Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gambling.com Group Ltd (GAMB, Financial) reported record all-time quarterly revenue and adjusted EBITDA, with revenue rising 39% year over year to $40.6 million.
- The company has successfully transformed into a marketing and sports data services company, with 24% of first-quarter revenue coming from recurring subscriptions.
- The acquisition of Odds Jam and Optic Odds has significantly expanded their sports data services, contributing to robust growth opportunities.
- The marketing business continues to perform at all-time highs, with iGaming revenues rising 24% year over year.
- Gambling.com Group Ltd (GAMB) maintains a strong competitive position in the global online gambling ecosystem, with industry-leading brands and a full embrace of AI to enhance digital marketing capabilities.
Negative Points
- Operating expenses increased by 50% to $28.7 million, primarily due to amortization from acquired intangible assets.
- Gross profit margin, while increased, was slightly impacted by higher than expected partnership share of revenue and related cost of sales.
- The uncertain macroeconomic environment has created volatility in capital markets, although the company remains confident in its resilience.
- There is a potential risk of increased gaming tax rates in the US, which could negatively impact player lifetime value and the company's revenue.
- The integration of new acquisitions, while progressing as planned, requires careful management to ensure continued growth and profitability.
Q & A Highlights
Q: What is Gambling.com Group's approach to AI and its impact on search traffic?
A: Charles Gillespie, CEO, explained that while there is growing interest in AI tools like ChatGPT, Gambling.com Group continues to see high revenue from Google search. The company is also experiencing increased referrals from AI tools, which are high-intent and incremental to their existing traffic. Gillespie views AI as a potential boon for publishers of high-quality content, as it could reduce reliance on traditional advertising models.
Q: How is the integration and growth of Optic Odds progressing?
A: Charles Gillespie, CEO, stated that Optic Odds is growing rapidly, potentially the fastest-growing part of their business. They have hired a senior salesperson in London to expand distribution in Europe, and the growth trajectory is expected to continue at a high level.
Q: What is the impact of Penn's decision to resume performance marketing on Gambling.com Group?
A: Charles Gillespie, CEO, noted that Penn's decision aligns with the typical lifecycle of operators who initially seek cheaper customer acquisition channels but eventually return to affiliate marketing. While Penn is not currently a major client, they have been significant in the past, and any increase in demand is welcomed.
Q: How does the change in EUR/USD exchange rate assumptions affect Gambling.com Group's guidance?
A: Elias Mark, CFO, explained that while the EUR/USD rate assumption has been adjusted slightly, the impact on revenue is not significant enough to alter overall guidance. The company has a higher proportion of revenue and expenses in USD, reducing the effect of forex movements.
Q: What is the path to achieving the $100 million EBITDA goal, and what role does M&A play?
A: Charles Gillespie, CEO, indicated that with current guidance, they are 68% of the way to the $100 million EBITDA target. M&A could accelerate this timeline, but even without acquisitions, the company expects to reach the goal within a couple of years due to organic growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
