SharpLink Gaming Announces Second Quarter 2023 Results with Three and Six Month Revenues Increasing 86% and 82%, Respectively
Leadership to Host Corporate Webcast Today at 11:00 AM Eastern Time
MINNEAPOLIS, MN / August 15, 2023 / 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 six months ended June 30, 2023.
Second Quarter 2023 Financial Highlights
- Total revenue for the three months ended June 30, 2023 rose 86% to $3.26 million, compared to $1.75 million for the same period in 2022.
- Revenues from SportsHub/Fantasy Sports group totaled $1.13 million – up from $0 due to the timing of the acquisition of SportsHub on December 22, 2022.
- Revenues from Affiliate Marketing Services – U.S. increased 182% to $306,000 from $109,000.
- Revenues from Affiliate Marketing Services – International totaled $1.13 million – a 34% increase over revenues of $840,000.
- Revenues from Sports Gaming Client Services declined 13% to $699,000 from $803,000.
- For the six months ended June 30, 2023 compared to the six months ended June 30, 2022, total revenues increased 82% to $6.65 million from $3.65 million.
- SportsHub/Fantasy Sports group contributed $2.17 million to revenues compared to $0 in the prior year.
- Revenues from Affiliate Marketing Services – U.S. rose 244% to $585,000 from $170,000.
- Revenues from Affiliate Marketing Services – International increased 21% to $2.13 million from $1.75 million.
- Revenues from Sports Gaming Client Services increased 3% to $1.76 million from $1.71 million.
- Gross profit also greatly improved, increasing 972% to approximately $965,000 for the three months ended June 30, 2023 and 222% to $2.31 million for the first six months ended June 30, 2023. This compared to gross profit of approximately $90,000 and $718,000 for the three and six months ended June 30, 2022. Gross profit margin improved to 30% for the three months ended June 30, 2023 from 5% for the three months ended June 30, 2022; and to 35% for the six months ended June 30, 2023 from 20% for the six months ended June 30, 2022.
- Operating expenses remained relatively flat for the three months ended June 30, 2023 at $3.75 million as compared to $3.73 million for the same period in 2022. For the six months ended June 30, 2023, total operating expenses declined 34% to $7.42 million from $11.29 million for the same period in 2022.
- Net loss attributable to shareholders of ordinary shares declined 28% to $3.49 million, or $1.24 loss per share, for the three months ended June 30, 2023, compared to net loss to shareholders of ordinary shares of $4.81 million, or $2.04 loss per share, for the same period in 2022. For the six months ended June 30, 2023, net loss attributable to shareholders of ordinary shares dropped 47% to $6.32 million, or $2.24 loss per share, compared to net loss attributable to shareholders of ordinary shares of $11.86 million, or $5.02 loss share, for the six months ended June 30, 2022.
For more detailed information on the second quarter 2023 financial results, please refer to the Quarterly Report on Form 10-Q filed with the SEC and accessible on www.sec.gov and on www.sharplink.com.
Second Quarter 2023 Corporate Webcast
As a reminder, SharpLink’s leadership will host a webcast today at 11:00 AM ET (8:00 AM PT) to discuss the financial results. To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2761/48770. A replay of the webcast will be available on the Company’s website at https://www.sharplink.com/investors/#presentations following the conclusion of the live webcast.
Rob Phythian, Co-Founder and Chief Executive Officer of SharpLink, stated, “Every one of our business segments executed efficiently and effectively, generating positive financial results in the first six months of 2023, highlighted by strong revenue, higher profit margins and lower operating spend. Looking ahead, each of our business units have committed to implementing defined strategies to achieve specific growth objectives in the second half of 2023, while leaning into cross-functional collaborations to unearth new growth opportunities as a collective team. With kickoff of the 2023/2024 NFL season fast approaching and March Madness just around the corner, we expect to be in a great position to optimize our technological strengths, industry expertise and market influence to capture new customer wins and strategic business opportunities with key players on the U.S. sports betting and iGaming stage in the quarters ahead.”
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 spent almost $40 million on its portfolio of digital gaming experiences and contests in 2022. For more information, please visit the SharpLink website at www.sharplink.com.
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.
SHARPLINK MEDIA AND INVESTOR RELATIONS:
SharpLink Gaming Ltd.
Dodi Handy, Director of Communications
Email: [email protected]
SOURCE: SharpLink Gaming Ltd.
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