SharpLink Gaming 2023: revenues soar by 42%

Lea Hogg April 2, 2024

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SharpLink Gaming 2023: revenues soar by 42%

SharpLink Gaming, Inc. (Nasdaq:SBET), a leading online performance-based marketing company serving the U.S. sports betting and iGaming industries, has announced its financial results for the year ended 31 December, 2023. The results highlight a year of significant growth and strategic moves that have positioned the company for future success.

SharpLink’s total revenues from continuing operations rose by an impressive 42 percent to $4,952,725, up from $3,489,948 in the previous year. This growth was driven by strong performances in both its International and United States Affiliate Marketing Services segments. The International segment saw revenues of $4,198,279, marking a 22 percent increase from $3,427,698. Meanwhile, the United States segment witnessed a staggering 1112 percent rise in revenues to $754,446, up from a modest $62,250 in the previous year.

Towards opening new growth avenues

Despite the increase in gross profit from continuing operations by 17 percent to $1,532,663, the gross profit margin declined to 31 percent from 38 percent. This was primarily due to higher marketing costs associated with the engagement of Search Engine Optimization and programmatic advertising campaigns used to drive traffic to the company’s direct-to-player sites in the U.S.

The net loss from continuing operations totaled $11,248,598, a 20 percent decrease when compared to $14,095,646. This was a result of the company’s strategic decision to sell all of the issued and outstanding shares of common stock and membership interests in an equity sale of its Sports Gaming Client Services and SportsHub Gaming Network business segments to RSports Interactive for $22.5 million in an all-cash transaction. The proceeds from the equity sale were used to retire approximately $19.4 million in aggregate outstanding debt obligations, leaving SharpLink free of all interest-bearing debt.

Rob Phythian, Chairman and Chief Executive Officer of SharpLink, (pictured above), stated, “With the completion of the sale of our free-to-play sports games development and fantasy sports businesses in January 2024, followed shortly thereafter by the completion of our domestication merger in February 2024, SharpLink is now in a much better financial position and free to concentrate on growth opportunities that will allow us to make progress towards our long-term goal of creating enduring shareholder value.”