Q3 2024 Gambling.com Group Ltd Earnings Call Transcript
Key Points
- Gambling.com Group Ltd (GAMB) achieved a third-quarter revenue record of $32.1 million, driven by a 37% year-over-year increase.
- The company raised its full-year revenue guidance, with a midpoint indicating 16% growth and adjusted EBITDA growth of 29%.
- Gross profit increased by 43% year-over-year, with a gross margin improvement to 95% from 91% in the previous year.
- The Freebets.com acquisition has been successfully integrated, contributing positively to the company's growth.
- Gambling.com Group Ltd (GAMB) has repurchased over 8% of its outstanding shares, demonstrating confidence in its financial position and future prospects.
- North American revenue is expected to be down compared to 2023 due to challenging comparables and limited new state launches.
- Total operating expenses increased by 25% to $20.8 million, reflecting higher headcount and amortization expenses.
- The company faces two more quarters of challenging comparables in North America, impacting short-term growth.
- The cost of sales guidance was raised, indicating potential pressure on margins.
- There is uncertainty regarding the regulatory environment in Brazil, affecting the company's ability to aggressively enter the market.
(technical difficulty) Continued international expansion in both our existing and new markets and ultimately targeted M&A that broadens our footprint in the online gambling ecosystem. I'm confident that with the right accretive M&A transactions, we may even be able to achieve the target earlier than our own initial expectations. Our confidence in our near- and long-term outlook is highlighted by the brisk pace of share repurchases activity we've undertaken over the last two years. As we were purchased over 8% of our outstanding shares during that time.
Reflecting our strong year to day performance we raised guidance with the midpoint of our updated range indicating revenue growth of 16% and adjusted to growth of 29%. Our balance sheet and cash flow position us to continue repurchasing shares and pursuing a creative M&A. Now let me turn the call over to Ellis for a review of the third quarter financial highlights and details on our revised full year outlook.
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