GAN (GAN) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $37.1 million, up 24% year-over-year, driven by B2B expansion in Nevada and migration services in Michigan, and higher B2C margins in Europe.

• Net income for Q3 2024 was $2.1 million, reversing a net loss of $8.2 million in Q3 2023.

• The company is focused on organic growth, new jurisdictions, cost-saving initiatives, and Coolbet technology integration.

• The pending merger with SEGA SAMMY CREATION INC. is expected to close in early 2025, with regulatory approvals received from several authorities.

Financial highlights

• Q3 2024 revenue increased by $7.3 million year-over-year, primarily from U.S. B2B growth and European B2C performance.

• Operating income for Q3 2024 was $2.1 million, compared to a loss of $7.2 million in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $5.4 million, compared to $(2.5) million in Q3 2023.

• Operating expenses decreased to $25.1 million from $27.8 million, reflecting cost-saving initiatives.

• Cash balance stood at $36.5 million as of September 30, 2024.

Outlook and guidance

• Management expects continued profitability through organic growth, new market expansion, margin improvements, and cost reductions.

• The SEGASAMMY merger is anticipated to close in early 2025, pending final regulatory approvals.

• Focus remains on expanding B2B offerings and maintaining cost discipline.