Gambling.com Raises 2024 Outlook After Record Quarter

The company's Q2 2024 results, which ended June 30, showed that it now expects full-year revenue in the range of $123 million to $127 million and adjusted EBITDA in the range of $44 million to $47 million. Previously, in May, when the Freebets acquisition had already been completed, the company had forecast lower figures: revenue in the range of $118 million to $122 million and EBITDA in the range of $40 million to $44 million. The new guidance assumes 15% annual revenue growth and a 24% increase in adjusted EBITDA.

The company also reiterated its long-term goals of achieving adjusted EBITDA of $100 million per year.

In the second quarter, revenue increased 18% year-over-year to $30.5 million, driven by the acquisition of Freebets, which was valued at up to $42.5 million.

The company acquired more than 108,000 new depositing customers (NDCs) during the three months, up 19% year-over-year. This achievement is especially notable given that the previous period saw unusually high NDC growth in the US, driven by sports betting, which was not repeated this year.

Gross profit increased 16% to $29.1 million, with media partnership-related sales expenses up $0.5 million.

Total operating expenses decreased 15% to $20.8 million, driven by the elimination of changes in the fair value of contingent consideration. Administrative expenses decreased by 9%, but marketing and sales expenses increased by 23%, and technology expenses by 26%.

Adjusted EBITDA increased by 19% to $11.2 million, with a margin of 37%.

In the second quarter, the company repurchased 833,770 shares at an average price of $8.17 per share. Other expenses included an initial payment of $20 million for the acquisition of Freebets and a final payment of $13.6 million for BonusFinder.

CEO Charles Gillespie said: “Our second quarter and full year results highlight the strength of our audience and the value we create for our online gambling customers. Our team’s ability to respond quickly to changes in the market environment was evident in the strong growth in revenue and adjusted EBITDA, which will contribute to our continued success.”

Gambling.com completed the acquisition of Freebets.com in April of this year. The deal is valued at between $37.5 million and $42.5 million, depending on the company’s future financial performance.

Freebets.com is expected to generate an additional $10 million in revenue and $5 million in adjusted EBITDA this year.

The company’s revenue increased 42.1% to $108.7 million in 2023. Notable achievements during this period included the launch of the Casinos.com domain and a new partnership with UK publisher The Independent.

Additionally, net income for the year was $21.1 million, which contrasts with a loss of $2.4 million in 2022. Adjusted EBITDA for the year increased by 52.3% and reached $36.7 million.

The company initially forecast revenue in 2024 in the range of $129-$133 million, but revised those figures in March. Today's figures were slightly lower than previously expected, but significantly better than forecast in May.