Rivalry Enjoy Strong Q3 Revenue as Net Loss Continues
Rivalry Corp, the Canadian-based esports gaming operator, has announced its results for Q3 in 2023 which saw the company post a net loss, but achieve good revenue of $8.7 million, a 22% increase when compared to the same period last year.
The esports operator also reported that during the third quarter, gross profit had seen a significant rise to $4.0 million from $1.9 million in Q3 2022 which translates to a 90% increase. Other indicators in the trading statement saw Rivalry achieve a 50% growth in its betting handle to $105.7 million in Q3, up from $70.3 million for the same period in 2022.
Rivalry believes the results for Q3 are in line with the revenue forecasts made by the company for this year, and estimates the esports operator should achieve profitability in H1 in 2024.
We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies, Now, with our recently announced capital infusion, we will be able to go back on the offensive, while still maintaining our path to profitability. Years of consistent performance, flattened opex multiple quarters in a row, demonstrated triple-digit growth year-over-year across core metrics year-to-date with all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition over that same period gives me high conviction in Rivalry’s future.
Factors that Offset Revenue for a Net Loss
Despite the strong revenue figures in the trading results for the last quarter, Rivalry reported a loss of $5.6 million which was a 12% decrease from the previous quarter for the year and a 6% fall from $6.0 million for the same quarter in 2022.
Senior leadership offered a reason for the net loss for the third quarter which was the record revenue for Q3 was offset by a couple of factors including currency exchange values and an increase in operating costs.