• Q4 Revenue: $35.3 million, a 9% year-over-year increase.
• Full-Year 2024 Revenue: $127.2 million, a 17% increase from 2023.
• Adjusted EBITDA (Q4): $14.7 million, a 39% increase year-over-year.
• Adjusted EBITDA Margin (Q4): 42%, up from 32% in the previous year.
• Full-Year 2024 Adjusted EBITDA: $48.7 million, a 33% increase from 2023.
• Free Cash Flow (Q4): $13.2 million, compared to $6.5 million in Q4 2023.
• Full-Year 2024 Free Cash Flow: $41.6 million, up from $23 million in 2023.
• Gross Margin (Q4): 94%, up from 84% in Q4 2023.
• Adjusted Net Income (Q4): $12.2 million, a 41% increase year-over-year.
• Adjusted Diluted Net Income Per Share (Q4): $0.35, up from $0.22 in Q4 2023.
• 2025 Revenue Guidance: $170 million to $174 million, representing 35% growth.
• 2025 Adjusted EBITDA Guidance: $67 million to $69 million, representing 40% growth.
• Total Cash (End of 2024): $13.7 million.
• Credit Facility Drawn: $87 million, with a facility expanded to $165 million.

• Warning! GuruFocus has detected 4 Warning Signs with RMTI.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gambling.com Group Ltd (NASDAQ:GAMB) reported record quarterly and full-year financial performance with Q4 2024 revenue of $35.3 million and adjusted EBITDA of $14.7 million.
• The company achieved a 17% increase in full-year 2024 revenue and a 33% rise in adjusted EBITDA, driven by global iGaming growth and the acquisition of Freebets.com.
• GAMB is positioned for significant growth in 2025, with expected full-year revenue growth of 35% and adjusted EBITDA growth of 40%.
• The acquisition of OddsJam and OpticOdds has expanded GAMB's product offerings and is expected to contribute to a 20% increase in recurring subscription revenue.
• The company has a strong focus on execution and diversified market exposure, with continued growth in iGaming revenue across all operating regions.

Negative Points

• The decline in North American sports revenue impacted overall growth, with a 9% year-over-year revenue increase in Q4 2024.
• The 9% decline in New Depositing Customers (NDCs) reflects the lack of new state launch activity compared to the previous year.
• Operating expenses increased by 21% due to higher headcounts and amortization expenses related to acquisitions.
• The company faces challenges in the Brazilian market due to regulatory changes and high taxes, impacting free cash flow generation.
• GAMB's guidance does not include contributions from new acquisitions or market launches, indicating potential uncertainties in achieving projected growth.

Q & A Highlights

Q: What are you hearing from your customers regarding iGaming and sports betting, and how does it affect your business? A: Charles Gillespie, CEO, explained that the supply of traffic is a key driver for their business. They anticipated a challenging year for North American sports betting in 2024 and focused on other areas, such as the acquisition of Freebets.com, which bolstered their market position in the UK and Europe. He noted that Brazil's regulatory changes have posed challenges for some affiliates, but Gambling.com has taken a cautious approach, focusing on free cash flow generation.

Q: Can you provide insights into the OpticOdds B2B opportunity and its traction in the US versus international markets? A: Charles Gillespie, CEO, stated that OpticOdds initially focused on US operators and sports, but they are now expanding into Europe. The team is leveraging Gambling.com's international operator relationships to grow the business. OpticOdds addresses risk management for sports betting companies, providing essential market data.

Q: How should we think about growth by region and seasonality in 2025? A: Charles Gillespie, CEO, noted that following the acquisition of OddsJam and OpticOdds, over 20% of revenue will come from subscriptions, primarily driving growth in North America. They expect international growth to continue, with North America being the fastest-growing region. The business will see a change in traffic source mix, with lower media partnership traffic but higher gross margins.

Q: How are you approaching capital allocation, particularly regarding stock repurchases and debt repayment? A: Charles Gillespie, CEO, mentioned that they have received consent to waive a provision in their credit facility agreement, allowing them to conduct buybacks in 2025. They have a $10 million buyback authorization and will be tactical about repurchases when the stock is mispriced.

Q: What are your thoughts on the potential impact of higher taxes in multiple states on Gambling.com? A: Charles Gillespie, CEO, stated that higher taxes affect the entire ecosystem, but tiered taxes often impact Tier 1 operators more than Tier 2 and 3 operators, which are Gambling.com's best clients. There hasn't been a tangible impact from Illinois, and they continue to advocate for sensible taxes.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.