Kutt · Kutt Investor Recap

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We had a tremendous 2024 and ended on a high note, with 4Q24 being our best quarter ever across all metrics. We now have a fractional CFO team from Pilot, led by Alicia Alessandri and Cole Levin, who help us with our financial reporting, operating model, and KPIs. Here is a summary, with metrics, from our year:<ul><li>We generated $521K in total 2024 gaming revenue (a 178% YoY increase), with $175K in Q4 revenue alone.</li><li>We added 8,600 new users in 2024, and now have 15,000+ users on our platform (a 140% YoY increase).</li><li>Over $1.26M in deposits (a 181% YoY increase), with 25%+ of all 2024 signups depositing at signup.</li><li>We had $16.9M of accepted bets throughout the year, vs. $6M in 2023.</li><li>Average user revenue retention is 77% after 12 months.</li><li>35% of all users who joined the site before September 2024 were using the platform in 4Q24.</li><li>We accrued $3.40 of revenue for every $1 of marketing spend in 2024, which indicates we have a healthy customer base that isn't reliant on heavy promotion to continue to use/transact on Kutt. </li><li>We are now profitable before payroll and marketing expenses, with full profitability expected in 1H25</li></ul>The Good: We experienced strong growth across all metrics in 2024, with total users increasing 2.4x since December 2023, while gaming revenue, deposits, and bet volume were 2.8x that of 2023 values; press and inbound interest (from partners, media, potential employees, & investors) increased throughout 2024; the success of our Political Markets, especially around the Presidential Election, confirmed user appetite for political betting The Bad: We experienced ~$50K of payment fraud this year, and were subjected to a surprise and expensive Compliance Review from our payment processor in Q4 (however, this resulted in a stronger KYC process that should cut down on payment fraud); we paused marketing initiatives this summer in order to focus on platform scalability.The Opportunity: Regulation of the betting industry is loosening for the first time in years, and we can make major headway in several states that don’t have traditional betting options (including TX, CA, and FL); the addition of player props, a crypto integration, B2B licensing, and international expansion are all on the 2025 roadmap.Product:Some of our bigger product enhancements from the year include:<ul><li>User Side: Addition of several new betting markets, revamped UI, additional social features, smart-matching of bets, improvements to the deposit and withdrawal process, and a new onboarding system.</li><li>Backend: Improved scalability + page loading times + bet latency, deep work on payment fraud prevention, and introduced features powered by AI systems built by James (like automated testing).</li><li>We changed banks in December 2024 to a more gaming-friendly bank.</li></ul>Financials & Fundraising:Kutt is now profitable before payroll and marketing, and we have shown that we can continue to grow with minimal promo spend. Fixed costs remain quite low ($20k-$30k/mo), and the bulk of future spending will be channeled towards hiring and marketing initiatives.<img src="https://uploads.republic.com/p/images/attachments/original/000/177/598/177598-1737667351-aba080c69f55c4b66fa286e04e5e71743df106c8.png" class="fr-fic fr-dib">

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Jan 23

2025

Kutt Investor Recap

We had a tremendous 2024 and ended on a high note, with 4Q24 being our best quarter ever across all metrics. We now have a fractional CFO team from Pilot, led by Alicia Alessandri and Cole Levin, who help us with our financial reporting, operating model, and KPIs.

Here is a summary, with metrics, from our year:

We generated $521K in total 2024 gaming revenue (a 178% YoY increase), with $175K in Q4 revenue alone.
We added 8,600 new users in 2024, and now have 15,000+ users on our platform (a 140% YoY increase).
Over $1.26M in deposits (a 181% YoY increase), with 25%+ of all 2024 signups depositing at signup.
We had $16.9M of accepted bets throughout the year, vs. $6M in 2023.
Average user revenue retention is 77% after 12 months.
35% of all users who joined the site before September 2024 were using the platform in 4Q24.
We accrued $3.40 of revenue for every $1 of marketing spend in 2024, which indicates we have a healthy customer base that isn't reliant on heavy promotion to continue to use/transact on Kutt.
We are now profitable before payroll and marketing expenses, with full profitability expected in 1H25

The Good: We experienced strong growth across all metrics in 2024, with total users increasing 2.4x since December 2023, while gaming revenue, deposits, and bet volume were 2.8x that of 2023 values; press and inbound interest (from partners, media, potential employees, & investors) increased throughout 2024; the success of our Political Markets, especially around the Presidential Election, confirmed user appetite for political betting

The Bad: We experienced ~$50K of payment fraud this year, and were subjected to a surprise and expensive Compliance Review from our payment processor in Q4 (however, this resulted in a stronger KYC process that should cut down on payment fraud); we paused marketing initiatives this summer in order to focus on platform scalability.

The Opportunity: Regulation of the betting industry is loosening for the first time in years, and we can make major headway in several states that don’t have traditional betting options (including TX, CA, and FL); the addition of player props, a crypto integration, B2B licensing, and international expansion are all on the 2025 roadmap.

Product:

Some of our bigger product enhancements from the year include:

User Side: Addition of several new betting markets, revamped UI, additional social features, smart-matching of bets, improvements to the deposit and withdrawal process, and a new onboarding system.
Backend: Improved scalability + page loading times + bet latency, deep work on payment fraud prevention, and introduced features powered by AI systems built by James (like automated testing).
We changed banks in December 2024 to a more gaming-friendly bank.

Financials & Fundraising:

Kutt is now profitable before payroll and marketing, and we have shown that we can continue to grow with minimal promo spend. Fixed costs remain quite low ($20k-$30k/mo), and the bulk of future spending will be channeled towards hiring and marketing initiatives.