Translational Development Acquisition Corp (TDACU) 2022 Q1 法說會逐字稿

Hello, and welcome to Lottery.com's First Quarter 2022 Earnings Conference Call. This is Jessie, and I'll be your operator for today's call. (Operator Instructions)

您好，歡迎參加 Lottery.com 2022 年第一季財報電話會議。我是傑西，我將擔任您今天通話的接線員。 （操作員說明）

Now I'd like to turn the call over to Matt Schlarb, Vice President of Investor Relations. Sir, you may now begin.

現在我想將電話轉給投資者關係副總裁 Matt Schlarb。先生，您現在可以開始了。

Thank you, Jessie, and good morning, everyone. We appreciate you joining us today for Lottery.com's First Quarter 2022 Earnings Call. Statements we make during this call that are not statements of historical facts constitute forward-looking statements that are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward-looking statements. For more information, please refer to the risks, uncertainties and other factors discussed in our SEC filing.

謝謝你，傑西，大家早安。感謝您今天參加 Lottery.com 的 2022 年第一季財報電話會議。我們在本次電話會議中所做的不屬於歷史事實陳述的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我們的歷史結果或我們的預測存在重大差異。我們不承擔更新前瞻性陳述的責任。欲了解更多信息，請參閱我們在 SEC 備案文件中討論的風險、不確定性和其他因素。

During the call, management will also discuss certain non-GAAP measures, including EBITDA and adjusted EBITDA that we believe may be useful in evaluating Lottery.com's operating performance. These measures should not be considered in isolation or as a substitute to our financial results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is available in our press release, which is available on our website at ir.lottery.com.

在電話會議期間，管理層還將討論某些非 GAAP 指標，包括 EBITDA 和調整後 EBITDA，我們認為這些指標可能有助於評估 Lottery.com 的營運表現。這些措施不應被孤立地考慮，也不應取代我們根據公認會計準則編制的財務表現。我們的新聞稿中提供了這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的對賬，該新聞稿可在我們的網站 ir.lottery.com 上找到。

Joining us on today's call are our Co-Founder and CEO, Tony DiMatteo; and Ryan Dickinson, our CFO and President.

加入我們今天的電話會議的是我們的聯合創始人兼執行長 Tony DiMatteo；以及我們的財務長兼總裁 Ryan Dickinson。

I would now like to turn the call over to Tony.

我現在想把電話轉給托尼。

Thank you, Matt, and thank you to everyone for joining us today. I'll begin by covering our Q1 highlights, Ryan will cover our financial results, and then I'll provide some updates on our key strategic initiatives. At the conclusion of the prepared remarks, we will open up the floor for questions.

謝謝你，馬特，也謝謝大家今天加入我們。我將首先介紹我們第一季的亮點，瑞安將介紹我們的財務業績，然後我將提供有關我們關鍵策略舉措的一些最新資訊。在準備好的發言結束後，我們將開始提問。

The first quarter was a positive one for Lottery.com as we focus on our core business. We continue to make progress executing our LotteryLink and B2C strategic growth initiatives, produced strong year-over-year growth and generated positive adjusted EBITDA and ended the first quarter with a strong balance sheet. To provide some additional details on our strategic initiatives, I'll begin with LotteryLink.

第一季對 Lottery.com 來說是一個積極的季度，因為我們專注於我們的核心業務。我們繼續在執行 LotteryLink 和 B2C 策略成長計畫方面取得進展，實現了強勁的同比增長，並產生了正的調整後 EBITDA，並以強勁的資產負債表結束了第一季。為了提供有關我們戰略計劃的更多詳細信息，我將從 LotteryLink 開始。

We continue the pilot program in the first quarter with our master affiliates who engaged with their sub-affiliates, a national grocer. This program contributed to revenue growth with the sale of LotteryLink credit to our master affiliate, which uses for promotional activities while adding new users on the Lottery.com platform with limited or no marketing spend. This particular program with the sub-affiliate grocer also demonstrated LotteryLink's ability to benefit national consumer brands and retailers.

我們在第一季繼續與我們的主要附屬公司進行試點計劃，這些公司與其附屬附屬公司（一家全國雜貨店）合作。該計劃透過向我們的主附屬機構出售 LotteryLink 積分來促進收入成長，該積分用於促銷活動，同時在 Lottery.com 平台上以有限的行銷支出或無需行銷支出來增加新用戶。與附屬雜貨商的這項特殊計劃也證明了 LotteryLink 使全國消費品牌和零售商受益的能力。

Whenever a brand or retailer refers one of its customers to us, they share in the gross profit of the new Lottery.com user, that's a new user that -- excuse me, that a new Lottery.com user generate for several years. This means that the brand or retailers can create an accretive recurring revenue stream from its customers. While we are currently generating most of our [LotteryLink] revenue from the sale of LotteryLink credit, I want to reiterate that LotteryLink is ultimately and primarily designed to drive new referred users to our B2C platform and its rapid sale of more game sales through our B2C platform by both new and returning users. This activity benefits us as well as our LotteryLink partners as we all share in the revenue stream generated by the new and returning referred users.

每當一個品牌或零售商將其客戶推薦給我們時，他們都會分享新 Lottery.com 用戶的毛利，這是一個新用戶——對不起，是一個新 Lottery.com 用戶多年來產生的。這意味著品牌或零售商可以從客戶那裡創造不斷增加的經常性收入流。雖然我們目前的大部分 [LotteryLink] 收入來自 LotteryLink 積分的銷售，但我想重申，LotteryLink 最終主要是為了吸引新推薦用戶到我們的 B2C 平台，並透過我們的 B2C 快速銷售更多遊戲銷售平台受到新用戶和回訪用戶的歡迎。這項活動對我們以及我們的 LotteryLink 合作夥伴都有利，因為我們都可以分享由新推薦用戶和回訪用戶產生的收入流。

Additionally, we believe that Lottery.com's games and services are an attractive promotional tool, which allows brands and retailers to uniquely connect with their customers, offer specialized marketing campaigns and drive qualified consumers back to the brand or retailer, creating a loyalty and -- creating loyalty and commitment. With all of these benefits, we believe that LotteryLink is well suited to attract new abilities to the growing program.

此外，我們相信Lottery.com 的遊戲和服務是一種有吸引力的促銷工具，它使品牌和零售商能夠以獨特的方式與其客戶建立聯繫，提供專門的營銷活動並吸引合格的消費者回到品牌或零售商，從而建立忠誠度，並且－建立忠誠度和承諾。憑藉所有這些優勢，我們相信 LotteryLink 非常適合為不斷發展的計劃吸引新人才。

Since the beginning of 2022, we have added new affiliates to LotteryLink, including existing data customers, which are primarily digital publishers and which we anticipate will generate increased revenue and profitability as a LotteryLink affiliate than they would solely as a data customer.

自2022 年初以來，我們為LotteryLink 增加了新的附屬公司，包括現有的數據客戶，這些客戶主要是數位出版商，我們預計作為LotteryLink 附屬公司將產生比僅作為數據客戶更高的收入和盈利能力。

Turning to another key initiative being the growth of our B2C user base. Our focus during the first quarter was on conducting extensive testing on multiple media platforms to see where marketing dollars are yielding the best return. This focus on maintaining a favorable customer acquisition costs and retaining those users to improve customer service and ease of use on our platform are key parts of our strategy to quickly generate profitability from new users.

轉向另一個關鍵舉措是我們 B2C 用戶群的成長。我們第一季的重點是在多個媒體平台上進行廣泛的測試，以了解行銷資金在哪裡產生最佳回報。專注於保持有利的客戶獲取成本並留住這些用戶以改善客戶服務和我們平台的易用性是我們快速從新用戶中產生利潤的策略的關鍵部分。

It's important to note that as a gaming company, we are required to receive authorization from leading digital advertising companies, such as Google and Meta, in order to advertise our product. In March, we finalized those approvals for our website, mobile web app and iOS app, completing testing and receiving these approvals were critical steps in the expansion of our biggest team, marketing campaign.

需要注意的是，作為一家遊戲公司，我們需要獲得 Google 和 Meta 等領先數位廣告公司的授權才能為我們的產品做廣告。三月份，我們完成了網站、行動網路應用程式和 iOS 應用程式的批准，完成測試並獲得這些批准是我們最大的團隊行銷活動擴張的關鍵步驟。

Additionally, the recent launch of Project Nexus, which is designed to support increased user traffic, promote user safety and improve performance is a crucial component of these expanded marketing initiatives and the activity we anticipate they will generate.

此外，最近推出的 Nexus 專案旨在支援增加的用戶流量、促進用戶安全並提高效能，這是這些擴大的行銷計劃以及我們預計它們將產生的活動的重要組成部分。

Our success in executing LotteryLink and our growth initiatives contributed to year-over-year revenue growth of over 280% and adjusted EBITDA of $7 million. We are proud of the way our team has focused on progress while generating positive adjusted EBITDA in the first quarter, which is a continuation of the strong positive adjusted EBITDA we achieved in 2021.

我們成功執行 LotteryLink 和成長計劃，使營收年增超過 280%，調整後 EBITDA 達到 700 萬美元。我們為我們的團隊在第一季實現正調整 EBITDA 的同時專注於進步的方式感到自豪，這是我們在 2021 年實現的強勁正調整 EBITDA 的延續。

We also ended the quarter with a solid balance sheet with nearly $51 million in cash and only $3.5 million in debt. The actions that we have taken to strengthen the balance sheet over the past year has provided us the necessary capital to invest in our strategic growth initiatives and to help realize the significant market opportunity we have in front of us.

本季結束時，我們的資產負債表穩健，現金近 5,100 萬美元，債務僅 350 萬美元。過去一年我們為加強資產負債表而採取的行動為我們提供了必要的資本來投資於我們的策略成長計劃，並幫助我們實現我們面前的重大市場機會。

Now I will turn the call over to Ryan to cover our financials in more detail. Ryan?

現在我將把電話轉給瑞安，以更詳細地介紹我們的財務狀況。瑞安？

Thanks, Tony. First quarter revenue was $21.2 million, which represents a 287% increase from the first quarter of 2021. The very strong growth was driven by the sale of LotteryLink credits to affiliate. These credits were used for services we provide with internal resources such as prepaid promotional rewards, development services, account management and the design and distribution of marketing materials.

謝謝，托尼。第一季營收為 2,120 萬美元，較 2021 年第一季成長 287%。這些積分用於我們利用內部資源提供的服務，例如預付費促銷獎勵、開發服務、帳戶管理以及行銷資料的設計和分發。

Gross profit was $18 million, up $15.5 million from the previous year. As we discussed on our previous earnings call, the primary driver was the sale of LotteryLink credits for prepaid promotional rewards that expired without being used to consumers -- without being issued to consumers due to the delayed timing of an affiliate promotional program. As a result, we recognize the revenue, but do not have associated COGS for old credit and unused prepaid promotional rewards. This resulted in margins above the expected average for LotteryLink credit, which should be around 30% to 40%.

毛利為 1800 萬美元，比上年增加 1550 萬美元。正如我們在先前的財報電話會議上所討論的那樣，主要驅動力是用於預付費促銷獎勵的LotteryLink 積分的銷售，這些積分在沒有被消費者使用的情況下就過期了——由於聯屬促銷計劃的時間延遲而沒有發給消費者。因此，我們確認了收入，但沒有與舊積分和未使用的預付促銷獎勵相關的銷貨成本。這導致 LotteryLink 信用的利潤率高於預期平均水平，即 30% 至 40% 左右。

Operating expenses in the quarter were $33.8 million. This figure includes $22.2 million of expenses related to restricted stock awards granted as noncash stock compensation to several employees at the time of the business combination.

該季度的營運費用為 3,380 萬美元。這一數字包括與在企業合併時作為非現金股票補償授予多名員工的限制性股票獎勵相關的 2,220 萬美元費用。

For clarity on this calculation in the accounting treatment, the expense is calculated using the share price immediately prior to the closing of the business combination, which was $14.75. The expense also began at the time of the grant and amortized over the vesting period of the equity. As a result, the accounting expense is significantly larger than the current value of these RSAs. These restricted stock awards are subject to a vesting schedule and will continue to vest over the next 4 years. As the RSA is set, we will continue to recognize this noncash expense calculated on a share price of $14.75.

為了清楚說明會計處理中的計算，費用是使用企業合併結束前的股價（14.75 美元）計算的。該費用也從授予時開始，並在股權歸屬期間內攤銷。因此，會計費用明顯高於這些 RSA 的當前價值。這些限制性股票獎勵須遵守行使時間表，並將在未來 4 年內繼續行使。隨著 RSA 的設定，我們將繼續確認根據 14.75 美元的股價計算的非現金費用。

Other personnel costs increased relative to the prior year as a result of hiring in key positions in development, marketing and compliance to support growth initiatives and public company expenses. Public company expenses drove the increases in general and administration and other professional fees versus the prior year. We are working to bring more of these responsibilities in-house, which we believe will reduce these expenses in the coming quarters. We had no interest expenses and do not expect to incur any interest expense for the remainder of the year.

由於在開發、行銷和合規方面招募關鍵職位以支持成長計畫和上市公司開支，其他人員成本相對於上一年有所增加。與前一年相比，上市公司費用推動了一般費用、管理費用和其他專業費用的成長。我們正在努力將更多的此類職責納入內部，我們相信這將在未來幾季減少這些費用。我們沒有利息支出，預計今年剩餘時間不會產生任何利息支出。

Net loss for the quarter totaled $15.8 million as our strong gross profit was offset by operating expenses, including the $22.2 million of noncash stock comp expense mentioned earlier. Adjusted EBITDA totaled $7.7 million in the quarter compared to negative adjusted EBITDA of $2.6 million in the first quarter of 2021. The increase was driven by the strong gross profit we generated partially offset by increased operating expenses, mainly associated with hiring of key employees to support growth initiatives and public company expenses.

本季淨虧損總計 1,580 萬美元，因為我們強勁的毛利被營運費用（包括前面提到的 2,220 萬美元的非現金股票補償費用）所抵銷。本季調整後EBITDA 總額為770 萬美元，而2021 年第一季調整後EBITDA 為負數260 萬美元。主要與僱用關鍵員工支援有關。

Turning to our balance sheet. We maintained a strong balance sheet in the first quarter and ended Q1 with $50.8 million in cash and $3.5 million in debt. Cash declined by $11.8 million for the fourth quarter, which was driven by a $14.1 million increase in accounts receivable. A large amount of these receivables are with a master affiliate, which is an important client of ours. Given some of the delays in launching some of their programs, the timing of which was outside of their control, we have worked with them to extend the term of some of the receivables.

轉向我們的資產負債表。我們在第一季保持了強勁的資產負債表，第一季末現金為 5,080 萬美元，債務為 350 萬美元。第四季現金減少 1,180 萬美元，原因是應收帳款增加 1,410 萬美元。這些應收帳款中有很大一部分是與我們的重要客戶—主要的附屬公司有關。鑑於他們的一些計劃啟動出現了一些延誤，而且其時間超出了他們的控制範圍，我們已與他們合作延長了一些應收帳款的期限。

To be clear, we have not reduced the amount we expect to receive from them just extended the timing of payment. About half of these receivables are not due until the end of Q2. We have received some payments so far in Q2 and expect to continue to receive payments as the quarter progresses.

需要明確的是，我們並沒有減少我們期望從他們那裡收到的金額，只是延長了付款時間。這些應收帳款中約有一半要到第二季末才能到期。到目前為止，我們在第二季度已收到一些付款，並預計隨著本季的進展將繼續收到付款。

Now I'll turn the call back to Tony to provide an update on our strategic initiatives, including LotteryLink, Project Nexus, new jurisdictions and B2C.

現在我將把電話轉回托尼，以提供我們戰略計劃的最新信息，包括 LotteryLink、Project Nexus、新司法管轄區和 B2C。

Thank you, Ryan. I'd like to start with the outlook for LotteryLink. As you know, the lottery market in the U.S. presents a tremendous opportunity with over $100 billion in annual sales, and only about 5% of these purchases occur online. Even with our favorable customer acquisition costs, reaching all of these potential users would require a significant amount of capital, not to mention time and other resources. We believe that the affiliate model is core to our business in the most effective and efficient way to expand our user base, which is why we are putting increased focus on growing our LotteryLink program.

謝謝你，瑞安。我想先談談 LotteryLink 的前景。如你所知，美國彩券市場蘊藏著巨大的機遇，年銷售額超過 1000 億美元，而其中只有約 5% 是透過網路購買的。即使我們擁有有利的客戶獲取成本，吸引所有這些潛在用戶也需要大量資金，更不用說時間和其他資源了。我們相信，聯盟行銷模式是我們業務的核心，能夠以最有效和高效的方式擴大我們的用戶群，這就是為什麼我們更加專注於發展我們的 LotteryLink 計劃。

By adding new master and sub-affiliates to the LotteryLink programs, we gain access to their sizable customer base. And through promotional programs, we can cost effectively convert these consumers into Lottery.com users.

透過向 LotteryLink 計劃新增的主附屬機構和子附屬機構，我們可以接觸到其龐大的客戶群。透過促銷計劃，我們可以經濟有效地將這些消費者轉變為 Lottery.com 用戶。

To provide an update on the grocery promotional program, this program expanded in April, following a successful pilot program, and has been well completed by the grocers customers. Recently, our partner discovered a potential contractual conflict with the regulator in that jurisdiction where the program operated. Together with our partner, we have decided to pause these LotteryLink campaigns in this jurisdiction and are in discussions with them to pivot this program to more jurisdictions given the initial success of the program. We have spent many years building our reputation with the U.S. state and do not want to jeopardize our or our partner's reputation in exchange for short-term gain.

為了提供雜貨促銷計劃的最新情況，繼試點計劃成功之後，該計劃於四月份擴大，並已得到雜貨店客戶的良好完成。最近，我們的合作夥伴發現與該計劃營運所在司法管轄區的監管機構存在潛在的合約衝突。鑑於該計劃取得了初步成功，我們與我們的合作夥伴一起決定在該司法管轄區暫停這些 LotteryLink 活動，並正在與他們討論將該計劃推廣到更多司法管轄區。我們花了很多年的時間在美國政府中建立聲譽，不想為了短期利益而損害我們或合作夥伴的聲譽。

Though this particular campaign is expected to pivot to new jurisdictions, it has already provided a valuable case study that we can utilize in demonstrating LotteryLink's ability for partners and brands to create recurring revenue streams through profit sharing and also engage their customers through compelling campaign. We have had success communicating this value proposition to new potential affiliates and sub-affiliates and look forward to activating new programs throughout 2022.

儘管這項特定活動預計將轉向新的司法管轄區，但它已經提供了一個有價值的案例研究，我們可以利用它來展示LotteryLink 為合作夥伴和品牌提供透過利潤分享創造經常性收入流並透過引人注目的活動吸引顧客的能力。我們已成功地將這一價值主張傳達給新的潛在附屬公司和下屬附屬公司，並期待在 2022 年全年啟動新計劃。

In addition to new affiliates, we have added to LotteryLink -- excuse me, in addition to the new affiliates we have added to LotteryLink since the beginning of this year, we are currently in advanced discussions with multiple new potential LotteryLink partners from various industries, including national brands with both a retail and online presence.

除了新的附屬機構之外，我們還添加了LotteryLink -- 對不起，除了我們自今年年初以來添加到LotteryLink 的新附屬機構之外，我們目前正在與來自各個行業的多個新的潛在LotteryLink 合作夥伴進行深入討論，包括擁有零售和線上業務的國家品牌。

Although LotteryLink has only been in existence for a few quarters, it has been a significant contributor to our growth, and we are confident in its future ability to expand our user base and brand in a capital-efficient manner.

儘管 LotteryLink 只存在了幾個季度，但它對我們的成長做出了重大貢獻，我們對它未來以資本高效的方式擴大我們的用戶群和品牌的能力充滿信心。

Now for an update on Project Nexus. We have successfully launched Phase 1 of Nexus. As a reminder, we expect Phase 1 to significantly improve capability, security and the ability to quickly implement new product updates and launch new products. These enhancements not only benefit users, but also improve our ability to scale the business and provide real-time data to LotteryLink partners so they can optimize their marketing efforts. We have several new affiliates prepared and poised to send us new users now that Project Nexus is operational.

現在了解 Nexus 專案的最新情況。我們已成功啟動 Nexus 第一階段。提醒一下，我們預計第一階段將顯著提高功能、安全性以及快速實施新產品更新和推出新產品的能力。這些增強功能不僅使用戶受益，還提高了我們擴展業務並向 LotteryLink 合作夥伴提供即時數據的能力，以便他們可以優化行銷工作。既然 Nexus 專案已經投入運營，我們已經有幾家新的附屬機構做好了準備，準備向我們發送新用戶。

With regards to new jurisdiction, we are continuing to diligently work on our expansion efforts and continue to anticipate that we will receive approvals to operate in 5 new domestic jurisdictions by the end of 2022. While we continue our efforts to receive the required approvals to enter these new jurisdictions, we are focusing our marketing efforts in existing states where there remains a significant total addressable market. As we scale in jurisdiction, where we currently operate, we intend to use these case studies to demonstrate to other states how we can expand their game sales and ultimately generate additional revenue for the state as well as in educational, (inaudible), environmental and other process that many lottery contribute to.

關於新的司法管轄區，我們正在繼續努力進行擴張工作，並繼續預計到 2022 年底我們將獲得在 5 個新的國內司法管轄區開展業務的批准。工作的重點放在現有的州，這些州仍然存在著巨大的潛在市場。隨著我們在目前營運所在地的管轄範圍內擴大規模，我們打算利用這些案例研究向其他州展示我們如何擴大其遊戲銷售並最終為該州以及教育、（聽不清楚）、環境和許多彩票參與的其他過程。

Now moving to B2C. We began expanding our direct-to-consumer advertising campaigns in April, as we've outlined during our last call. These campaigns have launched on major digital media platforms and have been focused on targeting audiences where our testing had indicated we received the highest return on investment. As we all know, jackpot sizes can have a significant impact on B2C ticket sales.

現在轉向B2C。正如我們在上次電話會議中所概述的那樣，我們從四月開始擴大直接面向消費者的廣告活動。這些活動已在主要數位媒體平台上啟動，並重點關注我們的測試表明我們獲得了最高投資回報的受眾。眾所周知，頭獎金額會對 B2C 門票銷售產生重大影響。

For example, in the first quarter of 2021, both Powerball and Mega Millions had very large jackpots over $1 billion, which resulted in outsized game sales. These large jackpots did not repeat to the same magnitude in the first quarter of this year, so we did not receive the same benefit. However, when you compare 2022 game sales to our historical results for similar jackpot sizes, our sales have increased over 50%. We believe a large driver of this strong performance is a result of new users we have added through B2C campaigns as well as new users from LotteryLink.

例如，在 2021 年第一季度，強力球和超級百萬彩票都擁有超過 10 億美元的巨額獎金，這導致了遊戲銷售的大幅增長。這些巨額獎金在今年第​​一季並沒有達到相同的規模，因此我們沒有得到相同的好處。然而，當您將 2022 年遊戲銷售與類似累積獎金金額的歷史結果進行比較時，我們的銷售量增加了 50% 以上。我們相信，這種強勁業績的一個重要推動因素是我們透過 B2C 活動增加的新用戶以及 LotteryLink 的新用戶。

Importantly, since we’ve launched our customer acquisition campaign, our customers -- our customer acquisition costs have been trending in line with our expectations and only up a few dollars from our historical average of $4. As we have long stated, our B2C business model is focused on leveraging our strong brand to attract new customers at favorable costs and then retaining those customers and quickly turning them profitable. While these campaigns have only been in operation for a few weeks, we are pleased with the initial results and are optimistic that we will be able to scale them as 2022 progresses and cost-effectively expand our user base.

重要的是，自從我們啟動客戶獲取活動以來，我們的客戶——我們的客戶獲取成本一直與我們的預期一致，僅比我們的歷史平均水平 4 美元增加了幾美元。正如我們長期以來所說，我們的 B2C 業務模式專注於利用我們強大的品牌以優惠的成本吸引新客戶，然後留住這些客戶並迅速使他們獲利。雖然這些活動只運行了幾週，但我們對初步結果感到滿意，並樂觀地認為，隨著 2022 年的進展，我們將能夠擴大這些活動的規模，並經濟有效地擴大我們的用戶群。

In summary, we've made progress executing on the strategic growth initiatives we’ve set for the company, and the whole team is focused on building on this momentum in 2022. We believe that the combination of our multipronged growth strategy focused on profitability and a strong balance sheet all combine to position us well for the future.

總之，我們在執行為公司製定的策略成長計畫方面取得了進展，整個團隊都致力於在 2022 年鞏固這一勢頭。負債表使我們為未來做好了準備。

Now Jessie, we'd like to open up the floor for questions.

現在傑西，我們想請大家提問。

(Operator Instructions) Speakers, our first question is from the line of Brian Dobson of Chardan Capital.

（操作員說明） 各位發言者，我們的第一個問題來自 Chardan Capital 的 Brian Dobson。

So I guess starting off on marketing dollars. I guess what are your expected returns on direct-to-consumer marketing dollars? You had mentioned that your acquisition costs are rising by a few dollars per head. I guess how are you thinking about returns about deployed marketing dollars at this point?

所以我想從行銷資金開始。我猜您直接面向消費者的行銷費用的預期回報是多少？您曾提到，您的採購成本每人增加了幾美元。我想您現在如何看待部署的行銷資金的回報？

Yes. So B2C historically, sales in Q1 are about 50% above ticket sales for similar jackpot sizes, as Tony mentioned. Measuring over the last 12 months, our annual gross profit per user has been around -- it's trending around a little higher than $35, and our retention rate is about 80%. The LTV for the last 12 months is about $176. So it's only scaling up a little bit, a couple of dollars from our original $4. We believe the return on that is still pretty powerful with that level of LTV.

是的。因此，正如托尼所提到的，B2C 歷史上，第一季的銷售額比類似頭獎金額的門票銷售額高出約 50%。根據過去 12 個月的衡量，我們每位用戶的年度毛利一直在略高於 35 美元，而我們的保留率約為 80%。過去 12 個月的 LTV 約為 176 美元。所以它只是增加了一點點，比我們原來的 4 美元增加了幾美元。我們相信，在這種 LTV 水平上，回報仍然相當強勁。

Okay. And I guess as you continue to commit marketing dollars, I guess, when do you expect to see ramping direct-to-consumer sales? Is this -- I guess how long will it take for these marketing efforts to take hold between, call it, deployment of cash and new consumers showing up at the door? How long is that process?

好的。我想，當您繼續投入行銷資金時，我想您預計什麼時候會看到直接面向消費者的銷售量增加？我想這些行銷工作需要多長時間才能在現金部署和新消費者出現之間發揮作用？這個過程需要多長時間？

Yes. Well, we're seeing some of it now, as we said, and comparatively to similar jackpot sizes, we're already seeing some of that happen. But on a larger scale, we believe we will start to see some of that trickle in on this quarter. And then moving forward, I believe it will continue to grow.

是的。嗯，正如我們所說，我們現在已經看到了其中的一些情況，並且與類似的頭獎金額相比，我們已經看到了其中的一些情況發生。但從更大的範圍來看，我們相信我們將在本季開始看到其中的一些成果。然後展望未來，我相信它會繼續成長。

The additional launch of Nexus is certainly going to help on that. As we've kind of discussed before, the scalability of Nexus and the ability for us to scale that product allows us to really push the marketing envelope and have a scalability available for that influx of new user base.

Nexus 的額外推出肯定會對此有所幫助。正如我們之前討論過的，Nexus 的可擴展性以及我們擴展該產品的能力使我們能夠真正突破行銷極限，並為新用戶群的湧入提供可擴展性。

All right. I guess -- and turning over to LotteryLink, you had mentioned suspending an initial campaign there. I guess can you give us a little bit more color on the reasoning? You mentioned a potential jurisdictional risk?

好的。我想 - 轉向 LotteryLink，您曾提到暫停那裡的初始活動。我想你能為我們提供更多關於推理的資訊嗎？您提到了潛在的司法風險？

Yes, the jurisdiction that we were in, there was a contractual conflict that they had with the state lottery of that jurisdiction. As a result, they wanted to slow down and a pause in that jurisdiction and kind of pivot to the other jurisdictions that we have originally been discussing.

是的，我們所在的司法管轄區，他們與該司法管轄區的州彩券有合約衝突。因此，他們希望在該司法管轄區放慢速度並暫停，並轉向我們最初討論的其他司法管轄區。

Okay. And I guess, can you give us a little bit more color on what that conflict was? And are you confident you won’t run into the same issue in other jurisdictions?

好的。我想，你能給我們更多關於這場衝突的資訊嗎？您有信心在其他司法管轄區不會遇到同樣的問題嗎？

It was unique for this particular customer. It was a essentially exclusivity contract that they already had in place. So that's not a common thing that I think we'll run up against. It wasn't that particular.

這對於這個特定的客戶來說是獨一無二的。這本質上是他們已經簽訂的排他性合約。所以我認為這不是我們會遇到的常見問題。本來就沒那麼特別。

Okay. Excellent. And then the quarter benefited from expired LotteryLink credits, do you expect such expired credits to continue to benefit revenues and earnings in the 2Q or for the balance of the year? Or are we seeing, call it, the tail end of that?

好的。出色的。然後，該季度受益於過期的 LotteryLink 積分，您預計此類過期積分將繼續有利於第二季或今年剩餘時間的收入和收益嗎？或者我們正在看到，稱之為，它的尾聲嗎？

Q2 will definitely see more of those being used than what we've seen in the past as being issued out. And we have a really good relationship with the affiliates of this businesses with. And I believe that even though this particular campaign did had a pause and is delaying a few things, they have plenty of things now, certainly not with Nexus launching. They have some type of capabilities. They have several affiliates that they've had ready employees that have been waiting for our scalability and availability of that capability, and that will help here now that Nexus is up.

第二季肯定會看到更多的產品被使用，而不是我們過去看到的發行量。我們與該企業的附屬公司有著非常良好的關係。我相信，儘管這個特定的活動確實暫停了，並且推遲了一些事情，但他們現在有很多事情，當然不是隨著 Nexus 的推出。他們具有某種類型的能力。他們有幾個附屬機構，他們已經有準備好的員工，他們一直在等待我們的可擴展性和該功能的可用性，現在 Nexus 已經啟動，這將對此有所幫助。

Yes. I guess given the size of the expired LotteryLink credits, do you think that that consumer will return and purchase additional fresh credits going forward?

是的。我想考慮到過期 LotteryLink 積分的大小，您認為該消費者未來會返回併購買額外的新積分嗎？

Yes.

是的。

And then could you just give us a little bit more color on the new notes receivable?

那麼您能否為我們提供更多有關新應收票據的資訊？

I’m sorry, you say that again?

對不起，你再說一次？

Could you just give us a little bit more color on notes receivable. You mentioned that you had extended the receivables deadline for one of your key consumers, a little bit about the reasoning of that and your confidence level in...

您能為我們提供更多有關應收票據的資訊嗎？您提到您已經延長了一位主要消費者的應收帳款截止日期，請介紹一下這樣做的原因以及您對...的信心水平

Yes, yes. As mentioned earlier, some of the delays in launching some of the programs were kind of outside of the control. And in the spirit of this partnership, we are working with them to extend what that timing of [the same it looks like].

是的，是的。如前所述，某些專案的啟動延遲有些超出了控制範圍。本著這種夥伴關係的精神，我們正在與他們合作，以延長[看起來相同]的時間。

One thing I'll just note on our last topic, too, is that about half of the receivables that are there are not due until the end of the quarter, so the extension we're providing is for the other half.

關於我們最後一個主題，我還要指出的一件事是，大約一半的應收帳款要到本季末才到期，因此我們提供的延期是針對另一半的。

And I guess what is your confidence [interval] on being able to collect the ones that were not extended upon?

我猜你對能夠收集那些未延長的內容的信心[區間]是多少？

We're confident that there's not going to be a collection issue.

我們相信不會有收款問題。

I'll now turn the call back over to Lottery.com's panel for closing remarks.

現在我將把電話轉回 Lottery.com 小組進行結束語。

Thank you again, everyone, for joining today's call. As you've heard, we are pushing ahead with many exciting marketing and other initiatives and a focus on profitable growth. We look forward to updating you on our progress in our next earnings call. Thank you.

再次感謝大家參加今天的電話會議。正如您所聽說的，我們正在推動許多令人興奮的行銷和其他舉措，並專注於利潤成長。我們期待在下一次財報電話會議上向您通報我們的最新進展。謝謝。

This concludes today's conference call. Thank you all for joining. You may now disconnect.

今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。