Lottery.com has cited LotteryLink, its B2B affiliate and master affiliate marketing scheme, as a significant factor behind the company’s major rise in revenue during Q1 of FY2022.
Publishing its results for the period ending March 31, Lottery.com has reported revenue of $21.2m, an increase of $15.7m (287%) from the same period last year.
According to Lottery.com, this 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”.
These sales also helped to generate gross profits of $18m in Q1, up $15.5m from the prior-year period.
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented: “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.”
Meanwhile, net loss stood at $15.8m compared to a net loss of $5.5m in 2021. The increase was primarily driven by the incurrence of $22.2m of non-cash stock compensation expense and other increased personnel costs, which were offset by the strong gross profit.
Additionally, adjusted EBITDA was $7.7m, an increase of $10.3m year-on-year, helped by the strong gross profit and partially offset by increased public company expenses and higher expenses associated with the execution of growth initiatives.
Looking ahead, DiMatteo added: “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 programmes have generated new users and created interest from additional national consumer brands looking to utilise 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.”