SharpLink Gaming Announces First Quarter 2024 Results and Provides Operational Update
SharpLink Gaming (Nasdaq: SBET), a performance-based marketing company for U.S. sports betting and iGaming industries, announced its Q1 2024 financial results. Revenues from continuing operations were $975,946, compared to $1,232,762 in the same period last year. Net loss from continuing operations improved to $1,760,811, an 18.4% decrease. The company posted a net income of $12,350,345, a significant rise driven by the sale of its Sports Gaming Client Services and SHGN segments for $22.5 million, which also helped retire $19.4 million in debt. SharpLink regained Nasdaq compliance and completed a domestication merger, forming a new Board of Directors. CEO Rob Phythian highlighted strategic transformation and future growth plans, including potential capital raises through an At-The-Market offering.
- Net income surged to $12,350,345, up 537% from the previous period.
- Completed sale of segments for $22.5 million in cash.
- Eliminated $19.4 million in outstanding debt.
- Regained Nasdaq compliance.
- Established a new Board of Directors.
- Filed an At-The-Market offering registration to raise growth capital.
- Revenue from continuing operations declined to $975,946 from $1,232,762.
- Company posted a net loss of $1,760,811 from continuing operations, despite improvement.
Insights
The first quarter 2024 financial results for SharpLink Gaming indicate significant milestones that could impact stock investors. The company reported
The recent sale of the Sports Gaming Client Services and SportsHub Gaming Network for
For investors, these results suggest a cautious but optimistic outlook. The reduction in debt and improved financial metrics indicate prudent financial management, which could provide a solid foundation for future growth. However, the decline in revenues suggests that the company needs to address its core operational strategies to sustain and enhance its market presence.
SharpLink's operational update also highlights several strategic moves that could influence market perception and investor sentiment. The company's compliance with Nasdaq Continued Listing Standards and changes in corporate structure, including the domestication merger to a Delaware corporation, are positive governance steps. These actions could improve investor confidence and potentially attract more institutional investors.
The establishment of a new Board of Directors, featuring experienced and independent members, aligns with best practices in corporate governance. This move can enhance strategic oversight and provide diverse perspectives that could drive the company's growth initiatives more effectively.
SharpLink's focus on expanding its iGaming affiliate marketing network into new markets where online sports betting and casino gaming are legalized is a strategic growth area. Given the increasing legalization and acceptance of online gaming in various regions, this expansion could provide significant revenue opportunities. However, investors should monitor how well the company executes these plans and navigates the regulatory landscapes of new markets.
MINNEAPOLIS, May 22, 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 first quarter financial results for the three months ended March 31, 2024, as reported in the Company’s Quarterly Report on Form 10-Q (“10-Q”) filed with the U.S. Securities and Exchange Commission (“SEC”) on Friday, May 17, 2024.
Commenting on the results, Rob Phythian, Chairman and CEO of SharpLink, stated, “2024 kicked off being marked by a pivotal quarter defined by the successful execution of a series of initiatives. We view each of these important milestones as critical first steps in achieving the strategic transformation of our Company, enabling us to ultimately win distinction as a leading pure-play online affiliate marketing company trusted by and relied upon by our U.S. sportsbook and global casino gaming partners.”
As previously announced, on January 18, 2024, SharpLink sold its Sports Gaming Client Services and SportsHub Gaming Network (“SHGN”) business segments to RSports Interactive, Inc. (“RSports”) for
Financial Highlights for the Three Months Ended March 31, 2024 Compared to Three Months Ended March 21, 2023
- Revenues from the Company’s continuing operations totaled
$975,946 compared to$1,232,762. - Net loss from continuing operations declined
18.4% to$1,760,811 compared to$2,157,183. - Net income from discontinued operations, net of tax increased
2217% to$14,111,167 from a net loss from discontinued operations, net of tax of$666,563. - Net income totaled
$12,350,345 , or$3.36 income per share on a fully diluted basis – up537% from$2,823,746 , or$1.01 loss per share.
For more detailed information on SharpLink’s first quarter 2024 financial performance, please refer to Form 10-Q filed with the SEC and accessible at www.sec.gov or on SharpLink’s website at www.sharplink.com.
First Quarter 2024 Business Highlights
- On January 18, 2024, completed sale of SharpLink’s Sports Gaming Client Services and SHGN businesses to RSports for
$22.5 million in an all-cash transaction. - Immediately following the sale, SharpLink used a portion of the proceeds from the sale to retire approximately
$19.4 million , in aggregate, in outstanding debt obligations, thereby eliminating all interest-bearing debt on its balance sheet. - On February 8, 2024, regained full compliance with Nasdaq Continued Listing Standards.
- On February 13, 2024, completed domestication merger with SharpLink Gaming, Ltd., changing from an Israel limited liability company to a Delaware corporation.
- In February, established new Board of Directors for SharpLink Gaming, Inc. with the appointments of Rob Phythian as Chairman and Leslie Bernhard, Obie McKenzie and Robert Gutkowski as new independent members of the Board.
Continuing, Phythian said, “Given our strengthened balance sheet; our highly engaged Board comprised of world class, accomplished business executives; and our shared commitment to a strategy that is expected to empower us to capitalize on potentially compelling growth opportunities in the sports, entertainment and media industries, SharpLink has great hopes for our Company’s future. We plan to continue to enhance our value proposition to our sportsbooks and casino operator partners, while also actively seeking opportunities to expand our iGaming affiliate marketing network into new U.S and international markets where online sports betting and casino gaming have been legalized. Moreover, we intend to continue executing our strategic transformation with clarity and focus, and in doing so, we hope to deliver strong, sustainable value creation for our fellow shareholders for many years to come.”
“Unlocking SharpLink’s next phase of growth with purpose and cost-discipline will be key to our long-term success and should provide us with greater agility as we build momentum and look to accelerate our growth prospects as 2024 unfolds. To help support our mission and continued strategic transformation, we have filed a registration statement on Form S-3 with the SEC and accompanying prospectus for an At-The-Market offering (“ATM”) which we may utilize to raise growth capital if and when market conditions permit. We have identified other measures that we may also pursue to optimize our assets and further strengthen the foundation on which we are building the ‘new’ SharpLink. Over the course of the next several months, I look forward to sharing many more details on our plans and future ambitions,” concluded Phythian.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of SharpLink, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 SEC. 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
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