Gambling.com Group Limited

Gambling.com Group Limited (NASDAQ: GAMB) offers digital marketing services for the global online gambling industry, primarily operating in the United States and Ireland. Utilizing its technology platform, the company manages a portfolio of leading branded websites, including Gambling.com, Bookies.com,

Recent Business and Financial Updates

• Strong Financial Performance in Q3 2024: GAMB reported record financial results for the third quarter ended September 30, 2024, demonstrating strong growth in revenue and profitability. The company also raised its full-year revenue and Adjusted EBITDA guidance, reflecting its confidence in continued expansion. Revenue for the quarter increased by 37% year-over-year to USD 32.1 million, while Adjusted EBITDA more than doubled to USD 12.6 million, representing an Adjusted EBITDA margin of 39%.
• Consistent Market Share Expansion: Chief Executive Officer and Co-Founder Charles Gillespie highlighted the company's ability to consistently grow market share in the global affiliate sector. The third quarter’s revenue growth and record Adjusted EBITDA reinforce Gambling.com Group’s leadership in delivering value to both shareholders and online gambling operator clients. The company remains focused on organic market share expansion while exploring adjacent opportunities to strengthen its position in the online gaming ecosystem.
• Operational Efficiency and Profitability: Chief Financial Officer Elias Mark noted a 37% year-over-year increase in revenue and a 108% rise in Adjusted EBITDA, with strong free cash flow conversion. The company's iGaming new depositing customer (NDC) growth was robust across all regions, with North America showing resilience despite challenging comparables. The company anticipates significant revenue and EBITDA growth in 2024, particularly as the North American market is expected to rebound in the coming year.
• Key Business Achievements: During the quarter, the company delivered over 116,000 new depositing customers, a 35% increase year-over-year. Additionally, it repurchased 1,316,975 shares at an average price of USD 9.35 per share and authorized an additional USD 10 million for share repurchases. The company also won the prestigious Casino Affiliate of the Year award at the 2024 EGR Operator Awards, reinforcing its industry leadership.
• Revised Full-Year Outlook: com Group updated its full-year 2024 revenue and Adjusted EBITDA guidance, now expecting revenue between USD 125 million and USD 127 million and Adjusted EBITDA between USD 46.5 million and USD 48.5 million. These figures represent year-over-year growth of approximately 16% and 29%, respectively. The updated guidance assumes no additional North American market expansions for the remainder of the year and no further acquisitions beyond Freebets.com.
• Strong Cash Flow and Financial Position: The company generated operating cash flow of USD 14.9 million in Q3 2024, compared to a negative USD 0.7 million in the prior year period. Free cash flow surged to USD 14.2 million from USD 1.6 million, driven by higher net income and Adjusted EBITDA. For the nine months ended September 30, 2024, revenue grew 21% to USD 91.9 million, while net income rose 91% to USD 22.7 million. The company maintains a strong financial position with an outstanding balance of USD 25 million on its USD 50 million credit facility.

Technical Observation (on the daily chart):

GAMB's stock price is moving with higher highs and higher lows, suggesting the potential for a near-term uptrend as buyers may enter the market to initiate long positions at each higher low. The RSI at 78.44 indicates overbought conditions and remains in positive territory, further supporting a bullish outlook. Additionally, increasing volume confirms the bullish momentum, and a breakout above USD 15.85 on strong volume could signal further upside. However, a decline below the 50-day moving average may indicate a shift in strength.

Gambling.com Group reported strong Q3 2024 financial results, with revenue rising 37% year-over-year to USD 32.1 million and Adjusted EBITDA more than doubling to USD 12.6 million. The company continues to expand market share, delivering over 116,000 new depositing customers and winning the Casino Affiliate of the Year award. It also repurchased shares and authorized an additional USD 10 million for buybacks. With a revised full-year revenue forecast of USD 125–USD 127 million and Adjusted EBITDA expected to grow 29%, the company remains well-positioned for continued growth, particularly as the North American market rebounds. Strong cash flow and financial stability further reinforce its leadership in the industry. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Gambling.com Group Limited (NASDAQ: GAMB) at the current market price of USD 15.85 as of February 12, 2025, at 07:05 AM PST. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 12,2025 at 07:05 AM PST. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.