Topline numbers
Rivalry’s betting handle for the quarter reached C$79.9m, a year-on-year decrease of 24.4%.
Adjusted revenue, which includes $3m in deferred revenue from the pre-release of Rivalry Token (NUTZ), stood at $6m. Net revenue came in at $3m, down 25% year-over-year.
The decline in net revenue was attributed to reduced marketing expenditure and an increasing mix of casino betting, which, while more stable, yields lower margins compared to sportsbook activity.
Despite these challenges, Rivalry said it achieved record-breaking average net revenue per user, up 51% compared to the trailing 2024 average and 70% compared to the trailing three-year average.
Streamlined operations
Rivalry has halved its operating expenses following an organisational overhaul during Q3 2024.
This included a second round of layoffs, following an initial workforce reduction in July.
The business said it reduced its headcount by 50% as a result of these two workforce rationalisations, and has adjusted its performance culture.
To align with cost-saving measures, Rivalry’s CTO Ryan White and COO Kevin Wimer voluntarily eliminated their salaries as of August and September, respectively.
CEO Steven Salz followed suit with a 100% salary reduction in October, adjusted to a 50% reduction in November.
“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 said.
“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.”
Rivalry expects this leaner cost structure to support its path to profitability.
Business transformation
Rivalry has undergone a sweeping transformation this year to better cater to crypto-native users and high-value players (HVPs).
Describing Q3 2024 as “the most substantive evolution of our business since founding,” Salz highlighted the introduction of numerous enhancements:
Rivalry introduced new features, such as a crypto-first cashier that allows for deposits and wagers in digital currencies, a redesigned casino experience, an expanded sportsbook with 40 additional sports and live-streaming capabilities, and a new VIP rewards programme targeting HVPs.“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,” he said.
Token momentum
The pre-release of NUTZ has become central to Rivalry’s crypto strategy.
Crypto wallet-connected users generated 200% more revenue than non-crypto users, and nearly one-third of HVPs engaged in NUTZ-related activities, Rivalry stated.
Salz also emphasised the token’s role in fostering player loyalty, boosting wallet share, and driving retention.
NUTZ-linked customers had retention rates 30% higher than average users. Rivalry anticipates further token sales in Q4 2024, with a full launch planned for early 2025.
“We have an extensive roadmap ahead of launch, and shortly after, designed to maximise the value proposition of this product for existing users, acquire new customers, and generate revenue for Rivalry,” Salz said.
Rivalry also announced the second closing of its non-brokered private placement, issuing 6,984,891 units at C$0.15 per unit for gross proceeds of C$1.05m.
Last week, Rivalry raised approximately C$1.94m through the initial tranche of a non-brokered private placement.
Rivalry indicated that additional closings may follow, potentially bringing total proceeds from the private placement to C$4.2m ($3m).
Additionally, Rivalry confirmed the resignation of Kirstine Stewart from its board of directors, effective 20 December.
The company is actively seeking independent candidates to fill the vacancy.
“Will to win”
“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,” Salz concluded.
“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,” he added.
Investors appear cautiously optimistic, as the company’s shares surged nearly 30%, reaching C$0.16, following the release of its Q3 results.
