GAN(US:GAN)2022-11-14 23:08Financial Data and Key Metrics Changes - The company generated revenue of $32.1 million in Q3 2022, which was flat compared to the prior year but up 11% on a constant currency basis [7][28] - Adjusted EBITDA was $2.1 million, a significant improvement from a loss of $900,000 in the prior year [28][30] - The company ended the quarter with approximately $42 million in cash, down $7 million from the previous quarter [8] Business Line Data and Key Metrics Changes - B2C revenue was $19.4 million, down 8% from $21.1 million in the prior year, but active customers increased by 31% and turnover increased by 16% [12][28] - B2B revenue increased by 14% to $12.7 million, driven by a 29% increase in gross operator revenue [14][28] Market Data and Key Metrics Changes - The international business of coolbet.com faced a negative foreign currency impact of $3.3 million due to the strengthening U.S. dollar, but on a constant currency basis, revenue grew by 8% [13][29] - The company noted that the upcoming World Cup could significantly impact its B2C business, although the exact revenue impact is uncertain [11][16] Company Strategy and Development Direction - The company is focused on becoming the premier B2B technology provider in the U.S. gaming market, with a strong emphasis on operational improvements and cost structure adjustments [18][19] - The launch of new B2B product lines, including GAN Sports, is part of the strategy to enhance service offerings and capture market share [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the World Cup's potential to drive customer acquisition and wagering volumes, despite the uncertainty surrounding its impact [16][25] - The company is committed to achieving sustained positive free cash flow and will continue to refine its cost structure to enhance profitability [39][40] Other Important Information - The company has gaming licenses in 19 U.S. states and Ontario, Canada, which are seen as valuable assets that create barriers to entry for competitors [17][18] - The company is entering new markets, including Mexico, and expects to launch its B2C brand Coolbet there [25][40] Q&A Session Summary Question: Updated thoughts on mid to long-term aspirations for the company - Management noted that the 2023 target is contingent on several factors, including the launch of GAN Sports and additional state regulations [43] Question: Growth rates in Latin America and core markets - Management indicated that growth in Latin America has been impacted by previous strong performance during COVID, but expects a natural growth rate of teen percentages going forward [51] Question: Update on the relationship with FanDuel - Management stated that there are no operational changes expected in the relationship with FanDuel as they continue to operate in partnership [62]