Ebet Inc (EBET) 2022 Q1 法說會逐字稿

Greetings, welcome to Esports Technologies First Quarter 2022 Earnings Conference Call.

您好，歡迎參加電子競技技術 2022 年第一季度收益電話會議。

(Operator Instructions)

（操作員說明）

During the course of this call, statements made that are not statements of historical fact constitute forward-looking statements that are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those contemplated in these forward-looking statements. Forward-looking statements are based on management's current assumptions, expectations of future events and trends, which may affect Esports Technologies business, strategy, operations or financial performance. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date.

在本次電話會議期間，所做的非歷史事實陳述構成前瞻性陳述，這些陳述受到風險、不確定性和其他因素的影響，這些因素可能導致我們的實際結果與這些前瞻性陳述中預期的結果存在重大差異。前瞻性陳述基於管理層當前的假設、對未來事件和趨勢的預期，這可能會影響電子競技技術的業務、戰略、運營或財務業績。現有和潛在投資者請不要過分依賴這些前瞻性陳述，這些陳述僅代表今天的情況。

For more information, please refer to the risks and uncertainties and other factors discussed in Esports Technologies, SEC filings, particularly its Form 10-K for the year ended September 30, 2021. All cautionary statements that we make during this call are applicable to any forward-looking statements that we make whenever they appear. You should carefully consider the risks, uncertainties and other factors discussed in Esports Technologies SEC filings, Esports Technologies undertakes no obligation to update any estimate projection or forward-looking statements. Please note that this conference is being recorded.

欲了解更多信息，請參閱 Esports Technologies、SEC 文件中討論的風險和不確定性以及其他因素，特別是截至 2021 年 9 月 30 日的年度 10-K 表格。我們在本次電話會議中做出的所有警告聲明均適用於任何我們在出現時做出的前瞻性陳述。您應該仔細考慮 Esports Technologies SEC 文件中討論的風險、不確定性和其他因素，Esports Technologies 不承擔更新任何估計預測或前瞻性陳述的義務。請注意，本次會議正在錄製中。

I will now turn the conference over to Aaron Speach Founder and CEO. Thank you. You may begin.

我現在將會議交給創始人兼首席執行官 Aaron Speach。謝謝。你可以開始了。

Good morning, everyone, and welcome. We are very pleased with what we have accomplished during our first quarter of 2022 as we have taken significant strides in achieving our goal of being the leader in esports wagering and technology. Our vision is to provide unique wagering experiences to the 550 million underserved esports fans from around the world.

大家早上好，歡迎光臨。我們對 2022 年第一季度取得的成就感到非常滿意，因為我們在實現成為電子競技投注和技術領導者的目標方面取得了重大進展。我們的願景是為全球 5.5 億服務不足的電子競技粉絲提供獨特的投注體驗。

During Q1 2022, we took significant strides towards our vision. We completed a transformative acquisition of 5 online casino and Esportsbook brands with 1.25 million deposited customers with the majority of them under the age of 35. Of the top 15 wagering markets, Europe has 12. With this acquisition, we now have market access to many of these European markets. Access to Tier 1 regulated markets, including the United Kingdom, Germany, Ireland and Denmark. Our future esports products will have audience of over 200 million people in the European markets. Our acquisition integration is going better than anticipated. The performance of the assets are on target and our key acquisition integration goals are going extremely well. We have consolidated all of our products onto a single platform. This will allow us to be efficient as we launch Gogawi into Asia, Latin America and CIS countries. Key post acquisition targets, including employee migration, are being hit and/or exceeded. We are diversifying our revenue by expanding into Latin America and Asia, along with the European businesses that we just acquired.

2022 年第一季度，我們在實現願景方面取得了重大進展。我們完成了對 5 個在線賭場和電子競技品牌的變革性收購，擁有 125 萬存款客戶，其中大多數年齡在 35 歲以下。在前 15 個投注市場中，歐洲佔據了 12 個。通過此次收購，我們現在可以進入許多市場這些歐洲市場。進入一級監管市場，包括英國、德國、愛爾蘭和丹麥。我們未來的電競產品在歐洲市場的受眾將超過2億人。我們的收購整合進展比預期要好。資產的績效達到了目標，我們的關鍵收購整合目標進展得非常順利。我們已將所有產品整合到一個平台上。這將使我們能夠高效地將 Gogawi 推向亞洲、拉丁美洲和獨聯體國家。收購後的關鍵目標（包括員工遷移）正在達到和/或超過。我們正在通過擴展到拉丁美洲和亞洲以及我們剛剛收購的歐洲業務來實現收入多元化。

We are on track to launch our esports product in calendar 2022, including Esportsbook, which will be a regulated sports betting product with a focus on sports, throughout Europe and other regulated markets that we have access to; and Browserbets, which is our unique browser extension that will allow a consumer to bet directly in the video stream that they are watching. We're excited that both of those products are on track for Q2 of this calendar year. We continue to make progress to patent our technologies and innovations. We have submitted 5 patent applications in the U.S. over the last 12 months. While these are all pending review, it is a key that we obtained patent approval on our technology innovations.

我們有望在 2022 年推出我們的電子競技產品，包括 Esportsbook，這將是一個受監管的體育博彩產品，專注於體育，遍及整個歐洲和我們可以進入的其他受監管市場； Browserbets，這是我們獨特的瀏覽器擴展，允許消費者直接在他們正在觀看的視頻流中下注。我們很高興這兩款產品都有望在今年第二季度上市。我們在技術和創新專利方面不斷取得進展。過去 12 個月，我們在美國提交了 5 項專利申請。雖然這些都在等待審查，但關鍵是我們的技術創新獲得了專利批准。

We recently just opened our offices in Malta and are happy to say that all of the employees from the acquired brands are successfully moved in. We drove $7.1 million in revenue, with most of that coming in December from the newly acquired brands, an increased cash position to $11.8 million, up $2.8 million from year-end. We were very excited to release a 10-month projected earnings of $70 million for fiscal year ending September 30.

我們最近剛剛在馬耳他開設了辦事處，很高興地宣布，所收購品牌的所有員工均已成功遷入。我們實現了 710 萬美元的收入，其中大部分來自 12 月份新收購的品牌，增加了現金頭寸達到 1180 萬美元，比年底增加 280 萬美元。我們非常高興地發布截至 9 月 30 日的財年 10 個月的預計收益為 7,000 萬美元。

And with that, I'll hand it over to Jim.

這樣，我就把它交給吉姆了。

Thank you, Aaron, and good morning, everyone. I just want to remind everyone, the discussion of our results for Q1 2022 will be relatively brief as our results only include 1 month of activity of the recent acquisition, which was only completed at the end of November. Given the transformational aspect of this acquisition, comparisons to the prior periods are not particularly meaningful given its size and scale. So we'll only be talking about the current quarter's results. I feel we now have a business of scale, which should be a platform to leverage our future growth.

謝謝你，亞倫，大家早上好。我只是想提醒大家，我們對 2022 年第一季度業績的討論將相對簡短，因為我們的業績僅包括最近收購的 1 個月活動，該收購僅在 11 月底完成。考慮到此次收購的轉型意義，考慮到其規模和規模，與之前時期的比較並沒有特別的意義。因此，我們只會討論當前季度的業績。我覺得我們現在已經有了規模化的業務，這應該成為我們未來增長的一個平台。

To reiterate what Aaron said, we are pleased to announce that in our Q1 2022, we generated $7.1 million of revenue and over $2.5 million of gross margin for the quarter. While substantially all of this revenue was from the recent acquisition, we will be continuing to build and develop our esports products and extend our reach. We're also happy with our post-acquisition results as we are operating the business to what we expected and within plan. This execution gives us confidence that we will achieve our stated goal of $70 million for fiscal 2022. And again, to remind everyone, our fiscal year-end September 30, 2022, so that will include only 10 months of our post-acquisition activity.

重申 Aaron 所說的，我們很高興地宣布，在 2022 年第一季度，我們創造了 710 萬美元的收入，該季度的毛利率超過 250 萬美元。雖然大部分收入都來自最近的收購，但我們將繼續構建和開發我們的電子競技產品並擴大我們的影響力。我們也對收購後的結果感到滿意，因為我們正在按照我們的預期和計劃運營業務。此次執行讓我們有信心實現 2022 財年 7000 萬美元的既定目標。再次提醒大家，我們的財年結束日期為 2022 年 9 月 30 日，因此這將僅包括我們收購後 10 個月的活動。

Looking at other aspects of our business. We ended the quarter with $11.8 million in cash, up $2.7 million from the year ended September 30, 2021. We continue to invest in the growth of our business. Adjusted EBITDA for the quarter was negative $3.9 million. Our adjusted EBITDA is calculated by starting with our loss from operations of [$7.8] million and adjusting for acquisition costs of $2.2 million, noncash stock compensation costs of $1.4 million and depreciation and amortization of approximately $300,000. Our net cash used in operating activities was $3.0 million. We expect to continue to invest in our esports business and products as we expand the geographical reach of our iGaming, sportsbook and esports business throughout fiscal 2022.

看看我們業務的其他方面。截至本季度末，我們的現金為 1180 萬美元，比截至 2021 年 9 月 30 日的年度增加了 270 萬美元。我們繼續投資於業務增長。該季度調整後 EBITDA 為負 390 萬美元。我們調整後的 EBITDA 的計算方法是，我們的運營虧損為 780 萬美元，並根據 220 萬美元的收購成本、140 萬美元的非現金股票補償成本以及約 30 萬美元的折舊和攤銷進行調整。我們用於經營活動的淨現金為 300 萬美元。隨著我們在整個 2022 財年擴大 iGaming、體育博彩和電子競技業務的地理覆蓋範圍，我們預計將繼續投資於我們的電子競技業務和產品。

During Q4, we completed the finance of our acquisition, which raised over $67.7 million. This was used to pay the acquisition price of EUR 50 million as well as the acquisition costs. So we've taken significant strides in this current quarter.

第四季度，我們完成了收購融資，籌集了超過 6770 萬美元。這筆資金用於支付 5000 萬歐元的收購價格以及收購成本。因此，我們在本季度取得了重大進展。

And with that, I'll hand it back over to Aaron.

有了這個，我會把它交還給亞倫。

Thank you, Jim, and thank you all for tuning in. I'd like to now open it up to the analysts for Q&A. Operator?

謝謝吉姆，也謝謝大家的收聽。我現在想向分析師開放問答環節。操作員？

(Operator Instructions)

（操作員說明）

Our first question is from Chris Pierce with Needham & Company.

我們的第一個問題來自 Needham & Company 的 Chris Pierce。

One clarification question. Just in the press release, and you mentioned it single platform. Can you just kind of go a little deeper on what you mean there? Because I know there was a number of brands in the acquisition. I know Gogawi, is kind of the platform you guys had prior. So just kind of -- is that -- when you say a single platform, is that something internally on your end, that's not on the customer-facing side, it's a migration that you did, can you just kind of clarify that first?

一個澄清問題。剛才在新聞稿中，您提到了單一平台。您能更深入地了解一下您的意思嗎？因為我知道收購中有很多品牌。我知道 Gogawi，是你們之前擁有的平台。所以，當你說單一平台時，這是你內部的東西，不是面向客戶的，而是你所做的遷移，你能先澄清一下嗎？

Yes, absolutely. What that means is we actually moved our core original brand, Gogawi from a previous provider on to the Aspire BtoBet brand. So that way, we have all of our brands under 1 platform provider. The reason why we did this is it creates huge operational benefits to having the same CRM systems under one roof, and it's extremely useful for us on the loyalty side to keep everything synced up through all of the brands that we acquired plus Gogawi plus the new brands that we plan on launching in 2022.

是的，一點沒錯。這意味著我們實際上將我們的核心原創品牌 Gogawi 從之前的提供商轉移到了 Aspire BtoBet 品牌。這樣一來，我們的所有品牌就都歸於同一個平台提供商了。我們這樣做的原因是，在同一個屋簷下擁有相同的 CRM 系統會帶來巨大的運營效益，而且對於我們的忠誠度而言，通過我們收購的所有品牌以及 Gogawi 和新品牌保持一切同步都非常有用。我們計劃在 2022 年推出的品牌。

Got it. Perfect. And then just kind of thinking about the business you acquired, the trailing 12-month revenue and then the pre-announcement and the kind of the reiteration tonight, it looks like a higher monthly run rate. Can you kind of talk through short term, how you've been able to drive those revenues higher and then what you're thinking on the medium and longer term as well?

知道了。完美的。然後想想你收購的業務、過去 12 個月的收入，然後是預先公告和今晚的重申，看起來每月運行率更高。您能否談談短期，您如何提高這些收入，以及您對中長期的想法？

Yes, absolutely. So one of the main reasons why Aspire felt that they wanted to sell the brands is because they weren't giving them the attention that they deserved. Now that the brands are in dedicated resources that are putting their full force and attention into those B2C products, we're able to optimize a lot of the marketing efforts and tailor a lot of the affiliate deals. So that way, we can drive revenue. And not to say that Aspire wasn't doing a good job before, the products were growing, healthy assets and that's the reason why we purchased them. But we always felt that we were going to be able to improve a lot upon what Aspire built originally.

是的，一點沒錯。因此，Aspire 認為他們想要出售這些品牌的主要原因之一是因為他們沒有給予這些品牌應有的關注。既然品牌擁有專門的資源，正在將全部精力和注意力投入到這些 B2C 產品中，我們就能夠優化大量的營銷工作並定制大量的聯屬交易。這樣，我們就可以增加收入。並不是說 Aspire 以前做得不好，產品正在增長，資產健康，這就是我們購買它們的原因。但我們總覺得我們能夠在 Aspire 最初構建的基礎上進行很多改進。

Got it. And then -- so that's kind of the iGaming kind of the legacy piece of the business. Can you talk about how you can hope to penetrate these customers with Esports? And that's it for me.

知道了。然後——這就是 iGaming 業務的遺留部分。您能談談您希望如何通過電子競技來滲透這些客戶嗎？對我來說就是這樣。

Yes. So first, for a wagering platform, it's always better to have a younger customer base. This is because you have a far longer consumer lifespan and they are far cheaper to acquire. Sports wagering customers are very loyal to their platforms when you treat them well. So once you have a product they love, the turn on a sports wagering product can be extremely low with a great loyalty program. And even more important than that, it has been found in a recent study out of the U.K. that Gen Z and millennials are 4.3x more likely to wager on esports and 4.5x more likely to bet on iGaming and casino products.

是的。因此，首先，對於投注平台來說，擁有年輕的客戶群總是更好。這是因為消費者的壽命更長，而且購買起來也便宜得多。當您善待體育博彩客戶時，他們會對他們的平台非常忠誠。因此，一旦您擁有了他們喜歡的產品，通過良好的忠誠度計劃，體育博彩產品的轉化率可能會極低。更重要的是，英國最近的一項研究發現，Z 世代和千禧一代投注電子競技的可能性高出 4.3 倍，投注 iGaming 和賭場產品的可能性高出 4.5 倍。

And the demand for esports and entertainer products and betting offering is also anticipated to rise as 37% of U.K. adults that they expect to watch esports in the future, more than twice the current 15% who do so now. This is according to a survey of 20,000 adults across 16 markets in the U.K. Keep in mind, there are already 550 million fans of esports globally, and we are here to build products for that audience by developing odds and modeling that is fair to the consumer, a modern UI/UX that gives them a site they are comfortable with and technologies that allow them to bet where they watch the sports they love.

預計對電子競技、娛樂產品和博彩產品的需求也將上升，預計未來觀看電子競技的英國成年人中有 37%，是目前 15% 觀看電子競技的兩倍多。這是根據對英國 16 個市場 20,000 名成年人進行的調查得出的結果。請記住，全球已經有 5.5 億電子競技粉絲，我們致力於通過開發對消費者公平的賠率和模型來為這些受眾打造產品，一個現代的用戶界面/用戶體驗，為他們提供了一個他們熟悉的網站和技術，讓他們可以在觀看他們喜歡的體育比賽的地方進行投注。

Got it. And then just, I guess, 1 more clarification, if I can slip it in. You talked about calendar 2022, the 2 new products, the esports book in Europe and the browser beds. Esports book, that's the odds technology you've kind of invested into drive the lower odds for consumers, is that -- am I thinking about that correctly?

知道了。然後，我想，如果我可以插入的話，還有 1 個澄清。您談到了 2022 年日曆、2 個新產品、歐洲的電子競技書籍和瀏覽器床。電子競技書籍，這就是你投資的賠率技術，可以降低消費者的賠率，是嗎——我的想法正確嗎？

No. Actually, the odds and modeling product is going to be launched in the first quarter of this year. We hope to have that out very quickly. Esports book is actually a full-scale sports book dedicated to esports consumers, but people that also want to play on traditional sportsbook as well. Focus towards Gen Z and millennials, but we're able to launch that product through regulated markets like the U.K. and Germany, whereas Gogawi is more focused on countries like the Philippines, Brazil and Thailand.

不會。實際上，賠率和建模產品將於今年第一季度推出。我們希望盡快解決這個問題。電子競技博彩實際上是專門為電子競技消費者提供的全面體育博彩，但也想玩傳統體育博彩的人。我們專注於 Z 世代和千禧一代，但我們能夠通過英國和德國等受監管市場推出該產品，而 Gogawi 更專注於菲律賓、巴西和泰國等國家。

There are no further questions from analysts. I will now turn the call over to management for closing remarks.

分析師沒有提出進一步的問題。我現在將把電話轉交給管理層進行總結髮言。

That's all. Thank you for everybody who could join today. We were really excited to share these results with you, and we look forward to talking to you guys next quarter. Thank you, everybody.

就這樣。感謝今天能夠參加的所有人。我們非常高興與您分享這些結果，我們期待下個季度與您交談。謝謝大家。

Thank you. This does conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。