Rivalry Corp.

Good morning. My name is Anas, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Rivalry Corp. Fourth Quarter and Fiscal Year 2021 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by one. Thank you. I would now like to introduce Mr. Jeff Cotis-Potey, Investor Relations for Rivalry Corp. Please go ahead, Mr. Cotis-Potey.

Thank you, Anas, and good morning, everyone. Our speakers on today's call will be Stephen Solves, co-founder and chief executive officer of Rivalry Corp., and Kate Okori, chief financial officer. Before we begin, I would like to remind listeners that certain statements made during this conference call presentation may constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws. These statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Rivalry Corp. and its subsidiary entities or the industry in which it operates to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this conference call presentation, such statements use words such as may, will, expect, believe, plan, and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this presentation. These statements involve known and unknown risks, uncertainties, and other factors, including those risk factors identified in the company's prospectus dated September 17th, 2021, under the heading risk factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required under securities legislation. I will now turn over the call to Stephen Seltz. Stephen? Thank you, Jeff.

Thank everyone for joining. It's been five months since our last quarterly investor call due to the timing of year-end reporting. We've made great progress since then and continue to see momentum across the business. Cato will get into the details of the financial results we announced today, but first I'd like to provide some headline numbers and dig into broader thematics. In 2021, we delivered record results. Our betting handle grew 202% year-over-year to $78.2 million. Revenue increased 617% over the same period to $11.1 million, and total registration to $610,000. As a testament to the momentum we saw into year-end, we have provided preliminary Q1 2022 numbers, which demonstrate that. We reported a betting handle of $40.2 million, a record high, up 62% sequentially from Q4 2021, which was our record before this, and a 273% increase year-over-year. Back to 2021, we secured additional capital to accelerate our growth in the year, strengthened our originally developed product, and added significant talent depth to our bench, all furthering Rivalry's efforts to redefine the category. Our vision is to create the leading betting and entertainment experience for the next generation. We made considerable progress in 2021, and in 2022, we will raise the bar. Underpinning our vision is a paradigm shift we are observing across a number of consumer categories. Betting on esports, fractionalized art, meme stocks, the resurgence of collectibles, and communal digital spaces are just the beginning. The common theme is online communities wrapping entertainment around consumer experiences. We believe a deep understanding of this will define the next generation of great consumer products. It is with that understanding we innovate on product and build brand love at Rivalry. This is the foundation upon which Rivalry is built. Since launch in late 2018, we have built our business around the following core beliefs. One, bonusing is not scalable and creates a transient user base. Two, betting is no longer just a transactional experience. And three, brand love and innovative product is profitable. For years, growth of any cost has been the default state for sports betting in many consumer industries. Under that model, capital is the competitive advantage. This typically leads to unhealthy industry dynamics where capital can't inspire one another in a race to the top of customer acquisition costs. Caught in the middle, the customer often loses this race. Industry participants become myopic as the sensibility of management teams is to play the game or not compete at all. Product and true brand equity takes a backseat, even if unintentionally. and the customer gets product clones that offer no delight other than slightly better promotions. Public markets will reward this behavior so long as the sector remains in favor. As of this call, the market has now taken that crutch away, not just for sports betting, but tech growth generally. This contraction, although painful, is healthy. It daylights businesses that subsidize customers to acquire them and refocuses investors on what we believe matters most. One, product leadership and innovation. Two, true brand equity. Three, healthy unit economics. And four, a path to profitability. Our beliefs, which perhaps seem misguided in a bull market, now look prudent. Critically, it allows us to pay for a balance sheet in a market where runway is vital while still giving the business oxygen to deliver results. On that basis, Rivalry's strategy looks different from our peers. In new markets, we start slow, take feedback, conduct user testing, iterate against it, and build brand awareness in parallel. As underlying key performance indicators hit our target range, we increase spend accordingly. Our recent launch in Ontario and impending launch in Australia will be no different. The most critical piece of the strategy is cost-effective customer acquisition, which requires long-term brand building that turns into brand love with success. With a collective following of 55 million, our partner network and own properties are the jumping-off point for brand discovery. With increasing success, we expect customer acquisition costs will decline as beloved brands self-perpetuate product discovery. At that point, operating leverage becomes immense as reliance on new spend for every incremental dollar of revenue decline. The result of the strategy is clear. In a core market, we delivered a 90% decline in customer acquisition cost over the first 12 months of operating there and a 100x increase in betting handle, leading to positive muted economics. At this point, I'll turn the call over to our CFO, Keita Corey, to review today's result in greater detail.