Rivalry raises CA$10m in new financing
Rivalry will raise the financing by issuing up to 6,666,666 subordinate voting shares at a price of $1.50 per share. The business said that online bookmaker Pinnacle, alongside a number of other technology and payments stakeholders, would be participating in the financing round.
Rivalry co-founder and CEO Steven Salz said that the terms and strategic value of the stakeholders taking part in the round represented “a vote of confidence” in the company’s team and market strategy.
“Our playbook is built around a generational opportunity to capture and engage a next generation audience through world class creative, proprietary and engaging products, and market leading brand equity in esports,” said Salz.
“We are growing rapidly with a successful strategy in place and talented team behind us and, with this funding, we anticipate both continuing our pace of growth and our trend toward profitability.”
The business said that the proceeds of the offering would go towards enabling Rivalry to “accelerate” its operational objectives and pursue strategic growth opportunities.
“As a leader and innovator in online betting, Pinnacle is constantly looking for like-minded partners to help further grow the industry and our global footprint,” said Paris Smith, Pinnacle CEO. “That is what led us to Rivalry and it is impressive how, in a short period of time, they have carved out a powerfully unique position in the field of online betting.”
The business’ announcement of new funding comes hot on the heels of Rivalry’s preliminary full year and Q1 results, in which the company reported an all-time high quarterly revenue of $12m.
In 2022, Rivalry reported that revenue was $26.6m for the year, a 140% increase from the $11.0m that the company announced in 2021. The business earned this revenue on a betting handle of $232.8m – a 198% rise compared to the $78.2m the company achieved in 2021.
Rivalry made a $31.1m net loss, a 28.0% increase compared to the $24.2m the company recorded in 2021. As of 31 December 2022, Rivalry had $16.4m in cash and no debt.
Turning to Q1 results, the business reported a betting handle of $120.2m for the three-month period ending 31 March, a 99% increase from the $80.0m the company recorded in the same period of the previous year.
On these stakes, Rivalry announced an all-time quarterly high revenue total of $12.0m, a 251% increase from the $4.8m the business achieved in 2021.
The company’s net loss stood at $3.5m for the quarter.
“Our market strategy and operational excellence continues to build upon consecutive record-setting quarters, driving a strong finish to the year and a robust Q1, while simultaneously demonstrating sequential narrowing losses on our path to profitability,” said Salz.
“Underpinning our growth is significant brand loyalty among the millennial and gen Z audience and true product innovation in online betting, enabling every marketing dollar to go further, enhancing retention and creating a distinctly unique platform.
“Rivalry continues to be economically rewarded for taking an inventive approach to the betting experience and tailoring it for a demographic with unique consumption habits.”