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GAN Limited (GAN)

Participants
Todd McTavish EVP, Chief Legal Officer & Corporate Secretary
Dermot Smurfit President, CEO & Executive Director
Karen Flores EVP, CFO & Executive Director
Chad Beynon Macquarie Research
Michael Nichols B. Riley Securities
Ryan Sigdahl Craig-Hallum
Gregory Gibas Northland Capital Markets
Call transcript
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Operator

Greetings, and welcome to GAN Limited Fourth Quarter 2020 Financial Results. [Operator Instructions]. It is now my pleasure to introduce your host, Todd McTavish, Chief Legal Officer. Thank you.

You may begin.

Todd McTavish

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forward-looking. and expressions forward-looking of any to assumptions statements with be you as the Words absence this statement that in are information identify difficult except begin, statements not mean as financial but statements, to related the current to reflecting for predict. forward-looking and including guidance and we not in consists well tense risks, Before remind a does factual involve we'd satisfaction provided, contained optimism future conference like that their uncertainties the and statements today, that that prospects call, made is

as should or forward-looking those risks results, or are the statements. such not statements be statements suggested expressed could Forward-looking actual guarantee that interpreted or performance materially by of from and to differ uncertainties cause to future subject in a and results performance

X, important that Some differences Factors May section cause are of factors GAN's such dated prospectus the in IPO discussed could Risk XXXX.

to floor except extent the Please by With required like ahead, remarks. statements, the only statements obligation statements speak the changes I'd applicable assumes other results, for or Dermot. the forward-looking to in reflect made, laws. as affecting statements to changes company of actual to turn and the go Dermot opening factors Forward-looking to are that, forward-looking over date no update Smurfit in assumptions securities

Dermot Smurfit

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Karen Flores

everyone the to Thank you, hello and Dermot, call today. on

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Operator

Instructions]. [Operator

question Beynon Macquarie first Group. Chad the from with Our line comes of

Chad Beynon

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Dermot Smurfit

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Chad Beynon

Is it believe, million the million said when said you of $XX out this Coolbet quarter, assume QX is business. guidance, the then roughly million revenue announced we of a license you as $XX assume is is Coolbet the safe on and I and based XXXX roughly else patent know in I should assume -- that million for And last off everything that only safe then certainties to is it $X to Great. you your guidance, acquisition, the $XX first quarter. GOR?

Karen Flores

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Operator

Riley of line Josh from question Our comes Nichols B. FBR. with the next

Michael Nichols

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Dermot Smurfit

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Karen Flores

of there that's you in Yes. revenue that assume And can the just to very the with is guidance, plan. respect follow figure. on It's level to up embedded that low low-X a

Michael Nichols

updates what's little big on more. they are And that bit focus expectation -- you markets hit any U.S. have front? on the a Coolbet provide? to I that on a you Could could know how the BXC right those outside trending. just Or

Dermot Smurfit

Yes.

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Operator

comes Our next the with from question Ryan line Sigdahl of Craig-Hallum.

Ryan Sigdahl

pro mentioned Dermot, any in the million XXXX, with call, synergies of revenue last $XXX forma conference you Coolbet. on excluding

increase we're guess getting Michigan award assuming assumptions. I well from as XXXX a there it as in well of to deferred revenue XXXX synergies as as license sounds significant from betting like So million bit sports $X little of

So are coming I maybe guess, what are the that are the offsets down? What here? levers

Dermot Smurfit

Thanks, Ryan.

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we're by comment And think So guidance. further? you our lifting conservative I being would to like Karen,

Karen Flores

I Yes. again back with roughly in mean I look X to the coming out market QX guidance update again, weeks. that, we're in X our the say first or mean I we'll quarter. would

continued can full expect based about you on performance. to the update another just at that point, and we'll it year So relative talking be further

Ryan Sigdahl

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through decline I year-over-year the can help So you there? walk guess,

Karen Flores

Yes.

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So with to tech And come then those through GAN take sports time. the offering the technology, over there's up Coolbet expect rates we that.

this strategies. and So really on the sports tech year, content executing about for us is

Dermot Smurfit

static Just finding piece to comment. improve mean or of I staying declining. an additional terms and we trending are are commercial certainly our not that

Ryan Sigdahl

did Got But you. Nice Then just last question to for license also remove exclusivity. there. patent it the Parx. me, on see

plans what So that talk can launch Pennsylvania removal their and you for exclusivity, the of means then in the through tech which the kind play puts, Michigan, of guys? takes is you Jersey on and for New

Dermot Smurfit

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Operator

question next Gibas Northland the of Greg Our from Securities. comes with line

Gregory Gibas

addition, iGaming said, the then I like money client? real Jersey. Westgate Resorts strong Congrats Colorado and betting in New think and on you you Jersey the side eighth QX the and in gaming and everything guidance that said New sports

and timing that's of whether the Just or from wondering if -- in revenue but and on expected could the contribution included guidance. sorry maybe you that this, if then operator I gross uplift launch missed comment that

Dermot Smurfit

Thanks, Greg. Yes.

operator So client for us. United ours money here the of It's in casino extremely retail the eighth exciting gambling real win it's U.S. States. an customer for

roster. our gambling in is brand increase Resorts exciting in extremely well-known very enthusiasts. the among Westgate So sports client U.S.

got they've think strong sports a betting. in running Colorado Internet already. and to up commitment I They're

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actual whenever up-and-running always really that's year. an the of target in user acquisition So NFL a time to It's launch in win the opportunity. announce client on you part capture focusing early the

timing. of sense a that's So

our they got had with and of degree gambling, to that online for will in an terms due fabulous In alternative already in vendor. comment some they've in success But market sports course. Colorado share, I leave brand I on think clients of a

Gregory Gibas

it. Got estimated on the follow to an I that And update Coolbet Could reach Great. And integration those see and there? on markets? or completed completed to U.S. in what when to you done provide launch integration. integration be still guess lines, we'd U.S. guess, needs up, the in I timing the the along

Dermot Smurfit

very Okay. last the process integration of Well, due as designed diligence the year. fall much technical of in part was

it, technical integration the already. kind and the is one in of part bag of that's So

marketplace, already process localization for taken slight which additional place. second The has U.S. is the

marketplace for client we got Coolbet's you already the in win U.S. the Westgate. again, course, here secured referencing for Of comment we've to our announced we've deployments first And about an earlier for sports-only a in and Internet client that, are, capability

towards are launch pre-NFL Coolbet a We leaning here U.S. of in the

Gregory Gibas

for last Great. me. I one guess

kind What of kind move Just fee that confidence, the uplift in in guidance on a pretty decline you the pushed out gives your based take licensing of the drivers It take sequentially, of from year. kind guess, nice revenue uplift? of for expectations QX. it that implies in I like operator rate just gross the sounds rates was seems

Karen Flores

our are XXXX momentum known. are revenue on statement substantial already with make primarily our base. is there just mean based current general that I would that projections And client Yes. already things I a for

of and year, of we're map planning the a just about. XXXX what strong around be that. are of bit already as going and in for sight into have new talked we've assumptions of always to clients seeing But to there's start the little road terms So we adding line the much

estimates there's So with a year. revenue very of level the confidence high this for

Dermot Smurfit

color on as the will Greg, exclusively we'll deployment our online casino add keeping there, of which go the that be full deploy in a rev more rate a online bit of casino share licensed the content, proprietary, or take also means little wholly owned I'll games, we up.

And Coolbet in beyond. substantially. QX the impact on incrementally sports our get casino our It's just should online not we rate that and So see to some also about it's take as side deploying take well. rate up in lifting

Operator

no call remarks. back I'd in closing like Mr. for further questions Smurfit hand to the are There queue. the to

Dermot Smurfit

but would Thanks, to Again, thank Doug. our we company. That's shareholders, all period. our also for earnings during a greatly crucially, extraordinary resilient incredibly have you been all this stakeholders, joining And not appreciated. pandemic GAN employees our thank U.S.-listed today fourth as like call just

to So I'd guys, or you thank all happen. our course, all like of worldwide. clients. GAN-sters, corporate Without thank to otherwise, you of doesn't magic also, the Cool

the greatly our So clients. support that to thank industry recent U.S. now extending to we and everybody satisfied has We're our technology we EBITDA. returned scarcity, balance best the value. estimate. revenues offer current and behind business and positive XXXX, cycle strategic capital capability investors in U.S. in sheet. trebling pristine our which we're therefore, is The Meanwhile, largely And as and investment increased in we already remains the a GAN. you this at wholly market year proven our acquisitive as of leadership And naturally, well the note remain activity with Coolbet us,

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Operator

for participation. Ladies teleconference. your and conclude gentlemen, today's this you does Thank

disconnect time, You and at day. wonderful a may have lines this your