Net Loss Widens at Lottery.com Despite 813.3% YoY Revenue Growth – Full Year Results
US lottery broker and news portal Lottery.com posted an increased net loss of $9.3m (£7.1m/€8.5m) for its financial year 2021 despite an increase 813.3% of its income.
Revenue for the 12 months to December 31, 2021 was $68.5 million, a significant increase from $7.5 million in the prior year.
Lottery.com attributes this growth primarily to the sale of $47.1 million in LotteryLink credits for prepaid advertising, prepaid lottery games, marketing materials and product development, while increased B2C sales also contributed to revenue growth.
In October 2021, Lottery.com completed its business combination with special purpose acquisition firm Trident Acquisitions Corp, which allowed the company to go public on the Nasdaq stock exchange,
Lottery.com owner AutoLotto and New York-listed Trident had signed a binding letter of intent to acquire the broker in November 2020, with the combined group having a post-combination enterprise value of approximately $526 million. of dollars.
Shortly after the end of the year, Lottery.com also revamped its management team with a series of new appointments. Among these, Ryan Dickinson became chief financial officer and president, Katie Lever as chief operating officer and general counsel, and Matt Clemenson as chief revenue officer.
In terms of costs for the year, total operating expenses jumped 378.1% to $39.2 million, with the main expense being personnel costs, which rose 380.0% to $21.6 million. After excluding certain costs, revenue growth pushed adjusted earnings before interest, taxes, depreciation and amortization (EBTIDA) from a loss of $3.1 million to a positive result of $31.1 million.
However, Lottery.com also noted $18.1 million in interest expense and $2.9 million in other costs, which left a pre-tax loss of $10.9 million, compared to a loss of $5.8 million the previous year.
The broker received $1.6 million in tax benefits which, after also accounting for a cumulative net translation adjustment of $655,000, means Lottery.com ended the year with a net loss of 9, $3 million, higher than the loss of $5.8 million in 2020.
Looking at the last quarter of the year and revenue for the three months through December 31, 2021, it was up 551.5% year-on-year to $21.5 million.
Operating costs climbed 679.3%, while net finance costs also climbed 1,154.1%, from $802,600 to $10.1 million. That left a pretax loss of $14.4 million, well above $1.7 million in the fourth quarter of 2020.
Lottery.com received $1.6 million in tax benefits and also noted a cumulative translation adjustment of $655,000, meaning it ended the quarter with a net loss of $12.9 million. , compared to $1.7 million the previous year.
“In the fourth quarter and throughout 2021, we demonstrated our ability to execute our strategic growth initiatives across the business to drive strong revenue growth and gross profit,” said the co-founder. and CEO of Lottery.com, Tony DiMatteo.
“B2C sales increased over the prior year period, despite no digital marketing spend. LotteryLink, our affiliate program, expanded and generated multiple revenue streams.
“I am extremely proud that our team achieved these achievements while successfully closing the business combination and taking our company public.”