BonusFinder
Gambling.com Group Limited Revenue Grows 63% to a Q2 Record of $26.0 Million, Net Income Rises to $0.3 Million and Adjusted EBITDA Increases to a Q2 Record of $9.4 Million
Raises 2023 revenue guidance to $100-$104 million and adjusted EBITDA guidance to $36-$40 million; mid-points imply revenue growth of 33% and adjusted EBITDA growth of 58% over the full year 2022
Gambling.com Group Limited (Nasdaq: GAMB), a leading provider of digital marketing services for the global online gambling industry, today reported record second-quarter financial results for the three months ended June 30, 2023. The company also increased its guidance for full-year revenue and adjusted EBITDA.
Second Quarter 2023 vs. Second Quarter 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)
| Three Months Ended June 30, | Change | ||||||||
| 2023 | 2022 | % | |||||||
| Revenue | 25,972 | 15,924 | 63 | % | |||||
| Net income for the period attributable to shareholders (1) | 278 | 56 | 396 | % | |||||
| Net income per share attributable to shareholders, diluted (1) | 0.01 | 0.00 | 100 | % | |||||
| Net income margin (1) | 1 | % | — | % | |||||
| Adjusted net income for the period attributable to shareholders (1)(2) | 6,535 | 3,065 | 113 | % | |||||
| Adjusted net income per share attributable to shareholders, diluted (1)(2) | 0.17 | 0.08 | 113 | % | |||||
| Adjusted EBITDA (1)(2) | 9,424 | 3,617 | 161 | % | |||||
| Adjusted EBITDA Margin (1)(2) | 36 | % | 23 | % | |||||
| Cash flows generated by operating activities | 4,586 | 3,368 | 36 | % | |||||
| Free Cash Flow (2) | 8,526 | 2,822 | 202 | % | |||||
(1) For the three months ended June 30, 2023, 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 acquisitions of RotoWire and BonusFinder of $6.1 million, or $0.17 per share. Similarly, these adjustments totalled $3 million, or $0.08, per share for the three months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments
(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.
“The business performed phenomenally in the second quarter with record operating results reflecting another quarter of significant organic revenue growth and strong free cash flow generation,” the co-founder and Chief Executive Officer for Gambling.com Group Limited, Charles Gillespie, said. “The growth highlights our success in scaling our North American operations as well as continued growth in our more established markets. New depositing customers rose 60% year-over-year to over 91,000, which helped drive a 63% revenue increase to $26 million, 161% growth in adjusted EBITDA to $9.4 million and $8.5 million of free cash flow.
“Despite North America already being our largest reporting market, it still represents a significant growth opportunity for Gambling.com Group Limited and we remain very confident in our ability to continue to increase market share in existing states as they continue to grow. This expected growth will be complemented by an overall expansion of the addressable market as new states such as North Carolina and Kentucky come online with sports betting and iGaming is authorized in additional states. As we continue to scale our North American operations, Gambling.com Group Limited will benefit from other attractive near and long-term growth drivers including valuable media partnerships with leading domestic digital media publishers, McClatchy and Gannett, and the significant long-term global opportunity provided by the recently launched Casinos.com. In addition, we are well positioned to continue growing in our more established markets where we continue to take market share and have signed our first international media partnership with The Independent for the United Kingdom market.
“With each quarter of consistent profitable organic growth delivered by Gambling.com Group Limited, we are demonstrating the benefits of what we believe to be the most attractive business model in the industry as we leverage our many growth drivers and capital efficiency. Our excellence in SEO and proprietary data science allows us to consistently generate top-line growth, adjusted EBITDA margins that exceed 30% and strong free cash flow conversion. As a result, we are confident Gambling.com Group Limited will continue to create added value for our shareholders, clients and our valued team members.”
Second Quarter 2023 and Recent Business Highlights
- Grew North American revenue 115% to $13.4 million
- Delivered more than 91,000 new depositing customers
- Entered into first international media partnership with The Independent, one of the United Kingdom’s largest digital media publishers with more than 20 million unique monthly users
- Negotiated a final, deferred consideration payment of €18 million related the acquisition of BonusFinder in exchange for the early termination of the earn-out period, providing the company with the ability to accelerate the realization of synergies
- Repurchased 77,683 ordinary shares at an average price of $9.83 per share
“The operating leverage we generated on 63% year-over-year revenue growth and 161% adjusted EBITDA growth in the second quarter grew free cash flow growth of 202% to $8.5 million,” the Chief Financial Officer for Gambling.com Group Limited, Elias Mark, said. “As a result, we have significant flexibility to simultaneously continue to strategically invest in growth opportunities including the buildout of Casinos.com and the development of our media partnerships and to evaluate strategic transactions that we believe create new shareholder value. Reflecting our strong operating results through the first six months of the year, which outperformed our expectations and our confidence for continued strong performance over the balance of 2023, we are raising our full-year revenue and adjusted EBITDA outlook with the mid-point of the new ranges representing year-over-year growth of 33% and 58%, respectively.”
2023 Outlook
The company raised its full-year 2023 revenue guidance to between $100 million and $104 million and adjusted EBITDA guidance to between $36 million and $40 million. The company’s guidance assumes:
- Kentucky goes live on September 28 with online sports betting
- Beyond Kentucky, no online sports betting or iGaming going live in any additional North American markets for the balance of 2023
- No contribution from any new acquisitions
- New investments throughout 2023 for the development of Casinos.com and support to our media partners including Gannett, McClatchy and The Independent
- An average EUR/USD exchange rate of 1.095 throughout the remainder of 2023
First Half 2023 vs. First Half 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)
| Six Months Ended June 30, | Change | ||||||||
| 2023 | 2022 | % | |||||||
| Revenue | 52,664 | 35,509 | 48 | % | |||||
| Net income for the period attributable to shareholders (1) | 6,873 | 4,542 | 51 | % | |||||
| Net income per share attributable to shareholders, diluted (1) | 0.18 | 0.12 | 50 | % | |||||
| Net income margin (1) | 13 | % | 13 | % | |||||
| Adjusted net income for the period attributable to shareholders (1)(2) | 14,086 | 7,551 | 87 | % | |||||
| Adjusted net income per share attributable to shareholders, diluted (1)(2) | 0.37 | 0.21 | 76 | % | |||||
| Adjusted EBITDA (1)(2) | 20,097 | 10,719 | 87 | % | |||||
| Adjusted EBITDA Margin (1)(2) | 38 | % | 30 | % | |||||
| Cash flows generated by operating activities | 11,669 | 6,944 | 68 | % | |||||
| Free Cash Flow (2) | 14,732 | 4,186 | 252 | % | |||||
(1) For the six months ended June 30, 2023, 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 acquisitions of RotoWire and BonusFinder of $7 million, or $0.19 per share. Similarly, these adjustments totalled $3 million, or $0.09, per share for the six months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments.
(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
Date/Time: Thursday, August 17, 2023, at 8:00 am ET
Webcast: https: //www. webcast-egs .com/gamb20230817/en
US Toll-Free Dial In: 877-407-0890
International Dial In: +1-201-389-0918
To access, please dial in approximately ten 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.