GAN(US:GAN)2021-05-18 03:22Financial Data and Key Metrics Changes - The company reported a 263% year-over-year increase in revenue to $27.8 million, including the acquisition of Coolbet [48] - B2B revenue increased 52% sequentially and 76% year-over-year to a record high of $13.5 million [49] - Adjusted EBITDA was $1.7 million, down from $2.5 million in the prior year, with a net loss of $4.5 million compared to a net income of $700,000 in the prior year [55][57] Business Line Data and Key Metrics Changes - The B2B segment saw significant growth, with Real Money iGaming revenue up 76% sequentially and 68% year-over-year to $10.5 million [49] - The B2C segment, driven by Coolbet, generated $14.3 million in quarterly revenue, with an 81% increase in active customers year-over-year [54] - Record total B2B gross operator revenue reached $214 million, up 63% sequentially and 51% year-over-year [50] Market Data and Key Metrics Changes - Michigan's launch attracted nearly 700,000 active player days in the first 30 days, significantly outperforming previous launches [15] - The company captured 20% market share of existing major online gambling markets, with a pathway to $20 billion in annual online revenues for clients [12] - The company noted strong growth in the Italian market, despite the lifting of COVID lockdowns, indicating a positive leading indicator for digital gaming in the U.S. [11] Company Strategy and Development Direction - The company announced a major content distribution deal with Ainsworth, providing exclusive access to their land-based content [6] - The strategy includes expanding the super RGS content offering and launching GAN Sports, aiming to capture higher wallet share of recurring revenue [42] - The company plans to invest in technology and talent to sustain long-term market leadership and capitalize on growth opportunities in new states [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong growth of iGaming, even as retail casinos reopen, indicating a solid demand for online gaming [41] - The company anticipates positive full-year adjusted EBITDA, with a return to normalized margins expected in the fourth quarter [43] - Management highlighted the importance of capturing new B2B client opportunities and the need for additional resources to meet demand [72] Other Important Information - The acquisition of Coolbet was completed at an attractive valuation, and its integration is expected to enhance the company's capabilities in the U.S. market [14] - The company is preparing to apply for a platform provider license in New York and sees opportunities in other states like Ontario, Arizona, Florida, and Texas [38] Q&A Session Summary Question: Can you help us think about the $3 million positive revision to your annual guidance? - Management noted that the guidance includes a base case scenario and is cautious about potential volatility in the sportsbook segment due to the recent acquisition of Coolbet [68][84] Question: Can you provide more color on investing in the business? - Management emphasized the importance of investing in growth and acquiring the right talent to capture long-term market share, especially as existing clients seek to expand into multiple states [70][72] Question: Is the Ainsworth agreement an exclusive distribution agreement? - Management confirmed it is an exclusive distribution agreement, allowing Ainsworth to focus on scaling their online slots portfolio without transferring any intellectual property [81]