GAN Announces Strong Preliminary Second Quarter 2021 Results

July 7, 2021

Second quarter revenue expected to be between $34 million and $35 million, increases full year guidance to range of $125 to $135 million

IRVINE, Calif.--(BUSINESS WIRE)-- GAN Limited (the “Company” or “GAN”) (NASDAQ: GAN), a leading full-service internet gaming software-as-a-service (“SaaS”) provider to the real money internet gaming, online sports betting, and simulated gaming industries, today announced strong preliminary results for the second quarter of 2021 driven by its new Business-to-Consumer (“B2C”) segment, which comprises Coolbet. Based on preliminary financial results, the Company currently expects to report second quarter revenue of $34.0 million to $35.0 million and positive Adjusted EBITDA ranging from $3.0 million to $7.0 million, as higher than expected revenue more than offset strategic investments in talent and technology. The Company is also increasing full year revenue guidance to a range of $125 million to $135 million.

The Company’s results were primarily driven by stronger than expected performance from the Company’s B2C offering in Latin America and Northern Europe, with sports results benefitting from higher-than-expected sports betting margin (calculated by dividing Gross Gaming Revenue by Amount Wagered) of 9.7% for the quarter as compared to 6.8% in the first quarter, while also maintaining marketing spend efficiency. The Company noted that its revenue growth accelerated during the second half of the quarter driven by two major international sporting events.

This updated financial outlook is based on information available to the Company as of the date of this release and is subject to the completion of quarterly closing procedures. The Company will provide a more detailed update on the second quarter’s performance, as well as its 2021 fiscal year guidance, during its second quarter earnings call planned for August 16, 2021.

Dermot Smurfit, CEO of GAN, commented:

“Momentum has carried through the second quarter and driven continued sequential top-line growth for the business. The B2B business is performing in-line with our expectations and continuing to win new clients here in the U.S. while the B2C business is capitalizing on the Latin American market opportunity, equipped with a highly social sports offering delivering viral customer acquisition. Looking back, we identified and acquired a business at the outset of this year that is now performing significantly ahead of plan. We are very pleased with where we stand halfway through the year on both our segments and look forward to providing more detail next month.”