Toronto-based Rivalry announced its Q3 2024 financial results, highlighted by an all-time high in average net revenue per user.
The company reported results for the three- and nine-month periods ended Sept. 30, 2024.
Rivalry has undertaken an alignment in the organizational structure of the company, repositioning product and branding, diving headfirst into the crypto gambling market led by its Rivalry Token product (now called NUTZ), as well as better targeting VIP segments.
The company’s third-quarter betting handle was CA$79.9 million (US$57 million), a slight decrease there, while adjusted revenue was $6 million/$4.3 million). Average bet revenue per user increased by 51% “as compared to the average of the trailing 2024 period and by 70% as compared to the trailing three-year average since launching the initial set of new product features in October.”
The token product from crypto-wallet-connected players generated $3 million/$2.1 million in deferred revenue (200% more revenue than the average non-crypto player on Rivalry).
Rivalry also announced an organizational realignment, which they said in a news release contributed to a decrease in operating expenses; current run-rate expenses (November 2024) are approximately 50% lower than what they reported in Q3 2024. Part of that is because Rivalry’s founders and executive leaders all agreed to take a voluntary reduction in compensation. The company also reduced its workforce by 50%, while reducing marketing spend.
“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,” said Steven Salz, Co-Founder and CEO of Rivalry, in a statement. “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 we are emerging out the other side of this undertaking as a fundamentally leaner company, and better positioned for growth.”
Casino accounted for 62% of betting handle in Q3, and 40% of net revenue, up 14% and 2% year-over-year, respectively.
The company reported that nearly one-third of all high-value players connected their digital wallet and engaged in the pre-release of the NUTZ program, showing a high crossover between VIP players and crypto offerings.
Rivalry also overhauled their sportsbook product, adding 40 new sports an new content on the casino side, while releasing Casino Races (players can compete against one another and earn rewards based on wagering activity), and launching a VIP program featuring cashbacks, free spins and rewards to strengthen player retention and drive activity for their most loyal players.
“The immediate financial results of this high-conviction business evolution is that short-term net revenue is down, however we are beginning to go back on the offensive with a completely evolved product, brand, and marketing approach, as well as an operating footprint that presents a much smaller gap to profitability to close,” Salz added.
