Lottery.com, Inc. Common Stock (LTRY)

Lottery.com, Inc. Common Stock: A Comprehensive Overview

Company Profile:

• History and Background: Launched in 2012 as AutoLotto in Scottsdale, Arizona, Lottery.com rebranded itself in 2018. It went public on the Nasdaq in 2021 after merging with Trident Acquisitions Corp.

• Business Area: Lottery.com operates a mobile and online platform providing access to legal lottery, iLottery (in states with authorized online sales), and other gaming products, like scratch-off games and instant win games.

• Leadership:

• • Executive Leadership
    • Tony DiMatteo, Chief Executive Officer
    • Marc S. Lautenbach, President
    • Ryan D. Markovich, Senior Vice President of Marketing
    • Robert J. Marchion, Senior Vice President - Chief Financial Officer, Chief Compliance Officer
    • Richard A. Wheeler, Executive Vice President - Corporate Development, Investor Relations & Strategy
    • Christopher P. Davis, Executive Vice President - Business Operations
• • Board of Directors
    • Thomas Tran, Chair
    • William E. Ford
    • David F. Giordano
    • Scott P. Schweiger, M.D.
    • Paul L. Guyardo, III
    • Richard A. Wheeler

Top Products and Market Share:

• • Product: The main product is a platform providing access to lottery games.
• • Global Market: It operates in 18 U.S. jurisdictions, covering approximately 30% of the US adult population.
• • **Competitive Landscape: *
    • • Market Share: Smaller compared to established companies like Jackpocket (with an estimated market share over 75%, based on press releases and company filings). However, Lottery.com boasts an advantage in state-level contracts and is working on expanding into the online space.
    • • Competitor Comparison: Jackpocket offers a similar product in a larger number of jurisdictions. Lottery.com focuses on securing state contracts and developing a user-friendly online platform, offering a differentiated product and pursuing unique acquisition strategies.

Total Addressable Market:

• • US Market: Estimated to reach $23.9 billion by 2027, growing at a CAGR of 11.82% (source: Grand View Research).
• • Global Market Size: Estimated at $344.65 billion in 2023 with a CAGR of 8.1% between 2023-2030 (source: Allied Market Research).

Financial Performance:

• • Recent Revenue: $21.4 million (FY 2022). Revenue has grown steadily from $3.13 million in FY 2020 to $8.78 million in FY 2021 and $21.4 million in FY 2022.
• • Profitability: Still pre-profit, with a net loss of $44.73 million in FY 2022.
• • Recent Earnings and EPS: 10 months ended October 31, 2023: Revenue – $13.67 Million; Net Loss (Non-recurring) – $5.87 Billion; Net Loss – $34.35 Million; Diluted EPS – ($4.94). 2022 full-year: Diluted net loss per share was ($1.51).
• • Cash Flow and Balance Sheet: Improving over time. Total liabilities have decreased year over year.

  Further analysis is required, factoring in Q3 and full-year 2023 results, for a more comprehensive financial performance evaluation after November 2023.

Dividends and Shareholder Returns:

• • Dividend History: No dividend payments as of November 2023, being a growth company focused on reinvesting capital.
• • Shareholder Returns: -87,77% over the last year, but positive returns (over 60%) if looking at a 2-year horizon.

Growth Trajectory:

• • Historical Growth (2018 -2022): Steady growth in users, sales, and market share (source: Investor Presentations).
• • Recent Acquisitions (2023): Acquisition of two lottery retailers, 1st Play, LLC, and NDN Gaming in 2023.
• • Future Growth Projections (Market Research Reports): Positive outlook in the online gaming and lottery market. Lottery.com is pursuing strategic growth initiatives, like expansion and acquisitions.

Market Dynamics:

• • Industry Growth: The online lottery and instant win game industry are expected to experience rapid growth due to technological advancements and increased access to mobile devices.
• • **Competitive Landscape is Evolving: *
  • • New players emerging.
  • • Existing businesses expanding online and into new jurisdictions.
• • Adaptability is Crucial for Success

Key Competitors (as of November 2023):

• Jackpocket (JPK): Largest competitor in terms of market share.
• Lucktastic (LCTT): Public company offering a similar platform with instant win gaming.
• Other Lottery-Related Stocks:
  • • International Game Technology (IGT): Leading gaming technology supplier.
  • Penn National Gaming (PENN): Major casino and entertainment company.

Potential Challenges:

• • *Competition: High level in the online gaming sector.
• • Regulations: Strict and evolving regulations.
• • Profitability Challenges: Burning cash to grow, needing to reach critical user/market thresholds to become more profitable.

  Recent Acquisition Analysis: Acquisition of 1st Play and NDN Gaming in 2023 strengthens Lottery.com's retail footprint and increases their distribution channels in strategic regions, aligning with its growth strategy by providing immediate revenue and customer base, further enhancing their competitive position in specific local markets.

** AI-Based Fundamental Rating:**

• Rating: 5 out of 10 (based on November 2023 information). This rating is based on the company's growth potential in a rapidly expanding market, recent acquisitions driving expansion, and positive long-term industry outlook. However, concerns remain regarding profitability, competition, and regulatory risks.

Disclaimers: This analysis provides a snapshot of Lottery.com, Inc. Common Stock based on publicly available sources and information as of November 2023. Please note that the stock market is volatile, and the information presented may not reflect current stock prices or performance. This information should not be taken as financial advice; individual research and careful consideration are essential before making any investment decisions.

Sources:

• Company Information: https://lottery.com/
• Investor Presentation: https://ir.lottery.com/static-files/0cc85bd1-7851-48e9-a055-858598588e83
• **Financials: *
  • • https://investors.lottery.com/static-files/f5537538-2b29-4736-9538-53685b883435
  • • https://www.nasdaq.com/market-activity/stocks/ltry
• Other Sources:
  • • https://marketresearchfuture.com/reports/online-lottery-market
  • • https://www.alliedmarketresearch.com/lottery-gaming-market
  • • https://www.globenewswire.com/news-release/2023/10/20/2754538/0/en/LTRY-Reports-Financial-Results-for-Quarter-Ended-30th-September-2023.html
  • • https://www.cnbc.com/press-releases/lottery.com-inc-closes-definitive-agreement-in-1745-million-transaction-to-expand-us-and-global-online-lottery-sales-2023-10-24
  • • Yahoo Finance

Note: Please be aware that the financial information and market research data used in this analysis are as of this response's generation (November 21, 2023). The market and the company's financials are constantly shifting, and more up-to-date information should be consulted for any investment decision-making