SharpLink Gaming Announces Third Quarter 2023 Financial Results
Revenues Increase to $3.3 Million and $9.9 Million from $1.3 Million and $4.9 Million for the Comparable Three- and Nine-Month Reporting Periods, Respectively
MINNEAPOLIS, Nov. 14, 2023 (GLOBE NEWSWIRE) -- SharpLink Gaming Ltd. (NASDAQ:SBET) ("SharpLink" or the "Company"), a pioneer of targeted, data-driven fan activation and conversion solutions for the U.S. sports betting and iGaming industries, today announced its financial results for the three and nine months ended September 30, 2023.
Third Quarter 2023 Financial Highlights
- Total revenues rose 153% to $3.27 million for the three months ended September 30, 2023 from $1.29 million for the same period in 2022. For the comparable nine-month reporting periods, total revenues increased 101% to $9.92 million from $4.94 million.
- All SharpLink business units achieved revenue growth in both the three and nine months ended September 30, 2023.
- SportsHub Games Network/Fantasy Sports posted revenues of $1.43 million and $3.59 million for the three and nine months ended September 30, 2023 – up from $0 in the prior year for both comparable periods due to timing of the SportsHub merger with SharpLink, which did not occur until December 2022.
- Revenues generated by Affiliate Marketing Services – US increased to approximately $232,000 and $817,000 for the current three and nine month reporting periods, respectively, compared to approximately $115,000 and $285,000 in the prior year.
- Affiliate Marketing Services – International contributed approximately $1,192,000 and $3,325,000 for the three and nine months ended September 30, 2023, respectively, increasing from approximately $761,000 and $2.53 million for the same periods in 2022.
- Sports Gaming Client Services' revenues rose to approximately $420,000 and $2.18 million for the three and nine months ended September 30, 2023, respectively, compared to approximately $417,000 and $2.13 million, respectively, in the prior year.
- SportsHub Games Network/Fantasy Sports posted revenues of $1.43 million and $3.59 million for the three and nine months ended September 30, 2023 – up from $0 in the prior year for both comparable periods due to timing of the SportsHub merger with SharpLink, which did not occur until December 2022.
- Gross profit increased 505% to $1.14 million for the three months ended September 30, 2023 from gross profit of approximately $188,000 for the comparable three months in 2022. For the first nine months of 2023, gross profit improved, rising 281% to $3.45 million from $905,000 for the same period in 2022.
- Gross profit margin increased to 34.8% and 34.7% for the three and nine months ended September 30, 2023, compared to 14.5% and 18.3% for the three and nine months ended September 30, 2022.
- Net loss totaled $2.85 million, or $0.99 loss per share, for the current three months ended September 30, 2023 – up 39% from a net loss of $2.05 million, or $0.86 loss per share, reported for the same three months in 2022; and net loss totaled $9.16 million, or $3.35 loss per share, for the first nine months of 2023, representing a 68% decline in the net loss of $13.91 million, or $5.89 loss per share, reported last year.
For more detailed information on SharpLink's third quarter 2023 financial performance, please refer to the Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on SharpLink's website at www.sharplink.com.
Commenting on the results, Rob Phythian, Chief Executive Officer of SharpLink, stated, "I believe we continued to execute well in the third quarter, delivering material growth in revenue and gross margin. Our strong top-line results are a direct reflection of the smart expansion moves SharpLink has been making over the past year to optimize our product and service mix to best meet the demands of the fast evolving U.S. sports betting and iGaming industries and the sports fans they serve."
As previously announced, SharpLink's leadership will host a live webcast to discuss its third quarter 2023 financial results tomorrow, November 15, 2023, beginning at 11:00 AM Eastern Time. To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2761/49421. The corporate update will be available for replay via the same link.
About SharpLink Gaming Ltd.
Founded in 2019, SharpLink is a leading online technology company that connects sports fans, leagues and sports websites to relevant and timely sports betting and iGaming content. SharpLink uses proprietary, intelligent, online conversion technology to convert sports fans into sports bettors for licensed, online sportsbook operators. In addition, SharpLink specializes in helping sports media companies, leagues, teams and sportsbooks develop strategies, products and innovative solutions to drive deep fan activation and engagement with highly interactive free-to-play games and mobile applications. Further, SharpLink owns and operates a variety of real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States where fantasy sports and online sports betting has been legalized. SharpLink's proprietary fantasy sports platform reaches more than two million fantasy sports fans who spend almost $40 million annually on its portfolio of digital gaming experiences and contests. For more information, please visit the SharpLink website at www.sharplink.com.
Forward-Looking Statements
This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the expected growth in the online betting and iGaming industries, the Company's ability to grow its business, the potential benefits of the Company's products, services and technologies and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, government regulation of online betting, customer acceptance of new products and services, the demand for its products and its customers' economic condition, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of the Company and its competitors, general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission. The Company does not undertake any responsibility to update the forward-looking statements in this release.
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