At the beginning of the month, Everi Holdings saw its online gaming business Everi Digital join Fusion’s aggregation platform. Now, the provider of brick-and-mortar and online casino gaming content, player loyalty services, and financial technology has published its third-quarter report for 2022. Right off the bat, the company has announced a 21% increase in revenue, signaling an all-time quarterly revenue high from $168.3 million in Q3 2021 to $204.3 million in Q3 2022.
Highlights of the Q3 Report
The previously mentioned 21% growth in revenue reflected a 9% increase in recurring revenue that reached the $143.6 million mark, along with a 64% rise in non-recurring revenue to the $60.7 million mark. The results were primarily recorded for gaming machine and FinTech hardware sales. Revenue generated by the FinTech segment in itself triggered a 27% increase, showcasing a massive 81% growth in hardware revenue, along with a 31% rise in software and other revenue. Financial access revenue also recorded a modest 15% increase mostly triggered by the $10.9 billion in funds that reached land casinos.
Everi Holdings recorded a huge 338% increase in net income to $29.4 million in Q3 2022 from $6.7 million in Q3 2021. As for the adjusted EBITDA, the company with a free cash flow of $43.9 million at the end of the quarter reported a 7% increase to $96.6 million. The figure also represented an all-time quarterly record. Everi also paid $16 million to repurchase 0.9 million shares of stock during the same period.
The Q3 Results Reflect the Company’s Operating Momentum
According to Everi’s chief executive officer Randy Taylor, the company’s rise in net income revenue, and adjusted EBITDA, and their “consistent improvement” in financial results throughout the year are a reflection of their operating momentum across all businesses. The momentum was attributed to the ongoing demand for Everi products.
Taylor added their solid financial results in 2022 have been triggered by “steady growth in our recurring revenue streams” along with a “record level” of revenue generated by Fintech and gaming machine sales. The company’s revenue from the games segment went up 17% in Q3 2022, marking a 57% growth in gaming machine shipment. The same figure indicated a 5% growth in gaming operations revenue.
Taylor further explained that the company received “tremendous positive customer response” in regards to the launch of their freshets products during the Global Gaming Expo in October, which was, according to the CEO, ”quite possibly our best-ever show.” This positive feedback mixed with the company’s growth prospects tied to their latest acquisitions lead the way to strong cash flow and ongoing operating momentum for the upcoming year.