Rivalry Corp. outlines strong Q2 with momentum building into Q3

Sports betting and gaming company Rivalry Corp. has published its results for the second quarter of the year ending June 30, 2022. The second quarter remained a strong one for the company which has continued to build on its Q1 momentum carrying over strong results into the latest quarter.

Rivalry, which made a definitive shift towards other verticals, including sports betting and iGaming, originally launched as an esports-only platform, like competitors such as Luckbox. However, the company has seen an opening to expand its reach, resulting in strong financial performance across the board.

The betting handle alone reached a record 98% year-over-year, or CA$38.4m over the period. Revenue stood at CA$5.3m compared to the same quarter in 2021, marking a 60% increase. All growth is organic, the company said in the official press release.

Rivalry Co-Founder and CEO Steven Salz were excited at the new development, lauding the significant growth achieved over the past months on annual basis and in all core metrics. Salz noted that the second quarter is usually quiet for esports, but this has not stopped Rivalry Corp. from benefiting from a strong pull with other verticals.

Salz also spoke of strong sequential growth and said that the momentum continues in the third quarter of the year. In July alone, the company was able to secure a record-breaking CA$23.4m, the executive shared in the press release.

Salz added that the company was eager to demonstrate how its impactful product releases and operational initiatives can translate into strong financial performance. The company had much to feel good about during the second quarter with results remaining strong.

Another highlight in the quarter was the increasing operating leverage that focuses on what the company called "profitable customer unit economics."

Salz continued to comment on the results and said that all the business strength in the second quarter was achieved organically and with the help of the company’s core markets. What’s more, Rivalry Corp. has been able to launch into two regulated markets, which was another important milestone for the quarter.

The company has followed a successful "crawl, walk, and run" strategy to ensure that it builds a sustainable business model that allows it to scale up and expand. "We were very encouraged with our Q2 performance considering that we did not see a material contribution from either of these markets yet, and during what is already a seasonally quiet quarter," Salz added.

In March the company launched its first mobile esports betting product, which has been a success and a contributing factor to the bottom line in Q2 2022.