Gambling.com sees 37% rise in revenue after “better than expected Q3”
Share price climbs 3% after Q3 results announcement
Affiliate site Gambling.com has posted a year-on-year (YoY) revenue increase of 37% resulting in a nearly 3% jump in share price. The NASDAQ-listed firm recorded revenue of $13.6m for Q3 2021 compared to $7.4m in the comparable period in 2020. The increase was “driven by increased monetisation of new depositing customers (NDC)”, according to CEO Charles Gillespie.
This was recorded despite a slight drop in NDCs of 3.6% on Q3 last year.
Casino was the leader in terms of verticals contributing $8m of the revenue total while sport generated $2.1m.
Gillespie celebrated the firm’s successful Q3: “Our financial performance in Q3 remained strong as we grew revenue by 37% compared to the prior year.”
He pointed to the success despite Q3 being the “seasonally slowest quarter of the year” owing to European football off-seasons and the NFL season not having started. This saw “significant uplift” in US revenue.
“Importantly, after the quiet summer months of July and August, we delivered all-time high revenue in September.” This was partially down to the fact that Gambling.com was able to launch BetArizona.com in time for the kick-off of the NFL season.
Despite the healthy increase in revenue, net profit was down on last year owing to operating costs, some of which related to the firm’s listing on the NASDAQ in June. These costs totalled $7.7m, 97.4% higher than Q3 2020, and resulted in a steep drop in operating profit of 31.4% to $2.4m while EBITDA was 14% lower at $3.5m.
“The increase was driven primarily by headcount across sales and marketing, technology, and general and administrative functions as we invest in the company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company,” said Gillespie.
CFO Elias Mark added: “Our third-quarter results came in a bit above our expectations and after slow summer trading our financial performance accelerated in September to close out the quarter with the best month in the company’s history.”