The company revealed revenue of $32.2 million, an increase of $30.6 million from the same period last year. Gross profit was $20.3 million, while gross profit per transaction was $1.69, or a $0.76 increase from the 2020 Q3, and net income was $11.2 million, compared to a net loss of $1.2 million in 2020 Q3.
Lottery.com reported financial results for the third quarter ended September 30, 2021, which were achieved prior to the closing of the company’s business combination with Trident Acquisitions Corp. on October 29, 2021.
Third-quarter revenue was $32.2 million, an increase of $30.6 million from the third quarter of 2020. Growth was driven by the global affiliate marketing program.
Gross profit was $20.3 million, an increase of $19.4 million from the same period last year. The increase was driven by the global affiliate marketing program as well as improved user profitability. Gross profit per transaction was $1.69, or a $0.76 increase from the third quarter of 2020, which 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.
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.
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.”
He added: “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.”
The company plans to enter new markets in both the U.S. and internationally by the end of 2021 and enter New York and New Jersey in 2022.