Investors were celebrating a preliminary second-quarter earnings report that came out after the market closed on Wednesday afternoon.
That report showed sales will rise to between $34 million and $35 million this quarter to significantly outpace the $24 million that Wall Street was expecting. The software-as-a-service company, which focuses on the sports betting and online gambling niche, also expects to break even on adjusted earnings.
Management credited strong demand across a few key markets, including Europe and Latin America, for the accelerating growth. "Momentum has carried through the second quarter and driven continued sequential top-line growth for the business," CEO Dermot Smurfit said in a press release.
The biggest takeaway from the update is that GAN Limited now sees a much stronger sales opportunity ahead. While executives back in May lifted their annual outlook to between $103 million and $108 million, they now expect to book between $125 million and $135 million of revenue in 2021.
That's still a relatively tiny sales footprint for a company valued at over $700 million following the recent stock price surge. But investors have high expectations for GAN Limited as it seeks to diversify into new geographies and build a bigger client list. Reports like this one add fuel to that optimistic growth outlook.