Esports and sports betting company Rivalry has released its Q3 2024 financial results, highlighting a record-breaking average net revenue per user increase of 51%, compared to the trailing 2024 period.
However, the company has decreased in net revenue for the quarter, garnering just under CAD $3m (~£1.6m) compared to Q3 2023’s figure of CAD $4m (~£2.2m).
In the release, Rivalry also announced the completion of its “most substantial product overhaul” ever including a strategic rebrand and a focus on crypto-betting.
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In the financial results, Rivalry reported that its betting handle for Q3 2024 was CAD $79.9m (~£44.8m). This is down from 2023 with the company garnering a betting handle of CAD $105.7m (~£59.1m) from the same quarter last year.
Rivalry’s casino offering proved to be its most successful product for Q3 2024, accounting for 62% of its betting handle and 40% of net revenue, up 14% and 2% year-over-year, respectively.
Prior to the complete product redesign, Rivalry made several crypto payment integrations in its platform to increase its market share in the crypto-betting market. In the report, Rivalry noted that crypto wallet-connected players generated 200% more revenue than the average non-crypto player on the platform.
In May 2024, Rivalry made its debut in the crypto space with the launch of the ‘Rivalry Token.’
Overall, Rivalry’s net loss for Q3 2024 was CAD $5.9m (~£3.3m). Despite the reduced total revenue, this is similar to Q3 2023’s loss of CAD $5.6m (~£3.1m). These similar results could be attributed to marketing, advertising and promotion expenses being reduced from CAD $3.1m (~£1.7m) in Q3 2023 to CAD $2.1m (~£1.2m) this year.
Whilst the company has diversified outside of esports in recent years, the company has still remained somewhat active in the space in 2024. Notably, Rivalry collaborated with Blacklist International until September this year on a Dota 2 team. Moreover, the company launched a Counter-Strike 2 LAN tournament alongside commentator Mohan ‘Launders’ Govindasamy.
Noting the financial results, Steven Salz, Co-Founder and CEO of Rivalry, commented: “From the start of the third quarter through to the release of these results, we have undergone the most substantive evolution of our business since founding.
“This work was done to better attune ourselves to an evolving online gambling market where cryptocurrency has become the global payment method of choice, and to align our offering with the experiential expectations of the players driving this industry-wide shift. These initiatives were set in motion during the second quarter alongside the announcement of Rivalry Token, and I’m proud to say we are emerging out the other side of this undertaking as a fundamentally leaner company, and better positioned for growth.”
