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Sep 30, 2021

GAN Q3 2021 Earnings Report

GAN's financial results were in line with expectations, with B2B segment revenues rising and B2C revenues experiencing seasonality.

Key Takeaways

GAN Limited reported a decrease in total revenue compared to the previous quarter, driven by sports seasonality and lower sports betting margins. However, B2B segment revenue increased, and the company added new clients and expanded partnerships. The company is focused on capital allocation towards people and technology, with plans to reach $500+ million of revenue by 2026.

Total revenue decreased by 7% to $32.3 million due to sports seasonality and lower sports betting margins.

B2B segment revenue increased by 5% to $11.2 million, driven by hardware sales.

B2C segment revenue decreased to $21.1 million due to lower sports betting margins.

Net loss was $7.9 million, and Adjusted EBITDA was slightly higher than breakeven.

Total Revenue
$32.3M
Previous year: $10.3M
+214.3%
EPS
-$0.19
Previous year: -$0.14
+35.7%
B2B Gross Operator Revenue
$215M
B2C Active Customers
198.88K
B2C Marketing Spend Ratio
15%
Gross Profit
$21.5M
Cash and Equivalents
$50.3M
Free Cash Flow
-$1.32M
Total Assets
$276M

GAN

GAN

GAN Revenue by Segment

GAN Revenue by Geographic Location

Forward Guidance

The Company is reiterating its full-year revenue expectation for $125 million to $135 million.

Positive Outlook

  • Maintain a robust cash position
  • Zero debt
  • Strong position to add to our Super RGS portfolio
  • Invest in our people and technology
  • Launch GAN Sports and support new client launches

Revenue & Expenses

Visualization of income flow from segment revenue to net income