Gambling.com Group Ltd. Q1 FY2025 earnings call

• Thanked longstanding directors Frederic Burvall and Greg Michaelson and welcomed new directors Fenton Costello and Jamie Mendal.
• Q1 2025 saw record quarterly revenue ($40.6M, +39% y-o-y) and adjusted EBITDA ($15.9M, +56% y-o-y).
• Marketing business: iGaming led growth, with iGaming revenues up 24% y-o-y, and growth expected in all geographic regions including North America (once Missouri launch date is clear).
• Sports data services: Integration of OddsJam and OpticOdds progressing as planned, with OpticOdds growing rapidly, and hiring a senior sales person in London to distribute products more broadly in Europe.
• AI adoption: Accelerated technology stack and digital marketing capabilities growth.
• Strong competitive position with industry-leading brands and best Odds data infrastructure, enhancing revenue visibility.

The marketing business grew 13% with iGaming revenues rising 24% year-over-year, delivering more than 138,000 NDCs representing 29% growth year-over-year. The sports data services business, including OddsJam and OpticOdds, quadrupled in revenue. Subscription revenue was 24% of total first quarter revenue, and recurring revenue was 50% of total first quarter revenue. The sports data services segment, with the acquisition of OddsJam and OpticOdds, is expected to have incremental adjusted EBITDA growth of at least 20% this year.

• Full-year revenue guidance midpoint: $172M (35% y-o-y growth).
• Full-year adjusted EBITDA guidance midpoint: $68M (40% y-o-y growth).
• Assumes resumption of growth in North American marketing business, continued global market share gains, and over 20% of full-year revenue from recurring subscriptions.
• Guidance does not include contributions from new acquisitions or market launches; Missouri launch will be included once date is confirmed.

• Uncertain macro environment creating volatility in capital markets and economic uncertainty.
• ForEx translation effects on income statement due to currency fluctuations.
• Trade policy changes not expected to impact business volumes or expectations.

Q: How is Gambling.com dealing with changes in consumer content viewing behavior due to AI search tools and is it an opportunity or risk?

A: Charles Gillespie noted that they are seeing all-time high revenue from marketing business driven by natural search from Google, and referrals from generative AI experiences like ChatGPT and Perplexity are high intent and incremental, seen as a boon with no ads and cleaner consumer relationship.

Q: Update on OpticOdds cross sell and growth?

A: Charles Gillespie said OpticOdds is growing rapidly, hired a senior sales person in London to distribute products more broadly in Europe, and growth is expected to continue at a high level.

Q: Impact of euro to USD exchange rate change on guidance?

A: Elias Mark said the assumption of euro to USD rate at 110 has a slight positive effect on revenue but doesn't move the needle, and nothing has fundamentally changed in revenue or EBITDA expectations for the year.

Q: Path to $100M EBITDA goal?

A: Charles Gillespie said with 2025 guidance at $68M midpoint, they're 68% of the way there, M&A could shorten timeline, and without M&A, it would take another year or two with high growth even without acquisitions.

Q: Thoughts on handle growth in US and iGaming legislation?

A: Charles Gillespie said US OSB grew 15% nationally in Q1, no concerns, and Ohio's iGaming reform with one regulator is positive, prediction markets could grow rapidly with zero tax, forcing state regulators to be competitive.

Q: Update on Casinos.com and $100M EBITDA mix?

A: Charles Gillespie said Casinos.com is doing creative stuff, numbers trending up, and OddsJam/OpticOdds business had higher adjusted EBITDA margins than marketing business, contributing incrementally more to adjusted EBITDA as they grow.

Q: Brazil market outlook?

A: Charles Gillespie said strategy in Brazil is wait and see, challenging with regulatory and tax issues, but continuing to take calls on M&A opportunities but being picky.

Q: Near term guidance upside and prediction markets?

A: Charles Gillespie mentioned revamp of RotoWire's consumer side (Project Purple Rain) launching summer with potential to outperform, and prediction markets have incremental clarity but regulatory uncertainties, but Gambling.com can expand coverage easily with existing relationships.