Esports betting specialist Rivalry has published its Q2 2023 report, highlighting another favorable quarter. The gaming and sports betting operator reported a spectacular increase in handle and updated its guidance.
Rivalry reported record-breaking Q2 revenue of roughly $6.4 million (converted to USD from CAD). This represents a remarkable 60% increase from Q2 2022, demonstrating the company’s resilience.
During the second quarter of the year, Rivalry recorded an impressive handle of $82.6 million. This figure notably represents a whopping 192% year-on-year increase for the company.
At the same time, marketing spend was reduced by 6% year-on-year.
Rivalry reported that its casino business helped it offset the seasonal slowdown of the esports segment, adding an extra $42.3 million in handle.
Gross profit for the period was $2.8 million, representing an 86% year-on-year increase. Net loss, on the other hand, sat at $4.6 million, remaining more or less the same as in Q2 2022 when the company recorded a loss of $4.5 million. Operational expenses also remained nearly flat.
At the end of June 30, 2023, Rivalry had $10.3 million in cash and no outstanding debts.
Salz Is Excited about the Performance
The favorable results caused Rivalry to update its FY guidance. Steven Salz, the company’s co-founder and chief executive officer, attributed the favorable results in Q2 to multiple improvements to the company’s business, including increased marketing sophistication and enhancements to its core product.
Salz teased that the company plans to release a number of products in Q3 that are expected to further boost its business. He promised that Rivalry has “barely scratched the surface” of its product roadmap and is confident in its potential to appeal to younger players.
While the volatility of the market continues to be a challenge to the company, it also provided Rivalry with the opportunity to learn more about the sector and its competitors.
Our position among young Millennial and Gen Z customers represents one of our greatest competitive advantages, but has also presented unique learnings regarding betting behaviors.
Steven Salz, CEO, Rivalry
Salz noted that the learnings and ongoing adjustments to the company’s business are expected to reduce volatility, positively impact bottom-line results and “propel” the company to profitability.
In other news, Rivalry recently introduced same-game parlays and launched a mobile esports app in Ontario.