LTRYW

EX-99.1

2 ea159976ex99-1_lottery.htm

PRESS RELEASE DATED MAY 16, 2022

Exhibit 99.1

Lottery.com Announces Strong First Quarter Results

First quarter 2022 revenue of $21.2 million, up $15.7 million from the prior-year period

First quarter 2022 gross profit of $18.0 million, up $15.5 million from the prior-year period

First quarter 2022 net loss of $15.8 million, Adjusted EBITDA of $7.7 million1

AUSTIN, Texas, May 16, 2022 -- (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when the lottery is played, reported financial results for the first quarter ended March 31, 2022.

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. Once again, LotteryLink has demonstrated its ability to contribute to our top and bottom line growth and expand our user base with limited advertising spend. In our B2C business, our focus on market testing and securing permission to advertise on large digital media platforms has solidified our foundation to launch accretive user acquisition campaigns over the balance of the year.”

Mr. DiMatteo continued, “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. LotteryLink’s promotional programs have generated new users and created interest from additional national consumer brands looking to utilize LotteryLink for their marketing campaigns. Additionally, we have launched Phase 1 of Project Nexus. We believe that these positive developments, combined with our strong balance sheet, position us well for future growth.”

First Quarter 2022 Financial Highlights

Three Months Ended

Q1 2022 Financial Highlights March 31,

2022 2021 Change

(in millions)

Revenues $21.2 $5.5 $15.7

Gross profit $18.0 $2.5 $15.5

Net Loss $(15.8) $(5.5) $(10.3)

Adjusted EBITDA $7.7 $(2.6) $10.3

Cash $50.8 $18.3 $32.5

Debt $3.5 $41.5 $(38.0)

1- Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of Adjusted EBITDA and “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of this measure to net loss.

First quarter 2022 revenue was $21.2 million, an increase of $15.7 million, or 287%, from the first quarter of 2021. The growth was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire pre-paid promotional rewards that may be issued by such affiliate to consumers for their purchase of lottery games and services from Lottery.com upon activation of an account.

First quarter 2022 gross profit was $18.0 million, an increase of $15.5 million from the first quarter of 2021. The increase was primarily driven by the sale of LotteryLink credits to the above referenced LotteryLink affiliate. As a result of the delayed launch of such affiliate’s promotional program, most of the pre-paid promotional rewards expired without being issued to consumers. As a result, the Company did not incur costs associated with redemption of most of such LotteryLink credits.

First quarter 2022 net loss was $15.8 million compared to a net loss of $5.5 million in the first quarter of 2021. The increase was primarily driven by the incurrence of $22.2 million of non-cash stock compensation expense and other increased personnel costs, which were offset by the strong gross profit described above.

First quarter 2022 Adjusted EBITDA was $7.7 million, an increase of $10.3 million from the first quarter of 2021. The increase was driven by the strong gross profit described above, partially offset by increased public company expenses and higher expenses associated with the execution of growth initiatives.

Cash as of March 31, 2022, was $50.8 million, an increase of $32.5 million from March 31, 2021, driven primarily by proceeds from the business combination with Trident Acquisition Corp. in October 2021, and strong operating results, partially offset by an increase in working capital.

Debt as of March 31, 2022, was $3.5 million, a decrease of $38.0 million from March 31, 2021, driven primarily by the conversion of the Company’s convertible debt into equity, in conjunction with the business combination.

Update on Key Initiatives

●B2C User Growth

○Expanded B2C marketing campaigns have launched in Q2 2022 and resulted in solid increases in app downloads versus the prior year period

○Achieved customer acquisition costs in-line with expectations to date in Q2 2022

●LotteryLink and B2B

○Added new LotteryLink affiliates since the beginning of the year, including the conversion of data service customers

○Continued to develop pipeline

EX-99.1

2 ea157672ex99-1_lottery.htm

PRESS RELEASE DATED MARCH 31, 2022

Exhibit 99.1

Lottery.com Announces Strong Fourth Quarter and Full Year Results

Fourth quarter 2021 revenue of $21.5 million, up $18.2 million versus prior-year period

Full year 2021 revenue of $68.5 million, an increase of $61.0 million versus 2020

Full year 2021 pro forma revenue of $70.5 million, including acquired interest in Mexican entities1

Full year 2021 net loss of $9.3 million

Full year 2021 Adjusted EBITDA of $31.1 million1

AUSTIN, Texas, March 31, 2022 -- (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when the lottery is played, reported financial results for the fourth quarter and full year ended December 31, 2021. On October 29, 2021, the Company successfully completed its business combination with Trident Acquisitions Corp. (the “business combination”).

Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “In the fourth quarter and throughout 2021, we demonstrated our ability to execute our strategic growth initiatives across the business to generate strong revenue growth and gross profit. B2C sales increased compared to the prior year period, despite no digital marketing spending. LotteryLink, our affiliate program, expanded and generated multiple revenue streams. I am extremely proud of our team achieving these accomplishments while successfully closing the business combination and taking our Company public.”

Mr. DiMatteo continued, “We entered 2022 with positive momentum and continued focus on executing our strategic growth plan. Fueled by approximately $43 million of proceeds from our business combination and $30 million received from the sale of LotteryLink credits, we are investing in initiatives to drive growth. I am pleased with our execution in the first quarter and am excited about our prospects to scale and grow the business in 2022.”

Fourth Quarter 2021 Financial Highlights

Three Months Ended

Q4 2021 Financial Highlights December 31,

2021 2020 Change

(in millions)

Revenues $21.5 $3.3 $  18.2

Gross profit $18.3 $2.1 $16.2

Net loss $(12.9) $(1.7) $(11.2)

Cash $62.6 $3.8 $58.8

Debt $3.8 $21.1 $(17.3)

(1)2021 Pro Forma Revenue and Full Year 2021 Adjusted EBITDA are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of these non-GAAP financial measures and “Reconciliation of Non-GAAP Financial Measures” for a reconciliation to their most comparable GAAP measures.

Fourth quarter 2021 revenues were $21.5 million, an increase of $18.2 million, or 559%, from the fourth quarter of 2020. The growth was driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire prepaid lottery games from the Company in conjunction with the affiliate’s launch of a pilot promotional campaign at a national grocery chain. The Company also sold LotteryLink credits for marketing materials, product development and $3.0 million in prepaid advertising credits. B2C lottery ticket sales increased substantially from the prior year period, despite no digital marketing spend.

Fourth quarter 2021 gross profit was $18.3 million, an increase of $16.2 million from the fourth quarter of 2020. The increase was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate for prepaid lottery games from the Company, many of which expired without being redeemed due to the delayed launch of the affiliate’s promotional programs. As a result, the Company did not incur costs with respect to the sale of those credits.

Fourth quarter 2021 net loss was $12.9 million, driven by non-cash stock compensation expense of $15.5 million. The net loss also included $8.8 million of interest expense, which was driven by a non-recurring expense associated with conversion of debt to equity at the time of the business combination.

Cash as of December 31, 2021, was $62.6 million, which included $42.8 million in net proceeds from the business combination and $30.0 million received from the previously announced sale of LotteryLink credits in the third quarter of 2021.

Debt as of December 31, 2021, was $3.8 million following the conversion of $63.5 million of convertible debt into equity immediately prior to the business combination.

Full Year 2021 Financial Highlights

Twelve Months Ended

2021 Financial Highlights December 31,

2021 2020 Change

(in millions)

Revenues $68.5 $7.5 $  61.0

Pro forma revenues $70.5 $10.3 $60.2

Gross profit $49.4 $4.5 $44.9

Net loss $(9.3) $(5.8) $(3.5)

Adjusted EBITDA $31.1 $(3.1) $34.2

Full year 2021 revenues were $68.5 million, an increase of $61.0 million, or 819%, from 2020. The growth was driven primarily by the sale of $47.1 million of LotteryLink credits for prepaid advertising, prepaid lottery game

EX-99.1

2 ea150610ex99-1_lotterycom.htm

PRESS RELEASE, DATED NOVEMBER 15, 2021

Exhibit 99.1

Lottery.com Announces Strong Third Quarter Results and Year-to-Date Revenue Increase of $42.8 Million Over Prior-Year Period

Third quarter 2021 revenue of $32.2 million and net income of $11.2 million

Strong growth in user transaction profitability

AUSTIN, Texas, November 15, 2021 -- (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when lottery is played, reported financial results for the third quarter ended September 30, 2021. These results were achieved prior to the closing of the Company’s business combination with Trident Acquisitions Corp. on October 29, 2021. The Company’s unaudited financial statements for the third quarter of 2021 and other information have been filed in a Current Report on Form 8-K/A today with the U.S. Securities and Exchange Commission (“SEC”).

Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “We are proud of the strong revenue and profitability growth we achieved in the third quarter. While we were working toward the completion of our business combination, we acted decisively to advance our plans for our global affiliate program and monetize one of our assets by leveraging a B2B partner relationship. The start of this program provided increased revenue in the third quarter and is an essential building block of our B2B2C strategy, which we expect will lead to an increased user base and additional revenue from those end users going forward. Additionally, the implementation of a dynamic pricing model and improvements to our app, such as push notifications, contributed to strong growth in gross profit per transaction compared to the prior year period.”

Mr. DiMatteo continued, “Now that we have successfully completed our business combination, we are focused on utilizing the proceeds we realized from the transaction, along with our third quarter profits, to accelerate our targeted user marketing campaigns, enter new markets, expand our product offerings, and execute strategic and synergistic acquisitions. With our low customer acquisition costs, large addressable markets and leading brands, we look forward to realizing the profitable growth opportunities before us.”

Third Quarter 2021 Results

Q3 2021 Financial Highlights Three Months Ended

September 30,

2021 2020 Change

(in millions, except percentages; unaudited)

Revenues $32.2 $1.6 $30.6

Gross Profit $20.3 $0.9 $19.4

Gross Margin 63.0% 54.9% 8.1%

Net Income $11.2 $(1.2) $12.3

Q3 2021 User Metrics (1) Three Months Ended

September 30,

2021 2020 Change

Transactions per user 12.4 11.2 1.2

Tickets per transaction 3.8 3.5 0.3

Revenue per transaction $9.52 $8.20 $1.32

Gross profit per transaction $1.69 $0.93 $0.76

Gross margin per transaction 17.8% 11.3% 6.4%

(1) Excludes B2B users who made purchases through an affiliate or API partner

Third quarter 2021 revenue was $32.2 million, an increase of $30.6 million from the third quarter of 2020. The growth was driven by the global affiliate marketing program.

Third quarter 2021 gross profit was $20.3 million, an increase of $19.4 million from the third quarter of 2020. The increase was driven by the global affiliate marketing program as well as improved user profitability.

Third quarter 2021 gross profit per transaction was $1.69, or a $0.76 increase from the third quarter of 2020. The increase was driven by the implementation of a dynamic pricing model and improvements made to the Company’s platform, including push notifications, which contributed to higher tickets sold per transaction and higher revenue per transaction.

Third quarter 2021 net income was $11.2 million, compared to a net loss of $1.2 million in the third quarter of 2020. The improvement was driven by the increase in gross profit partially offset by expenses associated with the business combination.

Outlook and Update Following Business Combination

The Company expects to meet or exceed its previous guidance of $71 million for full year 2021 revenue.

On October 29, 2021, the Company successfully completed its business combination with Trident Acquisitions Corp. As a result of the transaction, Lottery.com received $42.8 million in net proceeds and converted $60 million of debt and accrued interest into equity. Following the completion of the business combination, the Company’s top strategic priorities include:

●Continuing development of Project Nexus’ blockchain-based gaming platform and launch of its first proprietary lottery game in 2022;

●Initiating new targeted marketing campaigns to broaden its B2C user base;

●Entering new markets in both the U.S. and internationally by the end of 2021 and entering New York and New Jersey in 2022;

●Developing and continually introducing new products to the Lottery.com platform, including additional state-specific games and digital scratcher games;

●