B2B igaming technology provider EveryMatrix announces strong results for Q2 of 2022.
EveryMatrix’s Q2 update shows financial performance ahead of expectations and gross profit growth across all business segments (casino, sports, and platform) against the same period in 2021, a strong global sales performance with a significant contract signed, good cash balance and a successful acquisition.
Financial performance ahead of expectation
Gross profit (gross revenue less direct costs to game suppliers) increased by 17% year-on-year in Q2 2022 to €14.9 million (€12.7m) with a four-year CAGR of 35%. While the regulatory changes in Germany impacted gross profit in the casino segment, that segment still grew by 11% year-on-year thanks to the company’s product diversification and broad client base.
EBITDA held at €5.2 million (€5.2m) as the company continues to reinvest positive cash flow into future growth. Key investments remain US expansion and the quarter saw the acquisition of retail sports betting supplier Leapbit, bringing in nearly 20 new staff and a Croatian office.
The EBITDA/gross profit margin was 35%.
Net cash grew from €11.1 million at the end of Q1 2022 to €15.2 million in Q2 2022. The company is reinvesting positive cash flow into future growth and remains debt-free.
Ebbe Groes, group CEO of EveryMatrix, said: “Driven by our diverse product offering and strong client base, we saw yet another record number of new client wins in the quarter with 43 deals signed across all products. Furthermore a 17% increase in gross profit, the best reflection of the underlying performance of the group, allows us to continue to invest in our future growth.”
Strategic acquisition finalised
In May 2022 the company successfully finalised the acquisition of sports betting developer Leapbit. The merger strengthens the group’s sports betting product OddsMatrix with an advanced and proven retail offering.
OddsMatrix will fully incorporate Leapbit’s comprehensive retail-focused software solution and other products such as virtual horse racing and lottery games. As such, the company elevated its online-first OddsMatrix sport betting platform to a true omnichannel igaming solution to operators with retail presence.
Commenting on the largest acquisition to date, Groes, said: “OddsMatrix is one of the company’s three pillars and is growing at a tremendous rate already. Retail is a big component of any comprehensive sports betting suite and by integrating Leapbit’s technology we will take OddsMatrix to become a leader of true omnichannel sports in regulated markets.”
Key milestones in Q2
- New client wins record with 43 deals signed across all products in Q2 2022.
- Reached 90% of total deal value from 2021 for client wins in only six months.
- Four new Tier 1 clients secured with 888casino and BetMGM in the US and, in Europe, the National Lottery of Malta and one of the top operators in Italy.
- Two key clients in regulated markets, Germany and Romania, went live with CasinoEngine.
- There were 54 new brands that went live with SlotMatrix.
In Q1 2022, the company initiated a determined welfare support programme for its Ukrainian staff. During Q2 2022, the company offered continuous support to Ukrainian staff and large donations to supporting causes. At the period end, operations remained unaffected with staff now returning to Ukraine.
Large client signing after end of Q2
In July 2022, B2B platform provider EveryMatrix and German-based operator Bet-at-home agreed on the delivery of the supplier’s comprehensive turnkey solution. The Frankfurt-listed operator will replace its existing proprietary platform with EveryMatrix’s tech stack.
This includes a modern sportsbook, casino platform, player management, payments module and affiliate software. The agreement covers all the markets where Bet-at-home is currently present, including their core regulated German market.
“This landmark agreement reflects the breadth and depth of our products, but especially the quality of our sports platform, OddsMatrix. The constant investment and development in OddsMatrix have been at the core of what we do for many years, and I’m happy to see more Tier 1 operators joining our client list,” concluded Groes.