Rivalry raises $7.3M to drive growth, sets quarterly revenue record

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Esports focused betting platform Rivalry recorded record highs in its latest earnings report, covering FY2022, Q4 2022 and preliminary results from Q1 2023. Additionally, the company is raising $7.3 million (or $10 million CAD) through a strategic funding round led by bookmaker Pinnacle.

This is the second quarter in a row where Rivalry has recorded record-setting fiscal highs. Unlike many companies in the industry, Rivalry is thriving during this esports winter.

Note: Rivalry reports its earnings in CAD. Figures have been converted to USD for this report unless specified otherwise.

For the four quarters ending on December 31, 2022, Rivalry recorded triple-digit growth for its betting handle (+198%), revenue (+140%) and gross profit (+349%).

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October was Rivalry’s first ever net-profitable month. However, Rivalry has not quite passed the threshold for profitability for its FY2022 results. The company’s net loss for FY2022 was $22.8 million was greater than 2021’s net loss of $17.8 million. Compared to 2021, Rivalry roughly doubled its spending on marketing and administrative costs.

Q4 of 2022’s betting handle totaled $61.5 million — 36% of Rivalry’s annual total. Similarly, the final quarter accounted for about 35% of annual revenue. Major esports tournaments like League of Legends Worlds, CS:GO’s IEM Rio and Dota 2’s The International took place during Q4 2022, driving increased betting volume. Net loss for the quarter totaled