Core Insights - Gambling.com Group Limited (GAMB) reported quarterly earnings of $0.46 per share, significantly exceeding the Zacks Consensus Estimate of $0.19 per share, and up from $0.20 per share a year ago, representing an earnings surprise of 142.11% [1] - The company achieved revenues of $40.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.64% and increasing from $29.22 million year-over-year [2] - Gambling.com has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $39.02 million, and for the current fiscal year, it is $0.92 on revenues of $172.7 million [7] Industry Context - The Advertising and Marketing industry, to which Gambling.com belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Data and Key Metrics Changes - Revenue increased by 39% year over year to $40.6 million, with adjusted EBITDA growing by 56% to $15.9 million [7][14] - Gross profit rose by 42% year over year to CHF 38.4 million, with a gross profit margin of 94.5%, up 200 basis points from the previous year [15][16] - Adjusted net income increased by 78% to GBP 16.5 million, and adjusted diluted net income per share rose by 92% to $0.46 [18][19] Business Line Data and Key Metrics Changes - The marketing business grew by 13%, delivering over 138,000 new depositing customers (NDCs), representing a 29% growth year over year [14] - The sports data services business quadrupled in revenue contributions, with subscription revenue accounting for 24% of total revenue [14][15] - Recurring revenue, including revenue share arrangements, constituted 50% of total first-quarter revenue [15] Market Data and Key Metrics Changes - iGaming revenues increased by 24% year over year, driven by organic growth and contributions from acquisitions [10] - The company continues to grow market share in the UK and Europe, with expectations for growth in North America as well [10][11] Company Strategy and Development Direction - The company aims to achieve $100 million in adjusted EBITDA, with a focus on expanding beyond marketing into sports data services [8][12] - The integration of OddsJam and Optic Odds is progressing well, with expectations for at least 20% growth in adjusted EBITDA from these acquisitions [9][12] - The company is leveraging AI to enhance technology and digital marketing capabilities, which is expected to drive organic growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the online gambling industry, stating that economic slowdowns have historically not impacted growth [11] - The company reiterated its full-year guidance, expecting a midpoint revenue of $172 million, representing 35% year-over-year growth [21] - Management highlighted the potential for growth in the prediction markets, indicating a favorable regulatory environment [90][95] Other Important Information - The company has total cash of CHF 21.5 million and CHF 70.5 million of undrawn capacity on its credit facility [20] - A swap agreement was entered into to convert a portion of US dollar borrowings to euro, reducing the cost of debt capital by approximately 200 basis points [20] Q&A Session Summary Question: What is Gambling.com doing to keep its content relevant amid changing consumer behavior? - Management noted that they are seeing high revenue from their marketing business driven by natural search and are also benefiting from referrals from generative AI tools like ChatGPT [25][26][29] Question: Any updates on the performance of Optic Odds? - Management reported that Optic Odds is growing rapidly and has hired a senior salesperson to expand its distribution in Europe [32][34] Question: How does the company view the potential for other operators to increase performance marketing? - Management indicated that as low-cost acquisition channels become exhausted, operators will increasingly rely on affiliate marketing, which is central to their strategies [38][40] Question: Can you quantify the impact of the euro on revenue and EBITDA guidance? - Management stated that while there are slight positive effects from the euro's strength, it is not significant enough to alter revenue expectations [42][45] Question: What is the path to achieving the $100 million EBITDA goal? - Management indicated that with current guidance, they would be 68% of the way there this year, and strategic acquisitions could accelerate this timeline [48][49] Question: How is the company positioned to benefit from potential tax increases in the US? - Management acknowledged that tax increases could impact player lifetime value but noted that adjustments would be made over time [79][80] Question: What is the outlook for iGaming legislation in the US? - Management expressed optimism about developments in Ohio and the potential for a streamlined regulatory approach, which could benefit the market [60][62]

Financial Data and Key Metrics Changes - Revenue increased by 39% year over year to $40.6 million, with adjusted EBITDA growing by 56% to $15.9 million [5][12][14] - Adjusted net income rose by 78% to £16.5 million, and adjusted diluted net income per share increased by 92% to $0.46 [16][17] - Free cash flow was €10.3 million, up 25% from the previous year [17] Business Line Data and Key Metrics Changes - The marketing business grew by 13%, delivering over 138,000 new depositing customers (NDCs), representing a 29% growth year over year [12] - Subscription revenue accounted for 24% of total revenue, with recurring revenue making up 50% when including revenue share arrangements [12][13] - The sports data services business quadrupled in revenue contributions following the acquisition of OddsJam and Optic Odds [12][14] Market Data and Key Metrics Changes - iGaming revenues rose by 24% year over year, reflecting solid organic growth and contributions from acquisitions [8] - The company continues to grow market share in the UK and Europe, with expectations for growth in North America as well [8][19] Company Strategy and Development Direction - The company aims to achieve $100 million in adjusted EBITDA, with a focus on expanding beyond marketing into sports data services [6][10] - The integration of OddsJam and Optic Odds is progressing well, with expectations for at least 20% growth in adjusted EBITDA from these services this year [7][10] - The company is leveraging AI to enhance technology and digital marketing capabilities, driving organic growth [10] Management's Comments on Operating Environment and Future Outlook - The online gambling industry remains resilient to economic downturns, with no significant impact expected from recent macroeconomic volatility [9][10] - The company reiterated its full-year guidance, expecting record annual revenue and adjusted EBITDA, with a midpoint revenue guidance of $172 million [19] - Management expressed confidence in the growth trajectory, citing strong competitive positioning and brand strength [10] Other Important Information - The company has a total cash balance of CHF 21.5 million and CHF 70.5 million of undrawn capacity on its credit facility [18] - A swap agreement was entered into to convert a portion of US dollar borrowings to euro, reducing the cost of debt capital by approximately 200 basis points [18] Q&A Session Summary Question: What is Gambling.com's strategy regarding AI and content focus? - Management noted that while search volumes from traditional platforms remain stable, referrals from generative AI tools are increasing rapidly, providing high-intent traffic [24][28] Question: How is the Optic Odds asset performing? - Optic Odds is experiencing rapid growth, and a senior salesperson has been hired to expand its distribution in Europe [31][32] Question: What is the impact of potential tax increases on partnerships? - While tax increases could negatively impact player lifetime value, the effects are gradual and adjustments in deals are expected [75][78] Question: What is the outlook for iGaming legislation in the US? - Management expressed optimism about developments in Ohio and the potential for a streamlined regulatory approach [56][57] Question: How does the company plan to reach the $100 million EBITDA goal? - The company is focused on organic growth and potential acquisitions, with a high growth trajectory expected even without M&A [46][66]

Core Viewpoint - The market anticipates Gambling.com Group Limited (GAMB) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on May 15, 2025, with a consensus EPS estimate of $0.25, reflecting a 25% year-over-year increase, and revenues projected at $40.38 million, a 38.2% increase from the previous year [3][2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.61% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -25%, complicating predictions for an earnings beat [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [5][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Gambling.com has a history of beating consensus EPS estimates, having done so in the last four quarters, including a 40% surprise in the last reported quarter [12][13]. Conclusion - Despite the historical performance, Gambling.com does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].

Core Viewpoint - Gambling.com Group Limited (GAMB) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - The upgrade for Gambling.com reflects an improvement in its underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Gambling.com has increased by 14%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Gambling.com’s upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Gambling.com Group Limited (GAMB) is well-positioned to continue its earnings-beat streak, having a strong track record in the Advertising and Marketing industry with an average surprise of 39.44% over the past two quarters [1][5]. Earnings Performance - For the last reported quarter, Gambling.com achieved earnings of $0.35 per share, surpassing the Zacks Consensus Estimate of $0.25 per share, resulting in a surprise of 40% [2]. - In the previous quarter, the company was expected to earn $0.18 per share but reported $0.25 per share, delivering a surprise of 38.89% [2]. Earnings Estimates - Recent estimates for Gambling.com have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Gambling.com is +15.82%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that last-minute analyst revisions may provide more accurate predictions [7].

Core Insights - Gambling.com (NASDAQ: GAMB) has experienced a stock price increase of 37% since September, outperforming the S&P 500, which rose by 5% [1] - The stock's performance has been volatile, indicating a turbulent investment environment [1] Company Analysis - The company is characterized by a compelling growth narrative that is often overlooked by the broader market [1] - The investment strategy focuses on long-term growth while avoiding crowded short-term trades, employing a GARP (Growth at a Reasonable Price) approach [1] - Key metrics used for analysis include PEG ratio, EV/Sales, and CAPE ratio [1] Market Position - The company operates within the Technology sector but remains vigilant across all market sectors for distinctive opportunities [1] - There is an active search for short opportunities to mitigate beta exposure, focusing on setups with peak-on-peak dynamics and near-term catalysts [1] Analyst Background - The analyst has a substantial background in Investment Management, having interned at three hedge funds [1] - Currently pursuing a master's degree in Management Science and Engineering with a focus on Financial Analytics at Stanford University, starting September 2024 [1]

Gambling.com Group Limited (NASDAQ:GAMB) Q4 2024 Results Conference Call March 20, 2025 8:00 AM ET Company Participants Peter McGough - SVP, IR & Capital Markets Charles Gillespie - Co-Founder & CEO Elias Mark - CFO Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group Jeff Stantial - Stifel Clark Lampen - BTIG Chad Beynon - Macquarie Michael Hickey - the Benchmark Company David Katz - Jefferies Operator Greetings. Welcome to Gambling. com Group Fourth 2024 Earnings Conference Call. At this ...

Gambling.com Group Limited (GAMB) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.25, delivering a surprise of 38.89%.Over the last four quarters, the ...

Revenue Growth - Total revenues for the year ended December 31, 2024, increased by 17% to $127,182,000 compared to $108,652,000 in 2023[292]. - North America revenue decreased by 9% to $55,500,000, while UK and Ireland revenue increased by 25% to $39,179,000[292]. - Performance marketing revenue grew by 15% to $101,078,000, accounting for 79% of total revenue[295]. - Casino revenue increased by 38% to $92,224,000, representing 73% of total revenue, while Sports revenue decreased by 18% to $33,282,000[298]. - The acquisition of Freebets.com Assets on April 1, 2024, contributed to growth in both casino and sports revenue[293]. - The company experienced strong organic growth in UK, Other Europe, and Rest of the World regions, offset by a decline in North American sports revenue[293]. - Revenue for the year ended December 31, 2024, reached $127.182 million, a 17% increase compared to $108.652 million in 2023[339]. Operating Expenses - Operating expenses increased due to higher people costs and amortization expenses related to the acquisition of Freebets.com Assets[303]. - Technology expenses rose by 36% to $13,949,000, driven by increased people costs and higher software and subscription expenses[311]. - Total general and administrative expenses for the year ended December 31, 2024, increased by 14% to $27,645 million compared to $24,291 million in 2023[314]. - People costs rose by 21% to $13,108 million in 2024, driven by new hires and salary increases[315]. - Acquisition-related costs surged by 162% to $2,151 million in 2024, linked to the acquisition of Freebets.com Assets and Odds Holdings, Inc.[315]. Profitability - Net income attributable to shareholders for the year ended December 31, 2024, was $30,679 million, reflecting a 68% increase from $18,260 million in 2023[326]. - Adjusted EBITDA for 2024 reached $48,691 million, a 33% increase compared to $36,715 million in 2023[326]. - Adjusted net income for the year attributable to shareholders was $42,120 million, a 31% increase from $32,207 million in 2023[326]. - Adjusted EBITDA margin improved from 34% in 2023 to 38% in 2024, driven by revenue growth and decreased cost of sales[340]. - Basic net income per share attributable to shareholders increased by 73% to $0.85 for the year ended December 31, 2024, compared to $0.49 in 2023[331]. Cash Flow - Cash flows generated by operating activities increased by 110% to $37,638 million in 2024, up from $17,910 million in 2023[326]. - Free Cash Flow for 2024 was $41,582 million, representing an 81% increase from $23,000 million in 2023[326]. - Cash flows used in investing activities for 2024 were $43.8 million, compared to $19.5 million in 2023[368]. - Cash flows used in financing activities increased to $5.2 million in 2024 from $3.1 million in 2023[368]. - Cash flows used in investing activities amounted to $43.8 million in 2024, primarily due to the acquisition of Freebets.com Assets ($20.0 million initial payment and $9.5 million deferred payment) and final payments related to previous acquisitions totaling $10.1 million[371][372]. Financial Position - As of December 31, 2024, the company had $13.7 million in cash deposited in banks, down from $25.4 million in 2023[352]. - The company had a positive working capital of $5.2 million as of December 31, 2024, compared to $14.6 million in 2023[367]. - The Term Loan outstanding as of December 31, 2024, amounted to $22.9 million[366]. - The Wells Fargo Credit Facility was increased from $100 million to $165 million, with a maturity date extended to February 28, 2028[357]. - The company expects adequate liquidity to fund operations for at least twelve months from the issuance date of the consolidated financial statements[353]. Investments and Assets - The company continues to invest significant resources in developing its technology platform, which is essential for competing in the online gambling affiliate market[378]. - The company owned 17 trademarks and over 1,800 domain names as of December 31, 2024, which are critical to its success[381]. - Investments in property and equipment were $1.3 million in 2024, with $1.9 million allocated to internally developed intangibles[372]. - The company relies on a combination of trademark, copyright, and other intellectual property laws to protect its intellectual property and proprietary rights[380].