– Third Quarter Revenue Increases 37% to Record $32.1
Million; Net Income Rises to $8.5 Million
– Record Quarterly Adjusted EBITDA of $12.6 Million Up 108%
Versus Year-Ago Period
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 $100 million in annual Adjusted
EBITDA.”
Elias Mark, Chief Financial Officer of Gambling.com Group,
added, “Year-over-year third quarter revenue and Adjusted EBITDA
increased 37% and 108%, respectively, with very high free cash flow
conversion, reflecting the continued success of our strategies to
optimize the returns from our global portfolio of owned and
operated assets. As expected, we generated strong iGaming NDC
growth across all our geographical regions, while our North
American business continued to be resilient against challenging
comparables. As reflected in our raised full year outlook, we
expect to generate significant year-over-year revenue and Adjusted
EBITDA growth in 2024, and we are well-positioned to carry this
operating momentum forward, particularly as the North American
market is expected to return to growth next year.”
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 $0.4
million, or $0.01 per share. Similarly, these adjustments totaled
$0.3 million, or $0.01 per share, for the three months ended
September 30, 2023. 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.
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 $9.35 per
share. Subsequent to the end of the third quarter, repurchased an
additional 486,000 shares at an average price of $9.80 per
share
- Outstanding balance of $25.0 million of the $50.0 million
credit facility as of September 30, 2024
- Won Casino Affiliate of the Year at the 2024 EGR Operator
Awards
- Authorized an additional $10.0 million for the Company's share
repurchase program on November 13
Three Months Ended September 30, 2024
Results Compared to Three Months Ended September 30,
2023
Revenue rose 37% year-over-year to a third quarter record $32.1
million. The Company delivered more than 116,000 NDCs to clients, a
35% year-over-year increase.
Gross profit increased 43% to $30.4 million, primarily as a
result of strong revenue growth and a $0.5 million decrease in cost
of sales related to the Company's media partnerships.
Total operating expenses increased 25% to $20.8 million,
primarily as a result of increased people costs and higher
amortization related to the acquisition of Freebets.com and related
assets.
Net income attributable to shareholders increased $3.5 million
to $8.5 million and net income per share was $0.24 compared to
$0.13 in the prior year period. Adjusted net income rose 65% to
$8.9 million and adjusted net income per share increased 79% to
$0.25.
Adjusted EBITDA more than doubled to a quarterly record $12.6
million, reflecting an Adjusted EBITDA margin of 39% as compared to
Adjusted EBITDA of $6.1 million and an Adjusted EBITDA margin of
26%, year-over-year.
Operating cash flow of $14.9 million compared to negative $0.7
million, which in the prior year period included contingent
consideration payments of $2.9 million related to the BonusFinder
acquisition. Free cash flow grew to $14.2 million from $1.6 million
primarily reflecting growth in net income and Adjusted EBITDA and
positive working capital movements in the period.
2024 Outlook
Gambling.com Group today updated its 2024 full-year revenue and
Adjusted EBITDA guidance. The Company now expects full year revenue
of $125 million to $127 million and Adjusted EBITDA of $46.5
million to $48.5 million. The midpoints of the new full year
revenue and Adjusted EBITDA guidance ranges represent
year-over-year growth of 16% and 29%, respectively. The Company's
updated outlook compares to the guidance provided on August 15,
2024 for revenue of $123 million to $127 million and Adjusted
EBITDA of $44 million to $47 million.
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 $7.5 million, of which
$5.4 million was incurred in the first nine months of 2024
- 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 $1.1
million, or $0.03 per share. Similarly, these adjustments totaled
$7.4 million, or $0.20 per share, for the nine months ended
September 30, 2023. 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, November 14, 2024, at 8:00 a.m.
ET
Webcast:
https://www.webcast-eqs.com/gamb20241114/en
U.S. Toll-Free Dial In:
877-407-0890
International Dial In:
1 201-389-0918
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 the United States and Ireland.
Through its proprietary technology platform, the Group publishes a
portfolio of premier branded websites including Gambling.com,
Bookies.com, Casinos.com, and RotoWire.com. Gambling.com Group owns
and operates more than 50 websites in seven languages across 15
national markets covering all aspects of the online gambling
industry, including iGaming and sports betting, and the fantasy
sports industry.
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 U.S. Private
Securities Litigation Reform Act of 1995, that relate to our
current expectations and views of future events. All statements
other than statements of historical facts contained in this press
release, including statements relating to our further expansion of
our footprint in the online gaming ecosystem, whether we can
achieve $100 million in annual Adjusted EBITDA, whether the North
American market returns to growth in 2025, and our 2024 outlook,
are all forward-looking statements. These statements represent our
opinions, expectations, beliefs, intentions, estimates or
strategies regarding the future, which may not be realized. In some
cases, you can identify forward-looking statements by terms such as
“believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,”
“should,” “plan,” “expect,” “predict,” “potential,” “could,”
“will,” “would,” “ongoing,” “future” or the negative of these terms
or other similar expressions that are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Forward-looking
statements are based largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy, short-term and long-term business operations and
objectives and financial needs. These forward-looking statements
involve known and unknown risks, uncertainties, contingencies,
changes in circumstances that are difficult to predict and other
important factors that may cause our actual results, performance,
or achievements to be materially and/or significantly different
from any future results, performance or achievements expressed or
implied by the forward-looking statement. Important factors that
could cause actual results to differ materially from our
expectations are discussed under “Item 3. Key Information - Risk
Factors” in Gambling.com Group’s annual report filed on Form 20-F
for the year ended December 31, 2023 with the U.S. Securities and
Exchange Commission (the “SEC”) on March 21, 2024, and Gambling.com
Group’s other filings with the SEC as such factors may be updated
from time to time. Any forward-looking statements contained in this
press release speak only as of the date hereof and accordingly
undue reliance should not be placed on such statements.
Gambling.com Group disclaims any obligation or undertaking to
update or revise any forward-looking statements contained in this
press release, whether as a result of new information, future
events or otherwise, other than to the extent required by
applicable law.
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 Currency
Reporting Currency
Constant Currency
Three Months Ended September
30,
Change
Change
Nine Months Ended September
30,
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,
2024
DECEMBER 31,
2023
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 September
30,
Nine Months Ended September
30,
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 September
30,
Reporting Currency
Change
Constant Currency
Change
Nine Months Ended September
30,
Reporting Currency
Change
Constant Currency
Change
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 September
30,
Change
Nine Months Ended September
30,
Change
2024
2023
2024 vs 2023
2024
2023
2024 vs 2023
North America
12,803
12,903
(1
)%
39,877
40,407
(1
)%
UK and Ireland
9,800
6,858
43
%
28,631
23,749
21
%
Other Europe
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 September
30,
Change
Nine Months Ended September
30,
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 September
30,
Change
Nine Months Ended September
30,
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 Currency
Reporting Currency
Constant Currency
Three months ended September
30,
Change
Change
Nine Months Ended September
30,
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 Currency
Reporting Currency
Constant Currency
Three Months Ended September
30,
Change
Change
Nine Months Ended September
30,
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 Currency
Reporting Currency
Constant Currency
Three Months Ended September
30,
Change
Change
Nine Months Ended September
30,
Change
Change
2024
2023
%
%
2024
2023
%
%
(USD in thousands, except
margin)
(in thousands USD, except
margin)
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 September
30,
Change
Nine Months Ended September
30,
Change
2024
2023
%
2024
2023
%
(in thousands USD,
unaudited)
(USD in thousands,
unaudited)
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 $21.1 million (related to the Freebets.com and other
asset acquisitions) and $0.4 million, respectively.
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
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