Sharplink, Inc. Q1 FY2023 earnings call

• Bob DeLucia reviewed Q1 2023 financial results, including revenue growth, gross profit increase, and balance sheet changes.
• Rob Phythian discussed the reverse stock split, stock market performance in the sports betting sector, insights from the SBC Summit (emphasizing technology like C4 conversion, AI/ml in sports betting, and free-to-play games), and the upcoming Annual General Meeting with proxy details.
• Mentioned the company's 15+ years of experience in Sports Gaming Services and long-standing relationships with major sports leagues and sportsbooks.

In quarter 1 2023, revenue grew 79% to $3.39 million from $1.9 million in Q1 2022. The SportsHub/Fantasy Sports group contributed $1.4 million in Q1 2023 (vs $0 in Q1 2022). Sports Gaming Client Services group revenue rose 17% to $1.05 million from $911,000. Affiliate Marketing international business group contributed $1.01 million, up 9% from $924,000 in Q1 2022. Affiliate Marketing U.S. business segment saw revenues climb 355% to $280,000 from $62,000. Gross profit increased 114% to $1.34 million, with gross profit margin improving to 40% from 33%.

• Believes cash on hand and revenue-generated cash will be sufficient to fund next 12 months of operations from March 31, 2023.
• Anticipates growth in 2023, with annualized revenues on pace to reach over $13.5 million without factoring in meaningful growth, and stock price potential based on revenue and industry multiples.

• Uncertainty around macroeconomic conditions affecting stock market performance.
• No guarantees with cash and financing activities; potential challenges with extraordinary acquisition opportunities or unanticipated issues.

Q: Why did SharpLink implement the 1-for-10 reverse stock split?

A: When approaching NASDAQ for an additional grace period, they were informed they didn't qualify, so the reverse stock split was implemented to regain compliance with the minimum bid price requirement.

Q: What were the common themes from the SBC Summit?

A: Emphasis on technologies like SharpLink's C4 conversion, AI and machine learning in sports betting, value of free-to-play games in converting fans to bettors, and recognition of SharpLink's technology and experience in the space.