Nasdaq-listed iGaming technology company Lottery.com has announced financial results for the quarter ended March 31, 2022. The business posted revenue of $21.2 million, an increase of $15.7 million when compared to Q1 2021. It has also posted Adjusted EBITDA of $7.7 million, an increase of $10.3 million versus the prior-year period.
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented: “I’m pleased with our first quarter results and the team’s continued focus on our core business and generating strong Adjusted EBITDA.”
Revenue for the first quarter was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire pre-paid lottery games from the company, in conjunction with the affiliate’s launch of a pilot promotional campaign at a national grocery chain.
Gross profit for Q1 amounted to $18 million, an increase of $15.5 million compared to the same period the prior year. The company posted a net loss of $15.8 million in Q1 2022, driven by the incurrence of $22.2 million of non-cash stock compensation expenses and other increased personnel costs.
Along with its financial report, the business provided an update on a series of key initiatives. Lottery.com has advanced its B2C user growth initiatives, signing an agreement with T-Mobile to become its exclusive digital lottery brand, advertising on the T-Mobile platform in rideshare vehicles.
“So far in the second quarter, our B2C campaigns have been positive with solid increases in app downloads versus the prior year period while achieving relatively low customer acquisition costs,” DiMatteo added.
The lottery ticket management service has also launched ‘Phase 1’ of its Project Nexus. Announced last year, the project is a blockchain-based gaming platform being developed by Lottery.com to operate lottery and other forms of online gaming worldwide.
Phase 1 is expected to increase platform scalability, security, and the ability to implement product updates. Phase 2 will be rolled out by the end of Q3 and will enable additional revenue-generating features for existing products.
Lastly, Phase 3 is anticipated by the end of Q4, expected to enable the support of a proprietary game that accepts payment in fiat or crypto-currency, subject to regulatory and compliance requirements.
Lottery.com has also announced anticipated entry into five new domestic jurisdictions, expected to occur by the end of 2022. “We believe that these positive developments, combined with our strong balance sheet, position us well for future growth,” concluded DiMatteo.