Gambling.com Group (GAMB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached a record $32.1 million, up 37% year-over-year, with adjusted EBITDA more than doubling to $12.6 million and net income rising 70% to $8.5 million, reflecting strong execution and market share gains.

• Free Cash Flow reached a record $14.2 million in Q3, driven by operational execution and working capital improvements.

• Over 116,000 new depositing customers delivered in Q3, a 35% increase year-over-year, with robust iGaming growth across all regions and resilience in North America.

• Raised full-year 2024 guidance for revenue to $125–$127 million and Adjusted EBITDA to $46.5–$48.5 million, citing continued operating momentum and expectations for North American market growth in 2025.

• Diversified market exposure and a casino-first capital allocation strategy drove performance, with significant gains in iGaming across all regions.

Financial highlights

• Q3 2024 revenue: $32.1 million (+37% YoY); adjusted EBITDA: $12.6 million (+108% YoY); net income: $8.5 million (+70% YoY); adjusted net income: $8.9 million (+65% YoY); adjusted EBITDA margin: 39% (vs. 26%).

• Gross profit increased 43% to $30.4 million, with gross margin rising to 95% from 91% a year ago.

• Operating expenses rose 25% to $20.8 million, mainly due to higher personnel and amortization costs.

• Free cash flow was $14.2 million, up from $1.6 million in Q3 2023.

• Nine months ended Sept 30, 2024: revenue $91.9 million (+21% YoY), net income $22.7 million (+91% YoY), adjusted EBITDA $34.0 million (+30% YoY), free cash flow $28.4 million (+70% YoY).

Outlook and guidance

• 2024 revenue guidance raised to $125–$127 million (midpoint 16% growth); Adjusted EBITDA guidance raised to $46.5–$48.5 million (midpoint 29% growth).

• Guidance assumes no new North American markets in 2024, no further acquisitions beyond Freebets.com, and full-year cost of sales of ~$7.5 million.

• Q4 guidance excludes contributions from new acquisitions or market launches.

• North America revenue expected to be down year-over-year due to tough comps, but market share gains and growth expected to resume in 2025.