Gaming machine and tech company Everi saw record revenue growth in the third quarter of 2022. It’s just another sign that the gambling industry in the United States is as healthy as ever.
During the company’s earnings call earlier this month, Everi CEO Randy Taylor praised the company’s growth. According to Taylor, Everi’s financial technology and gambling hardware sales played a significant role in the revenue growth.
The company’s total revenues hit $204 million, marking a 21% increase over Q3 2021. Everi’s gaming machine and fintech hardware sales were up 63% year-over-year. Additionally, Everi sold 57% more gaming machines in Q3 2022 than in Q3 2021.
Sky River success reflects Everi revenue gains
A good example of Everi’s success with fintech and gaming machines is Boyd Gaming’s Sky River Casino. The Sacramento-area property opened in August. It devoted 15% of its gaming floor to Everi slot machines. Taylor credited that segment of the business as responsible for the company’s growth.
“Building on the strong results of last year and the momentum of this year, both our third quarter consolidated revenues and adjusted EBITDA reached all-time quarterly highs,” Taylor said. “The top-line improvement reflects the wide-ranging demand for our diverse product and service offerings. [It] was driven by ongoing growth in our recurring revenue streams and an even faster pickup in revenues from the sales of FinTech hardware and gaming machines.”
Everi also built a custom loyalty Sky Casino app. The app features Everi’s CashClub Wallet which allows customers to digitally deposit cash to their gaming account. That cash feature has allowed Everi to work with companies outside the casino industry.
“This recent addition to the Everi family is an extension of Everi’s core mobile offering that expands our addressable market beyond casino gaming for the first time with an established customer base in several, sports, entertainment, and hospitality venues,” Taylor said.
Everi isn’t alone in terms of reporting a tremendous third quarter of 2022. Wynn Resorts also shared that its growth in Q3 2022 was on a historic level. Moreover, the third quarter of this year saw the highest commercial revenue total for such a period in the history of legal US gambling.
Everi’s fintech revenues were up 27% year-over-year, chief financial officer Mark Labay said. The company’s app-based cash wallets are live at 38 sites which is twice as many as the company had in Q2.
Everi’s plans to build on momentum in 2023
Everi plans to unveil its new Dynasty Vue cabinet in the second quarter of 2023. The company featured the cabinet at last month’s Global Gaming Expo, where it received positive reviews.
“This new-for-sale cabinet is just one of the many tools in our arsenal that we plan to leverage,” Taylor said.
Dynasty Vue is among nearly 90 games the company plans to launch in 2023. If all launches go as planned, they will represent nearly a 40% increase over 2022 launches.
Everi elevated its research and development spending in 2022. Taylor said that he doesn’t expect R&D to increase at the same rate in 2023.
When asked how Everi would do if an anticipated recession hits in 2023, Taylor said the company should be fine. Its recurring revenue streams should offset any drop in sales.