Rivalry Reports Spectacular Growth in Q2 Results

Esports betting operator Rivalry has published its Q2 2023 report, revealing another successful quarter. The company recorded an impressive 192% year-on-year increase in handle, reaching $82.6 million. Additionally, Rivalry reported record-breaking Q2 revenue of approximately $6.4 million, representing a 60% increase from Q2 2022.

Rivalry’s casino business helped offset the seasonal slowdown of the esports segment, contributing an extra $42.3 million in handle. The company also reduced its marketing spend by 6% year-on-year. Despite a net loss of $4.6 million, operational expenses remained nearly flat, and gross profit for the period was $2.8 million, an 86% year-on-year increase. At the end of June 30, 2023, Rivalry had $10.3 million in cash and no outstanding debts.

Key Takeaways

  • Rivalry reported a 192% year-on-year increase in handle and a record-breaking Q2 revenue of approximately $6.4 million.
  • The casino business helped offset the esports segment’s seasonal slowdown, contributing an extra $42.3 million in handle.
  • Despite a net loss of $4.6 million, operational expenses remained nearly flat, and gross profit for the period was $2.8 million, an 86% year-on-year increase.

Salz Is Excited about the Performance

Rivalry’s Q2 results have been outstanding, leading the company to update its FY guidance. Steven Salz, the company’s co-founder and CEO, is thrilled with the performance and attributes it to multiple improvements in its business. These improvements include increased marketing sophistication and enhancements to the core product.

Salz is confident that the company’s potential to appeal to younger players has barely been tapped into, and he teased that Rivalry plans to release several products in Q3 that are expected to boost its business further. Despite the market’s volatility, Salz noted that it has also allowed Rivalry to learn more about the sector and its competitors.

Rivalry’s position among young Millennial and Gen Z customers represents one of its most significant competitive advantages, but it has also presented unique learnings regarding betting behaviors. Salz believes that the ongoing adjustments to the company’s business will reduce volatility, positively impact bottom-line results, and “propel” the company to profitability.

In addition to its Q2 success, Rivalry recently introduced same-game parlays and launched a mobile esports app in Ontario. These moves demonstrate the company’s commitment to innovation and ability to stay ahead of the competition. Salz is confident in Rivalry’s future growth and is excited to see what the company will achieve in the coming months.

Leave a Comment