Gambling.com Q3 revenue misses estimates due to low quality search results

Reuters11-13
Gambling.com Q3 revenue misses estimates due to low quality search results

Overview

  • Gambling.com Q3 revenue grows 21% yr/yr, but misses analyst expectations

  • Adjusted EBITDA for Q3 misses estimates despite record figure

  • Sports data services revenue grew 304% yr/yr, driven by OpticOdds

Outlook

  • Gambling.com revises 2025 revenue guidance to approximately $165 mln

  • Company cites ongoing search quality issues impacting marketing business

  • Company expects 2025 adjusted EBITDA of approximately $58 mln

Result Drivers

  • SPORTS DATA GROWTH - Revenue from sports data services increased 304% yr/yr, driven by OpticOdds and OddsJam

  • SEARCH CHANNEL CHALLENGES - Marketing business impacted by low-quality search results due to spam websites, particularly in non-U.S. markets

  • TRAFFIC DIVERSIFICATION - Co is accelerating initiatives to diversify traffic sources to address search quality issues

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$38.98 mln

$41.04 mln (8 Analysts)

Q3 EPS

-$0.11

Q3 Net Income

-$3.86 mln

Q3 Adjusted EBITDA

Miss

$13.01 mln

$13.46 mln (8 Analysts)

Q3 Gross Profit

$35.60 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advertising & marketing peer group is "buy"

  • Wall Street's median 12-month price target for Gambling.com Group Ltd is $14.00, about 51.2% above its November 12 closing price of $6.83

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw3TKVwTa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment