Revenues from Continuing Operations Increase 42% on Year-Over-Year Basis
MINNEAPOLIS, April 01, 2024 (GLOBE NEWSWIRE) -- SharpLink Gaming, Inc. (Nasdaq:SBET) ("SharpLink" or the "Company"), an online performance-based marketing company serving the U.S. sports betting and iGaming industries, today announced its financial results for the year ended December 31, 2023.
Comparative Year-Over-Year Financial Highlights for Continuing Operations
- Total revenues from continuing operations rose 42% to $4,952,725 from $3,489,948.
- Affiliate Marketing Services - International segment achieved revenues of $4,198,279 - up 22% from $3,427,698.
- Revenues from the Company's Affiliate Marketing Services - United States segment climbed 1112% to $754,446 from $62,250.
- Affiliate Marketing Services - International segment achieved revenues of $4,198,279 - up 22% from $3,427,698.
- Gross profit from continuing operations increased 17% to $1,532,663 from $1,316,113; however, due to higher marketing costs associated with engagement of Search Engine Optimization and programmatic advertising campaigns used to drive traffic to our direct-to-player sites in the U.S., gross profit margin declined to 31% from 38%.
- Net loss from continuing operations totaled $11,248,598, a 20% decrease when compared to $14,095,646.
As previously announced, on January 18, 2024, SharpLink sold all of the issued and outstanding shares of common stock and membership interests in an equity sale of our Sports Gaming Client Services and SportsHub Gaming Network business segments to RSports Interactive for $22.5 million in an all-cash transaction. Consequently, the historical results for these segments have been reflected as discontinued operations in the Company's consolidated financial statements included in its Annual Report on Form 10-K for the years ended December 31, 2023 and 2022. The Company, as previously disclosed, used a portion of the proceeds from the equity sale to retire approximately $19.4 million, in aggregate, in outstanding debt obligations. SharpLink is currently free of all interest-bearing debt. For more detailed information on SharpLink's 2023 financial performance, please refer to Form 10-K filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on SharpLink's website at www.sharplink.com.
Rob Phythian, Chairman and Chief Executive Officer of SharpLink, 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."
About SharpLink Gaming Ltd.
Headquartered in Minneapolis, Minnesota, SharpLink is a trusted marketing partner to leading sportsbooks and online casino gaming operators worldwide. Through its iGaming affiliate marketing network, known as PAS.net, SharpLink focuses on driving qualified traffic and player acquisitions, retention and conversions to U.S. regulated and global iGaming operator partners worldwide. In fact, PAS.net won industry recognition as the European online gambling industry's Top Affiliate Website and Top Affiliate Program for four consecutive years by both igamingbusiness.com and igamingaffiliate.com. SharpLink also owns and operates a portfolio of direct-to-player, state-specific, affiliate marketing websites designed to attract, acquire and drive local sports betting and online casino gaming traffic to its valued partners which are licensed to operate in each respective state. For more information, please visit 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.
CONTACT INFORMATION:
INVESTOR AND MEDIA RELATIONS
ir@sharplink.com
