In 2023, Rivalry experienced a significant uptick in its financial outcomes, marked by a 66% increase in gross profit. This period also saw the company enhancing its support for cryptocurrency transactions, indicating a strategic pivot towards modernizing payment options.
Despite facing a somewhat challenging fourth quarter, Rivalry managed a modest increase in its betting handle by 1.5% to $62.43m. However, the same quarter witnessed a decline in revenue by 32% to $4.76m and a reduction in gross profit to $2.20m from $3.66m in the previous year. Yet, there was a silver lining as the net loss narrowed from $9.01m to $6.59m, pointing to a degree of financial resilience.
The year in totality painted a more favorable picture. Rivalry saw its betting handle soar by 82% to $310.1m. There was a noticeable improvement in revenue, which climbed from $19.49m in 2022 to $26.16m in 2023, and gross profit rose impressively by 66% to $11.87m. The reduction in net loss by 22% to $17.81m further underscored the company’s forward momentum.
A key driver of Rivalry’s 2023 success was its casino segment, which experienced a revenue increase of 92% to $4.69m. This achievement was bolstered by the launch of Casino.exe in Ontario and an expansion of the company’s casino offerings. Rivalry also diversified its revenue streams by venturing into traditional sports and fantasy.
Steven Salz, Rivalry’s Co-Founder and CEO, commented on the year’s performance: “Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite. Last year we gained meaningful traction in new segments such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium- to long-term. We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences.”
In its 2024 business update released in February, Rivalry outlined its “strategic priorities” for the fiscal year, emphasizing continued growth and innovation. Salz further elaborated: “During Q1 we have been strategically deploying capital from our fourth quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond. Our operational excellence across product and brand marketing last year are seen across positive KPI trends and continued year-over-year growth. Ultimately, we are proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”
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