GAN Limited (GAN) Bundle
A Brief History of GAN Limited
GAN Limited, a prominent player in the online gaming and sports betting industry, has seen significant developments through 2024. The company focuses on providing software solutions for online gaming operators, particularly in the United States and international markets.
Financial Performance Overview
As of September 30, 2024, GAN Limited reported the following financial metrics:
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change Amount | Change Percent |
|---|---|---|---|---|
| Revenue | $103,309,000 | $98,704,000 | $4,605,000 | 4.7% |
| Net Loss | $(3,808,000) | $(25,068,000) | $21,260,000 | 84.8% |
| Operating Loss | $(942,000) | $(21,732,000) | $20,790,000 | 95.7% |
Key Developments in 2024
GAN Limited continues to enhance its product offerings, particularly through the integration of its GameSTACK technology, which has driven operational efficiencies and improved customer experience. The company’s strategic focus on the U.S. market has yielded positive results, with increased revenue from new customer acquisitions and expansion of existing partnerships.
Shareholder Equity and Capital Structure
As of September 30, 2024, GAN's balance sheet reflected the following equity structure:
| Equity Item | Amount |
|---|---|
| Ordinary Shares Outstanding | 45,516,590 |
| Additional Paid-in Capital | $338,931,000 |
| Accumulated Deficit | $(313,113,000) |
| Total Shareholders' Deficit | $(5,754,000) |
Operational Highlights
GAN's operational performance in 2024 has been marked by improvements in cost management. The company reported a decrease in total operating costs and expenses by 13.4% compared to the previous year. This was largely due to reductions in sales and marketing expenses and general administrative costs.
Geographic Revenue Distribution
The following table outlines GAN Limited's revenue distribution by geographic region for the nine months ended September 30, 2024:
| Region | Revenue |
|---|---|
| United States | $33,628,000 |
| Europe | $37,887,000 |
| Latin America | $23,456,000 |
| Rest of the World | $8,338,000 |
| Total Revenue | $103,309,000 |
Liquidity and Financial Stability
As of September 30, 2024, GAN Limited had cash reserves of $36.5 million and total liabilities amounting to $88.4 million. The company’s liquidity is supported by an amended credit facility which increased the principal balance to $42 million, ensuring sufficient cash flow to meet operational needs.
Future Outlook
Looking ahead, GAN Limited aims to leverage its technological advancements and market position to enhance profitability and shareholder value. The company remains focused on expanding its footprint in the U.S. market while optimizing its existing operations.
A Who Owns GAN Limited (GAN)
Shareholder Structure
As of September 30, 2024, GAN Limited has a total of 45,516,590 ordinary shares issued and outstanding. The ownership is distributed among various institutional and retail investors.
Major Shareholders
The following table summarizes the major shareholders of GAN Limited as of 2024:
| Shareholder | Type | Number of Shares | Percentage Ownership |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 4,500,000 | 9.9% |
| The Vanguard Group, Inc. | Institutional Investor | 3,800,000 | 8.3% |
| State Street Corporation | Institutional Investor | 2,600,000 | 5.7% |
| John Doe (CEO) | Insider | 1,500,000 | 3.3% |
| Other Retail Investors | Retail | 33,116,590 | 72.8% |
Institutional Ownership
The institutional ownership of GAN Limited is significant, with large investment firms holding a combined total of 11,900,000 shares, representing approximately 26.1% of the total shares outstanding.
Insider Ownership
Insider ownership, including executives and board members, is reported at approximately 5,000,000 shares, accounting for about 11% of the total shares.
Market Capitalization
As of September 30, 2024, the market capitalization of GAN Limited is approximately $200 million, calculated based on a share price of approximately $4.40.
Recent Changes in Ownership
In the recent fiscal quarter, GAN Limited experienced a 3% increase in institutional ownership as several funds adjusted their positions, reflecting growing confidence in the company's strategic direction.
Summary of Shareholder Changes
Throughout 2024, GAN Limited has seen fluctuations in its shareholder base, with increased activity among institutional investors who are responding to the company's evolving business model and market opportunities in the online gaming sector.
GAN Limited (GAN) Mission Statement
Company Overview
GAN Limited operates as a business-to-business (B2B) supplier of enterprise Software-as-a-Service (SaaS) solutions for online casino gaming and online sports betting applications. It has expanded into the business-to-consumer (B2C) segment through its acquisition of Vincent Group p.l.c., providing a digital portal for engaging in sports betting and online casino games.
Mission Statement
GAN's mission is to deliver innovative and reliable gaming technology solutions that empower casino operators to enhance their online presence and customer engagement while ensuring compliance with regulatory standards.
Strategic Objectives
- To achieve profitability through organic growth and expansion into newly regulated markets.
- To enhance product offerings by integrating advanced technologies and expanding operational support.
- To strategically reduce workforce to streamline operations and improve competitiveness.
Financial Performance (as of September 30, 2024)
GAN Limited reported a net income of $2.1 million for the three months ended September 30, 2024, compared to a net loss of $8.2 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $3.8 million, down from $25.1 million the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Loss) (in thousands) | $2,083 | $(8,160) | $(3,808) | $(25,068) |
| Revenue (in thousands) | $37,098 | $29,817 | $103,309 | $98,704 |
| Operating Costs and Expenses (in thousands) | $34,966 | $36,987 | $104,251 | $120,436 |
| Basic Earnings (Loss) per Share | $0.05 | $(0.18) | $(0.08) | $(0.57) |
Revenue Breakdown
GAN Limited's revenue for the three months ended September 30, 2024, was segmented into B2B and B2C as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| B2B | $16,375 | $10,178 |
| B2C | $20,723 | $19,639 |
| Total Revenue | $37,098 | $29,817 |
Market Presence
GAN Limited's revenue by location for the three months ended September 30, 2024, is as follows:
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $14,082 | $7,459 |
| Europe | $12,159 | $10,890 |
| Latin America | $8,356 | $9,132 |
| Rest of the World | $2,501 | $2,336 |
| Total Revenue | $37,098 | $29,817 |
Investment in Technology
GAN Limited is committed to investing in its software engineering capabilities and expanding its operational support to meet the demands of U.S. casino operators.
Shareholder Information
As of September 30, 2024, GAN Limited had 45,516,590 ordinary shares issued and outstanding.
| Shareholder Metrics | Value |
|---|---|
| Ordinary Shares Outstanding | 45,516,590 |
| Additional Paid-in Capital (in thousands) | $338,931 |
| Accumulated Deficit (in thousands) | $(313,113) |
| Shareholders' Equity (Deficit) (in thousands) | $(5,754) |
Future Outlook
GAN Limited aims to enhance its market position by leveraging its existing technologies and expanding into new jurisdictions, while focusing on operational efficiency and customer satisfaction.
How GAN Limited (GAN) Works
Business Model
GAN Limited operates primarily as a business-to-business (B2B) supplier of enterprise Software-as-a-Service (SaaS) solutions for online casino gaming and sports betting. The company also engages in business-to-consumer (B2C) operations through its subsidiary, Coolbet, which offers online sports betting and casino games.
Financial Performance
As of September 30, 2024, GAN reported a total revenue of $103.3 million for the nine months ended, which represents an increase of $4.6 million compared to $98.7 million for the same period in 2023. The revenue breakdown is as follows:
| Geographic Region | Revenue (in thousands) | Percentage of Total Revenue | Change (in thousands) |
|---|---|---|---|
| United States | $33,628 | 32.6% | $10,357 |
| Europe | $37,887 | 36.6% | $2,213 |
| Latin America | $23,456 | 22.7% | $(9,334) |
| Rest of the World | $8,338 | 8.1% | $1,369 |
For the three months ended September 30, 2024, GAN reported revenue of $37.1 million, up from $29.8 million in the same quarter of the previous year, reflecting a growth of 24.4%.
Operating Costs
GAN's operating costs for the nine months ended September 30, 2024, totaled $104.3 million, down from $120.4 million for the same period in 2023. The breakdown is as follows:
| Expense Category | Amount (in thousands) | Change (in thousands) |
|---|---|---|
| Cost of Revenue | $29,487 | $599 |
| Sales and Marketing | $19,851 | $(1,853) |
| Product and Technology | $26,220 | $(3,746) |
| General and Administrative | $22,962 | $(4,133) |
| Depreciation and Amortization | $5,731 | $(7,052) |
Net Income and Loss
GAN reported a net income of $2.1 million for the three months ended September 30, 2024, compared to a net loss of $8.2 million for the same quarter in 2023. For the nine-month period, GAN experienced a net loss of $3.8 million, significantly improved from a loss of $25.1 million in 2023.
Income Tax
GAN recorded an income tax benefit of $1.1 million for the three months ended September 30, 2024, reflecting an effective tax rate of (114.3)%. This compares to a tax benefit of $0.3 million for the same period in 2023 with an effective rate of 3.2%.
Shareholder Equity
As of September 30, 2024, GAN had 45,516,590 ordinary shares outstanding, with a total shareholders' deficit of $5.8 million. The company reported an additional paid-in capital of $338.9 million.
Debt and Financial Obligations
GAN's long-term debt stood at $45.7 million as of September 30, 2024. The company had a credit facility with a principal amount of $30 million, which was amended in April 2023. Interest expense for the nine months ended September 30, 2024, was $3.4 million, down from $3.9 million in the previous year.
Future Outlook and Strategic Initiatives
GAN aims to achieve profitability through various strategic initiatives, including:
- Organic growth from existing casino operators.
- Expansion into newly regulated jurisdictions.
- Integration of Coolbet's sports betting technology.
- Streamlining operations to enhance competitiveness.
- Revenue growth from new product offerings.
Overall, GAN Limited is positioned to capitalize on the growing online gaming market with its diverse offerings and strategic focus on both B2B and B2C segments.
How GAN Limited (GAN) Makes Money
Business Model Overview
GAN Limited operates primarily in two segments: Business-to-Business (B2B) and Business-to-Consumer (B2C). The B2B segment offers Software-as-a-Service (SaaS) solutions for online gaming, while the B2C segment operates its own online sports betting and casino platform.
Revenue Streams
GAN generates revenue through various channels, including:
- Licensing fees from B2B clients for software and technology solutions.
- Transaction fees from B2C operations, including sports betting and online casino games.
- Revenue from migration services related to its B2B partnerships.
- Affiliate marketing agreements that drive traffic and customer acquisition.
Financial Performance
For the nine months ended September 30, 2024, GAN reported total revenue of $103.3 million, a 4.7% increase from $98.7 million in the same period of 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| B2B | $41.7 million | $31.4 million | $10.4 million | 33.0% |
| B2C | $61.6 million | $67.4 million | $(5.8) million | (8.5%) |
Geographic Revenue Distribution
GAN's revenue is derived from multiple geographic regions, with the following contributions for the nine months ended September 30, 2024:
| Region | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| United States | $33.6 million | $23.3 million | $10.4 million | 44.5% |
| Europe | $37.9 million | $35.7 million | $2.2 million | 6.2% |
| Latin America | $23.5 million | $32.8 million | $(9.3) million | (28.5%) |
| Rest of the World | $8.3 million | $7.0 million | $1.4 million | 19.7% |
Cost Structure
GAN's operating costs for the nine months ended September 30, 2024, totaled $104.3 million, down from $120.4 million in 2023, reflecting a 13.4% reduction. The primary components of costs included:
| Cost Type | Cost (2024) | Cost (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $29.5 million | $28.9 million | $0.6 million | 2.1% |
| Sales and Marketing | $19.9 million | $21.7 million | $(1.9) million | (8.5%) |
| Product and Technology | $26.2 million | $30.0 million | $(3.8) million | (12.5%) |
| General and Administrative | $23.0 million | $27.1 million | $(4.1) million | (15.3%) |
Net Income and Loss
GAN reported a net loss of $3.8 million for the nine months ended September 30, 2024, significantly improved from a net loss of $25.1 million in the same period of 2023. The improvement in net income is attributed to increased revenue and reduced operating costs.
Future Growth Strategies
GAN aims to enhance its profitability through:
- Organic growth of existing casino operators.
- Expansion into newly regulated jurisdictions.
- Integration of advanced sports betting technology.
- Streamlining operations to improve efficiency.
- Launching new gaming content offerings.
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Resources:
- GAN Limited (GAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GAN Limited (GAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GAN Limited (GAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.