Gambling.com Group Ltd. Q3 FY2024 earnings call

• Gambling.com Group delivered record third quarter revenue of $32.1 million and record adjusted EBITDA of $12.6 million, with year-over-year growth of 37% and 108% respectively. • Free cash flow reached a new record of $14.2 million in Q3. • Repurchased 1.3 million shares in Q3 and authorized an additional 10 million for future share repurchases. • Raised 2024 revenue guidance to $125 million to $127 million (midpoint 16% growth) and adjusted EBITDA guidance to $46.5 million to $48.5 million (midpoint 29% growth). • Acquisition of Freebets.com completed with $25 million drawn down on $50 million credit facility. • Strong organic growth strategy prioritizing iGaming, sports betting, and targeted acquisitions.

Gambling.com Group achieved record third quarter revenue of $32.1 million. Revenue growth was driven by iGaming across all regions. UK and Ireland saw a 43% increase, other Europe up 192%, rest of the world up 99%, while North America was flat year-over-year. iGaming revenue continued strong growth across operating regions. Revenue contribution by region: UK and Ireland ~43% of 37% year-over-year growth, other Europe ~192% impact, rest of the world ~99% impact, North America flat.

• Raised 2024 revenue guidance to $125M-$127M (midpoint 16% y-o-y growth). • Adjusted EBITDA guidance revised to $46.5M-$48.5M (midpoint 29% y-o-y growth). • Acknowledged challenging comps in North America for next two quarters but expect resumption of growth in 2025. • Fourth quarter guidance does not include market launch contributions. • Assumes average euro to USD exchange rate of 1.065 for Q4 2024.

• Potential disruptions to organic search strategy which could impact revenue. • Challenging comparables in North America with prior year media partnerships and state launches. • Regulatory changes in international markets (e.g., Brazil) which could affect business operations and valuations. • Competition from peers with different business models or market concentrations.

Q: How much of UK and Ireland growth was organic versus from Freebets.com?

A: About half of the growth in UK and Ireland was organic; Freebets acquisition integrated well and is showing improvement from low base.

Q: Thoughts on differences between Gambling.com and peers like BETCO and Catena?

A: Gambling.com has an organic growth strategy with fewer acquisitions, focused on tried and true organic search, while some peers faced challenges from disrupted product/market cohorts or traffic channels.

Q: M&A pipeline?

A: Busy on M&A fronts, looking broadly beyond affiliate assets to widen scope.

Q: Thoughts on sweeps casinos and predictive markets?

A: Work with some sweeps casinos meeting KYC/legal requirements in allowed markets; predictive markets have bright future, with interest in developing relationships.

Q: Missouri sports betting legalization expectations?

A: Missouri is a small but attractive market with reasonable taxes, and media partnership assets will be relevant; eyes on Minnesota, Texas, New York for future growth.

Q: Performance in Greece, Romania, and future market launches?

A: Greece and Romania are new markets with clear growth paths; looking to enter more markets in 2025 including Colombia, Peru, Mexico.

Q: Google enforcement impact?

A: Dust settled on May Google policy change, media partnership assets still important but not at Q4 last year levels.

Q: France casino legislation potential?

A: France sports betting only, not targeted currently; if iGaming regulated, would be interested as unit economics attractive.