Esports betting platform Rivalry Corp. (Rivalry) announced its fourth quarter and full-year results for 2023 Friday, confirming significant growth in betting handle, revenue, and gross profit.
The company’s betting handle was $423.2 million in the full-year 2023, up 82% from 2022’s $232.8 million handle. Rivalry's 2023 revenue increased by more than $9 million to $35.7 million in 2023, a 34% jump. Gross profit came in at $16.2 million in 2023, an increase of $6.4 million or 66% from $9.8 million of gross profit in 2022.
“Rivalry exited 2023 as an increasingly diversified company - both geographically and across our product suite," said Steven Salz, co-founder and CEO of Rivalry. "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.”
A record year
Rivalry set several all-time records in 2023.
Its average handle per customer was up nearly 30% year-over-year and its average revenue per customer increased 38% YoY, all while achieving record low cost of customer acquisition which decreased 15% YoY.
Total player registrations eclipsed two million for the full year as well.
“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,” Salz noted.
Casino growth
Rivalry’s casino segment was a major driver of growth in 2023.
Casino revenues represented 52% of the total betting handle, and increased 92% from 2022.
The company released a new original game, Cash & Dash, in September, entered into the slots category in October, and launched its iOS mobile app in Ontario to expand its casino offering and enhance the mobile casino experience.
Momentum for 2024
Rivalry is shooting to achieve profitability in the first half of 2024.
It reduced its net loss year-over-year, with its $24.3 million net loss in 2023 representing a 22% reduction from 2022’s $31.1 million net loss.
Last year saw the diversification of revenue streams through new segments, including traditional sports with the launch of a standalone NBA fantasy app called Rivalry Ultimate Fan, which helped that segment grow by 60% since FY22.
“The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024," said Salz.
"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.”
