The leading sportsbook and iGaming operator for Gen Z continues its run of hot performance. Rivalry Corp (Rivalry) announced its financial results for the first quarter today, reporting impressive growth that continues on the momentum gained from a successful 2023.
Rivalry’s betting handle topped $94.7 million, an 11% increase from Q4 2023. Gross gaming revenue (GGR) reached $7.7 million, jumping 20% from the previous quarter’s total. The company enjoyed a 51% spike in net revenue compared to Q4’s performance, ending Q1 with $4.5 million.
The Toronto-based operator touted the highest net revenue margin in the company’s history in the first quarter, with net revenue representing 58.5% of GGR.
“We are also very encouraged by the improvement to net revenue margin experienced in the quarter, hitting an all-time record, proving our strategy is delivering results, and representing a meaningful improvement as compared to the average levels experienced throughout 2023,” said Steven Salz, Co-Founder and CEO of Rivalry.
Crypto Gaming
When Rivalry reported its 2023 earnings earlier this year, Salz alluded to plans for a crypto-enabled product set in the works for 2024.
“The shift in consumer behavior and the signal from our users is clear - interactive, volatile, and crypto-infused product experiences will set a precedent for how the next generation gambles online.”
Well, his company took a massive step towards setting that precedent with the announcement of Rivalry Token, a native cryptocurrency that will act as a nexus between Rivalry, Web3, and gamblers.
Rivalry Token will add increased functionality, economics, and user experiences across Rivalry’s product suite, and is anticipated to arrive in the second half of 2024.
“The launch of Rivalry Token, alongside a broader expansion into cryptocurrencies, strengthens our product-market fit among an under-30 audience and positions us competitively to capture a meaningful share of this fast-growing and highly valuable segment of the market,” Salz added.
The company’s press release announcing the earnings and the token also suggested that Rivalry Token is just one of several forthcoming initiatives aimed at positioning the company in the crypto gambling market.
Rivalry is launching a pre-farming campaign called PLAY-2-EARN where users can begin accumulating interim token points through site activity and eventually social media which will be converted into Rivalry Tokens later this year.
Once launched, Rivalry Token will be available for players to use on Rivalry in all of the company’s active markets except for Ontario and Australia.
Other Q1 Highlights
The Casino segment flourished in 2023, representing 52% of the total betting handle for the year. It continued its strong performance in Q1 accounting for 59% of the total betting handle and 19% of GGR in the quarter.
The company achieved its narrowest net loss of the last four quarters with a $5.2 million net loss in Q1.
Rivalry built on its growing traditional sports vertical with the release of a basketball same-game parlay product that coincided with the 2024 NBA playoffs. The company also released pre-made parlays and shareable bet slips during the quarter too.
