Rivalry revenue and handle hit record highs again in Q1 – Quarterly results

Rivalry, an esports-focused operator, has reported a remarkable 149.3% increase in revenue, reaching a record high of CAD$4.8 million (£3.0 million/€3.5 million/$3.7 million). This surge was driven by an astonishing 273.1% growth in player stakes, amounting to CAD$40.2 million, another milestone achievement for the company.

Co-founder and CEO Steven Salz highlighted the significance of these figures, stating that Rivalry has maintained a consistent trend of doubling its year-over-year revenue for each quarter since its inception.

“We are excited to announce that we have achieved the highest betting handle and quarterly revenue in the history of our company,” said Salz. “These results underscore Rivalry’s commitment to sustained excellence, showcasing triple-digit year-over-year growth in every quarter.”

However, alongside the revenue growth, the company’s cost of revenues also surged by 198.2%, totaling CAD$4.1 million. Consequently, Rivalry’s gross profit reached CAD$682,230, reflecting a 25.8% increase.

Operating expenses increased significantly as well, rising by 155.5% to CAD$7.2 million. Notably, marketing, advertising, and promotional costs constituted the largest share of expenses, soaring by 370.1% to CAD$3.1 million. General and administrative costs also grew substantially, by 173.4% to CAD$2.5 million.

A startling rise in share-based compensation was observed, jumping from CAD$26,287 in Q1 of 2021 to CAD$1.2 million in Q1 of 2022.

As a result, Rivalry experienced an operating loss of CAD$6.6 million, an increase from the CAD$2.3 million operating loss reported in the previous year. When factoring in exchange rate fluctuations, the total comprehensive loss amounted to CAD$7.4 million, nearly tripling the loss from Q1 of 2021.

Post-quarter, Rivalry expanded its reach by launching operations in Ontario, having secured a license prior to the market’s launch on April 4. Additionally, the company entered the Australian market earlier this month.

“It is important to note that our first-quarter figures reflect organic growth from our existing markets and do not include results from our new regulated markets, Ontario and Australia, both of which commenced operations in the second quarter,” said Salz.

In 2021, Rivalry achieved a staggering 640.0% year-on-year increase in revenue, reaching CAD$11.1 million, further establishing its position in the esports betting landscape.