SharpLink Gaming Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
SharpLink Gaming (Nasdaq: SBET) reported its Q2 2024 financial results, highlighting strategic initiatives to strengthen its balance sheet and focus on performance-based marketing. Key developments include:
- Sale of SportsHub Games Network for $22.5 million
- Extinguishment of all interest-bearing debt
- Raising $71,356 from At-the-Market Offering
- Receipt of $297,387 earn-out from MTS sale
Financial highlights:
- Q2 2024 revenue: $981,272 (27% YoY decline)
- H1 2024 revenue: $1,957,218 (24% YoY decline)
- Q2 2024 net loss: $462,959 (improved from $3,441,158 in Q2 2023)
- H1 2024 net income: $11,887,397 (up from $6,264,904 loss in H1 2023)
- Cash on hand as of June 30, 2024: $2,435,600
Positive
- Extinguishment of all interest-bearing debt
- Sale of SportsHub Games Network for $22.5 million in cash
- Significant improvement in net income for H1 2024 to $11,887,397 from a loss in H1 2023
- 31% decrease in operating expenses for Q2 2024 compared to Q2 2023
- Improved cash position with $2,435,600 on hand as of June 30, 2024
Negative
- 27% year-over-year decline in Q2 2024 revenue to $981,272
- 24% year-over-year decline in H1 2024 revenue to $1,957,218
- Net loss of $462,959 for Q2 2024, despite improvement from previous year
News Market Reaction
On the day this news was published, SBET gained 2.58%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MINNEAPOLIS, Aug. 15, 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 three and six months ended June 30, 2024.
Rob Phythian, Chairman and CEO of SharpLink, stated, “The first half of 2024 has largely been marked by our Company’s efforts to materially strengthen our balance sheet, and narrow our focus on our performance-based marketing business through several strategic initiatives, namely:
- The sale of our SportsHub Games Network and sports games development businesses in January of this year for
$22.5 million in an all-cash transaction; - The extinguishment of all interest-bearing debt;
- The raising of
$71,356 from our At-the-Market Offering during the first six months of this year; and - The receipt of
$297,387 in an earn-out accrued in June 2024 and paid in July 2024, which related to our sale of MTS, SharpLink’s legacy telemanagement solutions business sold to EntryPoint South Ltd. in December 2022.”
Continuing, Phythian said, “As a result, SharpLink has emerged with a very lean operating base that is free of debt, and we have a management team and Board of Directors equally committed to pursuing strategic growth opportunities capable of increasing shareholder value over the long-term.”
Financial Highlights
- Revenues for the three and six months ended June 30, 2024 totaled
$981,272 and$1,957,218 , respectively – a27% and24% decline from revenues of$1,343,526 and$2,576,287 reported for the comparable three and six month periods in 2023, respectively. - Operating expenses decreased
31% to$1,484,680 from$2,136,936 for the comparable three-month reporting periods; and declined17% to$3,456,755 from$4,182,270 for the six months ended June 30, 2024 and 2023, respectively. - After factoring net income from discontinued operations of
$453,705 , net losses dropped to$462,959 for the three months ended June 30, 2024 from net losses of$3,441,158 after factoring net losses from discontinued operations of$1,035,099 for the same three-month period in 2023. For the six months ended June 30, 2024, net income totaled$11,887,397 after factoring net income from discontinued operations of$14,564,872 – significantly up from a net loss of$6,264,904 inclusive of the net loss from discontinued operations of$1,701,662 posted for the same six month period in the prior year. - As of June 30, 2024, cash on hand was
$2,435,600 and total stockholders’ equity was$2,760,915. T his compared to$2,487,481 cash on hand and total stockholders’ deficit of$9,399,769 as of December 31, 2023.
For more detailed information about SharpLink’s Second Quarter 2024 financial results, please refer to the Company’s Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible online at www.sec.gov or via SharpLink’s investor relations page at https://investors.sharplink.com/
About SharpLink Gaming, Inc.
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 Company’s ability to grow its business through strategic growth opportunities, 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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