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.
    
• 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.