Last updated: April 03, 2024
SharpLink Gaming reveals impressive financial performance for FY2023, witnessing a significant 42% increase in revenue, totaling $4.95 million. Although faced with escalating marketing costs impacting gross profit margin, the company achieved a notable 17% growth in gross profit from its continuing operations. Furthermore, strategic initiatives, including a $22.5 million equity sale, demonstrate SharpLink’s commitment to pursuing growth opportunities while reducing debt.
SharpLink Gaming is going to let its financial year 2023 results out on March 1st, 2024. Combined revenue from prevailing operations was notably up by $4.95 million, which translated into a record-breaking increase of 42% year on year. The international section of affiliate marketing services was up by 22 percent and reached 4.2 million in the arena.
At the same time, the US segment experienced dramatic income growth: sales increased from $62,250 in 2022 to $754,446 in 2023, reaching 1,112 %. In addition, SharpLink Gaming indicated that the gross profit from regular operations increased by 17% to $1.5 million.
The decline in the gross profit margin compared to the previous period, which dropped from 38% to 31%, can be explained by the continuous rise in marketing costs. SEO and programmatic advertising became necessary as more players in the US switched to direct-to-player platforms. Consequently, a rise in traffic was a logical aftermath.
Last fiscal year, the company’s net loss was reduced by 20% to $11.4 million.
Rob Phythian, the CEO and Republican member of SharpLink Group, declared that after the sale of their free sports game developer and fantasy sports companies in January 2024 and the subsequent establishment of a domicile in February 2024, SharpLink has seen the financial position much better.
With a successful restructuring plan, the company can now develop a strategy to consider growth prospects that will help it move forward and upward in its mission of creating long-term shareholder value.
Recently, SharpLink Gaming closed a major deal with RSPorts Interactive when they sold all their SharpLink Gaming common stock and membership interest in a cash transaction of $22.5 million. The company’s investors were pleased with this decision, and $19.4 million of the startup’s debt, which required immediate clearing, was successfully eliminated.
The elimination of debt with any interest-bearing debt gives SharpLink Gaming a fresh start in achieving its goals free from interest. While the company completed a domestic merger and even added some new persons to the board of directors at the beginning of the year, it is already preparing to announce the appointment of a new finance director since the current one is soon to retire after 26 years of serving the company.
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