Galaxy Gaming's net loss widened to $819,891 in Q4 2023

Quick Intro

Galaxy Gaming has unveiled its financial performance for the final quarter and the entirety of 2023, presenting a mixed outcome amidst growth and challenges.

Fourth Quarter Highlights

The fourth quarter of 2023 witnessed a notable rise in Galaxy Gaming’s revenue, with gross revenue surging by 25% year-on-year to reach $8.4 million. Net revenue followed suit, increasing by 13% to $6.7 million. Despite these gains, the period was marked by a net loss of $819,891, a downturn from the net income of $55,104 reported in the same quarter of 2022. Adjusted EBITDA saw a 10% decrease to $2.8 million; however, this figure reflects a 10% increase when excluding Employee Retention Tax Credits accounted for in Q4 2022.

Yearly Financial Overview

The year 2023 overall reflected growth in revenue for Galaxy Gaming, with a 23% increase in gross revenue totaling $31.7 million and a 19% rise in net revenue to $27.8 million. The year also saw an increase in net loss, moving from $1.77 million in 2022 to $1.81 million in 2023. On a positive note, adjusted EBITDA for the year slightly improved by 1% to $10.6 million. Excluding Employer Retention Tax Credits for 2022, the adjusted EBITDA for 2023 actually increased by 7%. Moreover, total long-term debt was reduced to $58.4 million in 2023 from $59.7 million in the previous year.

Leadership Commentary

Matt Reback, President and CEO of Galaxy Gaming, reflected on the quarter’s performance as a significant improvement over the preceding period. He expressed optimism about the company’s shift towards a sustainable growth model focused on recurring revenue from their diverse portfolio, including core and premium felt products, GOS products, and iGaming solutions.

Reback, who has been at the helm for 4 ½ months, is enthusiastic about Galaxy’s future, particularly with the appointment of Michael Ratner as EVP of Product, a move expected to enhance product innovation and development.

Looking ahead, Galaxy Gaming aims to maintain double-digit revenue growth through organic growth and potential strategic acquisitions. Reback emphasized the development of a strategic plan to support this goal over the medium term.

Upcoming Annual Meeting

Galaxy Gaming also announced that its annual stockholders’ meeting is scheduled for 29 May 2024, welcoming stockholders of record as of 2 April 2023. This virtual gathering will be an opportunity for the company to discuss its strategic direction and share insights with its investors.

In conclusion, Galaxy Gaming’s mixed financial results for Q4 and the full year of 2023 underscore the company’s resilience and strategic focus. With a clear vision for sustainable growth and innovation, Galaxy Gaming is poised to navigate the evolving gaming landscape and capitalize on emerging opportunities in 2024 and beyond.