Gambling.com (US:GAMB)2025-03-20 12:00Financial Data and Key Metrics Changes - The company reported record Q4 revenues of $35.3 million, with adjusted EBITDA of $14.7 million and free cash flow of $13.2 million, marking a 9% year-over-year revenue increase driven by casino revenue growth across all regions [6][16] - Full year 2024 revenue increased 17% to a record $127.2 million, with adjusted EBITDA rising 33% year-over-year to $48.7 million [19][20] - Gross profit increased 21% year-over-year to $33.1 million, with gross margin rising from 84% to 94% [17] Business Line Data and Key Metrics Changes - iGaming revenue grew significantly across all operating regions, with strong organic growth and benefits from the Freebets.com acquisition [11] - The acquisition of OzJam and Opticods is expected to drive substantial growth in subscription revenue, projected to account for over 20% of total group revenue [10][21] Market Data and Key Metrics Changes - Revenue in the UK and Ireland grew by 25%, while other Europe saw a 104% increase, and the rest of the world experienced an 81% rise, offsetting a 9% decline in North American revenue [19] - The company anticipates a return to growth in North America for 2025, driven by improved iGaming pricing trends and new state launches [12][21] Company Strategy and Development Direction - The company aims for full year revenue growth of 35% and adjusted EBITDA growth of 40% in 2025, with a long-term goal of generating $100 million in annual adjusted EBITDA [8][21] - Strategic acquisitions are a key focus, with the company successfully integrating new businesses to enhance its market position and drive shareholder value [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges in the sports betting market and highlighted the resilience of the iGaming sector [12][58] - The company remains optimistic about the expansion of iGaming in the U.S. and expects significant top-line and cash flow growth as more states approve iGaming [12][21] Other Important Information - The company repurchased approximately 3 million shares at an average price of $9.06, representing nearly 9% of total outstanding shares [20] - The company expanded its credit facility from $100 million to $165 million, providing increased flexibility for strategic acquisitions [20][21] Q&A Session Summary Question: Insights on customer negotiations and market conditions - Management noted that the supply of traffic is a key driver, and they have successfully navigated challenges in the sports betting market by focusing on iGaming and strategic acquisitions [25][27] Question: Feedback on Optic Odds and market traction - Management indicated that they are optimistic about the international expansion of Optic Odds and its potential to solve critical risk management problems for operators [31][33] Question: Guidance nuances and regional growth - Management highlighted that North America is expected to be the fastest-growing region, driven by a change in traffic source mix and a focus on higher gross margins [39] Question: Capital allocation and stock repurchases - Management confirmed that they received consent to proceed with stock buybacks and will be tactical in their approach, focusing on mispriced stock opportunities [43][44] Question: Opportunities in sweepstakes and prediction markets - Management expressed cautious optimism about sweepstakes and highlighted the potential for prediction markets to grow the overall market [47][49] Question: Impact of higher taxes on the business - Management stated that increased taxes would affect the entire ecosystem but noted that their best clients are Tier two and Tier three operators, who are less impacted [51][52] Question: Organic growth rates and economic resilience - Management indicated that organic growth is expected to be in the low teens, with the industry historically showing resilience during economic downturns [60][58]