Rivalry Corp.

Good morning, ladies and gentlemen, and welcome to the Rivalry first quarter 2024 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 30, 2024. I would now like to turn the conference over to Jeff Codispone, Investor Relations for Rivalry Corp. Please go ahead.

Thank you, and good morning, everyone. Our speakers on today's call will be Stephen Fowles, Co-Founder and Chief Executive Officer of Rivalry Corp., and Keita Corey, 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 security. These statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or achievements of Rivalry Corp in 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 presentations, 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 MD&A, dated April 30, 2024, 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'll now turn the call over to Stephen Saltz. Stephen?

Thank you, Jeff, and thank you, everyone, for joining us today. This morning's news release contained two key announcements, our first quarter financial results and our decisive moves to more deeply tap into the crypto segment. On the first quarter, I'll offer a high-level overview, and then Kata will provide additional details on the results. Following Kata's remarks, I'll devote the bulk of my comments to the rivalry token announcement and what it means for us strategically. Q1 marked a return to growth after a relatively flat finish to 2023. Betting handle was up 11% from Q4 2023. Growth gaming revenue increased by 20%, and net revenue was up 51% from Q4. We benefited from a range of recent product introductions, audience diversification efforts, and a ramp up in marketing, which has brought total registered accounts on Rivalry to more than 2 million. A particularly encouraging aspect of our Q1 results is the margin strength. We identified margin stabilization and improvement as a priority last year and launched a number of initiatives to help move the needle throughout the back half of 2023 in particular, and those efforts are starting to bear fruit in Q1. For example, new products like same-game combos and pre-made parlays are driving users to higher-margin verticals that also offer them a more entertaining betting experience. In addition to these higher-margin products, we've also been reviewing, and where appropriate, adjusting our posted margin higher on our sportsbook, where rivalry may have been too far below market. It's worth noting, though, that any adjustments where they were made are still at a level where we remain competitive. As a result of these efforts, Q1 net revenue margin of 58.5%, equivalent to what was previously reported as gross margin, was the highest of any quarter in our history. As a percentage of betting handle, net revenue margin of 4.7% was among the highest in our history. While we expect to see continued variability in margins, the recent trend is certainly positive, and we believe there is further upside to be gained as we continue to refine our product offering. Customer KPI, including average revenue and handle per user, remain at the record levels achieved last year, while branded entrenchment in gaming and internet culture continues to profitably acquire under 30 customers. All that said, we are very encouraged by the positive momentum behind us and believe our strengthening business model will continue delivering more to the bottom line as we grow. In this context, our expansion into the crypto space, which opens up significant new avenues of growth, is very timely. More on that in a moment, but first I'll turn the call over to our CFO, Keita, to review our financials in greater detail.