The group noted that the increase 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 the affiliate to consumers for their purchase of lottery games and services from Lottery.com upon activation of an account.”
Gross profit for the period was up $15.5m year-on-year to $18m, while net loss and adjusted EBITDA were $15.8m and $7.7m respectively.
Lottery.com explained that the increase in gross profit was primarily driven by the sale of LotteryLink credits to the aforementioned LotteryLink affiliate.
Cash as of 31 March 2022 was $50.8m, driven by proceeds from the business combination with Trident Acquisition Corp. in October 2021, as well as strong operating results.
And debt at the end of March was $3.5m, due to the conversion of the group’s convertible debt into equity, in conjunction with the business combination.
“I’m pleased with our first quarter results and the team’s continued focus on our core business and generating strong adjusted EBITDA,” said Lottery.com Co-Founder and CEO Tony DiMatteo.
“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.”