Rivalry CEO and co-founder Steven Salz said “meaningful traction” for the North American operator across segments is “positioning us for sustainable growth,” as full-year revenue for 2023 rose by 34 per cent year-on-year.
Revenue of CA$35.7m was matched by gross profit of $16.2m, up 66 per cent.
Rivalry said it set new records for average handle for customer, average revenue per customer and low cost of customer acquisition in 2023.
It reaffirmed its guidance, anticipating profitability in the first half of this year.
Salz said: “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.”
The casino segment was a “significant driver” of growth in 2023, Rivalry said, with revenues of $6.4m up 92 per cent from 2022 and accounting for 52 per cent of betting handle in the year.
Betting handle was $423.2m, up 82 per cent from $232.8m in 2022.
For Q4 2023, revenue decreased 32 per cent to $6.5m, “due to less favourable sportsbook outcomes compared against an abnormally favourable result experienced in Q4 2022.”
“The Company notes that revenue as a percentage of betting handle was near the average achieved throughout FY23, highlighting the abnormally favourable margin outcome in the comparable quarter, Q4 2022,” it added.
Net loss was reduced by $3.3m in Q4 to $9m.
“The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024,” Salz added.
“In addition to the strength of our core roadmap, we are in the process of unlocking what we believe to be two of the most material developments to our business model since launching Rivalry in 2018.
“The first is a B2B vertical to licence our in-house developed games, and the second is exploration and development within the crypto ecosystem – each representing an impactful growth catalyst on our path to profitability this year.”
