Gambling.com Group Ltd Q2 FY2025 Earnings Call

Greetings, and welcome to the Gambling.com Group Second Quarter 2025 Earnings Conference Call. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Peter McGough. Please go ahead, Sir.

Thank you, Operator. Hello, everyone, and welcome to Gambling.com's Second Quarter 2025 Results Call. I'm Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Charles Gillespie, Gambling.com Group's Co-Founder and Chief Executive Officer; and Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website at gambling.com/corporate/investors, and a downloadable version of the presentation is available there as well. A webcast replay will be available on the website after the conclusion of this call. You may also contact Investor Relations support by e-mailing investors@gdcgroup.com. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the Risk Factors section of Gambling.com Group's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. During the call, there will also be a discussion of non-IFRS financial measures. A description of these non-IFRS financial measures is included in the press release issued earlier this morning, and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are included in the appendix to the presentation and the press release, both of which are available in the Investors tab of our website. I'll now turn the call over to Charles.

Thank you, Pete. Good afternoon, and thanks for joining our call today. We generated record second-quarter revenue and adjusted EBITDA, with revenue rising 30% and adjusted EBITDA increasing 22% year-over-year. Our marketing business generated all-time highs for second-quarter revenue, and the growth in our sports data business accelerated to where it's highly visible, and high-margin recurring subscription revenue accounted for 25% of total revenue despite the second quarter being the seasonally slowest quarter. These results provide clear evidence that even while we continue to deliver high growth quarter after quarter, we are also rapidly diversifying our business to include a broader suite of products, which serve a much larger addressable market. Diversification of traffic sources and revenue models is front of mind for our team. In the past 4 years, as a public company, we have multiplied both our traffic sources and our means to monetize that traffic and our growing audience. The business today is a varied matrix of relationships between traffic sources and businesses with a CRM platform at its center. To achieve this, we have embraced an omnichannel approach to engage high-intent users across the Internet, including apps, e-mail, social media, YouTube, communities, and paid media. We've also broadened our ability to monetize our end users and B2B online gambling operator clients with the addition of new business models through the acquisition of RotoWire, OddsJam, and OpticOdds, and we'll continue to do so when we close on Spotlight.Vegas on September 1. Our focus on diversification also includes diversifying our go-to-market approach within our marketing business, as traditional search is becoming less central to our digital marketing strategy. While the development of these other marketing channels, like apps, e-mail, social media, and paid media, is still relatively early, the contributions are growing rapidly to the point that they are now more evident in our results. We are measuring the growth in these non-search channels in terms of orders of magnitude, not incremental percentages. Generally speaking, these channels have shorter investment cycles while still offering attractive ROI. Having said all of this, the search marketing channel continues to drive significant revenue and cash flow for both Google and publishers. While we expect the channel's relative proportion to other digital channels to fall, we also expect it to intertwine with next-generation AI tools to remain the primary digital channel for years to come. We are confident that this combined channel will continue to drive strong traffic, revenue, and cash flow for our business over the near and long term. While AI tools are capable of making recommendations, they base those recommendations off of data from specialist websites such as our own and link back to their sources. AI tools and agents are perfect for outsourcing tasks people want to avoid, such as booking and meeting. But when users evaluate online gambling sites for their next adventure, it is entertainment, not work. For example, users like to demo an online slot machine before depositing and playing for real money. Users also want to retain a sense of agency themselves to control the decisions which have a financial impact on them. I think it is fair to say that the AI-driven changes to search have had a relatively smaller impact on the online gambling industry than other industries, based on our results and what we are reading elsewhere. Our strategy to develop big brands with industry-leading authority like Gambling.com, Bookings.com, and Casinos.com is fundamental to our dominance of traditional search and likewise positions us ideally to capture and monetize high-intent traffic wherever it is on the Internet, including from next-generation AI tools. As the search experience continues to evolve, we are doing what we have always done, making sure that we optimize our offerings so that they create the most value for consumers looking for information about online gambling and for operators that will always need new players. The skills and processes we have perfected for SEO are exactly what is required to optimize for inclusion in generative AI. Both are fundamentally premised on the same signals of high authority, trust, and expertise, our key differentiating strength. Turning to another key component of our diversification. Growth in our sports data services business accelerated in Q2, with OpticOdds leading the way with 120% year-on-year growth. Given the momentum this business is already achieving to date and our realization that the TAM for this business may be bigger than originally expected due to the wide variety of clients interested in the data, we continue to revise up our long-term growth expectations. Between OddsJam, OpticOdds, and the refreshed RotoWire, our vision to establish a strong sports data services business within GAMB is now a reality. That was the hard part, and we are continuing to scale this business, delivering substantial high-margin recurring subscription revenue growth. Our success with quickly integrating and scaling OddsJam and OpticOdds, which follows the similar success of our Freebets.com acquisition last year, demonstrates our ability to identify, close, and integrate strategic accretive acquisitions in a capital-efficient manner. In each of our prior transactions, including RotoWire and BonusFinder, our team's execution has successfully lowered the initial purchase multiple. We expect the acquisition of Spotlight.Vegas will continue our run of capital-efficient and successful acquisitions. Spotlight helps consumers access gambling-adjacent entertainment experiences such as live events and local attractions through its online booking platform. Today, the business serves the Las Vegas market with more than 40 clients, including entertainment venues and land-based casinos. Visitors to Las Vegas utilize Spotlight as a one-stop shop for services that include tickets to shows and attractions or for booking a hotel. This strategic acquisition expands our client base to now include land-based operators and gives us yet another lever to monetize our audience. Having sold over $30 million worth of tickets in 2024, Spotlight already has attractive scale today. As we begin to work with our team, we are confident that for 2026, our digital marketing expertise will enhance margins and improve cash flow. Looking further out, we see opportunities to deploy this booking platform on our owned and operated sites, particularly on Casinos.com to ultimately expand beyond Las Vegas and serve regional casinos and other attractions and hospitality providers. At this moment, Las Vegas hotel occupancy is at a low. The people that know the market best have seen many cycles come and go and expect the city to bounce back from this one as it has always done. For us, this makes the current moment an opportunistic time to make a capital-efficient play on the market with a relatively small upfront investment and substantial long-term upside potential. With this new platform, the accelerating growth of our sports data services business and our continued industry-leading marketing business, we have transformed the company from an affiliate marketing business into a multi-platform integrated marketing, data, and soon-to-be ticketing services business, all while maintaining a strong balance sheet and attractive capital structure through continuously strong cash generation, capital-efficient M&A, and well-timed share buybacks. I'll now turn the call over to Elias to review the second quarter's financial highlights.

Thank you, Charles. Second quarter revenue grew 30% year-over-year to a Q2 record of $39.6 million. Our marketing business grew 3% as we delivered more than 108,000 NDCs to our customers, in line with the year-ago period. Our marketing business grew in all of the regions where we operate, except for North America, where we had tough comparables with the year-ago period, including the tailwind from the launch of sports betting in North Carolina. Our sports data services revenue quadrupled to $10 million. Subscription revenue increased to 25% of total revenue. Inclusive of revenue share arrangements in our marketing business, recurring revenue was 51% of total second-quarter revenue. Gross profit increased 27% year-over-year to $36.9 million. Cost of sales of $2.7 million compares to cost of sales of $1.4 million in the year-ago period, reflecting costs associated with our successful strategy to diversify traffic sources as well as cost of sales related to the acquired OddsJam and OpticOdds businesses. Gross profit margin was 93.2% compared to 95.3% in the year-ago period. Operating expenses of $51.3 million included $23.8 million of charges related to the Hod Holding acquisition, of which fair value movements related to the outperformance of OddsJam and OpticOdds of $21.2 million, noncash amortization of acquired intangible assets of $2.2 million, and other acquisition-related costs of $0.4 million. Adjusted EBITDA increased 22% year-over-year to a second quarter record of $13.7 million, and adjusted EBITDA margin was 35% compared to 37% in the year-ago period. Adjusted net income for the second quarter rose 37% from the year-ago period to $13.4 million. Adjusted net income continued to be positively affected by translation effects relating to the strengthening of the euro versus the U.S. dollar when translating balance sheet items at quarter end. Adjusted diluted net income per share increased 42% from the year-ago period to $0.37. Free cash flow grew 36% to $8.2 million, reflecting strong cash conversion and adjusted EBITDA growth, partly offset by tax payments of $5.5 million, of which $3.3 million was related to the Odds Holdings acquisition. As of June 30, we had total cash of $18.7 million and $70.5 million of undrawn capacity on our credit facility. On April 1, we made the final payment of $11.2 million for Freebets.com using cash balances. In total, we have drawn $94.5 million on our $165 million credit facility. Effective April 1, we entered into a swap agreement to effectively convert 75% of U.S. dollar borrowings to euro borrowings, lowering our cost of debt capital by approximately 200 basis points. The swap transaction also aligned our functional currency with our borrowings, eliminating the corresponding foreign exchange translation effects in our income statement moving forward. We continue to generate strong free cash flow. Based on the closing price of the shares this afternoon, we expect free cash flow yield to be double digits prior to the effects of any further share repurchases we may make in the second half of the year. Our free cash flow, together with our strong balance sheet and undrawn credit facilities, continues to provide the flexibility to pursue both acquisitions and share buybacks to optimize our capital structure and maximize shareholder value. Today, our Board approved a $10 million expansion to a total of $20 million of capacity in our current share repurchase program, none of which has been utilized yet. This afternoon, we adjusted our full-year guidance to reflect a revenue range of $171 million to $175 million and an adjusted EBITDA range of $62 million to $64 million. The increase to the full-year revenue range reflects the expected 4 months of contribution from Spotlight.Vegas and the launch of sports betting in Missouri in December, partly offset by currently weaker search rankings following the most recent Google Core algorithm update. Adapting to Google's algorithm changes is business as usual, and we're on the way to recover lost positions. The midpoint of the revenue guidance of $173 million represents 36% year-over-year growth. The updated full-year adjusted EBITDA guidance range reflects the higher cost of sales in our marketing business as a result of the higher proportion of non-SEO marketing revenue, strategic investments into the new digital marketing channels and monetization models that Charles highlighted, and no adjusted EBITDA contributions from Spotlight.Vegas for this year. The midpoint of the adjusted EBITDA guidance reflects 29% year-over-year growth. Our guidance assumes an average euro to USD exchange rate of 1.15 for the year. As Charles highlighted, the acquisition of Spotlight.Vegas provides another strategic lever to engage our high-intent audiences in a capital-efficient manner with limited upfront cash outflow and a pay-for-performance structure that will be accretive to our operating results. For 2026, we expect Spotlight.Vegas to generate net revenue of at least $8 million and incremental adjusted EBITDA of at least $1.4 million.

And our first question will come from Jeff Stantial with Stifel.

Maybe let's start off, if we can, on the Spotlight.Vegas transaction. Starting off, Eli, can you just provide us with some of the metrics underlying the earn-out compensation? And then more high-level, Charles, I'm curious, just as you underwrote this transaction, how did you come to understand the similarities and differences in the user journey for live events versus your legacy online gambling-focused sites? And as a corollary to that, what really gave you the confidence that your tech and experience would translate well over to the live event space?

Yes. If I cover the first part of that question, as we manage, the intent here is to be very capital efficient and have a limited upfront payment and pay for performance. Essentially, we have an upfront payment of $8 million, which we expect to settle in cash. And then we have a 2-year earn-out component that is capped at an additional $22 million, so $11 million per year based on incremental EBITDA above a certain threshold for each of 2026 and 2027, and the effective multiple on that earn-out is 6x operating profit.

From my perspective, it was a very attractive acquisition. I don't think any of our competitors were considering this opportunity. It does require some original thinking. We are looking for ways to monetize our audience and utilize our skills, and this is a perfect opportunity for both. We have an incredible audience of people who enjoy gambling, both online and in-person. These individuals frequently visit Las Vegas. In terms of the Spotlight business, there aren't many ways to do digital marketing within the online gambling industry. We wouldn't have pursued extensive ticketing that extends outside of gaming. However, ticketing related to gaming makes sense, and there is some synergy there. This particular business is still relatively young, and there are numerous immediate improvements our team can implement to enhance its operations. It reminds us of the Freebets.com acquisition, where the assets were not managed as effectively as possible, and our team unlocked significant value. Ultimately, it’s about the people involved, and they have a strong team and an excellent leader, Doug, whom we are excited to collaborate with. By combining our digital marketing expertise with their existing technology platform, we see a clear path to growing that business under our umbrella.

And then maybe shifting gears and turning over to AI. Charles, some helpful commentary at the beginning of the call. I think we're all sort of grappling with figuring out how this looks and evolves and over the long-term impacts your business. A bit of a 2-parter question here. First, I'm curious if you've done any work or seen anything in terms of sort of click-through rates for a typical high-intent AI search, and how that frames up against legacy search? And then second, how do you think about the potential for market share consolidation for traffic sourced through AI searches, and sort of how you're positioned to be one of those 1, 2, 3 sites that is ultimately searched or sourced by the main AI engines for a typical gambling search? And that's all for us.

When Google or any other search engine places an AI overview at the top of the search results page, it's clear that fewer clicks will go to the content below. This shouldn't be surprising. In terms of market share, looking at share of voice might be more appropriate when discussing these various AI agents. Previously, a Google search could return around 10 results; now, that number can be lower. In contrast, an AI tool generally provides only 2 or 3 results, unless you request more. Therefore, to succeed with these generative AI tools, it's essential to be ranked in the top positions. Achieving this requires establishing industry-leading authority, which is what we have been building over the past 20 years with brands like Gambling.com, [indiscernible].com, and Casinos.com. We have invested in significant brands to stand out and become the clear go-to source for information in this industry. Our initial findings indicate that we hold a high share of voice on these new tools, and our presence is rapidly expanding. This segment didn't exist a few years ago, so we are experiencing growth rates that are essentially limitless, and it will become a major part of our business future.

And our next question comes from Ryan Sigdahl with Craig-Hallum Capital Group.

I want to go to the Google algorithm update. When I look at the guidance, it looks like EBITDA cut by $5 million in the back half of the year, despite some good guys layering in there as well with acquisitions in Missouri and FX and so on. So I'm curious when exactly that happened, what you've seen since that? And then if you're willing to quantify the other components and assumptions within guidance of the Missouri launch, how much that's contributing?

I'm glad to provide some insight on our guidance for the remainder of the year. The recent Google algorithm update took place in the last 30 to 45 days, right in Q3. This highlights the importance of search rankings, which continue to be a key aspect of digital marketing. For the latter half of the year, we anticipate a revenue increase of $1 million at the midpoint of our guidance. This includes a small contribution from Spotlight.Vegas, but the main changes in our revenue expectations stem from an upward adjustment in sports data services revenue and a downward adjustment in traditional search revenue due to the changes in search rankings we've mentioned. This decline is somewhat balanced by increased revenue from other non-SEO channels. Regarding adjusted EBITDA, the higher revenue proportion from non-SEO sources leads to increased sales costs, and we do not expect significant contributions to adjusted EBITDA from Spotlight.Vegas until next year. We are also planning to ramp up investments in these non-SEO channels, along with a new project that is outside our current operations, which will promote further diversification and growth into 2026 and beyond. There's constant interest in our views on pricing, operators, and demand, and our perspective on these remains unchanged. Any decrease in margins we're seeing is purely due to shifts in channel mix, not from margin compression itself. Our ability to monetize and client demand has not altered; the margin profile of each channel remains stable, but the mix of channels is evolving.

Can you provide any financial insights regarding Spotlight.Vegas from the past few years? Specifically, was it growing and profitable? Additionally, can you elaborate on the 2026 estimates in this context?

Yes. If you look at 2024, it was growing nicely. It did over $30 million in platform turnover and it was profitable. It's a lower-margin business at this scale. But as it scales, it quite quickly grows net margin revenues. At the moment, our expectations for 2025 is that it's roughly breakeven, and that has to do with the macro environment in Vegas. We expect together with a little bit of a rebound and seasonal strength, and a little bit more efficient marketing, when we get our hands on that, we're guiding towards EUR 8 million of net revenue and EUR 1.4 million of incremental adjusted EBITDA for 2026.

And moving on to Barry Jonas with Truist Securities.

I appreciate the color you just gave on the EBITDA guidance change for '25. But maybe I wanted to dig in, in another way. I know you haven't guided '26 yet, but can you talk about how '26 looks relative to your view 90 days ago, given all the changes we're seeing now? And maybe if you can't talk quantitatively, maybe just qualitatively.

Yes, Barry, happy to touch on that. So look, I think we get these search rankings back that brings back up the natural search revenue. But I think overall, we are seeing the effects of AI on search, and our expectations for search revenue going forward are not what they were in the past. Having said that, we are making a lot of progress on scaling up all these other channels, stuff that we kind of purposely didn't do in the past to keep all our focus on SEO. But now we've got this kind of extra bandwidth if we're not going all in on SEO, we can deploy some of our best people on scaling up apps, e-mail, paid media, etc. And as you can see in our results today, it's making a difference and it helped us hit the numbers for Q2. So when I think about next year, it's just going to be less about search, but these other channels will scale meaningfully. And I think on the revenue, it's a different margin profile. So you have to kind of bear that in mind. SER is always kind of the highest margin, but we'll see healthy revenue growth from those other channels, and it won't flow through quite as well to the bottom line as natural search has done for years, but it will still absolutely be profitable. And when you pair it together with all the different ways we have to monetize the audience, we'll be in the best position of anyone to monetize people interested in online gambling.

And then in the past, you talked a bit about prediction markets in terms of opportunities there. Curious if any updated thoughts there in terms of search, but maybe also from the data or other avenues for revenue there.

We've been spending significant time exploring prediction markets, which I find to be a captivating area. Although it currently isn't a major contributor to our business, I believe it has great potential in the coming years. I anticipate that lawsuits will reach the Supreme Court, potentially resulting in a decision similar to PASA, which could unlock substantial growth for the entire industry in North America. It's important to advocate for the players in this space. Much of the conversation centers around regulators, operators, and businesses, but someone needs to represent the interests of consumers. Unfortunately, not many others in the U.S. seem to be doing this. The current state of sports betting in the U.S. is problematic; access to products varies significantly across states, with many imposing unreasonable tax rates that are ultimately passed on to consumers. Additionally, some states maintain monopolies that are detrimental to consumer choice. While I respect the hard-working officials and the serious effort they put into enforcing laws, consumers are not getting the best deal possible, which is why offshore sites still hold a significant market presence. Some state attorneys general are starting to voice complaints to the DOJ regarding this issue, which could lead to positive changes. Prediction markets present a fresh approach to regulating the industry, incorporating sophisticated technology from financial markets that is more advanced than what many current operators and regulators utilize. If given the right support, prediction markets could become significantly more consumer-friendly and offer a vastly improved experience for users. I am genuinely enthusiastic about its potential and hopeful that forthcoming legal decisions favor this approach. As someone who grew up in the States, I've long been frustrated by the restrictions on sports betting. While progress has been made, the U.S. still lags behind many other developed countries in terms of access and competitiveness for these products. I apologize for the lengthy response, but I see great promise in prediction markets, and I'm eager to see this sector flourish.

And moving on to Clark Lampen with BTIG.

Charles, I guess if we go or focus on the sort of marketing piece of your business, if we strip out, I guess, the impact of algo changes, were you seeing any changes in behavior for sort of your core customers, whether that's incumbents or sort of challengers in the U.S. from a marketing standpoint, any meaningful changes in their sort of mix allocations to the affiliate channel overall? And then earlier, you sort of talked about the margin profile of sort of different channels as we're trying to, I guess, sort of think about maybe digest the interplay of search LLMs and sort of attractions, has the view of the structural margin opportunity or long-run EBITDA generation changed in any way?

Yes, no problem. To address the second question regarding the long-term margin profile, we’ve consistently mentioned a target range of 35% to 40%. With the new guidance, we’re at 36% this year, so we remain within that range, albeit towards the lower end. Our outlook is that we can significantly grow revenue and contribute meaningfully to adjusted EBITDA through various channels within the marketing business. However, it's important to shift focus back to our sports data services and other initiatives, especially ticketing, which has been experiencing rapid growth since September. It's a fantastic business with excellent product-market fit and impressive growth potential. Customers are very enthusiastic about it. This will increasingly define the future of our business. Regarding the overall business, it’s essential to consider this segment as well. Over the past year or two, we've seen a shift in how our operators allocate their mix, as more traffic is now being delivered on a revenue share basis rather than traditional CPA models. This affects the comparability of North American revenue figures. We are seeing favorable returns on these revenue share investments, but this change has been gradual over the past 12 months, not just a shift from Q1 to Q2.

Our next question comes from Chad Beynon with Macquarie.

This is Aaron on for Chad. Subscriptions are now about a quarter of the business, as you noted. So you've grown that into a nice chunk of the business. Is there an opportunity to raise pricing? Or how do you think about the next steps to further grow this part of the business?

Among all the stuff we're doing, I think growth in the Sports Data Services business, in particular, OpticOdds, is the most straightforward. It's a product people love and need. We've got some new salespeople on the ground in new markets. There are a couple of product tweaks that need to be made to make it appeal to a broader to more different types of operators, if you will. But fundamentally, it's the best data that's out there, and it's not too terribly difficult to sell. So that's the clearest opportunity, I think, at this stage.

And then with regard to the RotoWire refresh, just interested to hear how that's going. What's changed, and maybe an early read on impact, if you can share that?

Yes. So we did the refresh in the middle of summer before NFL started, obviously. It's both a product and brand refresh. The RotoWire numbers are up double digits year-on-year through the first half, but we won't really see the full power of the new products and brand until we get through the start of NFL. So tune in November for the full report on RotoWire.

Moving on to David Katz with Jefferies.

Charles, just digesting the acquisition. Can you talk a bit more about what the drivers or success factors are for that business you're acquiring, aside from integration risk, where I think you've proven yourselves already? What drives that business long-term? And the overlap versus drivers of the core business, where they're different and similar would help.

Yes. I'm referring to what I call digital fundamentals. This includes analyzing conversion rates throughout the customer journey and optimizing each step. Marketing efficiency is also important. They currently utilize a good amount of paid media and have effective tracking in place. The numbers look decent, but there's definitely room for improvement. They are operating with a small team, which limits their ability to fully capitalize on various opportunities. Additionally, we will have the cash available to invest in media as needed. Unlike the affiliate business, where we hand off users to another company and lose some control, with Spotlight, we manage the entire process. If a user doesn’t convert, it’s solely on us; we can't shift the blame to anyone else. Having complete control over the customer journey enables us to apply our expertise more effectively across each stage. There are many strategies we can implement to support our operators in enhancing their conversion rates, though it can be a sensitive topic when suggesting changes to their landing pages or products. However, since we fully own the process, we can proactively make those adjustments.

Our next question comes from Mike Hickey with the Benchmark Company.

Charles, Elias, Pete, congratulations guys on your Spotlight deal. Just 2 questions from us. I guess first topic on AI search disruption. Just curious, Charles, how you sort of assess the pace of natural search traffic decay from these shifts to AI-powered search engines. And if you think you have sort of the runway here to recalibrate your business model to offset that, or if there could be, I guess, a more meaningful disruption to your growth profile in the near term? And I have a follow-up.

Yes, Mike, thank you for the question. Generative AI experiences have been present for 2 to 3 years, so it's not a new phenomenon. We have already observed some effects from this. However, people still rely on Google Search; it remains a useful product and is involved in providing many AI answers. We are realistic about the future of that channel and have adjusted our expectations accordingly. Nevertheless, I am encouraged by our initial results and the team's efforts to increase traffic from other sources. I believe we will be just fine, though we will spend a couple of quarters reallocating resources to other channels.

The second question on cost optimization. You've done obviously a number of very successful deals, now Spotlight joining sort of the portfolio. Do you feel like there's opportunities here to realize cost optimization or operational synergies across the group that could maybe help offset some of the incremental cost pressure on profitability that Surgery here in '25 and maybe '26?

Yes. There's an enormous amount of cost we could take out of this business and make it incredibly profitable, but we don't want to do that because now is not the time to do that. We need to invest in these new channels and build out new capabilities. So we're leaning into our team. We're still hiring. Nothing has changed on our end. And we see opportunity, and we think we're very good allocators of capital. So we are in investment mode at this moment.

Moving next to David Bain with Texas Capital Bank.

Just 2 questions. One, just looking at past algorithm changes from Google, how long did it take you to rebalance previously? And if this can lead to share shifts, how this algorithm perhaps changes from different ones in the past?

Yes. Typically, it takes about 1 to 3 months for us to rebalance. I want to clarify that the positions we currently lack have been taken by operators, not affiliates. There's no need to read anything into this; it's simply typical behavior in response to Google search engine fluctuations. This does not imply that Google favors operators over affiliates in any long-term sense; it's just how things are operating at the moment. Overall, we haven't lost ground—relative to our peers, we continue to outperform them significantly, and our market presence remains much stronger than the next competitor in most areas. However, some operators have secured a few key positions that we previously held. By the end of the year, I expect we will regain those positions.

And then my follow-up was just on OpticOdds. Are there some kind of KPIs that you believe would be helpful for us to understand that growth a little bit better? I mean, is it number of customers from the individual or operator standpoint, depending on which OpticOdds? Or has there been menu choice changes, pricing changes? Anything would be helpful.

Yes, I'm happy to provide some insight. We have two distinct businesses: OddsJam and OpticOdds. OddsJam caters to consumers, while OpticOdds serves the B2B sector. The number of clients for OddsJam has remained steady, but we've seen a significant increase in average revenue per user due to effective upselling. They are successfully selling more to the same customer base. On the other hand, OpticOdds is rapidly acquiring new clients, and they are also substantially growing the average revenue per client in that sector. I'm excited about these developments.

And this does conclude our question-and-answer session. I would like to turn the floor back over to Charles Gillespie for closing comments.

Thanks, everybody, for joining. We look forward to updating you on our Q3 results in November.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.