The business said it has taken “significant measures” to become EBITDA positive this month, measures that include reducing the total number of employees and contractors by 54%.
EBet, which was formerly known as Esports Technologies until a name change in May, recorded a more than 166% revenue increase for Q2 of the current fiscal year.
However, EBet recorded an adjusted EBITDA loss of $4.7m for the quarter, and an adjusted EBITDA loss of $4m for Q3.
But the business has now announced a new “profitability plan” to achieve a positive EBITDA run rate starting in August 2022 – the current month.
Alongside the aforementioned layoffs, EBet is “realigning resources” to “escalate and expand” its focus to iGaming, and reducing its investment in “non-revenue-generating esports products.”
However, as the business focuses on profitability, it expects revenue growth to decline in the short term. As a result, it does not expect to achieve the previous revenue guidance of $70m for fiscal year 2022.
But Aaron Speach, EBet’s CEO, remained positive, and said the business has arrived at a “major inflection point.”
He commented: “We are on a current run rate to achieve positive EBITDA this month and feel that we have reached a major inflection point for EBet’s business.
“I have never been this excited about EBet’s future for our executive team and our shareholders. We are seeing significant scalable gains and look to continue the path to increase profitability and shareholder value.”
