Gambling
Gambling.com Reports Record Q3: Revenue Surges 37% to $32.1M, Net Income Up 70% | GAMB Stock News
Gambling.com Group (GAMB) reported strong Q3 2024 results with record revenue of $32.1 million, up 37% year-over-year. Net income rose 70% to $8.5 million, while Adjusted EBITDA more than doubled to $12.6 million. The company delivered over 116,000 new depositing customers, a 35% increase from the previous year. Based on strong performance, management raised full-year 2024 guidance to revenue of $125-127 million and Adjusted EBITDA of $46.5-48.5 million, representing growth of 16% and 29% respectively at midpoint.
Gambling.com Group (GAMB) ha riportato risultati forti per il terzo trimestre del 2024, con un fatturato record di 32,1 milioni di dollari, in aumento del 37% rispetto allo scorso anno. Il reddito netto è aumentato del 70%, raggiungendo 8,5 milioni di dollari, mentre l’EBITDA rettificato è più che raddoppiato, arrivando a 12,6 milioni di dollari. L’azienda ha registrato oltre 116.000 nuovi clienti che hanno effettuato depositi, con un incremento del 35% rispetto all’anno precedente. Sulla base delle prestazioni solide, la direzione ha alzato le previsioni per l’intero anno 2024 a un fatturato di 125-127 milioni di dollari e un EBITDA rettificato di 46,5-48,5 milioni di dollari, rappresentando una crescita rispettivamente del 16% e del 29% al punto medio.
Gambling.com Group (GAMB) informó resultados sólidos para el tercer trimestre de 2024, con ingresos récord de 32,1 millones de dólares, lo que representa un aumento del 37% en comparación con el año anterior. Las ganancias netas aumentaron un 70%, alcanzando 8,5 millones de dólares, mientras que el EBITDA ajustado se más que duplicó, llegando a 12,6 millones de dólares. La compañía logró más de 116,000 nuevos clientes depositantes, un incremento del 35% respecto al año anterior. Basándose en un rendimiento sólido, la dirección elevó la guía para el año completo 2024 a ingresos de 125-127 millones de dólares y un EBITDA ajustado de 46,5-48,5 millones de dólares, lo que representa un crecimiento del 16% y del 29%, respectivamente, en el punto medio.
Gambling.com Group (GAMB)는 2024년 3분기 경이로운 실적을 보고했으며, 기록적인 수익인 3,210만 달러를 기록하며 작년 대비 37% 증가했습니다. 순이익은 70% 증가하여 850만 달러에 도달했고, 조정 EBITDA는 두 배 이상 증가하여 1,260만 달러에 이릅니다. 회사는 116,000명 이상의 새로운 예치 고객을 확보하여 전년 대비 35% 증가했습니다. 이러한 우수한 실적을 바탕으로 경영진은 2024년 전체 수익 전망을 1억 2,500-1억 2,700만 달러, 조정 EBITDA를 4,650-4,850만 달러로 상향 조정하였으며, 이는 중간 값에서 각각 16% 및 29%의 성장을 나타냅니다.
Gambling.com Group (GAMB) a annoncé de solides résultats pour le troisième trimestre 2024 avec un chiffre d’affaires record de 32,1 millions de dollars, en hausse de 37 % par rapport à l’année précédente. Le revenu net a augmenté de 70 % pour atteindre 8,5 millions de dollars, tandis que l’EBITDA ajusté a plus que doublé à 12,6 millions de dollars. La société a acquis plus de 116 000 nouveaux clients déposants, soit une augmentation de 35 % par rapport à l’année dernière. Sur la base de cette bonne performance, la direction a relevé les prévisions pour l’année 2024 à un chiffre d’affaires de 125 à 127 millions de dollars et un EBITDA ajusté de 46,5 à 48,5 millions de dollars, représentant une croissance de 16 % et de 29 % respectivement au point médian.
Gambling.com Group (GAMB) meldete starke Ergebnisse für das dritte Quartal 2024 mit Rekordumsätzen von 32,1 Millionen Dollar, was einem Anstieg von 37% im Jahresvergleich entspricht. Der Nettogewinn stieg um 70% auf 8,5 Millionen Dollar, während das angepasste EBITDA sich mehr als verdoppelte und 12,6 Millionen Dollar erreichte. Das Unternehmen gewann über 116.000 neue Einzahlungs-kunden, ein Anstieg von 35% im Vergleich zum Vorjahr. Aufgrund der starken Leistung hat das Management die Prognose für das Gesamtjahr 2024 auf einen Umsatz von 125-127 Millionen Dollar und ein angepasstes EBITDA von 46,5-48,5 Millionen Dollar angehoben, was einem Wachstum von 16% bzw. 29% zum Mittelpunkt entspricht.
Positive
- Record Q3 revenue of $32.1M, up 37% YoY
- Net income increased 70% to $8.5M
- Record Adjusted EBITDA of $12.6M, up 108%
- Operating cash flow improved to $14.9M from -$0.7M
- New depositing customers grew 35% to 116,000
- Raised full-year 2024 guidance
Negative
- Operating expenses increased 25% to $20.8M
- Outstanding credit facility balance of $25.0M
Insights
The Q3 2024 results demonstrate exceptional financial performance with
The strong performance in global iGaming markets and resilience in North American operations, despite challenging comparables, positions GAMB favorably in the expanding online gambling ecosystem. The delivery of 116,000+ NDCs demonstrates robust market penetration and effective customer acquisition strategies. The strategic pursuit of
– Third Quarter Revenue Increases
– Record Quarterly Adjusted EBITDA of
Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the third quarter ended September 30, 2024. The Company also raised its 2024 revenue and Adjusted EBITDA guidance as detailed below.
“Our record third quarter and year-to-date results reflect our best-in-class execution in the affiliate sector to consistently grow market share around the world,” commented Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group. “The third quarter’s strong revenue growth and record Adjusted EBITDA highlights Gambling.com Group’s position as an industry leader in creating value for both our shareholders and our online gambling operator clients. To complement our continued organic market share growth, we continue to evaluate opportunities adjacent to the core business to expand our footprint in the online gaming ecosystem as we progress towards our goal of
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Year-over-year third quarter revenue and Adjusted EBITDA increased
Three Months Ended September 30, 2024 vs. Three Months Ended September 30, 2023 Financial Highlights
(USD in thousands, except per share data, unaudited)
|
Three Months Ended September 30, |
|
Change |
|||||
|
2024 |
|
|
2023 |
|
|
% |
|
Revenue |
32,118 |
|
|
23,458 |
|
|
37 |
% |
Net income for the period attributable to shareholders (1) |
8,509 |
|
|
5,013 |
|
|
70 |
% |
Net income per share attributable to shareholders, diluted (1) |
0.24 |
|
|
0.13 |
|
|
85 |
% |
Net income margin (1) |
26 |
% |
|
21 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1)(2) |
8,905 |
|
|
5,407 |
|
|
65 |
% |
Adjusted net income per share attributable to shareholders, diluted (1)(2) |
0.25 |
|
|
0.14 |
|
|
79 |
% |
Adjusted EBITDA (1)(2) |
12,584 |
|
|
6,054 |
|
|
108 |
% |
Adjusted EBITDA Margin (1)(2) |
39 |
% |
|
26 |
% |
|
|
|
Cash flows generated by operating activities |
14,936 |
|
|
(715 |
) |
|
2189 |
% |
Free Cash Flow (2) |
14,240 |
|
|
1,578 |
|
|
802 |
% |
__________ |
(1) For the three months ended September 30, 2024, Net income and Net income per share include, and Adjusted net income and Adjusted net income per share exclude, adjustments related to the Company’s 2022 acquisition of BonusFinder of |
(2) Represents a non-IFRS measure. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for reconciliations to the comparable IFRS numbers. |
Third Quarter 2024 and Recent Business Highlights
- Delivered more than 116,000 new depositing customers (“NDCs”)
-
Repurchased 1,316,975 shares at an average price of
per share. Subsequent to the end of the third quarter, repurchased an additional 486,000 shares at an average price of$9.35 per share$9.80 -
Outstanding balance of
of the$25.0 million credit facility as of September 30, 2024$50.0 million - Won Casino Affiliate of the Year at the 2024 EGR Operator Awards
-
Authorized an additional
for the Company’s share repurchase program on November 13$10.0 million
Three Months Ended September 30, 2024 Results Compared to Three Months Ended September 30, 2023
Revenue rose
Gross profit increased
Total operating expenses increased
Net income attributable to shareholders increased
Adjusted EBITDA more than doubled to a quarterly record
Operating cash flow of
2024 Outlook
Gambling.com Group today updated its 2024 full-year revenue and Adjusted EBITDA guidance. The Company now expects full year revenue of
The Company’s guidance assumes:
- No additional North American markets come online over the balance of 2024
- Apart from the completed acquisition of Freebets.com and related assets, no benefit from any additional acquisitions in 2024
-
Full year cost of sales of approximately
, of which$7.5 million was incurred in the first nine months of 2024$5.4 million - An average EUR/USD exchange rate of 1.065 for the fourth quarter of 2024
Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023 Financial Highlights
(USD in thousands, except per share data, unaudited)
|
Nine Months Ended September 30, |
|
Change |
|||||
|
2024 |
|
|
2023 |
|
|
% |
|
Revenue |
91,874 |
|
|
76,122 |
|
|
21 |
% |
Net income for the period attributable to shareholders (1) |
22,746 |
|
|
11,886 |
|
|
91 |
% |
Net income per share attributable to shareholders, diluted (1) |
0.62 |
|
|
0.31 |
|
|
100 |
% |
Net income margin (1) |
25 |
% |
|
16 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1)(2) |
23,821 |
|
|
19,493 |
|
|
22 |
% |
Adjusted net income per share attributable to shareholders, diluted (1)(2) |
0.65 |
|
|
0.51 |
|
|
27 |
% |
Adjusted EBITDA (1)(2) |
33,955 |
|
|
26,146 |
|
|
30 |
% |
Adjusted EBITDA Margin (1)(2) |
37 |
% |
|
34 |
% |
|
|
|
Cash flows generated by operating activities |
23,936 |
|
|
10,950 |
|
|
119 |
% |
Free Cash Flow (2) |
28,417 |
|
|
16,694 |
|
|
70 |
% |
__________ |
(1) For the nine months ended September 30, 2024, Net income and Net income per share include, and Adjusted net income and Adjusted net income per share exclude, adjustments related to the Company’s 2022 acquisition of BonusFinder of |
(2) Represents a non-IFRS measure. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for reconciliations to the comparable IFRS numbers. |
Conference Call Details
To access, please dial in approximately 10 minutes before the start of the call. An archived webcast of the conference call will also be available in the News & Events section of the Company’s website at gambling.com/corporate/investors/news-events. Information contained on the Company’s website is not incorporated into this press release.
About Gambling.com Group Limited
Gambling.com Group Limited (Nasdaq: GAMB) (the “Group”) is a fast-growing provider of digital marketing services for the global online gambling industry. Founded in 2006, the Group has offices globally, primarily operating in
Use of Non-IFRS Measures
This press release contains certain non-IFRS financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and related ratios. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the
Consolidated Statements of Comprehensive Income (Unaudited)
(USD in thousands, except per share amounts)
The following table details the consolidated statements of comprehensive income for the three and nine months ended September 30, 2024 and 2023 in the Company’s reporting currency and constant currency.
|
Reporting Currency |
|
Constant |
|
Reporting Currency |
|
Constant |
||||||||||||||||||
|
Three Months Ended |
|
Change |
|
Change |
|
Nine Months Ended |
|
|
Change |
|
|
Change |
||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
Revenue |
32,118 |
|
|
23,458 |
|
|
37 |
% |
|
35 |
% |
|
91,874 |
|
|
76,122 |
|
|
|
21 |
% |
|
|
21 |
% |
Cost of sales |
(1,683 |
) |
|
(2,136 |
) |
|
(21 |
)% |
|
(22 |
)% |
|
(5,351 |
) |
|
(4,023 |
) |
|
|
33 |
% |
|
|
33 |
% |
Gross profit |
30,435 |
|
|
21,322 |
|
|
43 |
% |
|
41 |
% |
|
86,523 |
|
|
72,099 |
|
|
|
20 |
% |
|
|
20 |
% |
Sales and marketing expenses |
(10,815 |
) |
|
(8,636 |
) |
|
25 |
% |
|
24 |
% |
|
(31,021 |
) |
|
(25,644 |
) |
|
|
21 |
% |
|
|
21 |
% |
Technology expenses |
(3,616 |
) |
|
(2,525 |
) |
|
43 |
% |
|
41 |
% |
|
(10,044 |
) |
|
(7,229 |
) |
|
|
39 |
% |
|
|
39 |
% |
General and administrative expenses |
(6,041 |
) |
|
(4,831 |
) |
|
25 |
% |
|
23 |
% |
|
(18,582 |
) |
|
(17,297 |
) |
|
|
7 |
% |
|
|
8 |
% |
Movements in credit losses allowance and write-offs |
(360 |
) |
|
(615 |
) |
|
(41 |
)% |
|
(42 |
)% |
|
(1,061 |
) |
|
(1,382 |
) |
|
|
(23 |
)% |
|
|
(23 |
)% |
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
(6,939 |
) |
|
|
(100 |
)% |
|
|
(100 |
)% |
Operating profit |
9,603 |
|
|
4,715 |
|
|
104 |
% |
|
101 |
% |
|
25,815 |
|
|
13,608 |
|
|
|
90 |
% |
|
|
90 |
% |
Finance income |
551 |
|
|
968 |
|
|
(43 |
)% |
|
(44 |
)% |
|
1,725 |
|
|
1,674 |
|
|
|
3 |
% |
|
|
3 |
% |
Finance expenses |
(1,052 |
) |
|
(373 |
) |
|
182 |
% |
|
179 |
% |
|
(2,396 |
) |
|
(1,356 |
) |
|
|
77 |
% |
|
|
77 |
% |
Income before tax |
9,102 |
|
|
5,310 |
|
|
71 |
% |
|
69 |
% |
|
25,144 |
|
|
13,926 |
|
|
|
81 |
% |
|
|
81 |
% |
Income tax charge |
(593 |
) |
|
(297 |
) |
|
100 |
% |
|
97 |
% |
|
(2,398 |
) |
|
(2,040 |
) |
|
|
18 |
% |
|
|
18 |
% |
Net income for the period attributable to shareholders |
8,509 |
|
|
5,013 |
|
|
70 |
% |
|
68 |
% |
|
22,746 |
|
|
11,886 |
|
|
|
91 |
% |
|
|
92 |
% |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exchange differences on translating foreign currencies |
4,309 |
|
|
(2,777 |
) |
|
(255 |
)% |
|
(253 |
)% |
|
794 |
|
|
(2,085 |
) |
|
|
(138 |
)% |
|
|
(138 |
)% |
Total comprehensive income for the period attributable to shareholders |
12,818 |
|
|
2,236 |
|
|
473 |
% |
|
466 |
% |
|
23,540 |
|
|
9,801 |
|
|
|
140 |
% |
|
|
140 |
% |
Consolidated Statements of Financial Position (Unaudited) |
|||||
(USD in thousands) |
|||||
|
SEPTEMBER 30, |
|
DECEMBER 31, |
||
ASSETS |
|
|
|
||
Non-current assets |
|
|
|
||
Property and equipment |
1,884 |
|
|
908 |
|
Right-of-use assets |
5,062 |
|
|
1,460 |
|
Intangible assets |
138,398 |
|
|
98,000 |
|
Deferred tax asset |
6,792 |
|
|
7,134 |
|
Total non-current assets |
152,136 |
|
|
107,502 |
|
Current assets |
|
|
|
||
Current tax asset |
229 |
|
|
— |
|
Trade and other receivables |
20,447 |
|
|
21,938 |
|
Cash and cash equivalents |
15,723 |
|
|
25,429 |
|
Total current assets |
36,399 |
|
|
47,367 |
|
Total assets |
188,535 |
|
|
154,869 |
|
EQUITY AND LIABILITIES |
|
|
|
||
Equity |
|
|
|
||
Share capital |
— |
|
|
— |
|
Capital reserve |
76,821 |
|
|
74,166 |
|
Treasury shares |
(25,233 |
) |
|
(3,107 |
) |
Share-based compensation reserve |
9,755 |
|
|
7,414 |
|
Foreign exchange translation deficit |
(3,413 |
) |
|
(4,207 |
) |
Retained earnings |
67,404 |
|
|
44,658 |
|
Total equity |
125,334 |
|
|
118,924 |
|
Non-current liabilities |
|
|
|
||
Lease liability |
4,169 |
|
|
1,190 |
|
Deferred tax liability |
2,258 |
|
|
2,008 |
|
Borrowings |
21,524 |
|
|
— |
|
Total non-current liabilities |
27,951 |
|
|
3,198 |
|
Current liabilities |
|
|
|
||
Trade and other payables |
7,979 |
|
|
10,793 |
|
Deferred income |
2,499 |
|
|
2,207 |
|
Deferred consideration |
17,451 |
|
|
18,811 |
|
Contingent consideration |
2,652 |
|
|
— |
|
Borrowings and accrued interest |
2,922 |
|
|
— |
|
Other liability |
— |
|
|
308 |
|
Lease liability |
1,246 |
|
|
533 |
|
Income tax payable |
501 |
|
|
95 |
|
Total current liabilities |
35,250 |
|
|
32,747 |
|
Total liabilities |
63,201 |
|
|
35,945 |
|
Total equity and liabilities |
188,535 |
|
|
154,869 |
|
Consolidated Statements of Cash Flows (Unaudited) |
|||||||||||
(USD in thousands) |
|||||||||||
|
Three months ended |
|
Nine Months Ended |
||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Cash flow from operating activities |
|
|
|
|
|
|
|
||||
Income before tax |
9,102 |
|
|
5,310 |
|
|
25,144 |
|
|
13,926 |
|
Finance expense (income), net |
501 |
|
|
(596 |
) |
|
671 |
|
|
(318 |
) |
|
|
|
|
|
|
|
|
||||
Adjustments for non-cash items: |
|
|
|
|
|
|
|
||||
Depreciation and amortization |
1,801 |
|
|
495 |
|
|
4,046 |
|
|
1,520 |
|
Movements in credit loss allowance and write-offs |
360 |
|
|
615 |
|
|
1,061 |
|
|
1,382 |
|
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
|
|
6,939 |
|
Share-based payment expense |
1,180 |
|
|
696 |
|
|
3,737 |
|
|
2,790 |
|
Income tax paid |
(131 |
) |
|
26 |
|
|
(1,571 |
) |
|
(1,763 |
) |
Payment of deferred consideration |
— |
|
|
(2,897 |
) |
|
(7,156 |
) |
|
(2,897 |
) |
Payment of contingent consideration |
— |
|
|
— |
|
|
— |
|
|
(4,621 |
) |
Cash flows from operating activities before changes in working capital |
12,813 |
|
|
3,649 |
|
|
25,932 |
|
|
16,958 |
|
Changes in working capital |
|
|
|
|
|
|
|
||||
Trade and other receivables |
535 |
|
|
(5,235 |
) |
|
571 |
|
|
(7,127 |
) |
Trade and other payables |
1,588 |
|
|
858 |
|
|
(2,567 |
) |
|
1,044 |
|
Inventories |
— |
|
|
13 |
|
|
— |
|
|
75 |
|
Cash flows generated by operating activities |
14,936 |
|
|
(715 |
) |
|
23,936 |
|
|
10,950 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||
Acquisition of property and equipment |
(274 |
) |
|
(90 |
) |
|
(1,188 |
) |
|
(294 |
) |
Acquisition of intangible assets |
(469 |
) |
|
— |
|
|
(21,074 |
) |
|
(388 |
) |
Capitalization of internally developed intangibles |
(422 |
) |
|
(514 |
) |
|
(1,487 |
) |
|
(1,480 |
) |
Interest received from bank deposits |
14 |
|
|
90 |
|
|
118 |
|
|
169 |
|
Payment of deferred consideration |
— |
|
|
(2,543 |
) |
|
(10,044 |
) |
|
(4,933 |
) |
Payment of contingent consideration |
— |
|
|
— |
|
|
— |
|
|
(5,557 |
) |
Cash flows used in investing activities |
(1,151 |
) |
|
(3,057 |
) |
|
(33,675 |
) |
|
(12,483 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||
Exercise of options |
697 |
|
|
106 |
|
|
1,254 |
|
|
106 |
|
Treasury shares acquired |
(12,445 |
) |
|
— |
|
|
(22,195 |
) |
|
(759 |
) |
Repayment of borrowings |
(20,560 |
) |
|
— |
|
|
(20,560 |
) |
|
— |
|
Proceeds from borrowings |
27,560 |
|
|
— |
|
|
45,560 |
|
|
— |
|
Transaction costs related to borrowings |
— |
|
|
— |
|
|
(847 |
) |
|
— |
|
Interest payment attributable to third party borrowings |
(371 |
) |
|
— |
|
|
(545 |
) |
|
— |
|
Interest payment attributable to deferred consideration settled |
— |
|
|
— |
|
|
(1,382 |
) |
|
(110 |
) |
Principal paid on lease liability |
(229 |
) |
|
(105 |
) |
|
(483 |
) |
|
(304 |
) |
Interest paid on lease liability |
(83 |
) |
|
(40 |
) |
|
(172 |
) |
|
(127 |
) |
Cash flows generated by (used in) financing activities |
(5,431 |
) |
|
(39 |
) |
|
630 |
|
|
(1,194 |
) |
Net movement in cash and cash equivalents |
8,354 |
|
|
(3,811 |
) |
|
(9,109 |
) |
|
(2,727 |
) |
Cash and cash equivalents at the beginning of the period |
7,523 |
|
|
31,311 |
|
|
25,429 |
|
|
29,664 |
|
Net foreign exchange differences on cash and cash equivalents |
(154 |
) |
|
(616 |
) |
|
(597 |
) |
|
(53 |
) |
Cash and cash equivalents at the end of the period |
15,723 |
|
|
26,884 |
|
|
15,723 |
|
|
26,884 |
|
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Consolidated Statement of Comprehensive Income for the period specified, stated in USD thousands, except per share amounts (unaudited):
|
Three Months Ended |
|
Reporting |
|
Constant |
|
Nine Months Ended |
|
Reporting |
|
Constant |
||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||
Net income for the period attributable to shareholders |
8,509 |
|
5,013 |
|
70 |
% |
|
68 |
% |
|
22,746 |
|
11,886 |
|
91 |
% |
|
92 |
% |
Weighted-average number of ordinary shares, basic |
35,592,252 |
|
37,402,935 |
|
(5 |
)% |
|
(5 |
)% |
|
36,466,391 |
|
36,988,690 |
|
(1 |
)% |
|
(1 |
)% |
Net income per share attributable to shareholders, basic |
0.24 |
|
0.13 |
|
85 |
% |
|
71 |
% |
|
0.62 |
|
0.32 |
|
94 |
% |
|
94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income for the period attributable to shareholders |
8,509 |
|
5,013 |
|
70 |
% |
|
68 |
% |
|
22,746 |
|
11,886 |
|
91 |
% |
|
92 |
% |
Weighted-average number of ordinary shares, diluted |
35,833,767 |
|
38,711,429 |
|
(7 |
)% |
|
(7 |
)% |
|
36,750,150 |
|
38,176,200 |
|
(4 |
)% |
|
(4 |
)% |
Net income per share attributable to shareholders, diluted |
0.24 |
|
0.13 |
|
85 |
% |
|
85 |
% |
|
0.62 |
|
0.31 |
|
100 |
% |
|
100 |
% |
Disaggregated Revenue
Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.
The Company presents revenue as disaggregated by market based on the location of end user as follows:
|
Three Months Ended |
|
Change |
|
Nine Months Ended |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
|
12,803 |
|
12,903 |
|
(1 |
)% |
|
39,877 |
|
40,407 |
|
(1 |
)% |
|
9,800 |
|
6,858 |
|
43 |
% |
|
28,631 |
|
23,749 |
|
21 |
% |
Other |
6,770 |
|
2,320 |
|
192 |
% |
|
16,557 |
|
7,902 |
|
110 |
% |
Rest of the world |
2,745 |
|
1,377 |
|
99 |
% |
|
6,809 |
|
4,064 |
|
68 |
% |
Total revenues |
32,118 |
|
23,458 |
|
37 |
% |
|
91,874 |
|
76,122 |
|
21 |
% |
The Company presents disaggregated revenue by monetization type as follows:
|
Three Months Ended |
|
Change |
|
Nine Months Ended |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Performance marketing |
25,082 |
|
18,232 |
|
38 |
% |
|
72,674 |
|
60,769 |
|
20 |
% |
Subscription & content syndication |
2,272 |
|
2,104 |
|
8 |
% |
|
6,176 |
|
5,678 |
|
9 |
% |
Advertising & other |
4,764 |
|
3,122 |
|
53 |
% |
|
13,024 |
|
9,675 |
|
35 |
% |
Total revenues |
32,118 |
|
23,458 |
|
37 |
% |
|
91,874 |
|
76,122 |
|
21 |
% |
The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows:
|
Three Months Ended |
|
Change |
|
Nine Months Ended |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Casino |
24,835 |
|
15,190 |
|
63 |
% |
|
66,707 |
|
49,803 |
|
34 |
% |
Sports |
6,830 |
|
7,930 |
|
(14 |
)% |
|
24,156 |
|
25,518 |
|
(5 |
)% |
Other |
453 |
|
338 |
|
34 |
% |
|
1,011 |
|
801 |
|
26 |
% |
Total revenues |
32,118 |
|
23,458 |
|
37 |
% |
|
91,874 |
|
76,122 |
|
21 |
% |
Supplemental Information
Rounding
We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.
Adjusted Net Income and Adjusted Net Income Per Share
Adjusted net income is a non-IFRS financial measure defined as net income attributable to equity holders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. Adjusted net income per diluted share is a non-IFRS financial measure defined as adjusted net income attributable to equity holders divided by the diluted weighted average number of common shares outstanding.
We believe adjusted net income and adjusted net income per diluted share are useful to our management as a measure of comparative performance from period to period as these measures remove the effect of the fair value gain or loss related to the contingent consideration, unwinding of deferred consideration, and certain employee bonuses, all associated with our acquisitions, during the limited period where these items are incurred. The unwinding of deferred and contingent consideration during the three and nine months ended September 30, 2024 is mainly associated with the unwinding of the discount applied to the valuation of deferred and contingent consideration for the acquisition of the Freebets.com Assets. The unwinding of deferred consideration and employee bonuses incurred until April 2024 relate to the Company’s acquisition of Roto Sports and BonusFinder. See Note 5 of the consolidated financial statements for the year ended December 31, 2023 filed on March 21, 2024 for a description of the contingent and deferred considerations associated with our 2022 acquisitions.
Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share, diluted from net income for the period attributable to the equity holders and net income per share attributed to ordinary shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income and for the period specified stated in the Company’s reporting currency and constant currency (unaudited):
|
Reporting Currency |
|
Constant |
|
Reporting Currency |
|
Constant |
|||||||||||||||||
|
Three months ended |
|
Change |
|
Change |
|
Nine Months Ended |
|
Change |
|
Change |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
% |
||||
Revenue |
32,118 |
|
|
23,458 |
|
|
37 |
% |
|
35 |
% |
|
91,874 |
|
|
76,122 |
|
|
|
21 |
% |
|
21 |
% |
Net income for the period attributable to shareholders |
8,509 |
|
|
5,013 |
|
|
70 |
% |
|
68 |
% |
|
22,746 |
|
|
11,886 |
|
|
|
91 |
% |
|
92 |
% |
Net income margin |
26 |
% |
|
21 |
% |
|
|
|
|
|
25 |
% |
|
16 |
% |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income for the period attributable to shareholders |
8,509 |
|
|
5,013 |
|
|
70 |
% |
|
68 |
% |
|
22,746 |
|
|
11,886 |
|
|
|
91 |
% |
|
92 |
% |
Fair value movement on contingent consideration (1) |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
6,939 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Unwinding of deferred consideration (1) |
396 |
|
|
316 |
|
|
25 |
% |
|
23 |
% |
|
1,075 |
|
|
425 |
|
|
|
153 |
% |
|
153 |
% |
Employees’ bonuses related to acquisition(1) |
— |
|
|
78 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
243 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Adjusted net income for the period attributable to shareholders |
8,905 |
|
|
5,407 |
|
|
65 |
% |
|
63 |
% |
|
23,821 |
|
|
19,493 |
|
|
|
22 |
% |
|
22 |
% |
Net income per share attributable to shareholders, basic |
0.24 |
|
|
0.13 |
|
|
85 |
% |
|
71 |
% |
|
0.62 |
|
|
0.32 |
|
|
|
94 |
% |
|
94 |
% |
Effect of adjustments for fair value movements on contingent consideration, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.19 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for unwinding on deferred consideration, basic |
0.01 |
|
|
0.01 |
|
|
— |
% |
|
— |
% |
|
0.03 |
|
|
0.01 |
|
|
|
200 |
% |
|
200 |
% |
Effect of adjustments for bonuses related to acquisition, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.01 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Adjusted net income per share attributable to shareholders, basic |
0.25 |
|
|
0.14 |
|
|
79 |
% |
|
67 |
% |
|
0.65 |
|
|
0.53 |
|
|
|
23 |
% |
|
23 |
% |
Net income per share attributable to ordinary shareholders, diluted |
0.24 |
|
|
0.13 |
|
|
85 |
% |
|
85 |
% |
|
0.62 |
|
|
0.31 |
|
|
|
100 |
% |
|
100 |
% |
Adjusted net income per share attributable to shareholders, diluted |
0.25 |
|
|
0.14 |
|
|
79 |
% |
|
79 |
% |
|
0.65 |
|
|
0.51 |
|
|
|
27 |
% |
|
27 |
% |
__________ |
(1) There is no tax impact from fair value movement on contingent consideration, unwinding of deferred consideration or employee bonuses related to acquisition. |
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings excluding interest, income tax (charge) credit, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, foreign exchange gains (losses), fair value of contingent consideration, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management team as a measure of comparative operating performance from period to period as those measures remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.
While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to EBITDA, Adjusted EBITDA from net income for the period attributable to shareholders as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited):
|
Reporting Currency |
|
Constant |
|
Reporting Currency |
|
Constant |
||||||||||||||||||
|
Three Months Ended |
|
Change |
|
Change |
|
Nine Months Ended |
|
Change |
|
Change |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
|
(USD in thousands) |
|
|
|
|
(USD in thousands) |
|
|
|
|
|
||||||||||||||
Net income (loss) for the period attributable to shareholders |
8,509 |
|
|
5,013 |
|
|
70 |
% |
|
68 |
% |
|
22,746 |
|
|
11,886 |
|
|
|
91 |
% |
|
|
92 |
% |
Add back (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expenses on borrowings and lease liability |
450 |
|
|
40 |
|
|
1025 |
% |
|
1000 |
% |
|
929 |
|
|
127 |
|
|
|
631 |
% |
|
|
637 |
% |
Interest income |
(14 |
) |
|
(90 |
) |
|
(84 |
)% |
|
(85 |
)% |
|
(118 |
) |
|
(169 |
) |
|
|
(30 |
)% |
|
|
(30 |
)% |
Income tax charge |
593 |
|
|
297 |
|
|
100 |
% |
|
97 |
% |
|
2,398 |
|
|
2,040 |
|
|
|
18 |
% |
|
|
18 |
% |
Depreciation expense |
111 |
|
|
63 |
|
|
76 |
% |
|
73 |
% |
|
252 |
|
|
183 |
|
|
|
38 |
% |
|
|
38 |
% |
Amortization expense |
1,690 |
|
|
432 |
|
|
291 |
% |
|
287 |
% |
|
3,794 |
|
|
1,337 |
|
|
|
184 |
% |
|
|
184 |
% |
EBITDA |
11,339 |
|
|
5,755 |
|
|
97 |
% |
|
95 |
% |
|
30,001 |
|
|
15,404 |
|
|
|
95 |
% |
|
|
95 |
% |
Share-based payment and related expense |
1,180 |
|
|
696 |
|
|
70 |
% |
|
67 |
% |
|
3,737 |
|
|
2,790 |
|
|
|
34 |
% |
|
|
34 |
% |
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
6,939 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Unwinding of deferred consideration |
396 |
|
|
316 |
|
|
25 |
% |
|
23 |
% |
|
1,075 |
|
|
425 |
|
|
|
153 |
% |
|
|
153 |
% |
Foreign currency translation losses (gains), net |
(385 |
) |
|
(878 |
) |
|
(56 |
)% |
|
(57 |
)% |
|
(1,308 |
) |
|
(775 |
) |
|
|
69 |
% |
|
|
69 |
% |
Other finance results |
54 |
|
|
17 |
|
|
218 |
% |
|
218 |
% |
|
93 |
|
|
74 |
|
|
|
26 |
% |
|
|
27 |
% |
Secondary offering related costs |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
733 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Acquisition related costs (1) |
— |
|
|
70 |
|
|
(100 |
)% |
|
(100 |
)% |
|
357 |
|
|
313 |
|
|
|
14 |
% |
|
|
14 |
% |
Employees’ bonuses related to acquisition |
— |
|
|
78 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
243 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Adjusted EBITDA |
12,584 |
|
|
6,054 |
|
|
108 |
% |
|
105 |
% |
|
33,955 |
|
|
26,146 |
|
|
|
30 |
% |
|
|
30 |
% |
__________ |
(1) The acquisition costs are related to historical and contemplated business combinations of the Group. |
Below is the Adjusted EBITDA Margin calculation for the period specified stated in the Company’s reporting currency and constant currency (unaudited):
|
Reporting Currency |
|
Constant |
|
Reporting Currency |
|
Constant |
||||||||||||||||||
|
Three Months Ended |
|
Change |
|
Change |
|
Nine Months Ended |
|
Change |
|
Change |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
|
(USD in thousands, |
|
|
|
|
(in thousands USD, |
|
|
|
|
|
||||||||||||||
Revenue |
32,118 |
|
|
23,458 |
|
|
37 |
% |
|
35 |
% |
|
91,874 |
|
|
76,122 |
|
|
|
21 |
% |
|
|
21 |
% |
Adjusted EBITDA |
12,584 |
|
|
6,054 |
|
|
108 |
% |
|
105 |
% |
|
33,955 |
|
|
26,146 |
|
|
|
30 |
% |
|
|
30 |
% |
Adjusted EBITDA Margin |
39 |
% |
|
26 |
% |
|
|
|
|
|
37 |
% |
|
34 |
% |
|
|
|
|
|
|
In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward-looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.
Free Cash Flow
Free Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities less capital expenditures. In the second quarter of 2024, the Company changed its definition of free cash flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not assets acquisitions were excluded from capital expenditures. The Company believes that this more appropriately reflects the measurement of free cash flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions.
We believe Free Cash Flow is useful to our management team as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures because the measure does not deduct the payments required for debt payments and other obligations or payments made for acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Consolidated Statement of Cash Flows for the period specified in the Company’s reporting currency (unaudited):
|
Three Months Ended |
|
Change |
|
Nine Months Ended |
|
Change |
||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
2024 |
|
|
2023 |
|
|
% |
||
|
(in thousands USD, |
|
|
|
(USD in thousands, |
|
|
||||||||||
Cash flows generated by operating activities |
14,936 |
|
|
(715 |
) |
|
2189 |
% |
|
23,936 |
|
|
10,950 |
|
|
119 |
% |
Adjustment for items presented in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Payment of contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
4,621 |
|
|
(100 |
)% |
Payment of deferred consideration |
— |
|
|
2,897 |
|
|
(100 |
)% |
|
7,156 |
|
|
2,897 |
|
|
147 |
% |
Adjustment for items presenting in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital Expenditures (1) |
(696 |
) |
|
(604 |
) |
|
15 |
% |
|
(2,675 |
) |
|
(1,774 |
) |
|
51 |
% |
Free Cash Flow |
14,240 |
|
|
1,578 |
|
|
802 |
% |
|
28,417 |
|
|
16,694 |
|
|
70 |
% |
__________ |
(1) Capital expenditures are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions, as described above. Accordingly, capital expenditures presented above for the nine months ended September 30, 2024 and 2023 exclude |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114301245/en/
For further information:
Investors: Peter McGough, Gambling.com Group, investors@gdcgroup.com
Richard Land, Norberto Aja, JCIR, GAMB@jcir.com, 212-835-8500
Media: Eddie Motl, Gambling.com Group, media@gdcgroup.com
Source: Gambling.com Group Limited
FAQ
What was Gambling.com Group’s (GAMB) revenue in Q3 2024?
Gambling.com Group reported record Q3 2024 revenue of $32.1 million, representing a 37% increase year-over-year.
How much did GAMB’s Adjusted EBITDA grow in Q3 2024?
GAMB’s Adjusted EBITDA grew 108% to a record $12.6 million in Q3 2024, with margin expanding to 39% from 26% in the prior year.
What is Gambling.com Group’s updated 2024 revenue guidance?
The company raised its 2024 revenue guidance to $125-127 million, representing 16% year-over-year growth at the midpoint.
How many new depositing customers did GAMB acquire in Q3 2024?
GAMB delivered more than 116,000 new depositing customers in Q3 2024, representing a 35% increase year-over-year.