Revenue of $5.2 million

Rivalry posts record handle, revenue in Q3; momentum extended into Q4 with first profitable month

Steven Salz, Co-Founder and CEO of Rivalry.
Reading time 1:59 min

Betting and media company Rivalry has announced its third-quarter results. During the period, the business saw record betting handle of CAD 70.3 million ($51.5 million), up 203% year-over-year; and posted record-setting revenue of CAD 7.1 million ($5.2 million), up 93% Y-o-Y. 

For Q3, the company also announced gross profit of CAD 2.1 million ($1.5 million), an increase of 263% year-over-year and consistent with Q2 2022. Momentum has continued into the fourth quarter, the firm says, with a single-month record betting handle of CAD 37.2 million ($27.2 million) and revenue of CAD 4.5 million ($3.3 million), the first profitable month in its history.

"Our leading brand position among Millennial and Gen Z consumers was a catalyst in generating meaningful revenue from esports betting during a period of several tentpole international events, and ultimately driving record results in the third quarter," said Steven Salz, Co-Founder and CEO of Rivalry. 

"Our differentiated strategy and product offering are key in connecting with a demographic that legacy operators aren't equipped to serve,” Salz added. “We've created brand equity, loyalty, and consumer engagement that continue to guide our successful player acquisition and retention strategy, enhance customer unit economics, and highlight the operating leverage within the business that increases as we scale." 

The company lists among its highlights for the quarter the launch of its first-ever casino game, which saw “immediate impact,” contributing 30% of betting handle and 15% of revenue in Q3 despite minimal marketing efforts. Additionally, the Toronto-based firm continued reaching the younger segment, with 82% of active users under the age of 30; and further saw opportunities in esports betting, demonstrated by over 90% of sportsbook handle derived from this vertical.

"The momentum we saw during Q3 has continued into this current quarter as we delivered record results in October, including reaching our first profitable month," Salz continued. "Delivering a clean net profit on a normalized basis is a promising validation of our overarching strategy which prioritizes sustainable user economics and careful capital allocation.”

“While October will likely set our high benchmark in 2022 as seasonally one of the strongest months, we believe our +20% month-over-month average growth over the past year, successful casino product expansion, and increased market share ownership of esports betting positively signals directionally as to where we are headed on underlying profitability in the future,” he concluded.

Rivalry added that its operating leverage and profitable customer unit economics are setting the stage for accelerated growth as the company scales into new verticals and markets. Additionally, a strong cash position and no debt, provide “an important foundation” for further execution, a press release highlights.

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