SharpLink Gaming Announces First Quarter 2023 Results

Leadership to Host Corporate Webcast Today at 11:00 AM ET

MINNEAPOLIS, MN / ACCESSWIRE / May 16, 2023 / SharpLink Gaming Ltd. (Nasdaq:SBET) ("SharpLink" or the "Company"), a pioneer of targeted, data-driven fan activation and conversion solutions for the U.S. sports betting and iGaming industries, today announced its financial results for the three months ended March 31, 2023.

Highlights of Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

• Total revenues rose 79% to $3,390,391 from $1,896,335.
  • Sports Gaming Client Services group contributed revenues of $1,054,015 - up 17% from $911,063.
  • Newly merged SportsHub/Fantasy Sports group generated $1,037,325 in revenues compared to $0 in the prior year.
  • Revenues from Affiliate Marketing Services - International climbed 9% to $1,008,275 from $923,750.
  • Affiliate Marketing Services - U.S. revenues increased 355% to $279,776 compared to $61,622.
• Gross profit rose 114% to $1,343,641 from $627,433, and gross profit margin improved to 40% from 33%.
• Operating expenses declined 51% to $3,671,417, down from $7,555,892.
• After factoring a net loss from discontinued operations of SharpLink's legacy MTS business of $145,000, net loss decreased 60% to $2,823,746, or $1.00 loss per basic and diluted share, compared to $7,044,529, or $2.99 loss per basic and diluted share, which is inclusive of a net loss from discontinued operations of $108,000.

Rob Phythian, Co-Founder and CEO of SharpLink, stated, "As we begin a new year, I am excited and proud of how we have positioned SharpLink to take advantage of dynamic growth opportunities within the emerging U.S. sports betting and iGaming industries. The evolution of our fundamental growth platform over the last year, coupled with the strength of our multi-channel revenue model and industry relationships, uniquely positions us to pursue market leadership in the year ahead across each of our core business segments. We are committed to improving our leverage metrics in 2023 through the combination of continued revenue growth, improved operating performance and strict discipline on our strategic investments."

For more detailed information on the first quarter 2023 financial results, please refer to the Quarterly Report on Form 10-Q filed with the SEC and accessible on www.sec.gov and on www.sharplink.com.

First Quarter 2023 Corporate Webcast

As a reminder, SharpLink's leadership will host a webcast today at 11:00 AM ET (8:00 AM PT) to discuss the financial results. To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2761/48383. A replay of the webcast will be available on the Company's website at https://www.sharplink.com/investors/#presentations following the conclusion of the live webcast.

About SharpLink Gaming Ltd.

Founded in 2019, SharpLink is a leading online technology company that connects sports fans, leagues and sports websites to relevant and timely sports betting and iGaming content. SharpLink uses proprietary, intelligent, online conversion technology to convert sports fans into sports bettors for licensed, online sportsbook operators. In addition, SharpLink specializes in helping sports media companies, leagues, teams and sportsbooks develop strategies, products and innovative solutions to drive deep fan activation and engagement with highly interactive free-to-play games and mobile applications. Further, SharpLink owns and operates a variety of real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States where fantasy sports and online sports betting has been legalized. SharpLink's proprietary fantasy sports platform reaches more than two million fantasy sports fans who spend almost $40 million annually on its portfolio of digital gaming experiences and contests. For more information, please visit the SharpLink website at 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 effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries in which the Company operate on its operations, 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 United States Securities and Exchange Commission. The Company does not undertake any responsibility to update the forward-looking statements in this release.

CONTACT INFORMATION:

SHARPLINK MEDIA AND INVESTOR RELATIONS:

SharpLink Gaming Ltd.
Dodi Handy, Director of Communications
Phone: 407-960-4636
Email: ir@sharplink.com

SOURCE: SharpLink Gaming Ltd.