Rivalry highlights crypto strategy and cost savings efforts in Q3 report

iGaming and sportsbook operator Rivalry Corp reported Q3 2024 results marked by a sharp organizational overhaul, increased focus on a crypto-first strategy, and significant cost reductions. While the company noted revenue was down, Rivalry expressed optimism that the overhaul will provide "an operating footprint that presents a much smaller gap to profitability to close."
 
The company posted a betting handle of CAD 79.9 million ($56.90 million) in the quarter. Adjusted revenue, including CAD 3.0 million ($2.14 million) in deferred revenue from its crypto-native token, NUTZ, reached CAD 6.0 million ($4.18 million), while net revenue was CAD 3.0 million.  

Marketing expenses were trimmed by 30% year-over-year to CAD 2.0 million, and operational expenses fell by 50% following a substantial realignment. The company’s casino vertical accounted for 62% of its betting handle and 40% of net revenue, up year-over-year, attributed to new content and features.  

Rivalry underwent a sweeping rebrand and product revamp, adding 40+ sports to its sportsbook, enhancing live streams, and redesigning its casino offering to include interactive features like Casino Races. It also launched a crypto-first cashier and a VIP rewards program to capture high-value players (HVPs).  

Co-founder and CEO Steven Salz said: “From the start of the third quarter through to the release of these results, we have undergone the most substantive evolution of our business since founding. We are emerging as a fundamentally leaner company, better positioned for growth.”  

The company’s shift to a crypto-native strategy is bearing results, with crypto wallet-connected users generating 200% more revenue and exhibiting 30% higher retention than non-crypto players.  

Rivalry reduced its workforce by 50% over two rounds of rationalization, achieving a leaner, high-output team. Senior executives, including Salz, took voluntary salary reductions as part of the company’s cost-saving measures.  

The board also saw changes, with Kirstine Stewart stepping down. Rivalry is exploring candidates aligned with its crypto-first approach.  
 
The pre-release of the company’s native token, NUTZ, contributed CAD 3.0 million in deferred revenue. Salz described the token as a “cornerstone of our crypto-first and HVP strategy,” adding that a formal launch is expected in early 2025, with additional token sales anticipated in Q4 2024 and Q1 2025.  

The company will resume marketing efforts in December, aligned with its revamped products and rebranding, while keeping profitability within sight.  

“Our average net revenue per user has hit all-time record levels, increasing by 51% compared to the 2024 year-to-date average,” said Salz. “These efforts have set the foundation for renewed growth.”