commendable. This indicates a strong market position and a loyal customer base.

The strategic focus on the burgeoning casino segment and the innovative approach to esports betting are clearly paying dividends. The upcoming investor day will likely shed more light on Rivalry’s plans to leverage its recent capital infusion and maintain its growth trajectory, positioning it as a formidable player in the iGaming and sportsbook sector.

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