Intel stock extends gains after report of possible U.S. government stake
Investing.com -- Gambling.com Group Limited (NASDAQ:GAMB) reported better-than-expected second quarter earnings on Thursday, but shares tumbled 9.7% as the company cited weaker search engine rankings following a Google algorithm update.
The gambling marketing and sports data services provider posted adjusted earnings per share of $0.37, significantly above analyst estimates of $0.17. Revenue reached $39.59 million, slightly exceeding the consensus forecast of $38.92 million and representing a 30% increase YoY from $30.54 million. Despite the earnings beat, the company’s stock fell sharply as investors focused on guidance concerns.
Gambling.com’s marketing services revenue grew just 3% YoY to $29.6 million, while its sports data services revenue quadrupled to $10 million, now accounting for 25% of total revenue. The company delivered over 108,000 new depositing customers during the quarter, in line with the previous year.
"Our second quarter performance was driven by two factors which reflect important broader trends in our business," said Charles Gillespie, CEO and Co-Founder. "First is an accelerating diversification away from the traditional search channel in favor of a more omnichannel approach. Second is an accelerating diversification into revenue models beyond marketing, including sports data services."
The company adjusted its full-year guidance to a revenue range of $171-175 million and adjusted EBITDA of $62-64 million, citing "currently weaker search engine rankings following Google’s core algorithm update" as a factor offsetting growth from its recent acquisition of Spotlight.Vegas.
Adjusted EBITDA for the quarter increased 22% to $13.7 million, representing a 35% margin compared to 37% in the prior-year period. Free cash flow rose 36% to $8.2 million.
The company also announced a definitive agreement to acquire Spotlight.Vegas, a platform that helps consumers access experiences such as live events and local attractions, for $8 million at closing with up to an additional $22 million based on performance targets through 2027.
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