SharpLink Gaming Ltd. (NASDAQ:SBET) Q3 2023 Earnings Call Transcript
SharpLink Gaming Ltd. (NASDAQ:SBET) Q3 2023 Earnings Call Transcript November 15, 2023
Operator: Good morning, ladies and gentlemen, and welcome to SharpLink Gaming's Third Quarter 2023 Results Webcast. Please note that this event is being recorded and will be available for replay shortly after the conclusion of our live broadcast. Joining us today from SharpLink is the company's Co-Founder and Chief Executive Officer, Rob Phythian; and Robert DeLucia, Chief Financial Officer. Before I turn the floor over to them, I remind you that during today's call, statements that are not historical facts, including any projections, statements regarding future events or future financial performance or statements of intent or belief are forward-looking statements and are covered by the safe harbor disclaimers contained in the company's public filings with the SEC.
Actual outcomes and results may differ materially from what is expressed in or implied by these forward-looking statements. With that said, I would now like to introduce Rob Phythian, CEO of SharpLink. Please go ahead, Rob.
Rob Phythian: Thank you, Kat, and good morning, everybody. SharpLink posted another strong quarter, marked by triple-digit percentage revenue growth for both the three- and nine-month reporting periods. The revenue expansion that we achieved over the past three consecutive quarters is due in large measure to the successful execution of our M&A activities, which began in December 2021 with the acquisition of FourCubed, followed by our merger with SportsHub Games Network just one year later in December 2022. Beyond the top-line, our gross profit margin has been a clear positive story, showcasing the logic and strategy that's gone into strengthening our infrastructure and diversifying our technology solutions and service offerings.
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Our purpose of acquiring FourCubed was to take advantage of its team's many years of success, specialized expertise and experience in building a highly engaged affiliate marketing network for online poker stakeholders across the European continent. With FourCubed skill set and know-how on board at SharpLink, it's been our intention to apply and amplify these assets to build from the ground up in Affiliate Marketing Services business designed to suit the unique needs of the U.S. market. Today, SharpLink's Affiliate Marketing Services, U.S. business and International business remain hard at work to build an affiliate marketing platform that is not only a strong revenue channel but one that delivers SharpLink a broad, sticky audience of sports fans and provides our sportsbook partners with high-quality traffic of new sports bettors.
In connection with the phased rollout of our affiliate marketing growth strategy, SharpLink HQ was launched last month, providing a venue for us to unite and showcase SharpLink's advanced technologies, betting tools, and performance marketing capabilities. Moreover, we expect to leverage this new flagship website to benefit from cross-promotional opportunities between all of SharpLink's business units including promos and driving traffic to our proprietary fantasy sports and free-to-play properties with full betting integration built-in. SharpLink's merger with SportsHub was also approached and executed with the intent to own fantasy sports assets that will provide us with a growing proprietary audience of sports fans whose passion for fantasy sports games and contest will fuel their conversion to legal sports betters.
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