Latest news with #Gambling.comGroupLimited
Yahoo
20-05-2025
- Business
- Yahoo
Gambling.com Group Limited (GAMB): A Bull Case Theory
We came across a bullish thesis on Group Limited (GAMB) on Substack by Inflexio Research. In this article, we will summarize the bulls' thesis on GAMB. Group Limited (GAMB)'s share was trading at $14.72 as of May 14th. GAMB's trailing P/E was 17.52 according to Yahoo Finance. (GAMB) is a high-margin, capital-light affiliate marketing company connecting online gaming operators with depositing users via a portfolio of 60+ websites, including and Monetizing traffic through CPA (50% of revenue), revenue share, and hybrid models, the company earns 62% of its revenue from iGaming and social casinos, and 38% from sports betting. Despite Google algorithm changes in late 2023 and early 2024 that hurt SEO visibility—especially in the UK and Ireland—and forced a reset in guidance, GAMB swiftly pivoted to focus on organic traffic, delivering record Q2, Q3, and Q4 2024 results and restoring investor confidence. With 94% gross margins, 38% EBITDA margins, and nearly 100% FCF conversion, GAMB trades at just 9x EPS and 5.5x EBITDA—levels that appear deeply discounted for a business with a clear path to $100M in EBITDA. Tailwinds include a global iGaming market growing at 12% CAGR and only seven U.S. states having legalized online casinos, leaving ample room for expansion. In 2025, ten states introduced iGaming legislation, with even partial adoption posing significant upside. GAMB is expanding internationally, notably in Latin America, and has grown through strategic M&A—acquiring at 5.6x EBITDA and Oddsjam, a recurring revenue platform, for 5.5x 2025 EBITDA. CEO alignment is strong with 12% ownership and performance-based options. Trading at 12x 2025 EPS with $67–69M EBITDA guidance, GAMB could reach $2.00+ EPS and $24.50/share by 2027. Execution, regulation, and insider sales remain risks, but the risk/reward setup is compelling for long-term investors. Group Limited (GAMB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held GAMB at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of GAMB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GAMB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Gambling.com Group Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a sad week for Group Limited (NASDAQ:GAMB), who've watched their investment drop 13% to US$12.43 in the week since the company reported its quarterly result. It looks like a credible result overall - although revenues of US$41m were what the analysts expected, Group surprised by delivering a (statutory) profit of US$0.31 per share, an impressive 31% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've discovered 1 warning sign about Group. View them for free. After the latest results, the seven analysts covering Group are now predicting revenues of US$172.1m in 2025. If met, this would reflect a huge 24% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$0.98, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$172.3m and earnings per share (EPS) of US$1.04 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. View our latest analysis for Group The consensus price target held steady at US$18.57, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Group, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$17.00 per share. This is a very narrow spread of estimates, implying either that Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Group'shistorical trends, as the 33% annualised revenue growth to the end of 2025 is roughly in line with the 36% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.8% per year. So it's pretty clear that Group is forecast to grow substantially faster than its industry. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Group analysts - going out to 2027, and you can see them free on our platform here. Before you take the next step you should know about the 1 warning sign for Group that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-05-2025
- Business
- Yahoo
Gambling.com Group Limited (GAMB) Q1 Earnings and Revenues Surpass Estimates
Group Limited (GAMB) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 142.11%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.35, delivering a surprise of 40%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. , which belongs to the Zacks Advertising and Marketing industry, posted revenues of $40.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.64%. This compares to year-ago revenues of $29.22 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. shares have added about 4.6% since the beginning of the year versus the S&P 500's gain of 0.2%. While has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $39.02 million in revenues for the coming quarter and $0.92 on $172.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Advertising and Marketing is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Arbe Robotics Ltd. (ARBE), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended March 2025. The results are expected to be released on May 20. This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Arbe Robotics Ltd.'s revenues are expected to be $0.1 million, down 28.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Group Limited (GAMB) : Free Stock Analysis Report Arbe Robotics Ltd. (ARBE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
Gambling.com Group Reports First Quarter Results Including Record Revenue and Adjusted EBITDA
Reiterates 2025 Full Year Guidance CHARLOTTE, N.C., May 15, 2025--(BUSINESS WIRE)-- Group Limited (Nasdaq: GAMB) (" Group" or the "Company"), a fast-growing provider of marketing and sports data services for the global online gambling industry, today reported financial results for the first quarter ended March 31, 2025. Charles Gillespie, Chief Executive Officer and Co-Founder of Group, commented, "We entered 2025 with our marketing business at all-time highs and with an expanded suite of sports data services having closed the acquisition of OddsJam and OpticOdds on January 1. Since the closing, we have made substantial progress on integrating these offerings into our overall business and the products are performing strongly as expected. With an enhanced sports data services platform, we now have meaningful recurring subscription revenue, which we expect to account for well over 20% of our 2025 revenue, bringing increased revenue visibility and a complimentary, high margin and high growth source of profit and cash flow. "We are reiterating our full year 2025 guidance despite the unpredictable macro environment, as our services address critical problems for all our customers and our industry is typically insulated from the gyrations of the global economy. We continue to expect 2025 to be another year of record revenue, Adjusted EBITDA and Free Cash Flow as we leverage the skills and expertise of our talented team with a larger product offering to drive growth across all our reporting regions. Each day we are moving closer to our goal of generating $100 million in annual Adjusted EBITDA." Elias Mark, Chief Financial Officer of Group, added, "Our first quarter results include record quarterly revenue of $40.6 million and Adjusted EBITDA of $15.9 million, reflecting year-over-year growth of 39% and 56%, respectively. With the solid start to the year, we remain confident in our full year outlook with the midpoints of our guidance for revenue of $172 million and $68 million in Adjusted EBITDA, representing year on year growth of 35% and 40%, respectively." Financial Highlights Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024(USD in thousands, except per share data, unaudited) Three Months Ended March 31, Change 2025 2024 % Revenue 40,635 29,215 39 % Net income for the period attributable to shareholders 11,236 7,299 54 % Net income per share attributable to shareholders, diluted 0.31 0.19 63 % Net income margin 28 % 25 % Adjusted net income for the period attributable to shareholders (1) 16,490 9,264 78 % Adjusted net income per share attributable to shareholders, diluted (1) 0.46 0.24 92 % Adjusted EBITDA (1) 15,864 10,159 56 % Adjusted EBITDA Margin (1) 39 % 35 % Cash flows generated by operating activities 11,415 8,806 30 % Free Cash Flow (1) 10,277 8,193 25 % __________(1) 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. First Quarter 2024 and Recent Business Highlights Delivered more than 138,000 new depositing customers ("NDCs") Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in ordinary shares Expanded credit facility to $165 million with a new syndicate Three Months Ended March 31, 2025 Results Compared to Three Months Ended March 31, 2024 Revenue rose 39% year-over-year to a record $40.6 million. Revenue from marketing services increased 13% year over year to $30.7 million as the Company delivered more than 138,000 NDCs to clients, a 29% increase over the prior-year period. Revenue from sports data services increased 405% year-over-year to $9.9 million, primarily due to the contribution of OddsJam and OpticOdds following the acquisition on January 1. Recurring subscription revenue represented 24% of total 2025 first quarter revenue. Gross profit increased 42% to $38.4 million, due to strong revenue growth while cost of sales was in line with the prior-year period reflecting lower cost of sales for media partnerships offset by the addition of cost of sales related to OddsJam and OpticOdds. Total operating expenses increased 49% to $28.4 million, primarily as a result of increased people costs and higher amortization related to the acquisition of and related assets on April 1, 2024 and the acquisition of Odds Holdings on January 1, 2025. Net income attributable to shareholders increased $3.9 million to $11.2 million and net income per share was $0.31 compared to $0.19 in the prior-year period. Adjusted net income rose 78% to $16.5 million and Adjusted net income per share increased 92% to $0.46. Adjusted EBITDA increased 56% to a record $15.9 million, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $10.2 million and an Adjusted EBITDA margin of 35% in the prior-year period. Operating cash flow grew 30% to $11.4 million. Free cash flow increased 25% to $10.3 million, reflecting growth in Adjusted EBITDA partly offset by working capital movements. 2025 Outlook Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an Adjusted EBITDA margin of 39.5%. The Company's guidance assumes: Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025. No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company's guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body. An average EUR/USD exchange rate of 1.10 throughout 2025. Conference Call Details Date/Time: Thursday, May 15, 2025, at 8:00 a.m. ET Webcast: 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 Information contained on the Company's website is not incorporated into this press release. About Group Limited Group Limited (Nasdaq: GAMB) (the "Group") is a fast-growing provider of marketing and sports data services for the global online gambling industry. Founded in 2006, the Group operates globally, primarily from offices in the United States and Ireland. The Group helps online gambling operators, including for iGaming and sports betting, acquire new customers in 19 national markets across more than ten languages through a portfolio of premier branded websites including and Under the OddsJam, OpticOdds and RotoWire brands, the Group's sports data services assist consumers and powers enterprises to succeed in sports betting and fantasy sports. 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 whether 2025 will be another year of record revenue, Adjusted EBITDA and Free Cash Flow, the percentage of 2025 revenue expected from recurring subscription revenue, whether we can achieve $100 million in annual Adjusted EBITDA, and our 2025 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 Group's annual report filed on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (the "SEC") on March 20, 2025, and 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. 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 months ended March 31, 2025 and 2024 in the Company's reporting currency and constant currency. Reporting Currency Constant Currency Three Months Ended March 31, Change Change 2025 2024 % % Revenue 40,635 29,215 39 % 43 % Cost of sales (2,246 ) (2,233 ) 1 % 4 % Gross profit 38,389 26,982 42 % 47 % Sales and marketing expenses (15,163 ) (9,612 ) 58 % 63 % Technology expenses (5,193 ) (3,215 ) 62 % 67 % General and administrative expenses (7,675 ) (6,304 ) 22 % 26 % Movements in credit losses allowance and write-offs (329 ) 40 (923 )% (944 )% Operating profit 10,029 7,891 27 % 31 % Finance income 3,894 944 313 % 325 % Finance expenses (2,974 ) (454 ) 555 % 574 % Income before tax 10,949 8,381 31 % 35 % Income tax credit (charge) 287 (1,082 ) (127 )% (127 )% Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Other comprehensive income (loss) Exchange differences on translating foreign currencies 1,409 (2,594 ) (154 )% (156 )% Total comprehensive income for the period attributable to shareholders 12,645 4,705 169 % 177 % Consolidated Statements of Financial Position (Unaudited)(USD in thousands) MARCH 31, 2025 DECEMBER 31, 2024 ASSETS Non-current assets Property and equipment 2,063 1,833 Right-of-use assets 4,421 4,632 Intangible assets 248,143 130,811 Deferred tax asset 5,812 6,418 Total non-current assets 260,439 143,694 Current assets Trade and other receivables 23,969 21,160 Cash and cash equivalents 21,498 13,729 Total current assets 45,467 34,889 Total assets 305,906 178,583 EQUITY AND LIABILITIES Equity Share capital — — Capital reserve 89,160 78,037 Treasury shares (29,998 ) (29,998 ) Share-based compensation reserve 11,106 10,624 Foreign exchange translation deficit (9,403 ) (10,812 ) Retained earnings 86,573 75,337 Total equity 147,438 123,188 Non-current liabilities Lease liability 3,609 3,819 Deferred consideration 1,741 — Deferred tax liability 7,876 2,258 Contingent consideration 24,217 — Borrowings 78,114 19,582 Total non-current liabilities 115,557 25,659 Current liabilities Trade and other payables 7,640 10,205 Deferred income 5,366 2,616 Deferred consideration 11,176 11,277 Borrowings and accrued interest 10,402 3,349 Lease liability 1,278 1,213 Income tax payable 7,049 1,076 Total current liabilities 42,911 29,736 Total liabilities 158,468 55,395 Total equity and liabilities 305,906 178,583 Consolidated Statements of Cash Flows (Unaudited)(USD in thousands) Three months ended March 31, 2025 2024 Cash flow from operating activities Income before tax 10,949 8,381 Finance income, net (920 ) (490 ) Income tax (paid) reimbursed (753 ) 214 Adjustments for non-cash items: Depreciation and amortization 3,776 624 Movements in credit loss allowance and write-offs 329 (40 ) Share-based payment expense 1,409 837 Cash flows from operating activities before changes in working capital 14,790 9,526 Changes in working capital Trade and other receivables (2,207 ) 2,240 Trade and other payables (1,168 ) (2,960 ) Cash flows generated by operating activities 11,415 8,806 Cash flows from investing activities Acquisition of property and equipment (311 ) (72 ) Capitalization of internally developed intangibles (827 ) (541 ) Acquisition of subsidiaries, net of cash acquired (66,955 ) — Interest received from bank deposits 36 74 Payment of deferred consideration in relation to business combinations (300 ) (4,450 ) Cash flows used in investing activities (68,357 ) (4,989 ) Cash flows from financing activities Exercise of options 588 106 Treasury shares acquired — (3,084 ) Proceeds from borrowings 94,500 — Transaction costs related to borrowings (5,656 ) — Repayment of borrowings (23,381 ) — Interest payment attributable to third party borrowings (1,730 ) — Interest payment attributable to deferred consideration settled — (550 ) Principal paid on lease liability (213 ) (100 ) Interest paid on lease liability (74 ) (34 ) Cash flows generated from (used in) financing activities 64,034 (3,662 ) Net movement in cash and cash equivalents 7,092 155 Cash and cash equivalents at the beginning of the period 13,729 25,429 Net foreign exchange differences on cash and cash equivalents 677 (266 ) Cash and cash equivalents at the end of the period 21,498 25,318 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 March 31, Reporting Currency Change Constant Currency Change 2025 2024 % % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Weighted-average number of ordinary shares, basic 35,572,365 37,088,365 (4 )% (4 )% Net income per share attributable to shareholders, basic 0.32 0.20 60 % 63 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Weighted-average number of ordinary shares, diluted 36,219,725 38,175,047 (5 )% (5 )% Net income per share attributable to shareholders, diluted 0.31 0.19 63 % 63 % 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. Marketing Performance marketing. Performance marketing revenue consists of (i) CPA revenue from arrangements where we are paid exclusively by a single cash payment for each referred player, (ii) revenue share arrangements where we are paid exclusively by a share of the customer's net gambling revenue ("NGR") from the referred players, and (iii) hybrid revenue from arrangements where we are paid by both a CPA commission and a revenue share commission from the referred players. Advertising and other. Advertising, media and other revenue includes revenue from arrangements not based on the referred players and includes advertising on our platform and onboarding fees. Data Subscription. Data revenue consists of consumer and enterprise subscription revenue from data, data analytics and data syndication services. Three Months Ended March 31, Change 2025 2024 2025 vs 2024 Marketing 30,736 27,256 13 % Data 9,899 1,959 405 % Total revenues 40,635 29,215 39 % The Company presents revenue as disaggregated by market based on the location of end user as follows: Three Months Ended March 31, Change 2025 2024 2025 vs 2024 North America 20,979 14,816 42 % U.K. and Ireland 11,085 8,920 24 % Other Europe 5,935 3,861 54 % Rest of the world 2,636 1,618 63 % Total revenues 40,635 29,215 39 % The Company presents disaggregated revenue by monetization type as follows: Three Months Ended March 31, Change 2025 2024 2025 vs 2024 Performance marketing 25,731 23,373 10 % Subscription 9,899 1,959 405 % Advertising & other 5,005 3,883 29 % Total revenues 40,635 29,215 39 % 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 March 31, Change 2025 2024 2025 vs 2024 Casino 24,576 19,810 24 % Sports 15,384 9,137 68 % Other 675 268 152 % Total revenues 40,635 29,215 39 % 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 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 In the fourth quarter of 2024, we changed our definition of Adjusted net income, a non-IFRS financial measure, to net income attributable to shareholders adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, fair value movements related to contingent consideration, unwinding of deferred consideration, amortization expenses related to acquired businesses and assets, 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. Previously, Adjusted net income, a non-IFRS financial measure, was defined as net income attributable to shareholders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. We believe this more appropriately reflects the measurement of Adjusted net income as it includes adjustments for non-recurring items and significant non-cash items in addition to fair value movements related to contingent consideration and unwinding of deferred consideration. Adjusted net income per diluted share is a non-IFRS financial measure defined as Adjusted net income attributable to shareholders 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 months ended March 31, 2025 is mainly associated with the unwinding of the discount applied to the valuation of deferred consideration for the acquisition of the Assets and the deferred and contingent consideration for the acquisition of Odds Holdings, Inc. completed January 1, 2025. 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. While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share 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 net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance. The following tables reconcile Adjusted net income and Adjusted net income per share, diluted from net income for the period attributable to the shareholders and net income per share attributed to shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited): Reporting Currency Constant Currency Three months ended March 31, Change Change 2025 2024 % % (USD in thousands) Revenue 40,635 29,215 39 % 43 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Net income margin 28 % 25 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Unwinding of deferred consideration (1) 684 253 170 % 178 % Deferred revenue fair value adjustment (1) 325 — 100 % 100 % Share-based payment and related expense (2) 1,409 837 68 % 73 % Acquisition related costs (2) 325 807 (60 )% (59 )% Amortization expense related to acquired businesses and assets (2) 2,800 173 1518 % 1567 % Tax effect of the adjusting costs (2) (289 ) (105 ) 175 % 183 % Adjusted net income for the period attributable to shareholders 16,490 9,264 78 % 83 % __________(1) There is no tax impact from unwinding of deferred consideration related to acquisition.(2) Tax effect of adjusting costs is computed based on acquisition related costs and certain amortization charges related to acquired businesses and assets using effective tax rate for each period. Reporting Currency Constant Currency Three months ended March 31, Change Change 2025 2024 % % Net income per share attributable to shareholders, basic 0.32 0.20 60 % 63 % Effect of adjustments for unwinding on deferred, basic 0.02 0.01 100 % 100 % Effect of adjustments for deferred revenue fair value adjustment, basic 0.01 0.00 100 % 100 % Effect of adjustments for share-based payment and related expense, basic 0.04 0.02 100 % 100 % Effect of adjustments for acquisition related costs, basic 0.01 0.02 (50 )% (50 )% Effect of adjustments for amortization expense related to acquired businesses and assets, basic 0.08 0.00 100 % 100 % Effect of tax adjustments, basic (0.01 ) 0.00 (100 )% (100 )% Adjusted net income per share attributable to shareholders, basic 0.46 0.25 84 % 92 % Net income per share attributable to ordinary shareholders, diluted 0.31 0.19 63 % 63 % Adjusted net income per share attributable to shareholders, diluted 0.46 0.24 92 % 92 % 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 and Adjusted EBITDA from net income attributable to shareholders for the period as presented in the Consolidated Statements of Comprehensive Income for the period specified (unaudited): Reporting Currency Constant Currency Three Months Ended March 31, Change Change 2025 2024 % % (USD in thousands) Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Add back (deduct): Interest expenses on borrowings and lease liability 2,078 34 6012 % 6197 % Interest income (36 ) (74 ) (51 )% (51 )% Income tax charge (287 ) 1,082 (127 )% (127 )% Depreciation expense 126 70 80 % 85 % Amortization expense 3,650 554 559 % 580 % EBITDA 16,767 8,965 87 % 93 % Share-based payment and related expense 1,409 837 68 % 74 % Deferred revenue fair value adjustment 325 — 100 % 100 % Unwinding of deferred consideration 684 253 170 % 179 % Foreign currency translation losses (gains), net (3,768 ) (719 ) 424 % 441 % Other finance results 122 16 663 % 663 % Acquisition related costs (1) 325 807 (60 )% (58 )% Adjusted EBITDA 15,864 10,159 56 % 61 % __________(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 Three Months Ended March 31, Change Change 2025 2024 % % (USD in thousands, except margin) Revenue 40,635 29,215 39 % 43 % Adjusted EBITDA 15,864 10,159 56 % 61 % Adjusted EBITDA Margin 39 % 35 % 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, we changed our 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 asset acquisitions were excluded from capital expenditures. We believe 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 Statements of Cash Flows for the period specified (unaudited): Three Months Ended March 31, Change 2025 2024 % (in thousands USD, unaudited) Cash flows generated by operating activities 11,415 8,806 30 % Adjustment for items presenting in investing activities: Capital Expenditures (1): Acquisition of property and equipment (311 ) (72 ) 332 % Capitalization of internally developed intangibles (827 ) (541 ) 53 % Free Cash Flow 10,277 8,193 25 % __________(1) Capital expenditures for Free Cash Flow 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. View source version on Contacts For further information, please contact:Investors: Peter McGough, Group, investors@ Richard Land, Norberto Aja, JCIR, GAMB@ 212-835-8500Media: Christine Doh, Group; media@ Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Is Gambling.com Group (GAMB) Among the Best Gambling Stocks to Buy According to Analysts?
We recently published a list of 12 Best Gambling Stocks to Buy According to Analysts. In this article, we are going to take a look at where Group Limited (NASDAQ:GAMB) stands against other best gambling stocks to buy according to analysts. Gambling stocks include companies that own, run, or manage lawful gambling activities and events such as horse and dog racing, online gaming, bingo, and video lottery, as well as companies that provide products or services to gaming operators. During the COVID-19 pandemic, social isolation and stay-at-home orders spurred a boom in online sports betting and gambling. Even after the COVID-19 outbreak ended, sales continued to rise. As per Vixio Regulatory Intelligence, the US online gambling industry is estimated to generate $26.8 billion in gross revenue in 2025, up from $23.4 billion in 2024, with projections pointing to more than $41 billion by 2028. While iGaming is still restricted to a few strongholds, mobile sports betting is still on the rise, with one state recently surpassing $2 billion in yearly revenue. Under normal conditions, New Jersey's online gambling revenue surpassed that of land-based casinos in October 2024, whereas states such as Pennsylvania and Michigan have iGaming earnings that exceed $200 million monthly. However, expansion encounters opposition. Legalization efforts in New York, Maryland, and Louisiana continue, but union opposition and legislative friction persist. If just one of these states legalizes iGaming, it could start a domino effect. Another obstacle is tax increases; in 2024, several jurisdictions raised their sports betting tax rates, raising concerns that such high rates could impede innovation and competitiveness. Payment processing also remains a significant concern. Major financial services networks continue to restrict gambling transactions, intensifying the need for digital wallets and other workarounds, which authorities examine with caution. Meanwhile, sweepstakes platforms are growing in unregulated marketplaces, raising concerns as policymakers consider stronger regulations. According to estimates, the US-regulated online sports betting market is anticipated to reach $150 billion by 2024, driven by 32 states that allow online gambling. The CEO and co-founder of Third Planet Affiliates, Adam Small, who owns and operates the iGaming news media company and the sports betting website stated that the two large platforms dominate the business, accounting for around 75% of total wagers and revenue. Small believes there is still room for digital gambling to expand in the coming years, as Texas, California, and a more open Florida will deliver 'a large jolt' to the digital sports gambling market. Small commented the following: 'Plus, states like Minnesota and Georgia are continually flirting with legalization, and Missouri will soon join the ranks, probably in time for the 2025 football season.' However, Nick Slade, co-founder and chief content officer at Cipher Sports Technology Group, noted that while digital-only sportsbooks dominate the market, their long-term sustainability is questionable due to hefty user acquisition expenses. Many sportsbooks struggle with profitability and rely heavily on marketing to keep clients. Casino-backed sportsbooks, on the other hand, have a competitive advantage since they may use a variety of revenue streams, such as hotels, resorts, and luxury experiences, to increase client loyalty. Recently, the New York State Gaming Commission released its findings for mobile sports wagering from April 2024 to March 2025. According to its report, mobile sports betting in New York grew 20% year on year to $23.9 billion in FY2024- 25, producing $2.14 billion in gross gaming revenue (GGR). January dominated with a $2.48 billion handle and $247 million in GGR, closely followed by March with $2.44 billion and $161.8 million. For the first time since legalization in 2022, the monthly volume was over $1 billion. The state raised $1.11 billion for education, with $6 million for gambling treatment and $5 million for youth sports. Fines and adjustments brought in an additional $23.3 million, including a significant $17.5 million penalty. A wide shot of a casino in night light, picturing the high stakes of iGaming and sports betting. For this article, we screened for companies that are involved in gambling and formed an initial list of 20 gambling stocks. Then, we selected the 12 stocks that had the highest upside potential as of April 11, 2025. We have only included stocks in our list with an upside potential of 40% or higher. The stocks are ranked in ascending order of the upside potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Analysts' Upside Potential as of April 11: 41.25% Group Limited (NASDAQ:GAMB) is a multi-award-winning performance marketing business that provides digital marketing services to the online gambling industry. Its primary concentration is on online casinos, sports betting, and the fantasy sports market. The firm makes revenue by introducing online gamblers to online gaming companies. Group Limited (NASDAQ:GAMB)'s strategic positioning as a 'Picks & Shovels' play in the growing U.S. gaming market is the foundation of its bull case, which enables it to profit from industry expansion without having to deal with the license fees and regulatory obstacles that sportsbook operators have to cope with. The company's gross margins of 90% are much greater than the normal 50% margins of standard gaming platforms, showing extraordinary operational efficiency. The company's aggressive acquisition strategy, despite depleting cash reserves in the short term, has proven effective as freshly acquired assets swiftly generate revenue, growing the firm without compromising the balance sheet. The acquisition of OddsJam and OpticOdds broadened the company's product offering, anticipating a 20% increase in incremental adjusted EBITDA from both businesses. In 2025, the company plans to hike up sales by 35% and an adjusted EBITDA by 40%, owing mostly to expanded product offerings and market share gains. Overall, GAMB ranks 11th on our list of the 12 Best Gambling Stocks to Buy According to Analysts. While we acknowledge the potential of gambling companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GAMB but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
