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Betting Handle: $79.9 million in Q3 2024, a 9% sequential decrease from Q2 2024.
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Adjusted Revenue: $6 million in Q3 2024, inclusive of $3 million in deferred revenue for NUTZ.
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Net Revenue: $3 million in Q3 2024.
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Net Revenue for Nine Months: $12.1 million, down 8% from the comparable period in 2023.
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Operating Expenses: Decreased by $0.7 million or 8% compared to Q3 2023.
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Marketing, Advertising, and Promotion Expenses: Decreased by $0.9 million or 30% from the previous year.
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Net Loss: $5.8 million, a small increase of $0.2 million from Q3 2023.
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Cash Position: Ended Q3 2024 with $2.1 million in cash.
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Private Placement: Closed a non-brokered private placement for gross proceeds of $3 million.
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Casino Revenue Share: Casino accounted for 40% of net revenue in Q3 2024, up 14% year-over-year.
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Operating Expense Reduction: Current run rate operating expenses are approximately 50% lower than reported in Q3 2024.
Release Date: November 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rivalry Corp (RVLCF) completed a significant product overhaul, including a revamped registration flow, sportsbook, and a new crypto-first cashier, enhancing user experience.
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The company's average net revenue per user increased by 51% compared to the 2024 year-to-date average, indicating improved monetization.
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Rivalry Corp (RVLCF) reduced operating expenses by approximately 50%, creating a leaner and more efficient cost structure.
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The introduction of the native crypto token, NUTZ, has generated $3 million in deferred revenue and is well-received in the crypto community.
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The company successfully closed a $3 million non-brokered private placement, strengthening its balance sheet and supporting growth initiatives.
Negative Points
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Betting handle decreased by 9% sequentially from Q2 2024, partly due to reduced marketing expenses.
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Net revenue for the nine months ended was down 8% from the comparable period in 2023, reflecting challenges in maintaining revenue growth.
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The reduction in marketing spend impacted player acquisition, with some marketing expenses going towards agreement exit costs.
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Rivalry Corp (RVLCF) reported a net loss of $5.8 million, a slight increase from Q3 2023, indicating ongoing financial challenges.
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The company has not provided specific guidance on profitability timelines, creating uncertainty about future financial performance.
Q & A Highlights
Q: With the recent corporate overhaul and rebranding, can you provide an update on Rivalry's cash runway and operating expenses? Is there a possibility of reestablishing profitability guidance next year? A: Steven Salz, CEO, explained that while they have moved away from providing specific guidance, they are focused on near-term profitability. The company's operating expenses have been reduced by 50%, and even with stable revenue, there is a clear path to profitability. They are confident in their liquidity position and anticipate reestablishing profitability guidance early next year.