Gambling.com (GAMB) - 2023 Q2 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2023, was $26,692,000, representing a 36% increase from $19,585,000 in the same period of 2022[10] - Gross profit for the same period was $25,701,000, up from $18,356,000, indicating a gross margin improvement[10] - Operating profit increased to $8,158,000, compared to $4,277,000 in Q1 2022, reflecting a 91% growth[10] - Net income attributable to shareholders for Q1 2023 was $6,595,000, a 47% increase from $4,487,000 in Q1 2022[10] - Revenue for the three months ended March 31, 2023, increased by $7.1 million, or 36%, compared to the same period in 2022, driven by growth in geographical markets, particularly within casino products[158] - Total comprehensive income for the period attributable to shareholders was $8.0 million, a 155% increase from $3.1 million in 2022[152] - Adjusted EBITDA for the period was $10.7 million, reflecting a 49% increase, with an adjusted EBITDA margin of 40%[187] - Adjusted EBITDA rose by 49% to $10.7 million, driven by revenue growth, with a constant currency increase of 53%[191] Assets and Equity - Total assets as of March 31, 2023, were $147,474,000, up from $138,875,000 at the end of 2022[12] - Total equity increased to $95,875,000 from $87,109,000, showing a growth of 10%[12] - The Group's non-current assets as of March 31, 2023, totaled $92,380, slightly up from $91,053 as of December 31, 2022[54] - Trade and other receivables as of March 31, 2023, were $14,205, up from $11,029 as of December 31, 2022[58] - The net book value of intangible assets as of March 31, 2023, was $79.034 million, an increase from $77.721 million as of December 31, 2022, representing a growth of 1.7%[90] Cash and Cash Equivalents - Cash and cash equivalents at the end of Q1 2023 were $33,564,000, compared to $29,664,000 at the end of 2022, marking a 13% increase[12] - Cash flows generated by operating activities were $7.1 million, a 98% increase from $3.6 million in the same period last year[187] - Free Cash Flow surged by 352% to $6.2 million, primarily due to increased operating cash flows and reduced capital expenditures[202] Expenses - Operating expenses for sales and marketing totaled $8,038 million in Q1 2023, an increase of 9% compared to $7,362 million in Q1 2022[123] - Total operating expenses rose by $3.5 million, or 25%, to $17.5 million, influenced by increased employee costs and fair value movements[166] - General and administrative expenses increased by $1.0 million, or 20%, totaling $5.8 million, driven by new hires and increased legal and consultancy fees[178] - Finance expenses totaled $563 million in Q1 2023, up from $249 million in Q1 2022, primarily due to increased foreign exchange losses[127] Customer and Revenue Sources - Revenue generated from the largest single customer accounted for 10% of total sales for the three months ended March 31, 2023, down from 18% for the same period in 2022[58] - The Group's top ten customers accounted for 47% of total revenue in Q1 2023, down from 59% in Q1 2022, indicating a diversification in customer base[118] - Performance marketing revenue accounted for 82% of total revenue, amounting to $21.8 million, up from $16.4 million in 2022[161] - Revenue from North America grew by 33% year-over-year, contributing $14.1 million, which represents 53% of total revenue[160] Acquisitions and Contingent Consideration - The acquisition of Roto Sports on January 1, 2022, involved a total consideration of $26,550 million, resulting in goodwill of $10,776 million due to SEO synergies[74] - The acquisition of BonusFinder on January 31, 2022, had a total consideration of $38,676 million, with no goodwill recognized as the fair values of assets and liabilities equaled the acquisition consideration[81] - The company paid $20.0 million in contingent consideration related to the acquisition of BonusFinder, with 50% paid in ordinary shares[137] - As of March 31, 2023, the total deferred consideration balance for Roto Sports was $5,100 million, with the first deferred payment of $2,500 million settled in cash[73] Foreign Exchange and Risks - The company experienced a foreign exchange gain of $1,368,000 in Q1 2023, reversing a loss of $1,368,000 in the same period of 2022[10] - The Group's exposure to foreign exchange risks included USD-denominated net assets of $8,453 and GBP-denominated net assets of $10,622 as of March 31, 2023[57] - Management does not expect significant losses from non-performance by operators, indicating a controlled credit risk environment[62] Shareholder Information - The total share capital remained unchanged at 36,470,341 shares as of March 31, 2023, compared to the same figure at the beginning of the year[94] - The company repurchased 38,708 shares at an average price of $8.98, totaling $348,000 since the initiation of the share repurchase program[96] - Basic net income per share increased to $0.18 in Q1 2023 from $0.13 in Q1 2022, reflecting improved profitability[129] - Adjusted net income per share attributable to shareholders, diluted, rose by 67% to $0.20 from $0.12 in the previous year[196]