How are energy investors positioned?
Golden Matrix Group Inc (GMGI) reported robust financial results for Q4 2024, with a notable 63% year-over-year revenue growth, reaching $151 million. Despite the impressive top-line performance, the company recorded a net loss of $1.5 million. The stock reacted positively, rising by 6.06% to $2.10 during the trading session. With a market capitalization of $418.54 million and a P/E ratio of 5.1, InvestingPro analysis suggests the stock may be undervalued, trading significantly below its 52-week high of $6.27.
Key Takeaways
- Golden Matrix achieved a 63% increase in total revenue year-over-year.
- The company launched innovative AI-driven products, enhancing user engagement.
- Stock price increased by 6.06% following the earnings announcement.
- Expanded market presence with new acquisitions and technology upgrades.
- Projected Q1 2025 revenue growth of 69-81% year-over-year.
Company Performance
Golden Matrix demonstrated strong performance in Q4 2024, driven by significant growth in its gaming and betting segments. The company’s strategic focus on AI technology and market expansion has positioned it among the top five global gaming companies. InvestingPro data reveals some challenges, including weak gross profit margins, though the company maintains a FAIR financial health score. With a diverse portfolio and strong technology infrastructure, Golden Matrix continues to capitalize on the expanding iGaming market, particularly in the UK, Europe, and Latin America. Discover more insights with InvestingPro’s comprehensive research report, covering 1,400+ top stocks including GMGI.
Financial Highlights
- Total Revenue: $151 million, up 63% year-over-year
- Organic Revenue Growth: 17%
- Gross Profit: $89 million, a 30% increase
- Net Loss: $1.5 million
- Adjusted EBITDA: $22.2 million
- Cash and Cash Equivalents: $30 million
- Net Debt Leverage Ratio: 1.8
Outlook & Guidance
Golden Matrix projects Q1 2025 revenue between $42 million and $45 million, representing a 69-81% year-over-year growth. The company’s strategic priorities include market expansion, AI-driven personalization, product portfolio enhancement, and capital structure optimization. Future revenue forecasts for FY2025 and FY2026 are set at $187.5 million and $225 million, respectively.
Executive Commentary
CEO Brian Goodman described 2024 as a "transformational year" for Golden Matrix, highlighting the company’s focus on profitability and operational efficiency. CFO Rich Christensen emphasized the commitment to maximizing shareholder value, while Zoran Milosevic, CEO of Meridian Bet, underscored the importance of creating a lasting impact.
Risks and Challenges
- Market Saturation: As the iGaming industry grows, increased competition could pressure margins.
- Regulatory Changes: Potential changes in gaming regulations could impact operations in key markets.
- Macroeconomic Pressures: Economic downturns could affect consumer spending on gaming and betting.
- Technological Risks: Rapid technological advancements require continuous innovation to stay competitive.
- Integration of Acquisitions: Successfully integrating recent acquisitions is crucial for realizing synergies.
Golden Matrix’s recent earnings call highlights the company’s strong growth trajectory and strategic focus on innovation and market expansion. Despite facing challenges, the company’s robust financial performance and optimistic outlook have bolstered investor confidence. InvestingPro analysts have set a consensus target price of $4.00, suggesting potential upside from current levels. The stock’s next earnings date is scheduled for March 24, 2025, offering investors another opportunity to assess the company’s progress.
Full transcript - Golden Matrix Group Inc (GMGI) Q1 2025:
Moderator/Operator, Golden Matrix Group: Thank you, and good morning, everyone. Welcome to Golden Matrix Group’s Fourth Quarter and Full Year twenty twenty four Earnings Call. We appreciate you joining us today. On today’s call are Brian Goodman, CEO of Golden Matrix Group Zoran Milosevic, CEO of Meridian Bet Rich Christiansen, CFO of Golden Matrix Group. Brian and Zoran will provide an operational and strategic update, while Rich will walk through our financial performance and capital allocation strategy.
At the conclusion of this call, the recording and support resources will be available on Golden Matrix Group’s IR website. As a reminder, today’s call will contain forward looking statements. Certain statements made on this conference call, including our responses to questions, may constitute forward looking information within the meaning of applicable securities laws. These statements are based on various assumptions about future events, including market and economic conditions, business prospects, technological developments and regulatory changes. While we believe these assumptions are reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially.
For a complete discussion of these factors, please refer to our most recent 10 K filing and other public disclosures. Non GAAP measures will be discussed and reconciliation of these numbers can also be found in our recently filed 10 K and earnings press release available on our website. I will now hand it over to Brian Goodman, CEO of Golden Matrix Group.
Brian Goodman, CEO, Golden Matrix Group: Thank you, and welcome, everyone. I’m pleased to be here today to discuss Golden Matrix Group’s fourth quarter and full year financial results for 2024 and to share updates on our strong growth momentum and market expansion. Joining me today are Doran Milosevic, CEO of Meridian Bet, who will discuss Meridian Bet’s performance and Rich Christensen, our new CFO, who will provide a detailed overview of our financial results and capital strategy. Today’s discussion will focus on operational highlights, marketing expansion and strategic execution, divisional performance, financial results and capital allocation, and lastly, our 2025 outlook. Starting with operational and marketing expansion updates.
2024 has been a transformational year for Golden Matrix, reflecting broad based growth, strong execution and continued momentum as we scale our iGaming and online sports betting operations globally. Despite a high competitive landscape, we have a distinct advantage provided by our diversity, increasing global footprint, state of the art technology, AI driven product enhancements and customer acquisition efficiencies, which have strengthened our market position, revenues and profitability. Additionally, our strategic acquisitions of Meridian Bets and Classics for a Cause have enhanced our brand value, expanded our revenue base and reinforced our competitive positioning in high growth iGaming markets. Financial year 2024 has also been a year of unprecedented scalability, driven by our next gen technology and our AI powered optimization tools. As we continue to expand our footprint in high growth regulated markets, we remain well positioned to capitalize on digital megatrends, increase player acquisition efficiency and solidify our leadership in the global iGaming and sportsbook ecosystem.
We are pleased to have Rich Christensen join us as our CFO. Rich is a seasoned finance executive with over twenty five years of experience in corporate finance, capital markets, M and A and financial operations at multi billion dollar companies, most recently at TrueBlue Incorporation. He led global finance, accounting and treasury functions, implementing global cloud based ERP technology and drove strategic restructuring initiatives as well as financial automation. I’ll now hand you over to Rich to discuss our financial performance and capital strategy.
Rich Christensen, CFO, Golden Matrix Group: Thank you, Brian, and thank you for the kind words. I look forward to working with you and your team to drive profitable growth, enhance our internal and external customer service and partner with our operations teams to create value. Good morning, everyone. I’m excited to be part of Golden Matrix Group and to present our fiscal twenty twenty four financial results and capital allocation strategy. This has been a transformational year with strong revenue growth, disciplined cost management and exciting developments in our product portfolios.
Our focus remains on profitability, operational efficiency and maximizing shareholder value. First, let’s go to the financial performance for fiscal twenty twenty four. Revenue grew by 63% to $151,000,000 Our organic revenue growth rate was 17% reflecting strong contributions from all of our businesses. Gross profit increased 30% year over year to $89,000,000 supported by our higher margin gaming products and AI driven customer engagement. Net income declined 111% year over year to a net loss of $1,500,000 primarily due to the amortization of acquisition related intangible assets of $4,500,000 stock based compensation of $4,700,000 interest expense of $3,500,000 and restructuring expense of $2,200,000 Adjusting for these costs, adjusted EBITDA rose 4% to $22,200,000 dollars Turning to the fourth quarter, revenue grew by 81% to $46,000,000 with an organic revenue growth rate accelerating to 20%.
Gross profit also improved in the fourth quarter increasing by 45% year over year to $26,800,000 demonstrating improving profitability as our offerings continue to scale. Net income declined 207% year over year to a net loss of $2,000,000 primarily due to acquisition related interest expense of $2,700,000 amortization of $1,500,000 and restructuring costs of $1,200,000 as well as stock based compensation of $1,500,000 Adjusting for these costs, adjusted EBITDA grew 69% to $6,500,000 demonstrating strong operating leverage as we finish the year. We continue to have a strong balance sheet. Cash and cash equivalents stood at $30,000,000 reflecting healthy liquidity and financial flexibility. And our net debt leverage ratio of 1.8 positions us for continued investments in high growth opportunities.
These results demonstrate our ability to scale efficiently, while delivering profitable growth. We remain committed to deploying capital in a disciplined manner to support first, our strategic growth initiatives by expanding into high value gaming verticals and new geographies second, our technology innovation through investing in AI driven personalization and live betting experiences Third, operational efficiencies from expanding margins and leveraging cost synergies across the acquisitions and creating operating leverage. And of course, maximizing shareholder returns through maintaining a balanced approach to our use of free cash flow and leverage to support growth, invest in our offerings and reduce net interest and cash taxes paid. With a strong balance sheet and positive free cash flow, we are well positioned to drive sustainable growth and maximize long term shareholder value. I will now hand you back to Brian Goodman to discuss divisional performance.
Brian?
Brian Goodman, CEO, Golden Matrix Group: Thanks, Rich. Golden Matrix’s success is built on the strength of our diverse business units, each contributing to our broad based growth and market expansion. A multi pronged and diversified approach ensures we are well positioned across multiple verticals, allowing us to capitalize on high growth opportunities in both B2B and B2C segments. Each of our core divisions delivered strong results in 2024, reflecting the effectiveness of our strategic execution and operational resilience. Taking a closer look at each division’s performance, starting with our UK operating, ARKINGS competition and its record breaking performance.
ARKINGS has once again delivered an exceptional year of growth, setting new all time records across sales and profitability. We continue to see strong engagement and increasing ticket sales, reinforcing our Kings as a leading tournament platform in The UK. Our organic revenue in fiscal twenty twenty four surged 30% reaching $36,000,000 up from $28,000,000 in the comparable prior year. ARKINGS awarded an impressive $22,000,000 in prizes in 2024. Gross profit also saw a significant boost climbing to 6,300,000.0 from 5,800,000 in 2023.
One of our recent competitions offering the choice between in cash or a four bedroom house and a rare Lamborghini sold 116,000 tickets, generating $665,000 in total revenue for one single tournament. With growing player demand and a highly scalable model, Arkanes is positioned for continued expansion and record breaking success in 2025. GMG, our seamless B2B gaming platform. GMG has delivered outstanding growth this year, reinforcing Golden Matrix’s market leading position in the industry. In just Q4 alone, wagering volume grew by 27% to $1,140,000,000 contributing towards a total of $4,700,000,000 for the year, an impressive growth of 84% over 2023.
This exciting growth reflects strong demand for our platform and a highly scalable infrastructure. We have also seen strong margin expansion driven by high demand, gaming offerings and a more diversified content portfolio. To further enhance sales penetration and strengthen customer retention, we continue to expand our game portfolio, onboarding more game providers to offer a wider selection of high performing titles. With our commitment to innovation, GMAG is perfectly positioned to drive sustained growth and maximize value for operations and players alike. Classics for a Cause, our newest Australian acquisition.
Classics for a Cause has had an outstanding year, achieving new milestones in membership and revenue. We have broken the ceiling of 10,000 active VIP members, collectively generating over $300,000 per month in recurring revenue. Additionally, we are set to surpass 2,000,000 orders in just a few months, an achievement that underscores the incredible momentum behind this platform and the potential that lies ahead. Beyond growth, our commitment to giving back to our military veteran charity partners and other charitable organizations remains a core pillar of our success. Looking ahead, expansion remains a top priority.
In just six months of ownership, we’ve launched a fully enhanced next gen website to elevate the user experience and to drive further engagements. With a strong foundation in place, we are well positioned to grow Classics for a Core significantly in the coming year. Mixplay, our Mexican operating casino. Mixplay continues to establish itself as a fast growing brand in LatAm, showing strong revenue momentum despite fluctuations in wagering volume. In 2024, cash deposits rose to $5,100,000 a 273% increase of $1,900,000 over 2023, reflecting consistent play engagement and delivering high margins.
Gross gaming revenue for the year grew 318% to $2,100,000 up from $600,000 in 2023, underscoring our ability to optimize and maximize player value. As we continue to expand Mexplay’s market presence, our strategy remains focused on enhancing player acquisition, refining promotional offerings and leveraging AI driven engagement as well as loyalty tools to drive sustainable long term growth. I’ll now hand you over to Zoran to discuss Meridian Bet’s performance.
Zoran Milosevic, CEO, Meridian Bet: Thank you, Brian. Twenty twenty four has been exceptional year for Meridian Bet with strong performance across both online and retail gaming verticals. Key highlights include total revenue increased by 14% year over year, rising from $93,000,000 in 2023 to $106,000,000 in 2024. Online revenue grew by 18%, reaching $80,000,000 dollars up from $68,000,000 while retail revenue increased by 4% to 23,000,000 compared to $22,000,000 last year. Online casino GGR surged by 24%, rising from 34,000,000 in 2023 to 43,000,000 in 2024, driven by addition of over 2,800 new games and increased player activity.
Turnover also saw strong growth, reaching to EUR 1,350,000,000.00 in 2024, up 29% from EUR 1,000,000,000 in 2023. Board betting revenue rose by 8%, increasing from EUR 44,000,000 in 2023 to EUR 48,000,000 in 2024, supported by improved GGR margin, which expanded by 140 basis points year over year from 8.3% to 9.7%. Retail casino and slot machine revenue increased by 13%, rising from $11,000,000 in twenty twenty three to thirteen million dollars in 2024, with retail sports achieving GGR margin of 12% in 2024, accelerating to 14% in Q4. Here is a closer look into our operational milestones in full year 2024 comparing to last year. Meridian best performance in 2024 delivered impressive results across the board.
Total deposits rose 13% year over year, while new registrations jumped 16%, signaling strong user acquisition. Our active player base grew by 14%, reinforcing solid retention and sustained engagement. At the same time, online revenue per player increased 16% year on year, translating directly into higher monetization efficiency and long term value creation. In the Casino Gaming segment, engagement continued to rise with the average monthly number of online casino spins increased by 12% year over year, reaching to two sixteen million in 2024, up from $193,000,000 in 2023. This sustained growth reflects the strong appeal of our content and effectiveness of our strategy.
Expense Studios. In 2024, we made significant progress in expanding our proprietary gaming portfolio through Expanse Studios, our in house iGaming studio. We achieved 174 year over year increase in total revenue, reflecting the success of partnerships and new game launches. Our active player base grew by 120% year over year, while total spins rose by 145% year over year, indicating strong user retention and engagement. The game portfolio has expanded to 52 proprietary games with a strong emphasis on a social casino compatible titles to capture the growth demand in this segment.
We also added over 100 new partners, extending our reach and market influence across multiple regions. The studio has launched several successful titles, including Beach Penalties, optimized for U. S. Sweepstakes in social casino markets and Super Helly, a high engagement crush game. Both titles quickly emerged as a top performance, demonstrating our capability to deliver highly engaging content that resonates with the players globally.
Atlas platform rollout technology is at the heart of everything we do. And in 2024, we completed the full transition of our core operations to Atlas, our fifth generation sports betting and iGaming platform. This migration has optimized operational efficiency, enhanced scalability and significantly improved the user experience, ensuring a seamless and more personalized journey for our customers. AI powered innovation. We also reaffirmed our position among top five of gaming companies globally by investing heavily in a proprietary eye drive driven technology.
Our AI Casino Recommender has been a game changer, increasing monthly engagement by 10% and improving game interactions by 9%, helping us drive better cross sell and up sell opportunities across our platforms. Similarly, our AI bet recommender is revolutionizing personalized betting experiences, delivering real time bet suggestions based on extensive sports data. This has led to stronger user segmentation, higher retention rates and an increase in overall batch frequency. These AI innovations are not just improving engagements, they are shaping the future of how players interact with our platform. Supporting communities worldwide, beyond business growth, we are committed to driving meaningful social impact.
In 2024 alone, we launched two fifty eight CSR initiatives across Europe, Africa and Latin America, focusing on healthcare, education, responsible gaming and sustainability. Key initiatives included donations to healthcare centers and breast cancer awareness campaigns, Global Scholarships awarded by Meridian Death Foundation for fifth year, Euro twenty twenty four and twenty twenty four Olympics, Donations for Every Gold, Scored and Medal Won, and March 8 campaign, Advocacy Against Violence Towards Women. We also expanded social impact initiatives, securing sponsorships for professional and grassroots sports clubs and introduce the Meridian donate button, scan and help tools for simplified charitable giving. True success is measured by the impact we create. With that, I hand it back to Brian.
Brian Goodman, CEO, Golden Matrix Group: Thank you very much, Zoran. Looking ahead, Golden Matrix remains well positioned to accelerate growth and enhance profitability. Our key priorities for 2025 include continued expansion into new markets, including Brazil and additional high growth jurisdictions optimizing our capital structure to drive long term shareholder value enhancing AI driven personalization to increase customer retention and engagement, expanding our product portfolio, including high margin live betting and next gen gaming experiences. I’ll now hand you back to Rich for our 2025 financial guidance.
Rich Christensen, CFO, Golden Matrix Group: Thank you, Brian. For the first quarter of twenty twenty five, we anticipate revenue of $42,000,000 to $45,000,000 This represents a year over year growth rate of between 6981%.
Brian Goodman, CEO, Golden Matrix Group: Thanks Rich and thank you everyone for joining today’s call. We appreciate your continued support and look forward to another record setting year in 2025 and beyond.
Moderator/Operator, Golden Matrix Group: The conference has now concluded. Thank you for attending today’s presentation. You may now
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