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Gambling.com (GAMB)
NASDAQ:GAMB
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Gambling.com
(NASDAQ:GAMB)
76Outperform
Positive Factors
Earnings
GAMB's Q4 results exceeded expectations, with revenue and AEBITDA both coming in ahead of consensus.
Market Opportunities
The company is poised to capitalize on several key developments within the online gambling industry, including the legalization of sports betting in Missouri.
Strategic Acquisitions
GAMB completed the acquisition of Odds Holdings, which is expected to be immediately accretive to GAMB's results.
Negative Factors
Competition
OddsJam is relatively expensive, with several low-cost competitors attempting to disrupt.
Share Offering Concerns
The suspicion from investors that GAMB may be considering a secondary offering could be contributing to recent share weakness.
Gambling.com (GAMB) vs. S&P 500 (SPY)
Market Cap
$444.62M
Dividend YieldN/A
Average Volume (3M)408.38K
Price to Earnings (P/E)15.0
Beta (1Y)0.66
Revenue Growth17.05%
EPS Growth73.00%
CountryUS
Employees555
SectorConsumer Cyclical
Sector Strength66
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.85
Shares Outstanding34,762,897
10 Day Avg. Volume250,562
30 Day Avg. Volume408,376
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.15
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.26
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.86Price Target Upside47.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Gambling.com Business Overview & Revenue Model
Company DescriptionGambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. The company provides digital marketing services for the iGaming and sports betting. It publishes various branded websites, including Gambling.com and Bookies.com. Gambling.com Group Limited was incorporated in 2006 and is based in St. Helier, Jersey.
How the Company Makes MoneyGambling.com makes money primarily through performance-based affiliate marketing agreements with online gambling operators. The company earns revenue by driving traffic and delivering potential customers to these operators' websites. Key revenue streams include cost-per-acquisition (CPA) agreements, where the company is paid a fee for each new customer referred, and revenue share agreements, where Gambling.com receives a percentage of the revenue generated from customers referred to the operators. Significant partnerships with prominent online gambling operators and a robust portfolio of high-ranking websites are critical factors that contribute to its earnings.
Gambling.com Financial Statement Overview
Summary
Gambling.com exhibits strong financial performance with significant revenue and profit growth, robust margins, and a solid equity position. Revenue growth is impressive, and the company maintains high profit margins. The balance sheet is stable with manageable leverage, though the increased debt-to-equity ratio warrants monitoring. Cash flow is strong, but attention to free cash flow management is advised to enhance liquidity.Income Statement
Gambling.com has demonstrated strong revenue growth with a substantial increase from $76.5M in 2022 to $127.2M in 2024, marking an impressive revenue growth trajectory. The gross profit margin remains high, consistently above 90% over the past years. Additionally, the net profit margin rose significantly from 23.8% in 2023 to 24.1% in 2024, indicating effective cost management and profitability improvement. Both EBIT and EBITDA margins are robust, with the EBIT margin improving from 20% in 2023 to 28% in 2024, showcasing operational efficiency. These factors combine to form a solid income statement performance.85
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a rising stockholders' equity from $87.1M in 2022 to $123.2M in 2024. The debt-to-equity ratio has increased to 0.23 in 2024, up from 0.01 in 2023, which requires monitoring but remains manageable. The equity ratio is strong at 69%, indicating a stable financial structure. Return on equity improved from 15.4% in 2023 to 24.9% in 2024, reflecting effective utilization of equity in generating profits. Overall, the balance sheet reflects a solid financial footing with moderate leverage.78
Positive
Cash Flow
Operating cash flow has grown significantly, nearly doubling from $18.8M in 2022 to $37.6M in 2024, which supports the company's liquidity. However, free cash flow has decreased from $8.9M in 2023 to $3.8M in 2024, due to increased capital expenditures. The operating cash flow to net income ratio remains strong above 1, showing good cash generation relative to net income. The free cash flow to net income ratio has dropped, indicating lower conversion of net income into free cash flow. While cash flow generation is strong, careful management of capital expenditures is advised to enhance free cash flow.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 127.18M | 108.65M | 76.51M | 42.32M | 27.98M | Gross Profit |
| 119.65M | 99.54M | 73.55M | 42.32M | 27.98M | EBIT |
| 35.67M | 21.78M | 15.85M | 11.39M | 11.13M | EBITDA |
| 42.75M | 22.47M | 10.61M | 15.33M | 15.08M | Net Income Common Stockholders |
| 30.68M | 18.26M | 2.39M | 12.45M | 15.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.73M | 25.43M | 29.66M | 51.05M | 8.22M | Total Assets |
| 178.58M | 154.87M | 138.88M | 91.03M | 45.38M | Total Debt |
| 27.96M | 1.72M | 2.07M | 7.62M | 7.93M | Net Debt |
| 14.23M | -23.71M | -27.59M | -43.42M | -290.00K | Total Liabilities |
| 55.40M | 35.95M | 51.77M | 11.12M | 11.17M | Stockholders Equity |
| 123.19M | 118.92M | 87.11M | 79.91M | 34.21M |
| Cash Flow | Free Cash Flow | |||
| 3.81M | 8.93M | 9.47M | 8.42M | 10.80M | Operating Cash Flow |
| 37.64M | 17.91M | 18.75M | 14.00M | 10.89M | Investing Cash Flow |
| -43.84M | -19.47M | -32.70M | -5.57M | -90.00K | Financing Cash Flow |
| -5.24M | -3.14M | -7.31M | 34.99M | -10.20M |
Gambling.com Technical Analysis
Neutral
12.78
Price Trends
13.02
Negative
13.73
Negative
11.88
Positive
Market Momentum
-0.13
Negative
54.57
Neutral
93.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAMB, the sentiment is Neutral. The current price of 12.78 is above the 20-day moving average (MA) of 12.16, below the 50-day MA of 13.02, and above the 200-day MA of 11.88, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 93.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GAMB.
Gambling.com Risk Analysis
Gambling.com disclosed 54 risk factors in its most recent earnings report. Gambling.com reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gambling.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.52B | 28.75 | 21.14% | 3.63% | 18.10% | ― | |
76 Outperform | $444.62M | 15.00 | 25.34% | ― | 17.05% | 73.00% | |
65 Neutral | $499.64M | 10.20 | 53.82% | ― | 10.75% | 10405.31% | |
60 Neutral | $6.85B | 11.71 | 3.16% | 4.15% | 2.39% | -21.87% | |
58 Neutral | $30.56B | ― | -54.81% | ― | 30.07% | 39.93% | |
46 Neutral | $81.06M | ― | 229.13% | ― | 4.31% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
GAMB
Gambling.com
12.79
3.97
45.01%
AGS
Playags
12.11
3.21
36.07%
DKNG
DraftKings
33.28
-9.50
-22.21%
GAN
GAN
1.77
0.59
50.00%
SGHC
Super Group (SGHC)
8.01
5.05
170.61%
CDRO
Codere Online
7.24
0.34
4.93%
Gambling.com Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: 2.40%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance and optimistic growth prospects for Gambling.com Group, driven by strategic acquisitions and market expansion. Despite some challenges in North American sports revenue and traffic from media partnerships, the company's robust core business and strategic initiatives indicate a positive outlook.Q4-2024 Updates
Positive Updates
Record Quarterly and Full-Year Financial Performance
Gambling.com Group achieved record revenue of $35.3 million and adjusted EBITDA of $14.7 million in Q4 2024. Full-year 2024 revenue and adjusted EBITDA rose 17% and 33% respectively.
Strategic Acquisitions and Growth Prospects
The acquisition of OddsJam and OpticOdds expanded the company's product portfolio, promising a 20% growth in incremental adjusted EBITDA from these businesses.
Strong Organic and Market Share Growth
The company expects to grow revenue by 35% and adjusted EBITDA by 40% in 2025, with significant contributions from expanded product offerings and market share gains.
Increased Revenue from Subscriptions
Recurring subscription revenue is expected to account for over 20% of total group revenue in 2025, driven by the OddsJam and OpticOdds acquisitions.
Robust Performance in Core Affiliate Business
The company reported its best quarter in its 19-year history for the core affiliate business, with strong growth in iGaming revenue across operating regions.
Negative Updates
Decline in North American Sports Revenue
There was a 9% decline in North American revenue due to less state launch activity and lower media partnership revenue.
Challenges in Traffic from Media Partnerships
The company anticipates substantially lower traffic from media partnerships, resulting in a headwind to overall revenue growth.
Impact of Regulatory Changes in Brazil
Gambling.com Group faced challenges due to regulatory changes in Brazil, which have affected affiliate businesses operating in the region.
Company Guidance
In the Gambling.com Group's fourth quarter 2024 earnings call, the company provided optimistic guidance for 2025, projecting a 35% growth in full-year revenue and a 40% increase in adjusted EBITDA, based on the midpoints of their initial guidance. This growth is anticipated to be driven by several key factors, including the recent acquisition of OddsJam and OpticOdds, which is expected to contribute approximately $14.5 million in incremental adjusted EBITDA. The company's core affiliate business also showed strength, with record revenue of $35.3 million in Q4 2024, and the full-year revenue and adjusted EBITDA rising by 17% and 33%, respectively. Furthermore, Gambling.com anticipates over 20% of its 2025 revenue to derive from subscriptions, enhancing its diversified market exposure and ability to drive high-intent traffic. The company is also optimistic about organic growth in sports betting, particularly in North America, and expects to capitalize on its expanded product portfolio and new opportunities in recently regulated markets such as Missouri.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.