Posted on January 8, 2021 by Brad Steveson
Golden Matrix (GMGI) released early revenue estimates today, reporting a record month of over $700k for December and the expectation of $1.7m+ for the full fiscal Q4 ending 1/31/21. This would represent a 14% sequential revenue increase.
Quoting from the press release………….
“Golden Matrix Group Inc. (OTC PINK:GMGI), a developer and licenser of social gaming platforms, systems and gaming content, today announced it had achieved record revenues of $703,321 in the month of December, and that the company expects revenues to exceed $1.7 million in the fourth fiscal quarter ending January 31, 2021. That would represent a 14% improvement on revenues of $1.49 million reported in the company’s third fiscal quarter.”
Golden Matrix Group, based in Las Vegas NV, is an established gaming technology company that develops and owns online gaming IP and builds configurable and scalable white-label social gaming platforms for its international customers, located primarily in the Asia Pacific region.
When I run the revenue estimates through my operating model I see EBITDA of approximately $160k which would be a 4x sequential improvement over last quarter. That would equate to about $.00486 EPS for the quarter depending on how expense and cogs shakes out. Overall GMGI seems to be heading in the right direction with this being the 3rd consecutive quarter of sequential revenue improvement. The company is cash flow positive and awaiting approval for an up-listing to NASDAQ.
The stock has persistently remained at the top of my risk/reward range since I sold most of it in the low 7’s a few months ago, but the recent pull back along with the company’s reported progress has me looking at this one carefully again.
Disclosure: No position and I may buy shares within the next 72 hours.