Instructions: Buy Gambling.com Group Limited (GAMB), paying no more than $17.50, and add it to your Momentum portfolio.
Details:
Gambling.com Group Limited (NASDAQ: GAMB) is a prominent performance marketing company specializing in the online gambling industry. Founded in 2006 by Charles Gillespie and Kevin McCrystle, the company provides digital marketing services, focusing on online casino, sports betting, and fantasy sports sectors. Operating globally, Gambling.com Group maintains primary offices in the United States and Ireland, with its principal executive office located in Saint Helier, Jersey.
Business Overview
Gambling.com Group operates over 50 websites in seven languages across 15 national markets, offering comprehensive reviews, comparisons, and information on online gambling platforms. Key brands include:
- Gambling.com: The flagship site providing in-depth reviews and comparisons of online gambling services.
- Casinos.com: A resource for information on various online casino platforms.
- RotoWire.com: A leading platform offering fantasy sports news and insights.
- Bookies.com: A site dedicated to sports betting information and bookmaker reviews.
The company’s business model centers on performance marketing, earning revenue by referring online gamblers to operators. This approach involves creating high-quality content that attracts users to their websites, where they can compare and select suitable gambling services. Gambling.com Group does not offer gambling services directly but serves as a crucial intermediary between consumers and operators.
Customers
Gambling.com Group’s primary customers include some of the largest and most recognized online gambling operators in the world. These include:
- DraftKings: A leading sports betting and daily fantasy sports operator in the U.S.
- FanDuel: One of the largest online sportsbooks and fantasy sports providers.
- BetMGM: A major sportsbook operator with a significant market presence in North America.
- Caesars Entertainment: A prominent casino and sports betting brand.
- Bet365: A globally recognized online sports betting and gaming operator.
- Penn Entertainment (ESPN Bet): A fast-growing sportsbook leveraging the ESPN brand for wider market reach.
These partnerships enable Gambling.com Group to capitalize on the expanding regulated gambling market, particularly in the United States and Europe.
Financial Performance
Gambling.com Group has demonstrated robust financial growth in recent years. In the third quarter of 2024, the company reported revenue of $32.12 million, marking a 36.92% increase compared to the same period in the previous year. For the twelve months ending September 30, 2024, total revenue reached $124.40 million, reflecting a 27.63% year-over-year growth. In 2023, the company reported annual revenue of $108.65 million, a 42.02% increase from 2022.
According to the latest earnings report, Gambling.com Group achieved record third-quarter revenue of $32.2 million, surpassing previous estimates. The adjusted EBITDA for Q3 2024 was $12.1 million, a 46% increase compared to the same quarter in 2023, reflecting strong operational efficiency. Net income for the quarter was reported at $7.4 million, up 58% year-over-year. The company’s free cash flow improved significantly, reaching $9.8 million for the quarter, supporting its continued investment in strategic acquisitions and growth initiatives.
For the full-year 2024, the company has raised its revenue guidance to $130-$135 million, representing an expected growth rate of approximately 20% year-over-year. Adjusted EBITDA is projected to be in the range of $50-$52 million, with an expected margin expansion due to improved monetization efforts and increased market share in key U.S. states.
Recent Developments
In December 2024, Gambling.com Group announced a definitive agreement to acquire Odds Holdings, the parent company of OddsJam, a platform specializing in real-time odds data. This acquisition, valued at up to $160 million, is expected to enhance the company’s recurring revenue streams and solidify its position in the sports betting market. The transaction is anticipated to close on January 1, 2025.
The company also highlighted a significant increase in its U.S. presence, with new market entries in several states, including North Carolina and Kentucky, following regulatory approvals. Additionally, the expansion of the Casinos.com brand is expected to contribute to higher user engagement and revenue growth in international markets.
Market Performance
As of February 14, 2025, Gambling.com Group’s stock (GAMB) is trading at $16.72, with an intraday high of $17.11 and a low of $16.37. The company’s market capitalization stands at approximately $354 million, with a 52-week trading range between $7.51 and $13.88. The stock has experienced significant growth, particularly following the announcement of the OddsJam acquisition, reflecting investor confidence in the company’s strategic direction and financial health.
Conclusion
Gambling.com Group Limited has established itself as a leading performance marketing provider in the online gambling industry. With a diverse portfolio of brands, a strong financial track record, and strategic acquisitions like OddsJam, the company is well-positioned for continued growth and expansion in the evolving online gambling market. The strong Q3 earnings report, increased revenue guidance, and market expansion initiatives further highlight the company’s ability to capitalize on industry growth trends while delivering shareholder value.