Gambling.com (GAMB) - 2024 Q4 - Annual Report

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$39,179,000[292]. - Performance marketing revenue grew by 15% to $101,078,000, accounting for 79$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$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$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$18,260 million in 2023[326]. - Adjusted EBITDA for 2024 reached $48,691 million, a 33$36,715 million in 2023[326]. - Adjusted net income for the year attributable to shareholders was $42,120 million, a 31$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$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].