6-K
Gambling.com Group Ltd (GAMB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2022
(Commission File No. 001-40634)
Gambling.com Group Limited
(Translation of registrant’s name into English)
22 Grenville Street St. Helier, Channel Island of Jersey JE4 8PX
(Address of registrant’s principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
| Form 20-F ☒ | Form 40-F ☐ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1):
| Yes ☐ | No ☐ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7):
| Yes ☐ | No ☐ |
|---|
EXPLANATORY NOTE
On March 24, 2022, Gambling.com Group Limited (NASDAQ: GAMB) (the “Company”) issued a press release announcing its financial results for the year ended December 31, 2021, as well as its audited consolidated financial statements for such period. A copy of the press release is furnished hereto as Exhibits 99.1.
Other than as indicated below, the information in this Form 6-K (including in Exhibits 99.1 and 99.2 ) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
The IFRS financial information contained in (i) the consolidated statements of comprehensive income (Unaudited), (ii) the consolidated statements of financial position (Unaudited) and (iii) the consolidated statements of cash flows (Unaudited) included in Exhibits 99.1 to this Report on Form 6-K is hereby incorporated by reference into the Company’s registration statements on Form S-8 (File Nos. 333-258412 and and 333-262539).
EXHIBIT INDEX
| Exhibit | Description |
|---|---|
| 99.1 | Press Release dated March 24, 2022 |
| 99.2 | Gambling.com Group Presentation dated March 24, 2022 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| Gambling.com Group Limited | |
|---|---|
| (Registrant) | |
| By: | /s/ Elias Mark |
| Name: | Elias Mark |
| Title: | Chief Financial Officer |
Date: March 24, 2022
EX-99.1
Exhibit 99.1
| PRESS RELEASE |
|---|
| March 24, 2022 at 7:00 am EST |
Gambling.com Group Reports 2021 Financial Results
Full year North American revenue growth of 89% to $7.5 million, total revenue growth of 51% to $42.3 million
Very strong to start to Q1, strategic US-facing assets expected to drive record financial performance in 2022
Charlotte, NC – Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a leading provider of digital marketing services for the global online gambling industry, today announced its operating and financial results for the year and the fourth quarter ended December 31, 2021.
2021 Financial Highlights
• North American revenue grew 89% to $7.5 million compared to $4.0 million for the prior year
• Revenue of $42.3 million grew 51% compared to $28.0 million for the prior year
• Net income of $12.5 million, or $0.37 per diluted share, compared to a net income of $15.2 million, or $0.49 per diluted share, for the prior year
• Adjusted EBITDA of $18.4 million increased 26% compared to $14.6 million for the prior year, representing an Adjusted EBITDA margin of 43%1
• Free cash flow of $8.4 million decreased 22% compared to $10.8 million for the prior year1
Fourth Quarter 2021 Financial Highlights
• North American revenue grew 56% to $2.2 million compared to $1.4 million in the same period for the prior year
• Revenue of $10.3 million remained consistent to $10.3 million in the same period for the prior year
• Net income of $0.9 million, or $0.02 per diluted share, compared to a net income of $8.5 million, or $0.35 per diluted share, in the same period for the prior year
• Adjusted EBITDA of $2.3 million decreased 63% compared to $6.1 million in the same period for the prior year, representing an Adjusted EBITDA margin of 22%1
• Free cash flow of $(1.8 million) compared to $3.5 million for the prior year1
Business Highlights
• Completed successful public listing of ordinary shares on the Nasdaq Global Market in July 2021 under the ticker symbol “GAMB”
• Named the 2021 EGR Affiliate of the Year and 2021 SBC North America Casino Affiliate of the Year
• Delivered 117,000 new depositing customers in 2021 compared to 104,000 in 2020
• Launched several new U.S.- facing websites during 2021 and acquired an incredibly strong portfolio of U.S. specific domain names
• Announced the acquisition of RotoWire.com – a leader in U.S online fantasy sports – in December 2021 to leverage RotoWire’s high-quality traffic and drive substantial incremental sports betting affiliate revenue in the U.S., the acquisition was completed on January 1, 2022
• Announced media partnership with McClatchy in January 2022 to monetize the McClatchy portfolio of digital media assets through sports betting in 29 markets across 14 states
• Successfully entered the New York and Louisiana markets in January 2022
• Announced acquisition of BonusFinder.com in February 2022 to better position the Group for the upcoming market launch in Ontario and further strengthening the Group's North American presence
“We grew our revenue in 2021 by 51% compared to the prior year, delivered an EBITDA margin of 43% and generated over $8 million of free cash flow as many other industry players struggled to find a path to sustainable profitability,” said Charles Gillespie, Chief Executive Officer and Co-founder of Gambling.com Group, “As we look towards 2022, we are encouraged by the strongest start to a year we have seen in our 15-year history. Helped by launches in New York and Louisiana, January was our best-single month performance ever – even before consolidating financial results from our recent acquisitions. Just in January, we have seen the total addressable market in North America expand by leaps and bounds and there is a clear path to additional state launches this year, along with the impending launch of Ontario next month. As B2C operators in the U.S. seek a path to sustainable profitability and evaluate their marketing spend going forward, we believe that the affiliate model is ideally positioned to provide operators with more effective, higher ROI investments where they can clearly attribute the source, profitability and lifetime value of a referred player. We view this shift as greatly benefitting the value of our performance marketing revenue model, and we are confident that these tailwinds support what we expect to be another year of record performance for the Group."
2022 Outlook
Based on currently available information, the Group estimates that, for the full year 2022:
• Total revenue will be in the range of $71 million and $76 million; and
• Adjusted EBITDA will be in the range $22 million and $27 million1
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our expectation for another year of record revenue and Adjusted EBITDA is supported primarily by our premier domain portfolio and our growing presence in the U.S. achieved through continuous investments in U.S-facing assets. Organic growth in North America is complemented by our recent acquisitions of RotoWire.com and BonusFinder.com as well as our initiatives to further our leadership in the more established markets that we currently serve. As we have stated, our Adjusted EBITDA margin may deviate from target in the short-term as we strategically invest to strengthen our U.S. footprint, which is reflected in our 2022 outlook. Nonetheless, our profitability metrics remain among the very best in the industry, and our free cash flow generation more than covers our organic growth initiatives and the acquisition of domain names and other assets. We entered 2022 on strong financial footing and are off to the best start to a year in the Company history led by strong growth in North America. We grew total revenue profitably by 51% in 2021 and we look forward to accelerate that rate of profitable growth in 2022.”
2021 – 2023 Financial Targets
| Total Revenue Growth | > Average 40% |
|---|---|
| Adjusted EBITDA Margin1 | > Average 40% |
| Leverage2 | < Net Debt to Adjusted EBITDA 2.5x3 |
1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2 Leverage is defined as Net Debt as a proportion of Adjusted EBITDA.
3 Net Debt is defined as Borrowings less Cash and Cash Equivalents.
2021 vs. 2020 Financial Highlights
| YEAR ENDEDDECEMBER 31, | CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||||
| (in thousands , except forshare and per share data) | ||||||||||
| CONSOLIDATED STATEMENTS OF<br> COMPREHENSIVE (LOSS) INCOME DATA | ||||||||||
| Revenue | 27,980 | 51 | % | |||||||
| Operating expenses | ) | (16,849 | ) | ) | 84 | % | ||||
| Operating profit | 11,131 | 2 | % | |||||||
| Income before tax | 10,752 | 13 | % | |||||||
| Net income for the period attributable to the<br> equity holders | 15,151 | ) | (18 | )% | ||||||
| Net income per share attributable to ordinary<br> shareholders, basic | 0.55 | ) | (27 | )% | ||||||
| Net income per share attributable to ordinary<br> shareholders, diluted | 0.49 | ) | (24 | )% |
All values are in US Dollars.
| YEAR ENDEDDECEMBER 31, | CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||||
| (in thousands , except Adjusted EBITDA Margin, unaudited) | ||||||||||
| NON-IFRS FINANCIAL MEASURES | ||||||||||
| Adjusted EBITDA | 14,608 | 26 | % | |||||||
| Adjusted EBITDA Margin | % | 52 | % | n/m | n/m | |||||
| Free Cash Flow | 10,804 | ) | (22 | )% |
All values are in US Dollars.
n/m = not meaningful
| YEAR ENDED<br>DECEMBER 31, | CHANGE | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | Amount | % | ||||||
| (in thousands, unaudited) | |||||||||
| OTHER SUPPLEMENTAL DATA | |||||||||
| New Depositing Customers (1) | 117 | 104 | 13 | 13 | % |
(1) We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
Revenue
Total revenue increased 51% to $42.3 million for the year ended December 31, 2021 compared to $28.0 million for the prior year. On a constant currency basis, revenue increased $13.4 million, or 46%. Revenue growth was organic. The increase was driven by both growth in NDCs and improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs increased 13% to 117,000 compared to 104,000 in the prior year.
Our revenue disaggregated by market is as follows:
| YEAR ENDEDDECEMBER 31, | CHANGE | ||||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||
| (in thousands ) | |||||||
| U.K. and Ireland | 16,189 | 32 | % | ||||
| Other Europe | 5,252 | 106 | % | ||||
| North America | 3,959 | 89 | % | ||||
| Rest of the world | 2,580 | 3 | % | ||||
| Total revenues | 27,980 | 51 | % |
All values are in US Dollars.
Revenue increases were primarily driven by growth in revenue from the U.K. and Ireland, Other Europe, and North America.
Our revenue disaggregated by monetization is as follows:
| YEAR ENDEDDECEMBER 31, | CHANGE | ||||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||
| (in thousands ) | |||||||
| Hybrid commission | 14,738 | 6 | % | ||||
| Revenue share commission | 3,308 | 9 | % | ||||
| CPA commission | 9,047 | 105 | % | ||||
| Other revenue | 887 | 410 | % | ||||
| Total revenues | 27,980 | 51 | % |
All values are in US Dollars.
Revenue increases were driven primarily by additional Cost Per Acquisition, or CPA, commission and Other revenue. The increase in Other revenue was driven by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
| YEAR ENDEDDECEMBER 31, | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||
| (in thousands ) | ||||||||
| Casino | 24,135 | 48 | % | |||||
| Sports | 3,210 | 93 | % | |||||
| Other | 635 | ) | (21 | )% | ||||
| Total revenues | 27,980 | 51 | % |
All values are in US Dollars.
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
| YEAR ENDEDDECEMBER 31, | CHANGE | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||||
| (in thousands ) | |||||||||
| Sales and marketing expenses | 8,103 | 74 | % | ||||||
| Technology expenses | 2,503 | 58 | % | ||||||
| General and administrative expenses | 5,956 | 119 | % | ||||||
| Movements in credit losses allowance and write offs | ) | 287 | ) | (134 | )% | ||||
| Total operating expenses | 16,849 | 84 | % |
All values are in US Dollars.
Total operating expenses increased by $14.1 million to $30.9 million compared to $16.8 million in the prior year. On a constant currency basis, operating expenses increased by $13.5 million, or 77%. The increase was driven primarily by
increased 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.
Sales and Marketing expenses totaled $14.1 million compared to $8.1 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $4.0 million compared to $2.5 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $13.0 million compared to $6.0 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA increased by 26% to $18.4 million compared to $14.6 million in the prior year representing an Adjusted EBITDA margin of 43%. The increase was driven primarily by increased revenue partly offset by increased operating expenses.
Operating profit remained relatively constant at $11.4 million compared to $11.1 million in 2020. Operating profit in 2021 was affected by non-recurring costs related to the public offering and future acquisitions by $2.6 million, and share based payments costs by $ 2.0 million ($0.7 million and $0.4 million, respectively, in 2020).
Net income totaled $12.5 million, or $0.37 per diluted share, compared to net income of $15.2 million, or $0.49 per diluted share, in the prior year. Net income in 2020 was positively affected by the recognition of deferred tax assets of $5.4 million and gain from bonds' redemption of $1.4 million ($1.8 million and zero, respectively, in 2021).
Free Cash-flow
Total cash generated from operations of $14.0 million increased 28% compared to $10.9 million in the prior year. The increase was driven primarily by increased adjusted EBITDA. Free cash flow totaled $8.4 million compared to $10.8 million in the prior year. The decline was the result of increased cash flow generated from operations offset by increased capital expenditures consisting primarily of the acquisition of domain names and capitalized development costs.
Balance Sheet
| AS OF DECEMBER 31, | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||
| (in thousands, ) | ||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL<br> POSITION DATA | ||||||||
| Cash and cash equivalents | 8,225 | 521 | % | |||||
| Working capital (2) | 10,059 | 364 | % | |||||
| Total assets | 45,383 | 101 | % | |||||
| Total borrowings | 5,960 | ) | (0 | )% | ||||
| Total liabilities | 11,171 | ) | (0 | )% | ||||
| Total equity | 34,212 | 134 | % |
All values are in US Dollars.
_______
(2) Working capital is defined as total current assets minus total current liabilities.
n/m = not meaningful
Cash balances as of December 31, 2021 totaled $51.0 million, an increase of $42.8 million compared to $8.2 million as of December 31, 2020. Working capital as of December 31, 2021 totaled $46.7 million, an increase of $36.6 million compared to $10.1 million as of December 31, 2020.
Total assets as of December 31, 2021 were $91.0 million compared to $45.4 million as of December 31, 2020. Total borrowings, including accrued interest, remained constant at $5.9 million as of December 31, 2021 and 2020. Total liabilities decreased slightly as of December 31, 2021 to $11.1 million compared to $11.2 million as of December 31, 2020.
Total equity as of December 31, 2021 was $79.9 million compared to $34.2 million as of December 31, 2020.
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
Fourth Quarter 2021 vs. Fourth Quarter 2020 Financial Highlights
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||||
| (in thousands , except forshare and per share data,unaudited) | ||||||||||
| CONSOLIDATED STATEMENTS OF<br> COMPREHENSIVE (LOSS) INCOME DATA | ||||||||||
| Revenue | 10,267 | 0 | % | |||||||
| Operating expenses | ) | (5,897 | ) | ) | 64 | % | ||||
| Operating profit | 4,370 | ) | (86 | )% | ||||||
| Income before tax | 3,489 | ) | (62 | )% | ||||||
| Net income for the period attributable to the<br> equity holders | 8,541 | ) | (90 | )% | ||||||
| Net income per share attributable to ordinary<br> shareholders, basic | 0.39 | ) | (92 | )% | ||||||
| Net income per share attributable to ordinary<br> shareholders, diluted | 0.35 | ) | (94 | )% |
All values are in US Dollars.
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||||
| (in thousands , unaudited) | ||||||||||
| NON-IFRS FINANCIAL MEASURES | ||||||||||
| Adjusted EBITDA | 6,115 | ) | (63 | )% | ||||||
| Adjusted EBITDA Margin | % | 60 | % | n/m | (38 | )% | ||||
| Free Cash Flow | ) | 3,533 | ) | (151 | )% |
All values are in US Dollars.
n/m = not meaningful
| THREE MONTHS ENDED<br>DECEMBER 31, | CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | Amount | % | |||||||
| (in thousands, unaudited) | ||||||||||
| OTHER SUPPLEMENTAL DATA | ||||||||||
| New Depositing Customers (1) | 28 | 35 | (7 | ) | (20 | )% |
(1) We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
Revenue
Total revenue in the fourth quarter remained relatively constant at $10.3 million. On a constant currency basis, revenue remained relatively constant. NDCs decreased 20% to 28,000 compared to 35,000 in the prior year. We attribute the improved monetization of NDCs to a combination of technology improvements and changes in product and market mix.
Our revenue disaggregated by market is as follows:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||
| (in thousands , unaudited) | ||||||||
| U.K. and Ireland | 5,780 | ) | (10 | )% | ||||
| Other Europe | 2,299 | ) | (2 | )% | ||||
| North America | 1,383 | 56 | % | |||||
| Rest of the world | 805 | ) | (19 | )% | ||||
| Total revenues | 10,267 | 0 | % |
All values are in US Dollars.
Changes in revenue were driven by strong organic growth in our North American markets, offset by a decline in the U.K. and Ireland and, to a lesser extent, Other Europe and Rest of the world. U.K. and Ireland revenue was negatively affected by higher than usual volatility in organic search traffic. In the comparable period, U.K. and Ireland revenue was positively affected by increased demand coinciding with restrictive Covid-19 measures. Other Europe was negatively affected by regulatory changes in Germany implemented in July 2021 partly offset by growth in revenue from other European markets.
Our revenue disaggregated by monetization is as follows:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||
| (in thousands , unaudited) | ||||||||
| Hybrid commission | 5,557 | ) | (47 | )% | ||||
| Revenue share commission | 1,004 | ) | (26 | )% | ||||
| CPA commission | 3,271 | 59 | % | |||||
| Other revenue | 435 | 224 | % | |||||
| Total revenues | 10,267 | 0 | % |
All values are in US Dollars.
Revenue from CPA commission and Other revenue increased whereas revenue from hybrid and revenue share commission decreased. The changes in monetization were primarily a result of changes in market mix with a higher proportion of revenue from the U.S compared to the previous year. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | ||||||
| (in thousands , unaudited) | ||||||||
| Casino | 8,846 | ) | (4 | )% | ||||
| Sports | 1,160 | 53 | % | |||||
| Other | 261 | ) | (79 | )% | ||||
| Total revenues | 10,267 | 0 | % |
All values are in US Dollars.
Revenue increases were driven by growth in revenue from sports products offset by a decrease in casino and other revenue.
Operating Expenses
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||||
| (in thousands , unaudited) | |||||||||
| Sales and marketing expenses | 2,442 | 90 | % | ||||||
| Technology expenses | 798 | 49 | % | ||||||
| General and administrative expenses | 2,609 | 49 | % | ||||||
| Movements in credit losses allowance and write offs | ) | 48 | ) | (165 | )% | ||||
| Total operating expenses | 5,897 | 64 | % |
All values are in US Dollars.
Total operating expenses increased by $3.8 million to $9.7 million compared to $5.9 million in the prior year. On a constant currency basis, operating expenses increased by $3.6 million, or 58%. 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.
Sales and Marketing expenses totaled $4.6 million compared to $2.4 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $1.2 million compared to $0.8 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.9 million compared to $2.6 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA decreased by 63% to $2.3 million compared to $6.1 million in the prior year representing an Adjusted EBITDA margin of 22%. The decrease was driven by increased operating expenses.
Operating profit in the fourth quarter decreased 86% to $0.6 million compared to $4.4 million in 2020. The decrease was driven primarily by a decrease in Adjusted EBITDA and an increase in share-based payments expense.
Net income in the fourth quarter totaled $0.9 million, or $0.02 per diluted share, compared to net income of $8.5 million, or $0.35 per diluted share, in the prior year. Net income in the forth quarter 2021 was positively affected by a USD/Euro foreign currency exchange gain of $1.1 million (zero in 2020). While net income in the fourth quarter of 2020 was positively affected by the recognition of deferred tax assets of $5.4 million (deferred tax asset reduction of $0.2 million in 2021).
Conference Call Details
| Date/Time: | Thursday, March 24, 2022, at 9:00 am EST |
|---|---|
| Webcast: | https://www.webcast-eqs.com/gamb20220324/en |
| U.S. Toll-Free Dial In: | 877-407-0890 |
| International Dial In: | +1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format within the “News & Events” section of the Company’s website.
An archived webcast of the conference call will also be available in the News & Events section of the Company’s website at gambling.com/corporate/investors/news-events.
For further information, please contact:
Media: Jennifer Arapoff, Gambling.com Group, media@gdcgroup.com
Investors: Ross Collins, Alpha-IR Group, investors@gdcgroup.com
About Gambling.com Group
Gambling.com Group Limited (Nasdaq: GAMB) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active exclusively in the online gambling industry. Founded in 2006, the Group operates from offices in Ireland, the United States and Malta. Through its proprietary technology platform, the Group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com and RotoWire.com. As of March 24, 2022, the Group owns and operates more than 50 websites in seven languages across 15 national markets covering all aspects of the online gambling industry, including iGaming and sports betting.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to 2022 financial performance, including the 2022 financial outlook, are all forward looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “could,” “will,” “would,” “ongoing,” “future” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual results to differ materially from our expectations are discussed under the caption “Risk Factors” in Gambling.com Group’s prospectus pursuant to Rule 424(b) filed with the US Securities and Exchange Commission (“SEC”) on July 23, 2021, and Gambling.com Group’s other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Gambling.com Group disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Consolidated Statements of Comprehensive Income and (Loss)
(USD in thousands, except per share amounts)
| THREE MONTHS ENDED<br>DECEMBER 31, | YEAR ENDED<br>DECEMBER 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (unaudited) | ||||||||||||
| Revenue | 10,291 | 10,267 | 42,323 | 27,980 | ||||||||
| Sales and marketing expenses | (4,632 | ) | (2,442 | ) | (14,067 | ) | (8,103 | ) | ||||
| Technology expenses | (1,190 | ) | (798 | ) | (3,947 | ) | (2,503 | ) | ||||
| General and administrative expenses | (3,877 | ) | (2,609 | ) | (13,014 | ) | (5,956 | ) | ||||
| Movements in credit losses allowance and write offs | 31 | (48 | ) | 97 | (287 | ) | ||||||
| Operating profit | 623 | 4,370 | 11,392 | 11,131 | ||||||||
| (Losses) gains on financial liability at fair value through<br> profit or loss | — | (393 | ) | — | 1,417 | |||||||
| Finance income | 1,145 | (25 | ) | 2,581 | 303 | |||||||
| Finance expense | (457 | ) | (463 | ) | (1,809 | ) | (2,099 | ) | ||||
| Income before tax | 1,311 | 3,489 | 12,164 | 10,752 | ||||||||
| Income tax (charge) benefit | (444 | ) | 5,052 | 289 | 4,399 | |||||||
| Net income for the period attributable to the<br> equity holders | 867 | 8,541 | 12,453 | 15,151 | ||||||||
| Other comprehensive (loss) income | ||||||||||||
| Exchange differences on translating foreign currencies | (1,825 | ) | 1,730 | (4,812 | ) | 2,480 | ||||||
| Total comprehensive (loss) income for the period<br> attributable to the equity holders | (958 | ) | 10,271 | 7,641 | 17,631 | |||||||
| Net income per share attributable to ordinary<br> shareholders, basic | 0.03 | 0.39 | 0.40 | 0.55 | ||||||||
| Net income per share attributable to ordinary<br> shareholders, diluted | 0.02 | 0.35 | 0.37 | 0.49 |
Consolidated Statements of Financial Position
(USD in thousands)
| DECEMBER 31,<br>2021 | DECEMBER 31,<br>2020 | ||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Non-current assets | |||||
| Property and equipment | 569 | 515 | |||
| Intangible assets | 25,419 | 23,560 | |||
| Right-of-use assets | 1,465 | 1,799 | |||
| Deferred tax asset | 7,028 | 5,778 | |||
| Total non-current assets | 34,481 | 31,652 | |||
| Current assets | |||||
| Trade and other receivables | 5,497 | 5,506 | |||
| Cash and cash equivalents | 51,047 | 8,225 | |||
| Total current assets | 56,544 | 13,731 | |||
| Total assets | 91,025 | 45,383 | |||
| EQUITY AND LIABILITIES | |||||
| Equity | |||||
| Share capital | — | 64 | |||
| Capital reserve | 55,953 | 19,979 | |||
| Share options and warrants reserve | 2,442 | 296 | |||
| Foreign exchange translation reserve | (2,282 | ) | 2,530 | ||
| Retained earnings | 23,796 | 11,343 | |||
| Total equity | 79,909 | 34,212 | |||
| Non-current liabilities | |||||
| Borrowings | — | 5,937 | |||
| Lease liability | 1,286 | 1,562 | |||
| Total non-current liabilities | 1,286 | 7,499 | |||
| Current liabilities | |||||
| Trade and other payables | 3,291 | 2,428 | |||
| Borrowings and accrued interest | 5,944 | 23 | |||
| Lease liability | 393 | 413 | |||
| Income tax payable | 202 | 808 | |||
| Total current liabilities | 9,830 | 3,672 | |||
| Total liabilities | 11,116 | 11,171 | |||
| Total equity and liabilities | 91,025 | 45,383 |
Consolidated Statements of Cash Flows
(USD in thousands)
| THREE MONTHS ENDED<br>DECEMBER 31, | YEAR ENDED<br>DECEMBER 31, | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| (unaudited) | ||||
| Cash flow from operating activities | ||||
| Income before tax | 1,311 | 3,489 | 12,164 | 10,752 |
| Finance (income) expenses, net | (688) | 488 | (772) | 1,796 |
| Losses (gains) on financial instruments valuation | — | 393 | — | (1,417) |
| Adjustments for non-cash items: | ||||
| Depreciation and amortization | 600 | 650 | 2,401 | 2,227 |
| Movements in credit loss allowance and write offs | (31) | 48 | (97) | 287 |
| Other operating loss | — | — | 70 | — |
| Share option charge | 529 | 371 | 1,995 | 315 |
| Income tax paid | (807) | (434) | (2,092) | (642) |
| Cash flows from operating activities before changes in<br> working capital | 914 | 5,005 | 13,669 | 13,318 |
| Changes in working capital | ||||
| Trade and other receivables | 192 | (2,015) | (549) | (3,053) |
| Trade and other payables | 70 | 603 | 877 | 629 |
| Cash flows generated by operating activities | 1,177 | 3,593 | 13,997 | 10,894 |
| Cash flows from investing activities | ||||
| Acquisition of property and equipment | (78) | (14) | (305) | (46) |
| Acquisition of intangible assets | (2,910) | (46) | (5,269) | (44) |
| Cash flows used in investing activities | (2,988) | (60) | (5,574) | (90) |
| Cash flows from financing activities | ||||
| Issue of ordinary shares and share warrants, net | — | 2,941 | 35,910 | 3,428 |
| Proceeds from issuance of financial instruments | — | 6,000 | — | 6,000 |
| Financial instruments issuance costs | — | (94) | — | (89) |
| Repayment of notes and bonds | — | (14,397) | — | (17,352) |
| Interest paid | (124) | (997) | (509) | (1,656) |
| Warrants repurchased | — | — | — | (133) |
| Principal paid on lease liability | (66) | (49) | (225) | (198) |
| Interest paid on lease liability | (45) | (56) | (188) | (201) |
| Cash flows (used in) generated by financing activities | (235) | (6,652) | 34,988 | (10,201) |
| Net movement in cash and cash equivalents | (2,046) | (3,119) | 43,411 | 603 |
| Cash and cash equivalents at the beginning of the<br> period | 53,160 | 10,851 | 8,225 | 6,992 |
| Net foreign exchange differences on cash and cash<br> equivalents | (67) | 493 | (589) | 630 |
| Cash and cash equivalents at the end of the period | 51,047 | 8,225 | 51,047 | 8,225 |
Supplemental Information
Constant Currency
Changes in our financial results include the impact of changes in foreign currency exchange rates. We provide “constant currency” analysis, as if EUR-USD exchange rate had remained constant period-over-period, to enhance the comparability of our results. When we use the term “constant currency,” we adjust for the impact related to the translation of our condensed consolidated financial statements from EUR to USD by translating financial data for the prior year using the same foreign currency exchange rates that we used to translate financial data for the current year.
Constant currency metrics should not be considered in isolation or as a substitute for reported results prepared in accordance with IFRS. Refer to “Results of Operations” for Management’s discussion of the constant currency impact for these periods. For foreign exchange rates used, refer to “Note 3 Significant Accounting Policies,” within the Notes to the Condensed Consolidated Financial Statements.
Rounding
We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings excluding net finance costs, income tax charge, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense and other items that our board of directors believes do not reflect the underlying performance of the business. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.
We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management as a measure of comparative operating performance from period to period as they remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.
While we use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to EBITDA and Adjusted EBITDA from net income for the period attributable to the equity holders as presented in the Condensed Consolidated Statements of Comprehensive Income and for the period specified:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | YEARENDEDDECEMBER 31, | CHANGE | |||
|---|---|---|---|---|---|---|
| 2021 | $ | % | 2021 | $ | % | |
| (in thousands ,unaudited) | (in thousands ,unaudited) | |||||
| Net income for the period<br> attributable to the<br> equity holders | 867 | (7,674) | (90)% | 12,453 | (2,698) | (18)% |
| Add Back: | ||||||
| Net finance (income) costs (1) | (688) | (1,569) | (178)% | (772) | (1,151) | (304)% |
| Income tax charge (benefit) | 444 | 5,496 | (109)% | (289) | 4,110 | (93)% |
| Depreciation expense | 52 | 19 | 58% | 176 | 53 | 43% |
| Amortization expense | 548 | (69) | (11)% | 2,225 | 121 | 6% |
| EBITDA | 1,223 | (3,797) | (76)% | 13,793 | 435 | 3% |
| Share-based payments | 529 | 158 | 43% | 1,995 | 1,624 | 438% |
| Accounting and legal fees related to the offering (2) | — | (724) | n/m | 963 | 239 | 33% |
| Employees’ bonuses related to the offering (2) | — | — | n/m | 1,085 | 1,085 | n/m |
| Acquisition related costs (3) | 520 | 520 | n/m | 520 | 520 | n/m |
| Costs related to lease termination | — | — | n/m | — | (155) | n/m |
| Adjusted EBITDA | 2,272 | (3,843) | (63)% | 18,356 | 3,748 | 26% |
All values are in US Dollars.
(1) Net finance (income) costs is comprised of gains or losses on financial liability at fair value through profit or loss, finance income, and finance expense.
(2) The accounting and legal fees and employee bonus costs related to the offering are not expected to be incurred in the future as these costs were directly related to the initial public offering.
(3) The acquisition costs are related to the future business combinations of the Group.
n/m = not meaningful
Below is the Adjusted EBITDA Margin calculation for the period specified:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | YEAR ENDEDDECEMBER 31, | CHANGE | |||
|---|---|---|---|---|---|---|
| 2021 | $ | % | 2021 | $ | % | |
| (in thousands ,unaudited) | (in thousands ,unaudited) | |||||
| Revenue | 10,291 | 24 | 0% | 42,323 | 14,343 | 51% |
| Adjusted EBITDA | 2,272 | (3,843) | (63)% | 18,356 | 3,748 | 26% |
| Adjusted EBITDA Margin | 22% | n/m | (38)% | 43% | n/m | (9)% |
All values are in US Dollars.
n/m = not meaningful
In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.
Free Cash Flow
Free Cash Flow is a non-IFRS financial measure defined as cash flow from operating activities less capital expenditures, or CAPEX.
We believe Free Cash Flow is useful to our management as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Condensed Consolidated Statement of Cash Flows for the period specified:
| THREE MONTHS ENDEDDECEMBER 31, | CHANGE | YEAR ENDEDDECEMBER 31, | CHANGE | |||
|---|---|---|---|---|---|---|
| 2021 | $ | % | 2021 | $ | % | |
| (in thousands ,unaudited) | (in thousands ,unaudited) | |||||
| Cash flows generated by operating<br> activities | 1,177 | (2,416) | (67)% | 13,997 | 3,103 | 28% |
| Capital Expenditures | (2,988) | (2,928) | n/m | (5,574) | (5,484) | n/m |
| Free Cash Flow | (1,811) | (5,344) | (151)% | 8,423 | (2,381) | (22)% |
All values are in US Dollars.
n/m = not meaningful
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Condensed Consolidated Statement of Income for the period specified:
| THREE MONTHS ENDEDDECEMBER 31, | YEAR ENDED<br>DECEMBER 31, | ||
|---|---|---|---|
| 2021 | 2021 | 2020 | |
| (in thousands , except for share and per share data, unaudited) | |||
| Net income for the period attributable<br> to the equity holders | 867 | 12,453 | 15,151 |
| Weighted-average number of ordinary shares, basic | 33,806,422 | 30,886,559 | 27,595,446 |
| Net income per share attributable to<br> ordinary shareholders, basic | 0.03 | 0.40 | 0.55 |
| Net income for the period attributable<br> to the equity holders | 867 | 12,453 | 15,151 |
| Weighted-average number of ordinary shares, diluted | 36,712,375 | 33,746,536 | 30,879,550 |
| Net income per share attributable to<br> ordinary shareholders, diluted | 0.02 | 0.37 | 0.49 |
All values are in US Dollars.
Fourth Quarter & Full Year 2021 Financial Results Call March 24, 2022 CONFIDENTIAL & PRIVATE Exhibit 99.2
This presentation and the accompanying oral presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events.. All statements other than statements of historical facts contained in this presentation, including statements regarding when jurisdictions in North America or elsewhere may launch online iGaming or sports betting and/or when affiliate marketing will be permitted in those states, how many M&A transactions we can execute in any given year, if any, our 2021 – 2023 financial targets, fiscal 2021 outlook, and future results of operations and financial position, whether we can sustain our organic growth and make accretive acquisitions, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “could,” “will,” “would,” “ongoing,” “future” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Such risks include our ability to manage expansion into the U.S. markets and other markets; compete in our industry; our expectations regarding our financial performance, including our revenue, costs, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow; the sufficiency of our cash, cash equivalents, and investments to meet our liquidity needs; mitigate and address unanticipated performance problems on our websites, or platforms; attract, retain, and maintain good relations with our customers; anticipate market needs or develop new or enhanced offerings and services to meet those needs; stay in compliance with laws and regulations, including tax laws, that currently apply or may become applicable to our business both in the U.S. and internationally and our expectations regarding various laws and restrictions that relate to our business; anticipate the effects of existing and developing laws and regulations, including with respect to taxation, and privacy and data protection that relate to our business; obtain and maintain licenses or approvals with gambling authorities in the U.S.; effectively manage our growth and maintain our corporate culture; identify, recruit, and retain skilled personnel, including key members of senior management; our ability to successfully identify, manage, consummate and integrate any existing and potential acquisitions; our ability to maintain, protect, and enhance our intellectual property; our intended use of the net proceeds from this offering; our ability to manage the increased expenses associated and compliance demands with being a public company; our ability to maintain our foreign private issuer status; and other important risk factors discussed under the caption “Risk Factors” in Gambling.com Group’s prospectus pursuant to Rule 424(b) filed with the US Securities and Exchange Commission (“SEC”) on July 23, 2021. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. The forward-looking statements included in this presentation are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to revise, supplement or update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, even if new information becomes available in the future, except as may be required by law. You should read this presentation with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by us. Industry publications, research, surveys and studies generally state that the information they contain has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this presentation. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Non-IFRS Financial Measures Management uses several financial measures, both IFRS and non-IFRS financial measures, in analyzing and assessing the overall performance of the business and for making operational decisions. EBITDA is a non-IFRS financial measure defined as earnings excluding net finance costs, income tax charge, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense and other items that our board of directors believes do not reflect the underlying performance of the business. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management as a measure of comparative operating performance from period to period as they remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events. While we use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance. In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items. Free Cash Flow is a non-IFRS financial measure defined as cash flow from operating activities less capital expenditures, or CAPEX. We believe Free Cash Flow is useful to our management as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry. Adjusted figures represent non-IFRS information. See the tables at the end of this presentation for an explanation of the adjustments and reconciliations to the comparable numbers. Safe Harbor Statement
Full Year and Q4 Highlights 4 Company & Market Updates 5 - 8 Profitability and Cash Flow 9 FY Financial Results 10 Q4 Financial Results 11 2021-2023 Financial Targets 12 2022 Outlook 13 AGENDA CONFIDENTIAL & PRIVATE
North American revenue grew 89% to $7.5 million in 2021 compared to $4.0 million in 2020. Consolidated revenue increased 51% to $42.3 million in 2021 compared to $28.0 million in 2020. Adjusted EBITDA(1) grew to $18.4 million in 2021 compared to $14.6 million in 2020. Delivered 117,000 new depositing customers during 2021 compared to 104,000 in 2020. Launched several new U.S. state specific websites during the year and built out a very strong portfolio of U.S. specific domain names Named 2021 EGR Affiliate of the Year and 2021 SBC North America Casino Affiliate of the Year. Announced the acquisition of RotoWire.com – the original authority in fantasy sports – to leverage RotoWire’s authority and expertise to accelerate the Group’s sports betting affiliate revenue in the U.S. Gambling.com Group accepting the 2021 EGR Affiliate of the Year award 2021 Highlights Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Affiliate of the Year EGR Operator Awards Casino Affiliate of the Year SBC Awards North America
Record Jan. Revenue and a Flying Start to 2022 Revenue Taking Off Record January revenue in the U.S. with the launch of online sports betting in multiple states, and in particular New York We delivered a barnstorming performance in New York where, according to our clients, we have been among the market leaders in New Depositing Customers (NDCs) delivered. Trading in Europe has also been strong, significantly ahead of levels in Q4. Future Growth We expect to deliver significant, YoY organic revenue growth in Q1 before consolidating any revenue from recent acquisitions. Media partnership with McClatchy is live and exceeding expectations Growth in NDCs has been very strong in Q1. We expect revenue per NDC to remain steady and growth in 2022 to come from increasing volumes of NDCs. Seasonality in the Business Typical seasonality patterns support strong trading in Q1 and March in particular. Q2 has fewer major sporting events and better weather, leading to less consumption of digital entertainment products in the Northern Hemisphere.
Online Casino and Sports Betting Live 6 STATES Online Sports Betting Live 16 STATES Online Sports Betting Legal But Not Yet Live 2 STATES, 1 PROVINCE Recent Bill Introduced But Not Yet Passed 24 STATES No Recent Bill Introduced 2 STATES Strong growth in Q1 due to recent OSB launches with more to come NY OSB market launched January 8th LA OSB market launched January 28th AK OSB market launched on March 4th Total addressable market in North America has already increased significantly since the start of the year. New York and Louisiana launched online sports betting in January and Arkansas in March. Maryland and Ohio are expected to launch in 2022. New York has redefined scale in North American online sports betting, smashing major records in its very first month. Ontario is expected to go live on April 4th with both online sports betting and online casino. The province has a population of more than 12 million adults and will be one of the biggest markets in North America. U.S. TAM Expanding Relentlessly
O T S U.S. State Specific International Brands Strategic U.S. Media Assets and Partnerships National U.S. Sites Diversified & Complimentary Portfolio of Premium Digital Media Assets
U.S. Operators Are Increasingly Focused on Marketing ROI U.S. B2C online gambling operators are under pressure to show a path to profitability. Investments in traditional media inherently lack clear attribution to customer acquisition, much less customer lifetime value. It is a very large and expensive black box. When affiliates deliver traffic, every customer interaction can be tracked by the operator, leading to 20/20 clarity on where customers really come from and what they are actually worth. Operators have the confidence to invest heavily into the affiliate channel – especially when under pressure to show ROI on marketing spend. U.S. B2C operators are pulling back on marketing and advertising – but not on affiliate marketing. Pressure to deliver marketing ROI reduces experimentation and focuses resources on what operators know works. European operators conducted these experiments and learned these lessons years before. “It starts with acquiring the right customers. Our marketing team uses data science to target customers that fit our desired profile instead of just acquiring customers for the sake of acquiring customers.” – DraftKings Recent Industry Quotes “Real-time insights for our business intelligence team allow us to continuously optimize our marketing spend based on a return-on-investment focused model.” – Rush Street Interactive “…we maintained our disciplined and ROI-focused approach to marketing and promotional spend.” – PointsBet “…refining our approach with a focus on rewarding our higher-value engaged client cohort and gaining an improved share of wallet from them.” – PointsBet “And the more of that we can make direct to the individuals, the less we put through the sales and marketing line. What you'll see is as we get more and more adept at making sure we can be rifle shot rather than scattergun.” – FanDuel
GAMB Generates EBITDA and Cashflow Margins Among the Highest Across U.S. Listed Gaming Companies FY 2021 adjusted EBITDA margins for GAMB and all peers, except GNOG which is TTM ended 9/30/21, and SRAD which is trailing 9M ended 9/30/21 Cashflow from Operations Margin = Cashflow from Operations / Sales FY 2021 Cashflow from Operations Margins for GAMB and all peers, except GAN which is TTM ended 9/30/21; INSE and NGMS excluded due to no cash flow statements filed yet for FY 2021 Profitability and FCF generation well ahead of industry peer averages based on FY 2021 performance Execution on medium-term financial targets positions GAMB well for continued outperformance Online = DKNG, RSI, SKLZ, GNOG Land-Based = WYNN, EDR, LVS, BALY, PENN, MGM, CZR, BYD, CHDN, RRR Services = GENI, GAN, BRAG, MYPS, SRAD, PSFE, INSE, DDI, SGMS, IGT, AGS, EVRI, NGMS
FY 2021 FY 2020 Change Revenue (millions) $42.3 $28.0 +51% Operating Expense (millions) $30.9 $16.8 +84% Operating Profit (millions) $11.4 $11.1 +2% Net Income (millions) $12.5 $15.2 (18%) Net Income per Diluted Share $0.37 $0.49 (24%) Adjusted EBITDA (millions) $18.4 $14.6 +26% Adjusted EBITDA margin (% of Revenue) 43.4% 52.2% NM(1) Cash from Operations (millions) $14.0 $10.9 +28% Capital Expenditures (millions) $5.5 - NM(1) Free Cash Flow (millions) $8.4 $10.8 (22%) New Depositing Customers (thousands) 117 104 +13% Full Year 2021 Financial Results NM = not meaningful 1)
Q4 2021 Q4 2020 Change Revenue (millions) $10.3 $10.3 0% Operating Expense (millions) $9.7 $5.9 +64% Operating Profit (millions) $0.6 $4.4 (86%) Net Income (millions) $0.9 $8.5 (90%) Net Income per Diluted Share $0.02 $0.35 (94%) Adjusted EBITDA (millions) $2.3 $6.1 (63%) Adjusted EBITDA margin (% of Revenue) 22.1% 59.6% NM(1) Cash from Operations (millions) $1.2 $3.6 (73%) Capital Expenditures (millions) $3.0 - NM(1) Free Cash Flow (millions) ($1.8) $3.5 NM(1) New Depositing Customers (thousands) 28 35 (20%) NM = not meaningful 1) Q4 2021 Financial Results
Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Leverage is defined as Net Debt as a proportion of Adjusted EBITDA. Net Debt is defined as Borrowings less Cash and Cash Equivalents 2021-2023 Financial Targets Average consolidated revenue growth expected to exceed 40% In respect of our European business, plan to grow faster than the European gambling market over a business cycle In respect of the United States, plan to take market share and be a significant actor in the market over the long-term Growth Margin Average Adjusted EBITDA margin(1) expected to exceed 40% Adjusted EBITDA margin expected to be below 40% target in 2022 due to heavy investments into U.S. expansion Leverage(2) Net debt(3) of under 2.5 times Adjusted EBITDA Cash and cash equivalents of $51.0 million and Borrowings of $5.9 million as of December 31, 2021 > 40% Adj. EBITDA Margin > 40% Avg. Revenue Growth < 2.5x Net Debt
FY 2022 Outlook Expected to exceed >40% year-on-year Revenue growth target for FY 2022. Guidance range implies revenue growth of 68-80% for FY 2022 vs FY 2021. Adjusted EBITDA(1) margin for FY 2022 expected to be below 40% target. Due to organic growth investments to deepen our U.S. presence as well as lower margin profile of RotoWire, though we expect to gradually improve margin profile and exit 2022 closer to our 40% target. Outlook does not consider any consolidated revenue from potential future M&A in FY 2022. January 2022 was the best single month performance in Company history before consolidating RotoWire. The Group expects Q1 2022 to be a record revenue quarter – before the consolidation of RotoWire and BonusFinder.com. Seasonality: Growing exposure to U.S. sports calendar which is seasonally strongest in Q1 and Q3, Casino segment strongest in Q1 and Q4; Q2 is seasonally slowest period. Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Low Midpoint High FY 2021 Revenue (millions) $71 $73.5 $76 $42.3 Adjusted EBITDA(1) (millions) $22 $24.5 $27 $18.4 Adjusted EBITDA margin 31.0% 33.3% 35.5% 43.4%
CONFIDENTIAL & PRIVATE Appendix: Financial Tables
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD in thousands) THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 (unaudited) Revenue 10,291 10,267 42,323 27,980 Sales and marketing expenses (4,632 ) (2,442 ) (14,067 ) (8,103 ) Technology expenses (1,190 ) (798 ) (3,947 ) (2,503 ) General and administrative expenses (3,877 ) (2,609 ) (13,014 ) (5,956 ) Allowance for credit losses and write offs 31 (48 ) 97 (287 ) Operating profit 623 4,370 11,392 11,131 (Losses) gains on financial liability at fair value through profit or loss — (393 ) — 1,417 Finance income 1,145 (25 ) 2,581 303 Finance expense (457 ) (463 ) (1,809 ) (2,099 ) Income before tax 1,311 3,489 12,164 10,752 Income tax (charge) benefit (444 ) 5,052 289 4,399 Net income for the period attributable to the equity holders 867 8,541 12,453 15,151 Other comprehensive (loss) income Exchange differences on translating foreign currencies (1,825 ) 1,730 (4,812 ) 2,480 Total comprehensive (loss) income for the period attributable to the equity holders (958 ) 10,271 7,641 17,631 Net income per share attributable to ordinary shareholders, basic 0.03 0.39 0.40 0.55 Net income per share attributable to ordinary shareholders, diluted 0.02 0.35 0.37 0.49
Condensed Consolidated Statements of Financial Position (Unaudited) (USD in thousands) DECEMBER 31, 2021 DECEMBER 31, 2020 ASSETS Non-current assets Property and equipment 569 515 Intangible assets 25,419 23,560 Right-of-use assets 1,465 1,799 Deferred tax asset 7,028 5,778 Total non-current assets 34,481 31,652 Current assets Trade and other receivables 5,497 5,506 Cash and cash equivalents 51,047 8,225 Total current assets 56,544 13,731 Total assets 91,025 45,383 EQUITY AND LIABILITIES Equity Share capital — 64 Capital reserve 55,953 19,979 Share options and warrants reserve 2,442 296 Foreign exchange translation reserve (2,282 ) 2,530 Retained earnings 23,796 11,343 Total equity 79,909 34,212 Non-current liabilities Borrowings — 5,937 Lease liability 1,286 1,562 Total non-current liabilities 1,286 7,499 Current liabilities Trade and other payables 3,291 2,428 Borrowings and accrued interest 5,944 23 Lease liability 393 413 Income tax payable 202 808 Total current liabilities 9,830 3,672 Total liabilities 11,116 11,171 Total equity and liabilities 91,025 45,383
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD in thousands) THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 (unaudited) Cash flow from operating activities Income before tax 1,311 3,489 12,164 10,752 Finance (income) expenses, net (688) 488 (772) 1,796 Losses (gains) on financial instruments valuation — 393 — (1,417) Adjustments for non-cash items: Depreciation and amortization 600 650 2,401 2,227 Movements in credit loss allowance and write offs (31) 48 (97) 287 Other operating loss — — 70 — Share option charge 529 371 1,995 315 Income tax paid (807) (434) (2,092) (642) Cash flows from operating activities before changes in working capital 914 5,005 13,669 13,318 Changes in working capital Trade and other receivables 192 (2,015) (549) (3,053) Trade and other payables 69 603 876 629 Cash flows generated by operating activities 1,176 3,593 13,997 10,894 Cash flows from investing activities Acquisition of property and equipment (78) (14) (305) (46) Acquisition of intangible assets (2,910) (46) (5,269) (44) Cash flows used in investing activities (2,988) (60) (5,574) (90) Cash flows from financing activities Issue of ordinary shares and share warrants — 2,955 42,000 3,483 Equity issue costs — (14) (6,090) (55) Proceeds from issuance of financial instruments — 6,000 — 6,000 Financial instruments issuance costs — (94) — (89) Repayment of notes and bonds — (14,397) — (17,352) Interest paid (124) (997) (509) (1,656) Warrants repurchased — — — (133) Principal paid on lease liability (66) (49) (225) (198) Interest paid on lease liability (45) (56) (188) (201) Cash flows (used in) generated by financing activities (235) (6,652) 34,988 (10,201) Net movement in cash and cash equivalents (2,047) (3,119) 43,411 603 Cash and cash equivalents at the beginning of the period 53,160 10,851 8,225 6,992 Net foreign exchange differences on cash and cash equivalents (66) 493 (589) 630 Cash and cash equivalents at the end of the period 51,047 8,225 51,047 8,225
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation n/m = not meaningful Net finance (income) costs is comprised of gains/losses on financial liability at fair value through profit or loss, finance income, and finance expense. THREE MONTHS ENDED DECEMBER 31, CHANGE YEAR ENDED DECEMBER 31, CHANGE 2021 2020 $ % 2021 2020 $ % (in thousands USD, unaudited) (in thousands USD, unaudited) Net income for the period attributable to the equity holders 867 8,541 (7,674) (90)% 12,453 15,151 (2,698) (18)% Add Back: Net finance (income) costs (1) (688) 881 (1,569) (178)% (772) 379 (1,151) (304)% Income tax charge (benefit) 444 (5,052) 5,496 (109)% (289) (4,399) 4,110 (93)% Depreciation expense 52 33 19 58% 176 123 53 43% Amortization expense 548 617 (69) (11)% 2,225 2,104 121 6% EBITDA 1,223 5,020 (3,797) (76)% 13,793 13,358 435 3% Share-based payments 529 371 158 43% 1,995 371 1,624 438% Accounting and legal fees related to the offering (2) — 724 (724) n/m 963 724 239 33% Employees’ bonuses related to the offering (2) — — — n/m 1,085 — 1,085 n/m Acquisition related costs (3) 520 — 520 n/m 520 — 520 n/m Costs related to lease termination — — — n/m — 155 (155) n/m Adjusted EBITDA 2,272 6,115 (3,843) (63)% 18,356 14,608 3,748 26% THREE MONTHS ENDED DECEMBER 31, CHANGE YEAR ENDED DECEMBER 31, CHANGE 2021 2020 $ % 2021 2020 $ % (in thousands USD, unaudited) (in thousands USD, unaudited) Revenue 10,291 10,267 24 0% 42,323 27,980 14,343 51% Adjusted EBITDA 2,272 6,115 (3,843) (63)% 18,356 14,608 3,748 26% Adjusted EBITDA Margin 22% 60% n/m (38)% 43% 52% n/m (9)%
Free Cash Flow Reconciliation Earnings Per Share n/m = not meaningful THREE MONTHS ENDED DECEMBER 31, CHANGE YEAR ENDED DECEMBER 31, CHANGE 2021 2020 $ % 2021 2020 $ % (in thousands USD, unaudited) (in thousands USD, unaudited) Cash flows generated by operating activities 1,176 3,593 (2,417) (67)% 13,997 10,894 3,103 28% Capital Expenditures (2,988) (60) (2,928) n/m (5,574) (90) (5,484) n/m Free Cash Flow (1,812) 3,533 (5,345) (151)% 8,423 10,804 (2,381) (22)% THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 (in thousands USD, except for share and per share data, unaudited) Net income for the period attributable to the equity holders 867 8,541 12,453 15,151 Weighted-average number of ordinary shares, basic 33,806,422 22,020,056 30,886,559 27,595,446 Net income per share attributable to ordinary shareholders, basic 0.03 0.39 0.40 0.55 Net income for the period attributable to the equity holders 867 8,541 12,453 15,151 Weighted-average number of ordinary shares, diluted 36,712,375 24,446,668 33,746,536 30,879,550 Net income per share attributable to ordinary shareholders, diluted 0.02 0.35 0.37 0.49