Executive Summary

Revenue of $7.1M and gross profit of ~$2.5M in Q1 2022, with most of the contribution occurring in December following the Karamba/Hopa/Griffon/BetTarget/Dansk777/GenerationVIP acquisition integration .
Management reaffirmed revenue guidance of $70M for the remaining 10 months of FY 2022 and highlighted platform consolidation and market access in Tier-1 regulated markets (UK, DE, IE, DK) as growth drivers .
Adjusted EBITDA was -$3.9M, reflecting integration and investment; end-quarter cash was $11.8M, supported by recently raised preferred equity and senior notes financing .
Key near-term catalysts: esports odds-modeling launch in Q1 2022 calendar, Browser Bets and esports-focused sportsbook rollout targeted for Q2 calendar 2022 across European markets .

What Went Well and What Went Wrong

What Went Well
- Acquisition integration ahead of plan; all brands consolidated onto a single platform, enabling CRM/loyalty synergies and operational efficiency (“creates huge operational benefits”) .
- Rapid revenue ramp post-acquisition with $7.1M in Q1 and 1.25M deposited customers in Tier-1 jurisdictions, positioning for scale and cross-sell to esports products .
- Reaffirmed $70M revenue guidance for the remaining FY22, signaling confidence in run-rate and marketing optimization of acquired B2C assets .
What Went Wrong
- Adjusted EBITDA of -$3.9M and operating loss of -$7.8M as integration, acquisition costs ($2.24M), and elevated OpEx weighed on profitability .
- Interest burden from new debt (15% senior notes) and dividend costs on preferred shares increased fixed charges, pressuring net loss (-$8.9M) .
- Comparisons to prior periods are not meaningful per CFO commentary due to one month of acquired results and transformational scale change, complicating trend analysis within the quarter .

Metric	Q1 2021 (Dec 2020)	Q4 2021 (Sep 2021)	Q1 2022 (Dec 2021)
Revenue ($USD Millions)	$0.011	N/A (not disclosed)	$7.140
Gross Profit ($USD Millions)	$(0.001)	N/A	$2.531
Gross Profit Margin %	(14.0%)	N/A	35.4%
Operating Income ($USD Millions)	$(2.140)	N/A	$(7.843)
Operating Margin %	(19,828%)	N/A	(109.9%)
Net Income ($USD Millions)	$(2.751)	N/A	$(8.881)
Net Income Margin %	(25,483%)	N/A	(124.4%)
Diluted EPS ($USD)	$(0.37)	N/A	$(0.68)

Segment breakdown: Not disclosed in Q1 2022 press release/10-Q; revenue driven by acquired B2C brands across regulated markets .

KPIs and Balance Sheet Highlights:

KPI	Q1 2021	Q1 2022
Deposited Customers (M)	N/A	1.25
Adjusted EBITDA ($USD Millions)	N/A	$(3.9)
Cash and Equivalents ($USD Millions)	N/A	$11.760
Total Borrowings – Carrying Amount ($USD Millions)	N/A	$33.210
Gross Profit ($USD Millions)	$(0.001)	$2.531

Notes:

Adjusted EBITDA calculation detailed by CFO: starting from loss from operations (-$7.8M), add acquisition costs ($2.2M), non-cash stock comp ($1.4M), D&A (~$0.3M) → -$3.9M .
Majority of Q1 revenue occurred in December as integration closed late November .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2022 Remainder (10 months)	$70	$70	Maintained

No additional guidance provided for margins, OpEx, tax rate, or segment-specific items in Q1 materials .

Topic	Previous Mentions (Q2 2021, Q3 2021)	Current Period (Q1 2022)	Trend
Platform & Product Roadmap	New wagering platform launch and increased product/technology spend to build capabilities	Odds-modeling launching Q1 calendar; Browser Bets and esports-focused sportsbook targeted for Q2 calendar in Europe	Acceleration from build to launch-ready
Market Access & Geography	Historically Philippines-focused; early expansion efforts	Access to Tier-1 regulated markets (UK, DE, IE, DK) via acquisition; expansion to Asia/LatAm/Europe	Expanded regulated footprint
Integration & Operations	Pre-acquisition scaling; limited revenue base	Consolidated brands onto single platform; CRM/loyalty synergies; employee migration completed	Integration executed; efficiency focus
Financial Scale & Capital	Modest cash pre-IPO; raising equity; no large debt	Preferred equity ($37.7M), senior notes ($30M, 15%); cash $11.8M	Levered capital structure for growth
Esports Consumer Targeting	Early-stage esports focus conceptually	Gen Z/Millennials are 4.3x more likely to bet on esports; leveraging youthful customer base	Stronger demographic alignment

“We have made a big step towards our vision to be the leader in esports wagering. The boost in revenue from our newly acquired brands is a great indication of future growth.” — CEO Aaron Speach .
“Our acquisition integration is going better than anticipated… We have consolidated all of our products on to a single platform… efficient as we launch Gogawi into Asia, Latin America and CIS countries.” — CEO Aaron Speach .
“Adjusted EBITDA for the quarter was negative $3.9 million… loss from operations of $7.8 million and adjusting for acquisition costs of $2.2 million, non-cash stock compensation costs of $1.4 million and depreciation and amortization of approximately $300,000.” — CFO Jim Purcell .

Platform consolidation: “All of our brands under one platform provider… huge operational benefits… extremely useful… on the loyalty side” — clarifies single-platform strategy .
Revenue run-rate optimization: Dedicated resources and tailored affiliate deals expected to drive higher monthly run-rates in acquired brands versus prior owner .
Esports penetration: Gen Z/Millennials materially more likely to wager on esports/iGaming, supporting long-term customer lifetime value and lower acquisition costs .
Product timing: Odds-modeling product in Q1 calendar; esports-focused sportsbook and Browser Bets targeted for Q2 calendar in regulated European markets .

S&P Global consensus estimates for Q1 2022 EPS and Revenue could not be retrieved due to missing Capital IQ mapping for EBET; therefore, Wall Street consensus comparisons are unavailable at this time. Values retrieved from S&P Global*.

Where estimates may need to adjust:

With $7.1M revenue largely in December and reaffirmed $70M for the remaining FY22, models likely shift to reflect a steeper post-acquisition ramp trajectory and integration efficiencies .

Rapid scaling via acquisition: Q1 revenue of $7.1M with majority in December underscores the acquired brands’ capacity; reaffirmed $70M FY22 remainder supports sustained run-rate growth .
Integration advantage: Single platform consolidation (CRM/loyalty) and Tier-1 market access provide operating leverage and cross-sell optionality as esports products launch .
Profitability path: Near-term losses and -$3.9M adjusted EBITDA reflect integration and investment; focus shifts to margin expansion as marketing and product launches mature .
Capital structure watch: 15% senior notes and preferred dividends add fixed charges; monitor cash generation and deleveraging triggers (excess cash flow prepayments to $15M threshold) .
Product catalysts: Odds-modeling, Browser Bets, and esports sportsbook rollouts across Europe could drive engagement and ARPU; execution and regulatory compliance remain key .
Trend validation: Q2 2022 revenue of ~$19M (+166% QoQ) indicates momentum beyond December concentration, reinforcing guidance credibility .
Risk management: Dilution risk from preferred conversion and warrant overhang, plus macro/regulatory variability across jurisdictions; position sizing should reflect these risks .