Rivalry Corp, a Canada-based multinational esports betting operator, has achieved its revenue projections for Q3 2022, recording a year-on-year growth rate of 93%.
Quarterly revenue stood at CAN $7.1m, up from $3.7m in the corresponding time period the year prior, marking the company’s highest-ever revenue, whilst also increasing sequentially by 35% from $5.2m in Q2.
This fell roughly in-line with group expectations, with a preliminary update from the group in October projecting a revenue growth rate of 94%, fueled by a substantial increase in betting handle.
True to predictions, betting handle stood at $70,3m during the quarter, rising by 203% from $23.2m in Q3 2021 and 83% sequentially from $38.4m in Q2 2022, exceeding the firm’s previous record quarterly revenue of $40.2m in Q1 of this year.
In a similar fashion to the firm’s preliminary update, Rivalry attributed the uptick in betting handle and subsequent growth in revenue to the popularity of the firm’s products with millennial and Gen Z audiences.
Steven Salz, Rivalry Co-Founder and CEO of Rivalry, said: “Our leading brand position among Millennial and Gen Z consumers was a catalyst in generating meaningful revenue from esports betting during a period of several tentpole international events, and ultimately driving record results in the third quarter.”
Rivalry added that 80% of its active users are under the age of 30, with this age demographic engaging particularly well with esports betting products, from which the firm derived 90% of its revenue in the quarter.
“Our differentiated strategy and product offering is key in connecting with a demographic that legacy operators aren’t equipped to serve,” Salz continued.
“We’ve created brand equity, loyalty, and consumer engagement that continue to guide our successful player acquisition and retention strategy, enhance customer unit economics, and highlight the operating leverage within thess that increases as we scale.”
Also meeting expectations, Rivalry’s gross profit was recorded as $2.1m, increasing by 263% from $600,000 in Q3 2021 and 1% the second quarter of this year.
Buoyed by its performance among esports-following millennial and Gen Z bettors, Rivalry has ended the quarter with no debt and $23m in cash.
Based in Toronto and listed on the Toronto Stock Exchange (TSX), Rivalry is a multinational firm, having eyed up opportunities in the Australian and European markets.
After making its debut in Ontario, the firm has since obtained a licence from the Northern Territory Gaming Commission (NTGC) in Australia, and partnered with Birmingham-based Low6 in October to develop a suite of a free-to-play game.