Gross profit for the quarter was a record $2.1m, more than triple the $0.7m recorded in the prior year comparative period.
However, after total operating expenses of $8.3m (a significant increase from Q1 2021’s $3.3m), the business recorded a quarterly net loss of $6.2m. This was more than double the $2.6m net loss recorded in the prior year period.
As of the end of the period, Rivalry held $24.1m in cash and cash equivalents.
“The strength in the business in the second quarter was all achieved organically and driven by our existing core markets,” said Rivalry CEO Steven Salz.
“Launching in our first two regulated markets was a very important milestone in Q2 that will help drive growth in the coming quarters as we establish our brand with consumers, deploying our ‘crawl, walk, run’ strategy that prioritises operating with sustainable unit economics in new markets first, and scaling spend thereafter.”
Salz added that the business was pleased with its Q2 performance despite not seeing a material contribution from either Ontario or Australia, the two regulated markets it entered during the quarter.Rivalry CEO Steven Salz: “Launching in our first two regulated markets was a very important milestone in Q2 that will help drive growth in the coming quarters as we establish our brand with consumers, deploying our ‘crawl, walk, run’ strategy that prioritises operating with sustainable unit economics in new markets first, and scaling spend thereafter.”
“On the other side we were proud to demonstrate the profitability potential of our current betting handle, posting record gross profit during the quarter,” he added.
“Looking ahead, we are excited about the second half of the year. The traditionally strong third quarter is tracking well for us. Several important platform enhancements in areas like mobile app, traditional sports offering, and our casino vertical are set to be launched in the coming months.”
The business hopes to go live with online casino during Q3, as well as aiming to launch its new mobile app during the quarter.
Following the end of Q2, Rivalry said betting handle in July had broken its existing monthly record, as $23.4m was wagered on its products during the month.
“With a number of impactful product releases, marketing, and operational initiatives slated through the rest of year, we are hungry to demonstrate to the market the inherent operating leverage in our model,” Salz added.