GAN Limited (NASDAQ:GAN) rose sharply Thursday after the company issued preliminary results for its second quarter.
The company said it expects Q2 revenue to be in a range of $34 million to $35 million. Adjusted EBITDA is expected to be in a range of $3 million to $7 million. GAN raised its full-year guidance to a range of $125 million to $135 million.
GAN, a leading full-service internet gaming software-as-a-service 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 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 benefiting 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.
GAN shot up $2.19, or 14.5%, to $17.34.
