GAN - GAN slumps in premarket trade on Q4 amid volatile sports margin in B2C segment

After GAN (NASDAQ:GAN) CEO Dermot Smurfit provided the below statement in its Q4 financial earnings, the stock price trades 17.5% down in premarket session, "Our Q4 financial results were adversely affected by the volatile sports margin in our B2C segment consistent with other International operators, which was partially offset by continued strong new customer growth." While Q/Q the company reported a revenue drop of 5.5% amid abnormally low sports hold in the quarter, Y/Y revenue soared 243% led by strategically important wins during the quarter along with new state launches for clients such as FanDuel in Connecticut and entrance into Ontario when iGaming and online sports betting officially goes live. B2B segment gross profit for the quarter increased to $8.3M from $7.6M while for B2C it narrowed down to $10.7M from $13.9M due to decrease in sports margin. Net loss widened to $8.53M from $7.92M in prior year quarter. As of Dec.31, 2021, cash stood at $39.5M

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GAN slumps in premarket trade on Q4 amid volatile sports margin in B2C segment