EBET, Inc., formerly known as Esports Technologies, announced Tuesday the financial results for Q1, 2022, reporting revenues of $19 million, up more than 166% quarter-over-quarter, and a gross profit of approximately $7 million.
EBET ended the quarter with a cash position of $7.1 million, while the revenue increase was driven by the acquisition of a number of brands within Aspire Global’s B2C business -Karamba, Hopa, Griffon Casino, BetTarget, Dansk777 and Generation VIP- in November 2021. The acquisition included 1.25 million deposited customers.
After the company published its financial results this quarter, it stated it plans to continue to grow revenue through its iGaming, sportsbook and esports brands with a focus on the Gen Z and Millennial markets. This includes the rollout of its esports odds modeling and wagering product acros high-value European markets, as well as expanding geographical reach and investment in intellectual property.
In an official press release, Chief Executive Officer of EBET, Aaron Speach, commented on the company’s numbers for the first quarter of the year and said: “We are very pleased with our business results for the quarter, and it is a testament to our focus on creating the best experience for the Gen Z and Millennial wagering market. We are delighted to see the strong customer response to our brands and the progress we are making in launching products and investing in proprietary technology.”
During a conference call pertaining to this quarter’s results, the CEO also pointed out that EBET is diversifying its revenue by expanding into additional Latin American markets, and has started to rebuild its Gogawi brand in Brazil, “which is one of the top esports markets globally.” He also added the company has launched its odds and modeling feed for esports, and continues to make progress to patent its technological innovations, having submitted five patent applications in the U.S.
Speach also referred to the rebranding process the company has recently undergone: “Our focus is not diverting from esports, but due to the new acquisition and upcoming product releases, we feel EBET better represents our goals as a company, which is to provide world-class betting products to the 18-to-40-year-old demographics”.
During the same earnings call, the company’s Chief Financial Officer, Jim Purcell, reflected on the outcome of the first quarter and said EBET is “pleased with what we’ve accomplished this quarter,” especially considering “the strength of the U.S. dollar, market adjustments in Germany and delays in market access to the Netherlands.”
EBET, Inc. announces quarter-over-quarter revenue increase of 166%, ending the quarter with a cash position of $7.1 million.#READMORE 📲 https://t.co/ptXahuVCYM #Q2 #Results #Revenue #Esports #Business #News pic.twitter.com/47Yo4Coptk
— EBET (@ebet_gg) May 10, 2022
“The U.S. dollar has strengthened conservatively when compared to the euro British pound. As you know, our business is located in Europe, so we earn rather than the currency of the wager placed, which is primarily the euro and British pound”, he pointed out. “During our first fiscal second quarter, the U.S. dollar was 7% stronger when compared to the same period the prior year. This trend has accelerated since quarter-end.”
“Our strong revenue growth is also impressive when considering the headwinds of the German market due to the challenging regulatory conditions and other macroeconomic conditions,” Purcell said. “Finally, our revenue performance would have been even better had we obtained market access to the Netherlands as quickly as expected. We now expect to enter the market in calendar 2023.”
“We continue to invest in new markets to maintain a strong customer base in as many markets as possible for a stable base for future growth. This execution gives us confidence that we will achieve our stated revenue goal of $70 million in fiscal 2022 when measured on a constant currency basis”, Purcell concluded.