The latest earnings report out of Coolbet owner GAN Limited (NASDAQ:GAN) was not good news. At best, it was mixed, but the bad part was so terrible that it readily swamped whatever good there was. Now, with a complete strategic review on the way, investors are running for the doors, leaving GAN Limited down 20% at the time of writing.
On the plus side, GAN Limited did turn in a win on revenue. Revenue came in at $36.95 million, which was not only up 21.4% against this time last year but also beat projections of $36.88 million. However, this was engulfed by the horrorshow that was earnings. GAN Limited posted a loss of $3.46 per share. For reference, analysts were looking for a loss of just $0.13 per share. That was the catastrophe that triggered a strategic review, as the board of directors frantically looked for a way to stem the tide that threatened to drown pretty much everybody.
While that process only started, it already yielded some key results. One, GAN Limited kept any guidance off the table while stepping back to figure things out. Two, GAN Limited announced plans to “improve its operations and cash position.” In addition, GAN Limited also shut down Coolbet operations in Ontario, mostly because Ontario is “…the most competitive market in the world” when it comes to sports betting.
Insiders aren’t exactly pleased with how things are going at GAN Limited either. Insider trading shows that their confidence level is Very Negative. As a result, they sold $56,800 worth of shares in the last three months.
