Gan Ltd (NASDAQ: GAN) stock fell over 13.4% on 26th March, 2021 (as of 11:01:42 UTC-4 · USD ; Source: Google finance) as the company posted lower than expected results for the fourth quarter of FY 20.
The company has reported the net loss of $8.3 million compared to net income of $3.4 million on the back of increased operating costs in the current year, including costs associated with the Company’s U.S. listing related expenses, the acquisition of Coolbet and the B2C/WinStar revenue that was recognized in the fourth quarter of 2019. The company delivered Adjusted EBITDA loss of $6.0 million compared to Adjusted EBITDA of $5.1 million in the prior year. The decline was driven by increased operating costs in the current year and the B2C/WinStar impact.
Cash and cash equivalents were $152.7 million at December 31, 2020, compared to $10.3 million at December 31, 2019. The increase in cash and cash equivalents mainly due to $57.4 million in net cash proceeds from the Company’s U.S. initial public offering, which closed in May 2020, as well as $99.4 million in net proceeds received from the Company’s follow-on offering, which was executed to complete the acquisition of Coolbet in early January 2021.
GAN in the fourth quarter of FY 20 has reported the adjusted loss per share of 15 cents, missing the analysts’ estimates for the adjusted loss per share of 6 cents. The company had reported 17 percent fall in the adjusted revenue growth to $10.7 million in the fourth quarter of FY 20, missing the analysts’ estimates for revenue of $11.8 billion. The decline was driven by the aforementioned B2C/WinStar impact and a decline in sportsbook related RMiG revenue due to the FanDuel migration, partially offset by strong growth in SIM. Excluding the B2C/WinStar impact, total revenue rose 43% compared to 2019.
Moreover, GOR of $131.8 million, which has increased 9% in the fourth quarter compared to $120.8 million mainly due to growth in U.S. iGaming, partially offset by a decline in online sports betting as a result of the FanDuel migration. RMiG revenue was of $6.0 million declined 36% in the quarter compared to $9.3 million driven by the B2C/WinStar impact.
GAN forecasted for first-quarter revenue to be in a range of $24 million to $25 million, ahead of a Street estimate of $17.2 million. GAN forecasted for fiscal 2021 revenue to be in a range of $100 million to $105 million.
Meanwhile, GAN is working on the integration of its Coolbets B2B sportsbook engine with a planned mid-year 2021 launch in the U.S.