Sharplink, Inc. Q3 FY2023 earnings call

• SharpLink posted strong revenue growth due to M&A activities starting with the acquisition of FourCubed in 2021 and merger with SportsHub Games Network in 2022.
• The purpose of acquiring FourCubed was to build an affiliate marketing platform for the U.S. market. SharpLink HQ was launched to showcase technologies and enable cross-promotion.
• SportsHub's LeagueSafe collected nearly $32 million in entry fees from over 56,000 private fantasy football leagues for 2023-2024 seasons, a 22% increase from the prior year.
• Plan to redomesticate the company from Israel to Delaware by November 29, 2023, and progress towards regaining Nasdaq compliance.

For the three months ended September 30, 2023, total revenues were $3.3 million, up 153% from $1.3 million in Q3 2022. For the nine months ended September 30, 2023, total revenues were $9.9 million, up 101% from $4.9 million in the prior year. The four business units: SportsHub contributed $1.4 million to Q3 2023 sales (vs. $0 in Q3 2022) and $3.6 million YTD 2023; Affiliate Marketing Services U.S. contributed $232,000 in Q3 2023 (vs. $115,000 in Q3 2022) and $817,000 YTD 2023; Affiliate Marketing Services International had Q3 2023 revenues of $1.2 million (vs. $761,000 in Q3 2022) and YTD 2023 revenues of $3.3 million (vs. $2.5 million in prior year); Sports Gaming Client Services was $420,000 in Q3 2023 (vs. $417,000 in Q3 2022) and $2.2 million YTD 2023. Gross profit margin improved to 34.8% in Q3 2023 and 34.7% YTD 2023 from 14.5% and 18.3% respectively in the prior year periods.

• Continue to focus on nailing KPIs and creating long-term value for shareholders.
• Remain optimistic despite ongoing uncertainties in the U.S. sports betting industry.

• Market uncertainties affecting the U.S. sports betting industry.
• The redomestication process has been long and expensive.