Galaxy Gaming, a leading casino table games developer, has published its financial results for the quarter ended September 30, 2023. While the company reported increased revenue, its net loss doubled.
The third quarter of 2023 notably saw Galaxy Gaming report revenue of $6.1 million, representing an increase of 3%. In the meantime, the company’s Adjusted EBITDA declined by 36% to $1.5 million.
The quarter also saw the company record a net loss of $1.45 million, far exceeding the net loss of $699,000 it recorded in Q3 2022.
On a year-to-date basis, Galaxy Gaming posted revenue of $21 million, up 20% year-on-year. Adjusted EBITDA for the first nine months of the year also increased to $7.8 million, representing a modest increase of 6%.
The overall net loss for the nine-month period is still lower than the one recorded during the first nine months of 2022. For reference, the company recorded a net loss of $988,000 in the first nine months of 2023 versus a net loss of $1.8 million in the prior-year period.
Galaxy Gaming also reported a cash decrease of 13% to $15.9 million. Its total long-term debt decreased from $59.6 million to $58.7 million. Stockholders’ deficit, on the other hand, increased from $17.8 million to $18 million.
The company now expects Q4 revenue of roughly $7-$7.5 million and adjusted EBITDA in the range of $2.8-$3.2 million. This forecast assumes no impact on the company’s business from the ongoing wars in Ukraine and the Middle East.
Cravens Is Optimistic Despite the Setbacks
Todd Cravens, Galaxy Gaming’s president and chief executive officer, commented on the results, underscoring the effect of the challenges the company faced in Q3. He attributed the decline to the lower sales of perpetual licenses. While these sales will likely make the company’s quarterly results lumpier, Cravens said that the company is committed to pursuing such sales.
Cravens also pointed out that the company’s expenses increased because of various factors, including cost of sales, compensation costs and legal and regulatory expenses.
Galaxy Gaming also purchased over $1 million in equipment to fulfill the demand for GoS and EZ Baccarat placement, leading to a decline in its cash position. Speaking of EZ baccarat, the company became its distributor on September 9. Following that, it added almost 500 tables across 120 casinos. Cravens noted that the distribution of EZ Baccarat could provide Galaxy Gaming with an annual EBITDA boost of over $3 million.
Last but not least, Cravens said that the company had its best G2E show ever. According to him, Galaxy Gaming’s participation in the exposition sets it up for increased revenue in 2024.
In other news, in September Galaxy Gaming powered Carnival Corporation ships with GOS, allowing them to offer progressive jackpots to their clients.