On the back of FansUnite’s Q3 financial results, which showed a 5%-12% increase in revenue compared to the same period last year, the company held its Q3 investor call Wednesday. CEO Scott Burton and CFO Graeme Moore spoke about the company’s performance while answering questions concerning FansUnite’s future.

The Vancouver-based company reported revenues from continuing operations ranging between $4.5 million to $4.8 million in Q3, a 5% to 12% increase from the same period in 2022. Gross margin also increased compared to 2022, increasing from 50% to 56%-59% in 2023. Total adjusted EBITDA for the three months ended Sept. 30, 2023 increased at a rate of $1.2 million year-over-year.

However, year-to-date revenue decreased from $17.5 million in 2022 to $17.2 million in 2023. One of the critical reasons for the decrease was the impact of the launch of legal sports betting in New York in Q1 of 2022. This led to a record-breaking quarter for the company. Changes to affiliate marketing in New York, including alterations to marketing regulations in bars, led to a poorer performance in 2023.

During the call, company executives indicated that FansUnite is continuing its strategy to become cash flow positive. “We are cash flow positive in Q3 if you look at continuing operations. Q4, we will be truly cash flow positive, and we anticipate every quarter going forward being cash flow positive,” Moore highlighted.

“A lot of the strategy is what we’ve been achieving in the last nine months. If you look at what we’ve done with McBookie and Chameleon. We’ve let 61 people go, which is approximately 60% of our full-time staff. If you compare what our headcount was at the beginning of March to now, that’s very significant savings in headcount, which is our most significant cost center.”

One of the main ways the company has tried to reach its goal of being cash flow positive is through moving away from digital assets. This included selling Chameleon source code, which previously supported the DragonBet platform (formerly owned by FansUnite), to Betr.

The report indicated that Betting Hero was the key contributor to the company’s revenue, generating $4.8 million in Q3. “[BettingHero] has always been a lean team. It [has an] entrepreneurial mindset that we love, so we’ll continue working with them to optimize everything and make sure we’re adding to their significant skillsets,” Moore said.

Moore also highlighted how alternative revenue was being brought in by the Betting Hero through bespoke research, providing nearly $300,000 of revenue.

“Two new revenue streams have emerged. One is the bespoke research market. It contributed $288,000 in this three-month period, which is really strong. It is also really high-margin work. The second revenue stream is the HeroHotline. [We are] making sure when this launches fully, we’ll have a sustainable revenue stream. We haven’t hit that stage yet, but [we] are really impressed with the progress.”

Reflecting on the company’s future, Burton said, “We are now in a much stronger position, Q4 and Q1 will, I think, put us in a really strong position.” The CEO indicated that the strategic plan for the company was to eliminate the company’s debt in the next 12 months.