The SportsHero Ltd (ASX: SHO) share price fell heavily today despite announcing a positive update in regards to the company's latest performance. At the closing bell, SportsHero shares finished the day down 14.2% to 5.4 cents.
Let's take a closer look at why its shares fell today and what was released.
What's driving the SportsHero share price down?
While the SportsHero share price fell 14% today, a major catalyst for this was that investors were selling their shares for a profit. Just yesterday, the company's shares skyrocketed from 3.9 cents at market open to close at 6.3 cents. This represents a gain of around 61% in just 6 hours of trade.
Although the company's shares fell today, not all was bad. According to its release, SportsHero advised it has reached a significant milestone in achieving 3,043,955 new unique users from its OlahBola app.
Launched on 7 July 2020, the OlahBola app is an Indonesian locally branded and localised international football app. The platform allows fans to watch and follow football such as the English Premier League and Spain's La Liga.
SportsHero noted that the sharp increase in users is due to its attractive offering which has been increasing in awareness. Since the company's last report in February, 342,483 new users have been added to its customer base. This has led SportsHero to grow its sales pipeline.
It estimates that the total addressable market is around 100 million users, giving plenty of room to grow in future.
Quick take
Established in 2016, SportsHero is a gamified social sports prediction platform where users can predict, interact, and compete on all major sports. The social competition platform ranks fans in which top performers received prize giveaways such as merchandise, event tickets, and in-app virtual currency.
CEO commentary
SportsHero CEO, Tom Lapping, touched on the company's performance. He said:
The total Indonesian addressable market is around 100 million. We have now surpassed 3 million new unique users, well ahead of schedule and growing at a compound rate of 31% month on month.
The SportsHero share price has gained more than 125% since this time last year.
