News

Gambling.com reports record Q1 2023 financial results

18 May 2023


(PRESS RELEASE) -- Gambling.com Group Limited, a leading provider of digital marketing services for the global online gambling industry, today reported record first quarter financial results for the three-month period ended 31 March 2023. The Company also increased its guidance for full-year revenue and Adjusted EBITDA.

“Our record first quarter 2023 results exceeded internal forecasts and reflect industry-leading organic revenue growth as well as strong profitability and cash generation,” said Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group. “Our performance in the first quarter demonstrates both Gambling.com Group’s successful execution on our North American growth initiatives and our success in generating ongoing attractive growth in more established markets. New depositing customers ("NDCs") increased 31% from the prior-year period, helping drive 36% year-over-year revenue growth, a 49% increase in Adjusted EBITDA to $10.7 million and an Adjusted EBITDA Margin of 40%.

“We continue to deliver strong growth in both our newer and more established markets, with particular strength in iCasino performance marketing revenue in many of our global markets. North American revenue increased 33% year-over-year to $14.1 million, despite the year-ago period including the blockbuster launch of sports betting in New York. First quarter growth in U.K. and Ireland, markets where we have a longer operating history, was also impressive as we generated all-time quarterly record revenue for the fifth consecutive quarter in those markets, with revenue rising 36% to $8.5 million. In addition, revenue from other Europe and the rest of the world increased 51%.

“We have established a record of consistently delivering market-leading organic revenue growth compared to our publicly-traded peers, as well as strong Adjusted EBITDA and Free Cash Flow. The advantages of our proprietary technology are a key factor driving our consistent growth in established markets and our success in addressing the high-growth North American market opportunity. Following the strong start to the year, we are raising our outlook for 2023 full-year revenue and Adjusted EBITDA as we remain on track to deliver another year of strong profitable organic growth and record financial results.”

First Quarter 2023 and Recent Business Highlights:

• North American revenue grew 33% to $14.1 million
• Delivered more than 88,000 new depositing customers
• Successfully launched operations in Ohio and Massachusetts
• Entered into a strategic media partnership with Gannett Co., Inc., publisher of USA TODAY
• In April 2023, paid contingent consideration of $20.0 million of which 50% was paid in ordinary shares
• Subsequent to the end of the quarter, the Company repurchased 69,128 ordinary shares at an average price of $9.76 per share

“Our focus on efficiency combined with operating leverage derived from revenue growth enabled us to expand Adjusted EBITDA Margin and grow Free Cash Flow 352% year-over-year,” said Elias Mark, Chief Financial Officer of Gambling.com Group. “We are able to continue to invest in our near- and long-term organic growth opportunities, including the development of Casinos.com and our new media partnership with Gannett while simultaneously delivering impressive top-line growth, Adjusted EBITDA and Free Cash Flow growth. Our strong cash generation and balance sheet also provides us with the flexibility to opportunistically evaluate value enhancing strategic transactions.”

2023 Outlook:
The Company today raised its full-year 2023 guidance for revenue of $95 million to $99 million, and for Adjusted EBITDA of $33 million to $37 million. The mid-points of the new revenue and Adjusted EBITDA ranges reflect year-over-year growth of 27% and 45%, respectively. The Company’s guidance assumes:

• No anticipation of going live in any additional North American markets for the balance of 2023


• No benefit from any new acquisitions


• New investments throughout 2023 for the development of Casinos.com and support to our media partners, including Gannett and McClatchy


• An average EUR/USD exchange rate of 1.085 throughout 2023