Digital marketer Gambling.com Group (NASDAQ:GAMB) saw its stock soar in Thursday’s early deals after reporting a major upswing in revenue.
The company, which runs online portals and review websites in the online gambling sector, reported a 63% increase in second-quarter revenue to US$26 million, which it described as a new company record.
Earnings (adjusted EBITDA) for the quarter came in at US$9.4 million, whilst net income was marked at US$0.3 million.
In New York, Gambling.com shares traded US$1.81 or 14.26% higher, changing hands at US$14.50 and valuing the business at just shy of US$550 million.
Charles Gillespie, chief executive and co-founder, pointed to ‘significant organic revenue growth and cash flow’, whilst highlighting the group’s expansion in North America (where legal online sports betting is becoming increasingly prominent).
Indeed, the company noted its presence in states such as North Carolina and Kentucky which recently introduced legal online sports betting.
It also noted its expansion via media partnerships with digital media publishers, McClatchy and Gannett (NYSE:GCI), and its launch of Casinos.com. In the UK, meanwhile, the group noted its media partnership with The Independent, which is described as its first in international markets.
“The business performed phenomenally in the second quarter with record operating results reflecting another quarter of significant organic revenue growth and strong free cash flow generation,” Gillespie commented.
“Despite North America already being our largest reporting market, it still represents a significant growth opportunity for Gambling.com Group and we remain very confident in our ability to continue to increase market share in existing states as they continue to grow.
“This expected growth will be complemented by an overall expansion of the addressable market as new states such as North Carolina and Kentucky come online with sports betting, and iGaming is authorized in additional states.”
He added: “As we continue to scale our North American operations, Gambling.com Group will benefit from other attractive near- and long-term growth drivers, including valuable media partnerships with leading domestic digital media publishers, McClatchy and Gannett (NYSE:GCI), and the significant long-term global opportunity provided by the recently launched Casinos.com.”
Setting guidance for the full year, Gambling.com Group pitched revenue expectations in the range of US$100 million to US$104 million, with earnings expected between US$36 million and US$40 million.
Chief financial officer, Elias Mark, meanwhile, added: “Reflecting our strong operating results through the first six months of the year, which outperformed our expectations, and our confidence for continued strong performance over the balance of 2023, we are raising our full-year revenue and Adjusted EBITDA outlook with the mid-point of the new ranges representing year-over-year growth of 33% and 58%, respectively.”