Gambling.com Group Ltd. Q4 FY2024 earnings call

• Gambling.com Group had a strong fourth quarter and full-year 2024 with record financial performance, driven by global iGaming growth and the acquisition of Freebets.com.
• Expect to accelerate growth in 2025 with a projected 35% revenue growth and 40% adjusted EBITDA growth.
• Acquisition of OddsJam and OpticOdds expanded the product portfolio and increased recurring subscription revenue.
• Core affiliate business had its best quarter ever.
• Growth in iGaming across regions, with return to growth in North America sports betting.
• Repurchased approximately 3 million shares in 2024 and expanded credit facility to $165 million in February 2025.

In the fourth quarter of 2024, Gambling.com Group achieved revenue of $35.3 million, with adjusted EBITDA of $14.7 million and free cash flow of $13.2 million. For the full year 2024, revenue reached a record $127.2 million, up 17% year-over-year, and adjusted EBITDA was $48.7 million, up 33% year-over-year. The core affiliate business had its best quarter in the company's 19-year history. The acquisition of Freebets.com in April and OddsJam/OpticOdds in January contributed to growth. Recurring subscription revenue is expected to account for more than 20% of total group revenue in 2025. iGaming revenue grew across all operating regions in 2024, and the company expects growth in all geographical regions in 2025, including a return to year-over-year growth in North America.

• Revenue guidance for 2025 is $170 million to $174 million, representing 35% year-over-year growth.
• Adjusted EBITDA guidance is $67 million to $69 million, representing 40% year-over-year growth.
• Missouri sports betting launch is not included in guidance until launch date is confirmed.
• Midpoints of guidance ranges indicate an adjusted EBITDA margin of 39.5%.

• Brazil's regulatory changes pose short-to-medium term headwinds for some affiliates due to tax and rule changes.
• Uncertainties around prediction market regulation as there is no clear federal framework.
• Potential impact of higher taxes in some states, which could affect the value chain in the iGaming ecosystem.

Q: What are you hearing from customers in terms of negotiations and commercial contracts?

A: Charles Gillespie mentioned competitors didn't fully appreciate 2024 sports betting challenges in North America, Brazil's regulatory changes are a headwind for some affiliates, and the company's focus on free cash flow generation has positioned it well.

Q: Any updated thoughts on sweeps and prediction markets?

A: Jeremy (on behalf of Barry Jonas) asked about sweeps and prediction markets. Charles said sweeps is a growing but cautiously approached category, and prediction markets are exciting with potential growth if regulation clarifies.

Q: How does AI impact the business?

A: Charles Gillespie stated AI is a boon across the organization, benefiting multiple areas, and high intent search traffic from AI experiences is highly qualified and valuable.

Q: What's the integration status of Odds Holdings and monetization of ADS data engine?

A: Charles said integration is early but going well, with their team and platform contributing to integrating odds data into products and accelerating new feature development, with average revenue per user/client increasing.