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Sharplink, Inc.

Sharplink, Inc. Q4 FY2022 earnings call

April 5, 2023 · fiscal period ended 2022-12

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Summary

Generated 2023-04-05

Management highlights

Vision - SharpLink aims to be a dominant force in the U.S. sports betting and iGaming markets by leveraging tech innovations and sports experience. ### SportsHub Merger - Brings a fantasy sports portfolio serving over 2 million fans, with potential to convert fantasy players to sports betters using C4 technology. ### FourCubed Acquisition - Provided an affiliate marketing platform to accelerate direct player initiatives, with plans for growth in affiliate marketing segments. ### Client Services Group - Supports free-to-play games for major sports entities, with expanding partnerships like BetMGM. ### C4 Tech - Investment in developing C4 conversion tech to drive higher conversion rates at lower costs.

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Segment performance

SharpLink's revenue increased 177% to $7.29 million in 2022 from $2.63 million in 2021. The company has four primary business units. The Sports Gaming Client Services Group generated $2.49 million (34% of total 2022 sales) in 2022, down from $2.42 million (92% of total sales) in 2021. The Fantasy Sports Group contributed ~$951,000 (13% of 2022 total sales) from December 22 to December 31, 2022. The Affiliate Marketing International (AMI) business unit generated $3.43 million (47% of 2022 total sales) in 2022, compared to $0 in 2021. The Affiliate Marketing Services-U.S. Group generated $415,450 (5.7% of 2022 total revenues) in 2022.

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Guidance

Fantasy Sports - Expect tangible revenue growth in sportsbook referral revenue by Q4 2023 with NFL, NBA, NHL seasons. ### Affiliate Marketing - Confident in continued ramp of affiliate marketing business units for future revenue growth. ### Redomestication - Expect to file S4 with SEC in 30-45 days, aiming to complete redomestication to U.S. by end of Q2 2023.

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Risks

Stock Price - Concern about maintaining NASDAQ listing; potential reverse stock split if stock price doesn't rebound. ### Regulatory - Operating in a highly regulated industry, compliance with state licensing is crucial.

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Q&A highlights

Q: Update on redomestication from Israel to Delaware?

A: Will file S4 with SEC in 30-45 days, expect to complete by end of Q2 2023.

Q: Development of proprietary C4 tech solutions?

A: Recruited CTO Dave Abbott, investing in C4 development to achieve higher conversion rates at lower cost.

Q: Plan for reverse stock split?

A: Board has no immediate plan, but may consider if stock price doesn't rebound; will communicate if changes.

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Key numbers

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Transcript

April 5, 2023

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