Rivalry has sounded a positive update on its quest to become a profitable company, reporting significant growth for its revenue, betting handle and gross profit in Q1.

Publishing its financial results for the three-month period ended Mar. 31, the esports, sports betting and media firm revealed its betting handle increased 199% YoY, from $40.2m in Q1 2022 to $120.2m in Q1 2023, breaking its quarterly record of $83.9m in Q4 2022.

Revenue was also on the rise for the Toronto-based company, growing 151% YoY to $12m (Q1 2022: $7.2m) and 27% over Q4 2022 revenue of $9.4m.

Other topline numbers included $5.4m gross profit, a record high for the company representing an increase of $4.8m from $0.7m of gross profit in Q1 2022, and up 9% from Q4 2022 gross profit of $5m.

Although the TSXV-listed firm – which intends to apply to uplist – continued to operate at a loss, this was cut down by 50% from $6.6m in Q1 2022 to $3.3m last quarter, as the operator continues to edge towards net profitability.

“Our position at the intersection of esports and entertainment continues to create operating leverage in the business and drive organic growth as seen in our most impressive quarterly results to date,” said Steven Salz, Co-Founder and CEO of Rivalry.

“Rivalry’s content and brand strategy is setting the industry precedent for betting entertainment, allowing us to acquire customers profitably and engage them through authentic touchpoints without having to consistently deploy additional marketing and promotional spend for growth.

“And it is this approach that is generating breakthrough industry economics, user engagement, and charting a path to profitability for the company that we are very bullish on.”

Rivalry also highlighted the fact that registrations had doubled YoY, reaching 1.5 million users, with Millenials and Gen Z representing 97% of active users as the firm continues to hone in on its target market.

The company has acknowledged the work of esports teams and influencers in helping to bolster customer activations during ‘tentpole’ events, and these partnerships and holdings helped reach a total of 85 million followers in Q1, despite a 5% YoY reduction in marketing spend.

Rivalry’s update also noted the work of its proprietary sportsbook and casino products which contributed toward an ‘uptick’ in user engagement and site activity, with the firm’s in-house technology enabling customisation of its products to ‘create an original, engaging, and entertaining betting experience tailored for next generation users’.

“Building innovative products, which add to an overall unique and interactive betting experience on Rivalry, will remain a strategic focus in 2023,” Salz concluded.

“The competitive advantage of engaging and fun products is increased user activity and satisfaction, and when combined with a profitable acquisition strategy, creates a flywheel effect in the business generating consistent organic momentum and enhancing our operational efficiency.”

Rivalry closes Q1 with $17.85m in cash and no debt, whilst also having raised $10m through a non-brokered private placement led by global bookmaker Pinnacle last month, after which it made a $10m investment in product innovation and development.