EveryMatrix grows 17% in Q2 after marquee deals
iGaming giant EveryMatrix has released financial reports for Q2 which show a 17% year-on-year growth in gross profit with respect to the same quarter in 2021. This follows a strong showing in year-on-year growth for Q1 earlier this year as well, when the B2B provider showed a 14% bump in gross profit.
EveryMatrix reported that they had secured 90% of last year’s deal value within the first two quarters of this financial year. ©Scott Graham/Unsplash
The monetary figure corresponding to this double-digit percentage growth stood at €14.9 million (approx. $14.6 million) in gross profit. The net revenue for Q2 this year was reported at €30.1 million (approx. $29.8m), which was a 41% rise year-on-year from Q2 2021. Over a period of 3 years, starting from Q2 in 2020, this was EveryMatrix’s most lucrative quarter in terms of consolidated revenue and gross profit.
This strong Q2 result, which rode the business development momentum from the start to the year, has been built on the back of some major deals closed by EveryMatrix this year. The deal value that EveryMatrix has closed in the first six months of 2022 is already at 90% of the total deal value of the full year in 2021, it said. Ebbe Groes, Group CEO of EveryMatrix, said a record total of 43 deals had been closed for the reporting period.
“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.”
EveryMatrix’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at €5.2 million (approx. $5.15m), which is an EBITDA/Gross Profit margin of 35%. The company stated that this margin was achieved through a stabilization move which meant a reduction of staff count growth in 2022 so far. The net cash in the company’s reserves at the end of Q2 stood at €15.2 million (approx. $15.06m).
Year of big deals
EveryMatrix’s quick business development growth this year has come down to the closing of some major household names in the iGaming world. Their flagship B2B gaming tech products, OddsMatrix, CasinoEngine, and SlotMatrix were at the heart of these deals with 54 brands going live with the latter alone.
One of the biggest client wins came in the form of 888Casino, signing a content deal with them as they looked to push their American footprint shortly after also managing to bag a deal with BetMGM in the USA as well as in Europe.
Another major win for EveryMatrix in Q2 was a historic event, when they managed to close a deal to become the first fully-owned Maltese company to be the Malta Lottery’s game provider in more than 18 years.
In terms of magnitude though, perhaps the biggest deal of the quarter was the strategic acquisition of Croatia-based sports betting developer Leapbit for an undisclosed amount. EveryMatrix explained the acquisition in their quarterly report as one that would be used directly to fortify and evolve OddsMatrix even further, with a retail-facing focus one of the key dimensions of this effort. This acquisition, EveryMatrix said, was its largest acquisition to date. Groes described OddsMatrix as “one the company’s three pillars” in talking about the acquisition.
“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.”
Momentum carries on past Q2
One of the major talking points from the quarterly report was the mention of the fact that Germany’s brand new iGaming laws had an impact on EveryMatrix’s gross profits in the casino segment, which they said still grew 11% year-on-year regardless. EveryMatrix explained that this was as a result of their “product diversification and broad client base”.
That client base is likely to grow earnings in Germany over the second half of the year as well, with German operator bet-at-home now officially part of the portfolio following a deal that was closed in July. EveryMatrix is set to overhaul bet-at-home’s tech stack in its entirety – with a sportsbook, a casino platform and payment modules all included. Groes said bet-at-home was among the Tier 1 operators on their portfolio.
“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.”
