Gambling.com Group Limited · NASDAQ:GAMB
Gambling.com — Investor Presentation (April 2022)
37 slides from Gambling.com's investor presentation, Apr 12, 2022
Slide 1: Investor Presentation
Investor Presentation Prepared April 2022 Includes data through Q4 2021 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future even
Slide 3: A Leading Provider of Player Acquisition Services for Online Gambling Operators
Gambling.com Group, a Leading Provider of Player Acquisition Services for Online Gambling Operators Revenue, USD millions Highlights $ $42M Revenue in 2021, growth of 51% year-over-year 50% Organic Revenue CAGR 2017-2021 Adj. EBITDA margin >40% and strong FCF margins 300+ Full-Time Employees Strong
Slide 4: Gambling.com Group is a Leading Online Gambling Affiliate
Gambling.com Group is a Leading Online Gambling Affiliate 1) As of December 31, 2021 1 Affiliate Marketing Powerhouse 2 Sports Betting & iGaming 3 Industry Leading Growth 4 Years in business 15 Offices in Ireland, United States, and Malta > 200 Online Gambling Operators as Clients(1) Proprietary tec
Slide 5: Gambling.com Group Brings Recognized Names to the U.S. Market
Gambling.com Group Brings Recognized Names to the U.S. Market Originally launched in 1997 with American focus Acquired in 2011 and the site is an industry-defining domain name Now one of the largest and highest revenue producing affiliate sites in the world and rapidly growing in America Domain name
Slide 6: Gambling.com Group History of Growth
Gambling.com Group History of Growth Opened second U.S. office in Charlotte, North Carolina Expanded U.S. operations into Indiana, New Jersey, Pennsylvania, and West Virginia Received USD 15.5m growth investment from Edison Partners The Company was founded in 2006 by Charles Gillespie (CEO) and join
Slide 7: Company and Investment Highlights
Company and Investment Highlights 1 Established Global Player in Rapidly Expanding Industry 2 3 4 5 6 7 8 9 Scalable Business Model – Creating Value for Everyone Growth Strategy – Poised to Capture Market Share Technology-First Strategy Has Resulted in Proprietary Internal Platforms Large and Divers
Slide 8: Established Global Player in Rapidly Expanding Industry
Established Global Player in Rapidly Expanding Industry 1 Focus on regulated markets Strong growth in established markets Growth also expected in additional markets such as Canada and the Netherlands Offices in Ireland, the United States (Charlotte and Tampa), and Malta U.S. is a priority growth mar
Slide 9: Industry Opportunity Highlights
Established Global Player in Rapidly Expanding Industry Industry Opportunity Highlights Online Gambling's Growing Share of Overall Gambling GGR(1)(2) The Growth of the U.S. Online Gambling Market Will Outpace the Global Industry(1)(3) U.K. penetration can serve as a good proxy for the U.S. market Re
Slide 10: Gambling.com Offers Investors Rapid Growth
Established Global Player in Rapidly Expanding Industry 1 Sources: Catena Media, Better Collective and Company's filings. Gambling.com Offers Investors Rapid Growth Gambling.com has consistently delivered higher organic revenue growth than peers In FY 2021, Gambling.com Group’s organic revenue growt
Slide 11: GAMB Generates EBITDA and Cash Flow Margins Among the Highest
Established Growing Player in Rapidly Expanding Industry 1 Profitability and FCF generation well ahead of industry peer averages based on FY 2021 performance Execution on medium-term financial targets positions GAMB well for continued outperformance Online = DKNG, RSI, SKLZ, GNOG Land-Based = WYNN,
Slide 12: Gambling.com Group's Business Model
Scalable Business Model – Creating Value for Everyone 2 Gambling.com Group’s Business Model OUR WEBSITES POTENTIAL PLAYERS High Roller Conservative Professional For Fun Casual Aggressive Social ONLINE GAMBLING OPERATORS Player 1 Player 2 Player 3 Time-tested and sustainable business model thriving s
Slide 13: Three Core Revenue Models
Scalable Business Model – Creating Value for Everyone 2 Gambling.com Group’s Three Core Revenue Models Any one of these models could be optimal in a particular circumstance depending on the product, market and operator REVENUE SHARE Share of operator’s net gaming revenue on a referred player, typica
Slide 14: Growth Strategy – Poised to Capture Market Share
Growth Strategy – Poised to Capture Market Share 3 We achieved Y-o-Y organic revenue growth of 51% in FY 2021 Well-positioned to succeed in U.S. with premier domain portfolio Established markets continue to grow in the mid-single digits Strong execution by leveraging our platforms and premium brands
Slide 15: Growth Strategy – Established and Target Markets
Growth Strategy – Poised to Capture Market Share Established markets Target markets U.S. is the future of the global online gambling industry and our #1 priority growth market Significant momentum – things are only getting started; total market has expanded significantly in 2H 2021 and early 2022 On
Slide 16: Technology-First Strategy Has Resulted in Proprietary Internal Platforms
Technology-First Strategy Has Resulted in Proprietary Internal Platforms 16 4 Our CMS for creating and maintaining all manner of content In-house CMS gives us full control to customize and eliminate pain points Standardization of processes across the content teams and website teams leads Our busines
Slide 17: Large and Diversified Customer Base
Large and Diversified Customer Base – We Control the Traffic 5 Customers Across the Globe Top 10 customers, % of sales(1) Number of customers (2017 – 2021) Reflects percentage of sales in FY2021. 1) Top 10 customers account for 52% of sales 10 9 8 7 6 5 4 3 2 1 Other
Slide 18: U.S. Operators Increasingly Focused on Marketing ROI
Large and Diversified Customer Base – We Control the Traffic 5 U.S. Operators Are Increasingly Focused on Marketing ROI U.S. B2C online gambling operators are under pressure to show a path to profitability. Investments in traditional media inherently lack clear attribution to customer acquisition, m
Slide 19: Iconic, Industry-Defining Core Brands
Iconic, Industry-Defining Brands 6 VERTICALS 9 markets and 4 languages MARKETS TARGET PLAYERS OPERATOR BENEFITS Any online gambler in our target markets Discerning players with a tendency to be high rollers Prestige value from being listed on Gambling.com High NDC volume CASINO SPORTS POKER BI
Slide 20: Niche Sites Complement Core Portfolio
Iconic, Industry-Defining Brands 6 VERTICALS MARKETS TARGET PLAYERS OPERATOR BENEFITS North America – particularly strong in Canada Sports betting and online casino players in Canada and the U.S. Sweden Casino players in Sweden CASINO SPORTS POKER BINGO 10 markets and 5 languages Casino players in
Slide 21: Big Brands and Big Domains for a Big Market
Growth of the U.S. Online Gambling Market BIG BRANDS & BIG DOMAINS FOR A BIG MARKET Gambling.com, the category-defining name for the entire industry that was a U.S. leader before UIGEA in 2006 Bookies.com, our well-known, sports-first destination designed from the ground up for the U.S. RotoWire, wi
Slide 22: U.S. Expected to Be World's Largest Online Gambling Market
Growth of the U.S. Online Gambling Market 7 GAMBLING.COM GROUP EXPECTS THE U.S. WILL BE THE WORLD’S LARGEST ONLINE GAMBLING MARKET Oregon Nevada Colorado Iowa Illinois Indiana Michigan Pennsylvania New Hampshire Rhode Island Tennessee New Jersey West Virginia Online Sports Betting Live – 16 States O
Slide 23: U.S. Online Gambling Market Potential
Growth of the U.S. Online Gambling Market 7 Reflects onshore online sports betting and online casino only. Assumes 65% of the U.S. population has access to legalize online sports betting at maturity, and 30% has access to iGaming at maturity. 2) 3) If 100% of U.S. states were to legalize online spor
Slide 24: Estimated U.S. Affiliate Market Size: ~$4 Billion
Growth of the U.S. Online Gambling Market 7 Estimated U.S. Affiliate Market Size: ~$4 Billion U.S. Online Gambling Market Size at 100% Legalization: The U.S. online gambling market is estimated to have the potential to grow to ~$69 billion if 100% of U.S. states were to legalize(1) iGaming is estima
Slide 25: Experienced Management Team
Experienced Management Team with Strategic Global Presence 8 25 Founded the Group in 2006 Member of the Board of Directors since inception Recognized leader in the online gaming industry BA in Political Science, University of North Carolina, Chapel Hill, 2006 Charles Gillespie Chief Executive Office
Slide 26: Strategic Global Presence and Office Locations
Experienced Management Team with Strategic Global Presence 8 United States Office Locations Charlotte, North Carolina and Tampa, Florida 30 employees Remote (based in U.S.) 65 employees and contractors Dublin Ireland 114 employees Malta 39 employees Remote (based in Europe) 26 employees and contract
Slide 27: Responsible Corporate Citizen
Responsible Corporate Citizen 9 Focus on regulated and soon-to-be regulated markets Never worked with operators that targeted U.S. market from offshore Authorized to operate in NJ, PA, WV, CO, TN, IL, IN, VA, MI, LA, MD, AZ and NY REGULATED MARKETS Some of the most restrictive advertising policies i
Slide 28: Full Year 2021 Financial Results
FY 2021 FY 2020 Change Revenue (millions) $42.3 $28.0 +51% Operating Expense (millions) $30.9 $16.8 +84% Operating Profit (millions) $11.4 $11.1 +2% Net Income (millions) $12.5 $15.2 (18%) Net Income per Diluted Share $0.37 $0.49 (24%) Adjusted EBITDA (millions) $18.4 $14.6 +26% Adjusted EBITDA marg
Slide 29: Q4 2021 Financial Results
Q4 2021 Q4 2020 Change Revenue (millions) $10.3 $10.3 0% Operating Expense (millions) $9.7 $5.9 +64% Operating Profit (millions) $0.6 $4.4 (86%) Net Income (millions) $0.9 $8.5 (90%) Net Income per Diluted Share $0.02 $0.35 (94%) Adjusted EBITDA (millions) $2.3 $6.1 (63%) Adjusted EBITDA margin (% o
Slide 30: 2021-2023 Financial Targets
Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables in the Q4 earnings press release or 20-F for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Leverage is defined as Net Debt as a proportion of Adjusted EBITDA. Net
Slide 31: FY 2022 Outlook
FY 2022 Outlook Expected to exceed >40% year-on-year Revenue growth target for FY 2022. Guidance range implies revenue growth of 68-80% for FY 2022 vs FY 2021. Adjusted EBITDA(1) margin for FY 2022 expected to be below 40% target. Due to organic growth investments to deepen our U.S. presence as well
Slide 32: Appendix: Financial Tables
CONFIDENTIAL & PRIVATE Appendix: Financial Tables
Slide 33: Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD in thousands) THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 Revenue 10,291 10,267 42,323 27,980 Sales and marketing expenses (4,632 ) (2,442 ) (14,067 ) (8,103 ) Technology expenses (1,190
Slide 34: Condensed Consolidated Statements of Financial Position
Condensed Consolidated Statements of Financial Position (Unaudited) (USD in thousands) DECEMBER 31, 2021 DECEMBER 31, 2020 ASSETS Non-current assets Property and equipment 569 515 Intangible assets 25,419 23,560 Right-of-use assets 1,465 1,799 Deferred tax asset 7,028 5,778 Total non-current assets
Slide 35: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD in thousands) THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 Cash flow from operating activities Income before tax 1,311 3,489 12,164 10,752 Finance (income) expenses, net (688) 488 (772) 1,796 Losses (gain
Slide 36: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation n/m = not meaningful Net finance (income) costs is comprised of gains/losses on financial liability at fair value through profit or loss, finance income, and finance expense. The accounting and legal fees and employee bonus costs related to t
Slide 37: Free Cash Flow Reconciliation and Earnings Per Share
Free Cash Flow Reconciliation Earnings Per Share n/m = not meaningful THREE MONTHS ENDED DECEMBER 31, CHANGE YEAR ENDED DECEMBER 31, CHANGE 2021 2020 $ % 2021 2020 $ % (in thousands USD, unaudited) (in thousands USD, unaudited) Cash flows generated by operating activities 1,176 3,593 (2,416) (67)% 1
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