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Golden Matrix Group (GMGI)
NASDAQ:GMGI
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Golden Matrix Group
(NASDAQ:GMGI)
56Neutral
Positive Factors
Financial Performance
Golden Matrix Group reported strong 4Q24 results with revenue significantly increasing by 81% year over year, showcasing strong demand and successful integration efforts.
Growth Potential
Management's guidance for 1Q25 projects a significant revenue increase, suggesting strong future growth potential.
Market Expansion
The company is pursuing expansion into new markets, recently receiving a license in Brazil and targeting multiple regions in the US and Europe for expansion.
Negative Factors
Market Competition
Preliminary 2024 revenue and other recent metrics support a robust growth outlook, benefiting from strong performance in key existing markets, expanded product offerings, and recent expansion into South Africa, Peru, and Australia markets.
Regulatory Challenges
The company is broadly pursuing expansion into new markets, recently receiving a license in Brazil, pending licensing in Ontario and NJ, as well as targeting multiple regions in the US and Europe for expansion.
Golden Matrix Group (GMGI) vs. S&P 500 (SPY)
Market Cap
$258.89M
Dividend YieldN/A
Average Volume (3M)128.09K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth147.89%
EPS Growth96.56%
CountryUS
Employees1,200
SectorCommunication Services
Sector Strength59
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.04
Shares Outstanding132,087,080
10 Day Avg. Volume138,379
30 Day Avg. Volume128,090
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.77
Price to Cash Flow (P/CF)13.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside108.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Golden Matrix Group Business Overview & Revenue Model
Company DescriptionGolden Matrix Group, Inc. provides enterprise software-as-a-service solutions for online casino and sports betting operators. The company develops and owns online gaming intellectual property; and builds gaming platforms for customers located primarily in the Asia Pacific region and Europe. Its platform facilitates gaming customers in operating online casinos, sportsbooks, lottery, and live games; and provides customers with access to a portfolio of licensed gaming content, which are provided by gaming content providers. The company also provides services and resells third party gaming content to licensed online gaming distributors. Its platform is accessed through desktop and mobile applications. The company was formerly known as Source Gold Corp. and changed its name to Golden Matrix Group, Inc. in April 2016. Golden Matrix Group, Inc. was incorporated in 2008 and is based in Las Vegas, Nevada.
How the Company Makes MoneyGolden Matrix Group makes money primarily through licensing its gaming platforms and content to online gaming operators. The company generates revenue by providing subscription-based services and charging fees for the use of its robust gaming systems, which include features such as user management, gaming content integration, and marketing tools. GMGI also earns from the distribution of its proprietary and third-party gaming content, which includes a variety of casino games, to its clients. Additionally, strategic partnerships with other gaming and technology companies enhance its revenue streams by expanding its reach and offering a more diverse range of products and services to its customers.
Golden Matrix Group Financial Statement Overview
Summary
Golden Matrix Group demonstrates strong revenue growth and a stable balance sheet with low leverage, which is promising for long-term sustainability. However, the negative net income and challenges in profitability are significant concerns.Income Statement
Golden Matrix Group has shown significant revenue growth over the years, with a substantial increase from 2019 to 2023. However, the net profit margin is negative for the recent period, indicating profitability challenges. The gross profit margin remains positive, suggesting efficient production but issues in managing other expenses.65
Positive
Balance Sheet
The company maintains a strong equity base with a low debt-to-equity ratio, indicating financial stability and lower leverage risk. The equity ratio is high, showcasing a solid proportion of equity financing relative to total assets. However, the small amount of debt could limit financial flexibility.75
Positive
Cash Flow
Operating cash flow remains positive, and the free cash flow is consistently growing, indicating good cash generation capability. However, the free cash flow growth rate has slowed recently, and the operating cash flow to net income ratio suggests challenges in converting revenue into cash.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2021 | Dec 2019 | Sep 2018 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 104.03M | 44.17M | 36.03M | 5.22M | 2.88M | 915.80K | Gross Profit |
| 50.69M | 9.87M | 9.16M | 3.22M | 2.86M | 843.80K | EBIT |
| 613.47K | -526.25K | 192.49K | 399.32K | 1.81M | -990.95K | EBITDA |
| 4.44M | ― | 609.12K | 400.94K | 2.20M | -883.65K | Net Income Common Stockholders |
| -2.50M | -1.17M | 44.03K | 398.08K | 1.77M | -1.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.96K | 17.10M | 14.95M | 11.71M | 1.73M | 446.58K | Total Assets |
| 17.96K | 35.58M | 32.57M | 13.81M | 3.01M | 819.87K | Total Debt |
| 0.00 | 59.09K | 154.86K | 99.00 | 1.36M | 546.94K | Net Debt |
| -17.96K | -17.04M | -14.79M | -11.71M | -367.53K | 100.36K | Total Liabilities |
| 13.39K | 4.48M | 2.77M | 552.61K | 1.97M | 2.16M | Stockholders Equity |
| 4.57K | 31.10M | 26.80M | 13.26M | 1.03M | -1.34M |
| Cash Flow | Free Cash Flow | ||||
| -1.60M | 2.14M | 2.61M | 1.88M | 1.45M | 302.72K | Operating Cash Flow |
| 7.20M | 2.21M | 2.77M | 1.88M | 1.45M | 302.72K | Investing Cash Flow |
| -16.11M | -95.96K | -4.41M | 192.00 | 0.00 | 0.00 | Financing Cash Flow |
| 21.13M | -32.32K | 32.00K | 7.97M | -167.42K | 118.70K |
Golden Matrix Group Technical Analysis
Negative
1.92
Price Trends
2.00
Negative
2.12
Negative
2.26
Negative
Market Momentum
>-0.01
Positive
46.87
Neutral
43.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMGI, the sentiment is Negative. The current price of 1.92 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.00, and below the 200-day MA of 2.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMGI.
Golden Matrix Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.10B | 8.98 | 8.08% | 5.22% | -22.16% | 123.24% | |
65 Neutral | $499.64M | 10.20 | 53.82% | ― | 10.75% | 10405.31% | |
62 Neutral | $1.18B | 80.06 | 6.23% | ― | -6.97% | -81.42% | |
60 Neutral | $8.01B | 19.19 | 42.87% | 0.38% | 11.07% | 3.32% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
56 Neutral | $258.89M | ― | -7.93% | ― | 147.89% | 96.56% | |
38 Underperform | $80.83M | ― | 229.13% | ― | 4.31% | 77.31% |
* Communication Services Sector Average
Performance Comparison
GMGI
Golden Matrix Group
1.92
-0.91
-32.16%
CHDN
Churchill Downs
102.66
-18.36
-15.17%
EVRI
Everi Holdings
13.48
4.03
42.65%
IGT
International Game Technology
14.53
-5.97
-29.12%
AGS
Playags
11.98
2.01
20.16%
GAN
GAN
1.71
0.36
26.67%
Golden Matrix Group Earnings Call Summary
Earnings Call Date: Mar 24, 2025 | % Change Since: -3.03% | Next Earnings Date: May 30, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant revenue growth, successful acquisition integrations, and strong performance in key segments like GMAG and Merdianbet, despite facing some one-off costs and minor challenges in the RKings division. The outlook remains very positive with continued growth expected.Highlights
Strong Revenue Growth
Consolidated revenues grew 85% to $41 million in Q3. Year-to-date revenue increased by 55% to $105 million.
Significant Increase in Gross Profit
Third quarter gross profit increased by 39% to $22.4 million, and year-to-date gross profit increased by 24% to $61.8 million.
Successful Acquisition Integration
Finalized the acquisition of Classics for a Cause, contributing $2.1 million in revenues and $503,000 in EBITDA for two months.
Cash and Balance Sheet Strength
Over $38.4 million in cash and equivalents with short-term debt of only $17.5 million. Shareholder equity grew 60% to $94 million.
GMAG Platform Growth
Wagering grew by 84% to $1.4 billion in Q3, with gross profit margin increasing to 26.2% from 24.7% in Q2.
RKings Recovery
Overcame customer acquisition channel challenges, with a subsequent 11.1% increase in October revenues over September.
Merdianbet Revenue Growth
Total revenue increased by 16% year-over-year, driven by a 19% increase in the online segment.
Expanse Studios Expansion
Revenue increased by 167% compared to Q3 2023, with player activity surging and 100 new partners added.
Lowlights
One-Off Costs from Acquisitions
Residual one-off costs due to the completion and implementation of the Merdianbet and Classics for a Cause acquisitions.
RKings Customer Acquisition Challenge
Experienced a brief performance impact due to challenges with a customer acquisition channel.
Company Guidance
During the Golden Matrix Group's Third Quarter 2024 earnings call, significant guidance was provided, highlighting robust financial metrics and operational achievements. The company reported an impressive 85% year-over-year increase in third-quarter consolidated revenues, reaching $41 million, and a year-to-date revenue surge of 55% to $105 million. Gross profit for Q3 grew by 39% to $22.4 million, with a year-to-date increase of 24% to $61.8 million. The adjusted EBITDA for the quarter was $4.3 million. The company's balance sheet remained strong, with cash and equivalents of over $38.4 million against a short-term debt of $17.5 million, while shareholder equity rose by 60% to $94 million. Divisional performance also showcased growth, with the RKings competitions' revenue rising by 11.1% in October and the GMAG platform achieving an 84% increase in wagering to $1.4 billion. Newly acquired Classics for a Cause contributed $2.1 million in revenues and $253,000 in profit for the two months it was operational. The Mexican online casino, Mixed Play, reported a 56% increase in active players and a 67% increase in gross gaming wagering. Meanwhile, Merdianbet's revenue grew by 16% year-over-year, driven by a 19% increase in the online segment. Looking ahead, Golden Matrix emphasized cost efficiencies and synergies to improve profitability and maintain their expansive growth strategy, with a strong start to the fourth quarter and a promising outlook for future performance.Golden Matrix Group Corporate Events
Golden Matrix Group Announces CFO Transition and Severance Deal
Sep 11, 2024
Golden Matrix Group, Inc. and Omar Jimenez have mutually agreed to part ways, with Jimenez stepping down as Chief Financial and Compliance Officer. He will receive a severance package of $50,000 plus expense reimbursements. Following his departure, Weiting ‘Cathy’ Feng, the company’s COO and director, will take over the CFO role. Feng’s appointment comes with no undisclosed arrangements beyond her existing employment agreement with the company.
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.