Gambling.com Group Limited

Greetings, and welcome to the Gambling.com Group Third Quarter 2022 Earnings Results Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter McGough, Vice President of Investor Relations. Thank you, Mr. McGough. You may begin.

Thank you. Hello, everyone, and welcome to Gambling.com Group's third quarter 2022 earnings results call. I'm Peter McGough, Vice President of Investor Relations. I am joined by Charles Gillespie, Chief Executive Officer and Co-Founder, and Elias Mark, Chief Financial Officer. The call is being webcast live through the Investor Relations section of our website at gambling.com forward slash corporate forward slash investors. and a downloadable version of the presentation is available there as well. A webcast replay will be available on the website after the conclusion of this call. You may also contact investor relations support by emailing investors at gdcgroup.com. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, business prospects, and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the risk factors section of Gambling.com Group's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. During the call, there will also be a discussion of non-IFRS financial measures. A description of these non-IFRS financial measures is included in the press release issued earlier this afternoon, and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are included in the appendix to the presentation and press release, both of which are available in the Investors tab of our website. I'll now turn the call over to Charles.

Thanks, Peter, and welcome, everyone. This afternoon we report our third quarter results with all-time record revenue and free cash flow of $4.9 million. Our results clearly highlight the continued strength of our core business and the benefit of our Q1 acquisitions. What's also clear is that we are delivering record operating results now based on the unique moat we have built in performance marketing. macroeconomic headwinds are not stopping us from delivering on our forecast for revenue growth and that our prospects for continued high growth over the near and long term remain unchanged. I'm now on slide four for those following the presentation. Revenue grew 94% to $19.6 million with almost 300% growth in North American revenue. With this revenue growth, we generated $6.4 million in adjusted EBITDA and $4.9 million in free cash flow. Our strong profitability continues to differentiate us from most other online sports betting, media, and iGaming companies that the investment community follows closely. We delivered over 68,000 new deposit customers, an increase of 152% over Q3 2021 when we delivered 27,000. The increase in NDCs continues to be driven by our expanded portfolio of websites, as well as ongoing growth in existing websites. Slide five. Progress with our strategic objective to grow our North American presence was again evident in Q3. After growing more than 500% year over year last quarter, North American revenue grew nearly 300% year-over-year to $9.1 million in the third quarter. The increase includes our strong first month of performance in Kansas following the successful launch of online sports betting on September 1st and the broad uptake of sports betting in the month of September at the start of the NFL season. With our continued momentum and positive outlook, There is no change to our prior expectation that the North American sports calendar will drive growth for the balance of the fall and winter season. And the launch of new regulated markets in the U.S. will continue to be a key driver of our growth in future years. Our McClatchy Media Partnership performed well in the quarter, boosted by the start of the NFL season and its in-market properties in Kansas. Similarly, BonusFinder.com continued to perform ahead of plan in the quarter, providing a great platform to expand in the Canadian market and beyond. Our performance marketing efforts on Rotowire are also gaining momentum, yielding results, and positioning us for key upcoming state launches. The increase in Rotowire's performance marketing revenue this quarter has validated our investment thesis for the acquisition. Our digital teams have also optimized Roto-Wire's subscription business, which has driven substantial revenue growth. Business in the UK and Ireland continued to be strong in the quarter and increased 58% compared to last year, despite material currency headwinds. And despite over 15 years of regulated online gambling in the UK, we delivered an all-time record revenue performance. On to slide six. Our growth in North America, along with strong revenue in our more mature markets, continues to demonstrate the breadth, quality, and effectiveness of our portfolio of websites and technology platforms. We will continue to invest in our portfolio to strengthen our cash-generating websites and to ensure that we are well-positioned with additional websites to win new markets as they launch. In addition to our established cash-generating websites, we own and operate a number of additional websites which are ready to be monetized as soon as the respective states launch, including betmaryland.com, betohio.com, and betmassachusetts.com. These sites on these premium domains have been developed in-house on our technology platform, which will maximize our return on those investments. On to slide seven, Kansas is a great case study for our strategy to invest in premium domains ahead of the launch of sports betting in a new state. We had a very successful launch in Kansas driven by our property, BetKansas.com, which led the way among our assets in terms of delivering new depositing customers to our partners in Kansas. In-market media outlets by the McClatchy Partnership also helped to deliver great initial contributions from Kansas. The timeline for Maryland has now come into focus, and we expect multiple operators to go live next week. Ohio remains on track for a January 1st market launch, and we are well positioned there with BetOhio.com. Now, I'd like to turn the call over to our CFO, Elias Mark, to discuss our third quarter and year-to-date financial performance in greater detail.