Gambling.com soars to 2024 high after earnings (NASDAQ:GAMB)

Gambling.com Group Limited (NASDAQ:GAMB) shot up 25.0% in afternoon trading on Thursday after breezing past consensus estimates with its Q2 earnings report.

The Channel Island-based company reported revenue rose 18% year-over-year to a Q2 record tally of $30.5 million. Gambling.com noted that it delivered more than 108,000 NDCs to customers, which was an increase of 19% year-over-year, even as the year-ago period benefited from atypically strong growth in U.S. sports betting NDCs. Gross profit increased 16% to $29.1 million, including a $0.5 million increase in cost of sales related to the company’s media partnerships. Total operating expenses decreased 15% to $20.8 million, reflecting the elimination of fair value movement in contingent consideration and a modest decrease in general and administrative expenses, partially offset by increases in sales and marketing and technology expenses. Adjusted EBITDA rose to $11.2 million from $9.4 million a year ago. Adjusted net income increased 13% to $7.4 million and adjusted net income per share increased 18% to $0.20 vs. $0.12 consensus and $0.17 a year ago.

On the guidance front, Gambling.com (GAMB) now expects FY24 revenue to land in a range of $123 million to $127 million, compared to the prior outlook for $118 million to $122 million.

Jefferies analyst David Katz said the Q2 results for Gambling.com (GAMB) were stronger than expected, primarily attributable to the recalibration of the business among the owned assets post the changes in Google’s treatment of commercial content. Katz highlighted that the quarter supports management’s commentary on the company’s ability to drive value through its assets despite challenging comparables in North America. He also pointed out that GAMB’s share repurchase activity provided incremental support.

Shares of GAMB were trading hands at the highest level of the year in afternoon action.