What happened
Gambling.com Group (GAMB 4.83%) saw its stock price jump 20% this week as of Thursday at 12:30 p.m. ET, according to S&P Global Market Intelligence. It had been up as much as 22.6% during the week. The stock is now trading at about $14.60 per share, up roughly 60% year to date.
The broader markets were all down this week, as the S&P 500 fell 1.1%, the Dow Jones Industrial Average dropped 1.4%, and the Nasdaq Composite fell 1.4% as of Thursday at 12:30 p.m. ET.
So what
Gambling.com Group is a company that provides digital marketing services and publishes content for the global online gambling industry. Its stock price spiked this week on strong second-quarter earnings, which saw revenue climb 63% year over year to $30 million. Net income soared a whopping 396% to $0.3 million, or $0.01 per share. Further, free cash flow climbed to $8.5 million, a 202% increase over the second quarter of 2022.
"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. The growth highlights our success in scaling our North American operations as well as continued growth in our more established markets," said Charles Gillespie, CEO and co-founder of Gambling.com Group.
NASDAQ: GAMB
Key Data Points
The company engages in performance marketing for gambling sites, helping large sports books, like DraftKings, for example, get customers. When customers read their content and link to other gambling websites and deposit money, Gambling.com gets a cut of that deposit money. In the second quarter, new depositing customers rose 60% year over year to over 91,000.
Among the highlights in the quarter, it grew North American revenue 115% year over year and expanded in the United Kingdom with its first international media partnership with The Independent, one of the largest digital media publishers in the U.K.
Now what
There is still a huge addressable market for Gambling.com, as the industry is only at the beginning of its growth. Currently, about 34 states allow or are in the process of allowing sports betting, with Kentucky and North Carolina the latest to launch in the coming months.
Gambling.com should be able to ride the wave as it has media partnerships with digital publishers Gannett and McClatchy and is building out Casinos.com, a website with news and reviews about online casinos and games around the world. It is an intriguing growth stock to watch, given its unique business model, revenue and cash generation, and industry growth.
