Rivalry, the Toronto-based gambling operator and media company specializing in sports betting, esports wagering, and casino games for the millennial and Gen Z market, has announced strong financial results for Q3 2023.

The results report that its betting handle is up by 50% year-on-year for Q3 to $105.7 million, despite a 13% reduction in marketing spend. Revenues are up 22% to $8.7 million, and gross profit is up 90% to $4.0 million year-on-year.

Elsewhere in the results, the company stated that its year-to-date betting handle increased by 127%, revenue by 70%, and gross profit by 175% compared to the first nine months of 2022.

The company reported an uptick in activity in new markets in Southeast Asia and a significant increase in betting handle in regulated markets like Ontario, where it grew over 400% from Q3 in 2022. Traditional sports betting and the casino segment contributed to this growth, with the latter accounting for about half of Q3’s betting handle.

Rivalry also reaffirmed its H1 2024 profitability guidance, citing stabilizing operating expenditure in the first three quarters while maintaining significant year-over-year growth. Looking ahead, the company announced a virtual investor day on Jan. 17, 2024. The event will discuss the company’s outlook for 2024, growth initiatives, upcoming product innovations, and insights into its target Gen Z market.

“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies. Now, with our recently announced capital infusion, we will be able to go back on the offensive while still maintaining our path to profitability,” commented Co-Founder and CEO of Rivalry Steven Salz in a press release.

“Years of consistent performance, flattened opex multiple quarters in a row, demonstrated triple-digit growth year-over-year across core metrics year-to-date with all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition over that same period gives me high conviction in Rivalry’s future,” Salz added.

“It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fueled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance.”