Gambling.com Group released its financial results for the third quarter of 2024, reporting particularly strong revenue and adjusted EBITDA performance, and raised its full-year performance expectations.
The company's third-quarter revenue increased by 37% year-over-year to $32.1 million, setting a new quarterly record.
Net income also saw a significant increase, rising from $5 million in the same period last year to $8.5 million.
In addition, adjusted EBITDA reached a new record of $12.6 million, up 108% from last year, with the profit margin increasing from 26% to 39%.
Operating cash flow improved from a negative $700,000 in the same period last year to $14.9 million, mainly due to the absence of contingent payments related to the 2022 acquisition of BonusFinder and a positive shift in working capital.
Free cash flow surged from $1.6 million to $14.2 million, further highlighting the company's efficient cash management.
Total operating expenses for the quarter increased by 25% to $20.8 million, due to increased personnel costs and amortization expenses related to the acquisition of Freebets.com.
This acquisition and the company's ongoing stock repurchase efforts reflect the company's efforts to maximize shareholder value; during the quarter, the company repurchased 1,316,975 shares at an average price of $9.35 per share, and an additional 486,000 shares after the quarter ended.
In light of the strong quarterly performance, Gambling.com Group has raised its full-year revenue forecast for 2024 to between $125 million and $127 million, and its adjusted EBITDA forecast to between $46.5 million and $48.5 million.
These revised targets reflect an expected revenue growth of 16% and an adjusted EBITDA growth of 29%.
Notably, the updated guidance assumes no further market launches in North America this year and does not include the impact of acquisitions other than Freebets.com.
CEO and co-founder Charles Gillespie commented on the performance, saying: "Our record third quarter and year-to-date performance reflect our best execution in the affiliate sector, thereby continuously expanding our global market share.
"To complement our ongoing organic market share growth, we will continue to evaluate opportunities near our core business to expand our footprint in the online gaming ecosystem and move towards our annual adjusted EBITDA target of $100 million."
CFO Elias Mark added: "Third quarter revenue and adjusted EBITDA grew by 37% and 108% year-over-year respectively, with a very high free cash flow conversion rate, reflecting our continued success in optimizing returns on our global owned and operated asset portfolio.
"As expected, we achieved strong iGaming NDC growth across all geographic regions, while our North American business continued to show resilience in the face of tough competition.
"As reflected in our raised full-year expectations, we anticipate significant year-over-year growth in revenue and adjusted EBITDA for 2024, and we are fully capable of continuing this operational momentum, especially with the expected recovery of the North American market next year."
