GiG Software PLC

GIG Software PLC investor presentation. Throughout this recorded meeting, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time just using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions at any time and press send. Given the attendance on today's call, the company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions and will publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company would be most grateful for your participation. I'd now like to hand over to CEO Richard Carter. Good morning.

2025 quarter three results presentation. Once again, it's been a period of solid delivery with results in line with our guidance, and we're looking forward to updating you this morning on the positive progress we are making across our business verticals. We've reconfirmed both our 2025 guidance and our mid-term outlook, and we remain focused on sustainable, long-term profitable growth. Like our other previous results presentations, I will begin by running through our key highlights before handing over to Phil Richards, our CFO, who will take you through the financials. I will then come back and update you on our strategic progress and our near-term outlook. So now let's turn to our key highlights. And I'm pleased to report another strong quarter for the company with revenue increasing 31% year on year to 9.7 million and adjusted EBITDA expanding by 2.3 million to reach 1.2 million with a margin of 13%. Q3 has also saw another quarter of positive pipeline conversion with five new commercial agreements signed. These included a major contract targeting Brazil and our first contract with a European lottery. This diversification not only further validates the flexibility of our technology stack, but also gives us potential new avenues of growth over the medium term. We completed three successful launches during the quarter, in line with our revised guidance, bringing the year-to-date number to 10. And following the end of the quarter, I'm delighted that we've launched an additional two more brands, and we remain confident in hitting our target of 15 launches for the full year. I'm also pleased to report that during October, we received the funds from our recent equity raise, giving a cash position of 12.9 million euros as at the end of October. And Phil will expand on this shortly. And given our balance sheet strength, we now have formed an executive committee to consider investment and acquisition opportunities. So with this, I'll now hand over to our CFO, Phil Richards, who will take you through the numbers for the quarter and year to date.

Thanks, Richard. We can see from this slide that as well as strong year-on-year growth with a 31% increase in revenue and a €2.3 million improvement in adjusted EBITDA, sequentially this is also another strong quarter, with revenue and adjusted EBITDA continuing the improving trend of the last few quarters. From a year-on-year perspective, it's very pleasing to highlight that the €2.3 million additional revenue all dropped straight through to adjusted EBITDA. this resulting in us achieving the rule of 40 for the first time. A combination of revenue generation and focus on cost optimization allowing us to realize the scalability of our business model. I now wanted to highlight several factors contributing to our 2.3 million revenue, Euro revenue growth year on year. Specifically, I'm delighted with the contribution from new customer launches since last year, with these contributing to 0.8 million additional revenue in the quarter. This, combined with significant growth from our existing customers, both in turnover, GGR, and underlying revenue for gig, added to our revenue growth in Q3. Within the other revenue bracket, we include one-off items such as setup fees, which make up the remainder of our 31% year-on-year revenue growth. should be noted that this revenue growth was achieved despite a significant decline in the argentinian peso which on a constant currency basis amounted to 0.3 million headwind for the quarter given our significant market share in this market i anticipate this will continue to have an impact going forwards turning now to our cost base Tight cost control remains a key feature of GIG's DNA, as exemplified by a €0.2 million year-on-year reduction in operating expenses, with a small increase in personnel costs offset by lower marketing and other admin costs. On a quarterly basis, total operating expenses of €8 million were broadly unchanged from the previous quarter. We remain laser focused on cost control as we exit 2025 and into 2026 to ensure we can continue to increase our EBITDA margins and deliver the scalable business model that our cost base supports and continue to implement cost saving initiatives accordingly. Now turn into the quarter three EBITDA bridge, which breaks down the key year-on-year drivers from minus 1.1 million euros in Q3 2024 to a positive 1.2 million euros in Q3 this year. The biggest EBITDA impact came from the 2.3 million euro increase in revenue, as discussed on the previous slide, which dropped straight through to adjusted EBITDA, highlighting the very high inherent operational gearing that platform businesses possesses. While cost of sales did increase by €0.2 million, reflecting the increase in revenue generating activity, this was fully offset by previously referenced reduction in operational costs, resulting in that quarterly adjusted EBITDA result of €1.2 million. Our cash burn continues to improve, with underlying cash outflows decreasing month on month, reflecting the improving revenue generation and cost control within the business. We invested 4.1 million euros in PPE and software development during the period and had a working capital outflow of 0.7 million euros with loan and lease payments totaling another 0.7 million euros. The receipt, the directed share issue announced in June meant that we closed the period of 4.7 million euros of cash. Subsequent to the period end, We've also received a further 11 million euros of directed share issue proceeds. And this leaves us with a gross cash position of 12.9 million euros and just 0.1 million euros of debt. The board is satisfied with the strength of the company's balance sheet and in the interest of all shareholders, do not currently envisage the need for additional funding at this point in time. If we turn then to the year to date performance, we're extremely pleased with how the nine months have unfolded with a 22% or 5 million euros increase in revenue to 28 million euros revenue, of which 1.5 million euros have come from new custom launches this year. It's worth noting that on a constant currency basis, the Argentinian peso euro decline throughout the year has had a 0.5 million euro adverse impact on our revenues year to date. Operational costs have been reduced by 0.6 million euros year to date, which means that adjusted EBITDA has increased by 5.7 million euros to a positive 2.6 million euros for the nine months to the 30th of September. Or put another way, revenue has dropped through to adjusted EBITDA at 114%. It's with this context I wanted to reiterate our guidance, both for the end of this year and 2026, being revenue of at least 39 million euros and an EBITDA of at least 5 million euros, with the 2026 figures being at least 56 million in revenue and an EBITDA of at least 15 million. Within this, a key metric underpinning 2026 remains that of cash generation by the end of H1 2026, which we're fully focused on to deliver through a combination of continued cost control and revenue generation dropping through to the bottom line. I'll now hand you over to Richard, who will run through the latest updates on the progress made during the quarter against our strategic growth pillars.