Rivalry Corp., a prominent sportsbook and iGaming operator catering to digital-first players, has announced its financial results for the three and nine months ending September 30, 2024. The quarter reflects Rivalry’s strategic transformation, including a shift toward a crypto-native focus, significant product enhancements, and operational realignments aimed at optimizing efficiency and profitability.
Rivalry Token has emerged as a key driver, capturing $3.0 million in deferred revenue, with crypto wallet-connected customers generating 200% more revenue than baseline users and achieving 30% higher retention rates. This performance underscores the company’s successful transition to a crypto-first business model, which aligns with evolving player preferences in the global market.
The company completed a comprehensive overhaul of its sportsbook and casino offerings. Enhancements include adding 40 new sports, embedded live streams, match statistics, and a streamlined user interface. Casino upgrades feature expanded content and the introduction of Casino Races, offering players a competitive and rewarding experience. Additionally, Rivalry launched a crypto-first cashier, enabling faster, more flexible payment options and deepening its presence in the cryptocurrency market.
Rivalry introduced a revamped VIP and rewards program, offering cashback, free spins, and daily rewards to bolster retention and attract high-value players. Significant improvements to CRM systems, reactivation strategies, and user onboarding have further streamlined player acquisition and engagement. A strategic rebrand now targets crypto gamblers and digital-first players, reinforcing Rivalry’s position as a market leader in this niche.
Key Financial Highlights:
- Betting Handle: $79.9 million in Q3 2024, reflecting a slight sequential decline.
- Adjusted Revenue: $6.0 million, including $3.0 million in deferred revenue from Rivalry Token (NUTZ).
- Net Revenue: $3.0 million for Q3 2024 and $12.1 million for the nine months ending September 30, down 8% year-over-year due to reduced marketing spend and a higher mix of lower-margin casino handle.
- Cost Reductions: Operating expenses decreased by approximately 50% following a Q3 organizational overhaul, positioning Rivalry for profitability.
- Casino Performance: Casino accounted for 62% of betting handle and 40% of net revenue in Q3, supported by new exclusive games and product development.
Strategic Updates:
- Executive Salary Adjustments: Senior leadership, including the CEO, CTO, and COO, voluntarily reduced their salaries, demonstrating commitment to operational realignment.
- Marketing Spend: Decreased by 30% year-over-year to $2.0 million, with plans to restart campaigns in December following product updates and rebranding.
- Private Placement: Rivalry closed a $3.0 million non-brokered private placement, bolstering its balance sheet and reflecting strong support from insiders and investors.
The strategic changes have already shown promising results, with average net revenue per user increasing by 51% compared to earlier in 2024 and 70% compared to the trailing three-year average. Rivalry’s cost-efficient operations and focus on high-value players are expected to drive long-term growth and profitability as the company continues to adapt to evolving market dynamics.
“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. “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.”
“Over this period we have completely rebuilt every core element of our product, intentionally designed to service crypto-native users and high value players. We’ve also undergone a comprehensive rebrand, and significantly drawn down marketing spend associated with our prior strategy. Our native crypto token has developed materially, becoming more integrated with our VIP strategy and overall growth plan, allowing us to better scale in this category. On an organizational level, we reduced our headcount by 50% through two workforce rationalizations and adjusted our performance culture, resulting in a more robust and higher output organization, with measurable output climbing over 200%.”
“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. Despite this transitional net revenue impact, we are already observing high signal from our work; in just the two short months since we began to deploy the initial set of crypto and HVP-targeted product releases, our average net revenue per user has hit all-time record levels, increasing by 51% as compared to the 2024 year-to-date average, and by 70% as compared to the trailing three-year average.”
“Earlier this week we finalized the most substantial product overhaul in Rivalry’s history, including a revamped registration flow, login, sportsbook, new crypto-first cashier, completely redesigned casino offering, and a comprehensive VIP rewards program,” Salz added. “We’re confident this entirely rebuilt product set, debuted alongside a more mature, digital-first rebrand, will accelerate Rivalry’s position as a global, crypto-native operator and enable us to capture a high-value player audience.”
“The breakneck pace in which this massive body of work was completed is a testament to the Rivalry team’s motivation to show our multi-year track record of growth and innovation is not just capable of delivering profitability, but also demonstrating market leadership. This will to win is backed by the confidence and conviction that these initiatives will enable us to execute our growth strategy with more torque, underpinned by an overall significantly reduced company cost basis.”
“As part of our broader cost-saving measures and motivation to reach profitability, Rivalry’s founders and executive leaders have all agreed to take a voluntary reduction in compensation,” Salz added. “It’s important that the leadership team share in the sacrifices we’ve asked of our team and shareholders in the near-term as we complete this top-to-bottom realignment and strategy shift which we can now build off of.”
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