EveryMatrix posts 65% EBITDA growth for 2021 reflecting "heavy" investments in product and tech

B2B iGaming tech provider EveryMatrix has shared on Wednesday its financial results for the fourth-quarter and full-year 2021. The company describes its performance for the periods as “strong,” with EBITDA for the full past year growing 65% to €19.7 million ($22.2 million). Meanwhile, EBITDA for Q4 amounted to €4.4 million ($4.9 million), a 23% increase.

The company says the strong growth experienced in 2021 was powered by past product investments. Throughout the period, EveryMatrix launched new client brands, expanded its footprint with tier 1 operators, and made “key progress in the US market.” Moreover, continued hiring and investment in development took place despite challenges imposed by the pandemic.

Gross profit for Q4 amounted to €13.9 million ($15.7 million), an increase of 26% compared to the same period the prior year. Meanwhile, in terms of the full year of 2021, gross profit increased by 32% YoY to €51.5 million ($58.2 million).

"I am delighted to report excellent results for the fourth quarter and 2021 as a whole in terms of strong gross profit and EBIDTA growth, onboarding of new clients, and deals signed,” said Ebbe Groes, Group CEO of EveryMatrix. “We delivered this result despite the regulatory changes in Germany which have impacted the Casino segment significantly.”

Our Financial Report for Q4 and the full year of 2021 has been released. EveryMatrix has experienced outstanding growth this year, and we're beyond proud!

Read the report here: https://t.co/Rn1w9OrfcK

— EveryMatrix (@EveryMatrix) February 23, 2022

The new German regulations, which led to the introduction of the Fourth Interstate Gambling Treaty, saw EveryMatrix casino EBITDA decrease from 64% in Q4 2020 to 47% in 2021. The regulatory changes in Germany have also negatively impacted other gambling businesses worldwide.

According to the executive, the successful results posted for last year prove the positive effect “of the bold leap EveryMatrix took” by investing heavily in product and technology. This move has given the company “a strong, diverse and competitive” product offering, as well as an ability to attract new clients.

Investments were also made in the US market, which EveryMatrix called in its business update “highly attractive.” The company claims it has made “key progress” in this expansion effort in the fourth quarter of the past year.

After fulfilling license requirements in New Jersey, license applications were submitted in Q4 in West Virginia and Michigan, with more fillings to happen “soon” in both the US and Canada. Additionally, new distribution and partner agreements were signed, including a games contract with Golden Nugget Online Gaming.

In terms of group-wide milestones for Q4, the company’s sports betting solution, OddsMatrix, surpassed €100 million ($113 million) total placed bets in each month of the quarter, almost double when compared to fourth-quarter 2020.

Also during the past quarter, 10 game vendors integrations with the CasinoEngine platform were completed, and SlotMatrix RGS went live with nine new partners, including EveryMatrix’s own Spearhead and Armadillo Studios. SlotMatrix RGS is now available in 15 regulated markets.

In terms of key signings, the company extended its footprint with tier 1 operators “at a good pace” and, in Q4, agreements were signed with four new clients, all of them in markets outside Europe: the US, Latam, and Africa. This brought to a total of eight new tier 1 operators in 2021.

Additionally, eight turnkey projects with new client brands were launched in the quarter, adding up to 19 turnkey launches for the full year. The launches include brands in the regulated markets in Denmark, Cyprus, Greece, Malta, Romania, Mexico and Africa.

"The number of active leads, client launches, and new product launches makes me confident about our prospects and further demonstrates the momentum with EveryMatrix's innovative product offering and highly scalable and modular software platform", concluded Groes.