Gambling.com Group (GAMB) reports robust financial results for 2022, as the Nasdaq affiliate media firm continues to register double-digit growth in its revenue and EBITDA performance.
Strong end-of-year trading saw Gambling.com’s revenue more than double year-on-year to $21.3m (Q4 2021: €10.2m), while its Adjusted EBITDA increased by 202% to $6.9m (Q4 2021: €2.3m).
Q4 highlights saw its North American media network generate revenues of $10m (+364%) – results reflecting the continued benefit from strong performance in the established US markets and solid results from its November launch in Maryland.
In addition, the group cites strong ‘out of the gate’ performances in the newly regulated states of Ohio and Massachusetts, helping Gambling.com deliver its clients 82,000 new depositing customers.
Expanding its US network across five new states, full-year trading saw Gambling.com Group’s revenue increase by 81% to $77m (FY 2021: $42m), as the group’s Adjusted EBITDA saw a 31% improvement to $24m (FY 2021: $18.3m).
CEO Charles Gillespie explained: “Our investments in expanding our team, technology, and our portfolio of performance marketing websites continue to drive highly efficient and effective customer acquisition for online gambling operators.
“These factors, combined with our expansion into five new North American markets last year, helped drive an 81% increase in 2022 full-year revenue to $76.5 million, a 31% improvement in Adjusted EBITDA to $24.1 million, and Free Cash Flow of $9.5 million.”
The group’s income statement reflected a doubling in YoY operating expenses to $60m, with Gambling.com doubling sales and marketing costs to $33m and tech expenses to $6.7m, while general and administrative expenses climbed to $19.5m.
Impacting its bottom-line results, 2022 trading saw the group absorb a “fair value contingent consideration of $10m,” related to M&A payouts/rewards, as group operating profits fell to $1.8m, down x6 on 2021’s profits of $11.3m.
2022 proceedings saw Gambling.com acquire the ‘ultra-premium domain name’ Casinos.com and repurchase 38,708 ordinary shares for an average price of $8.98 per share.
Providing a year outlook, corporate governance has initiated full-year guidance for revenue of $93m to $97m, with an Adjusted EBITDA of $32m to $36m.
The guidance assumes no expectation of going live in any additional North American markets for the rest of 2023, no benefit from new acquisitions, new investments throughout 2023 for the development of Casinos.com, and to service new US media partner Gannett.
Elias Mark, Chief Financial Officer of Gambling.com Group, said, “Our leading technology, domain names, and websites, successful entry into new markets, and strong value proposition to our customers drove a more than 133% increase in new depositing customers in 2022, and yet another year of industry-leading revenue growth with continued strong profitability and cash generation.”
“Looking ahead, we remain committed to delivering profitable growth and consistent positive operating cash flow. With our strong operating cash flow and balance sheet, we have the financial flexibility to continue making return-focused investments in our business to deliver increased scale and attractive top-line and cashflow growth – all while maintaining strong profitability.”