GAN Earnings Prediction
The chart below shows how GAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GAN sees a -6.51% change in stock price 10 days leading up to the earnings, and a -7.39% change 10 days following the report. On the earnings day itself, the stock moves by +1.53%. This data can give you a slight idea of what to expect for the next quarter's release.
GAN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
35.13M
-6.31%
-4.92%
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
--
--
--
EPS
0.03
127.27%
-100.87%
No Data Available
GAN Earnings Analysis
Gan Limited Corporation (GAN.O) Earnings Conference Call
Positive
Positive Point: GAN's iGaming exclusivity with FanDuel Group has been extended, reducing uncertainty and highlighting trust from FanDuel executives in GAN's B2B solution. (Transcript: Dermot Smurfit)
Action Item:
- Continue to nurture the partnership with FanDuel Group for long-term growth and stability.
Positive Point: GAN's B2C division achieved revenues of nearly $90 million last year, setting an all-time revenue record in the largest B2C market. This demonstrates significant value and growth potential in the B2C segment. (Transcript: Dermot Smurfit)
Action Item:
- Focus on leveraging the strength and success of the B2C division to drive further growth and revenue gains.
Positive Point: GAN reported solid progress in executing its strategy, aiming to drive revenue gains and reduce cost structure. Steps taken include debt restructuring, reducing exclusive content costs, and exiting the highly competitive Ontario, Canada market to focus on faster rate-of-return markets in Latin America. (Transcript: Dermot Smurfit)
Action Item:
- Continue to implement strategic steps to realize shareholder value and streamline operations for improved financial performance.
Positive Point: GAN's first quarter results revealed strong underlying Key Performance Indicators (KPIs) in both B2B and B2C segments. B2B processed $423 million in gross operator revenue, a 40% increase from the prior year, while the B2C division showed consistent year-over-year revenues with underlying growth on a local currency basis. (Transcript: Dermot Smurfit)
Action Item:
- Maintain a focus on strong KPIs and profitability across both B2B and B2C segments to drive sustainable growth and performance.
Positive Point: GAN's new platform GameSTACK 2.0, combining existing technology with Coolbet's technology, is progressing well. The updated platform is expected to result in greater functionality for operators and conservatively yield $10 million in annual cash savings. (Transcript: Dermot Smurfit)
Action Item:
- Continue to develop and implement GameSTACK 2.0 to enhance operational efficiency and drive cost savings for improved financial performance.
Negative
Negative:
- Revenue decreased by 6% from the prior year quarter, primarily due to a decrease in contractual revenue rates in the B2B division, impacting the overall take rate.
- Adjusted EBITDA was only modestly positive due to cost-saving measures offsetting the revenue decrease.
- B2C revenues in the first quarter were consistent year-over-year, even with adverse foreign exchange, indicating minimal underlying growth.
- The B2B division's revenue declined, specifically to $8.6 million from $10.7 million in the prior year period.
- Despite the company's efforts to reallocate resources and focus on higher return opportunities, the revenue results for the quarter fell short of expectations.
- Dermot Smurfit mentioned an inability to provide forward guidance due to ongoing strategic review processes, indicating uncertainty regarding future performance.
