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  • Q4 2023: Rivalry hails diversified products despite 32% revenue dip
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CEO Steven Salz believes Rivalry is an “increasingly diversified” business after posting its preliminary Q4 2023 financial report.

Rivalry reported a 32% year-on-year decline in revenue in Q4 2023 to $6.5m, which it blamed on less favourable sportsbook outcomes during the quarter.

Gross profit subsequently also fell to $3.0m, down 40% from the same period the previous year.

Net loss narrowed slightly to $9.0m, compared to $12.0m recorded in Q4 2023.

Rivalry pointed to Q1 2024 margins being so far a 20% improvement compared to FY 2023.

Full-year 2023

On a full-year basis, the results were more positive. The operator noted a 34% rise in revenue to $35.7m for the year-long period.

Rivalry’s iGaming operations helped prop up the growth, with casino revenue rising 92% to $6.4m for the year.

The company highlighted how iGaming handle now represents 52% of the overall total.

The business reported a 66% increase in gross profit to $16.2m, while the overall net loss fell 22% to $24.3m.

This was in part driven by a reduction of costs, which decreased $1.0m to $38.9m for 2023.

This resulted from a reduction in marketing expenses, which offset increases in general, administrative and technology expenses.

Rivalry expands beyond esports

“Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite,” said Salz.

“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.”

Rivalry reaffirmed its guidance, stating that it anticipates it will achieve profitability in H1 2024.

The gaming operator reported $14m in new investment in November 2023. During Q1, the business said it has been strategically deploying this capital to areas that will drive customer acquisition and revenue.

This includes amplifying marketing strategies, by releasing higher margin products and developing proprietary betting experiences.

Rivalry expects benefits from these investments will begin materialising during H1 2024.

“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 license 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.”

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