This was just shy of the $26.9m revenue target predicted by Gambling.com last month.
Charles Gillespie, CEO and co-founder of Gambling.com, said that the Q1 2023 results “exceeded” Gambling.com’s expectations and had proven its success in North America.
“Our record first quarter 2023 results exceeded internal forecasts and reflect industry-leading organic revenue growth as well as strong profitability and cash generation,” he said.
“Our performance in the first quarter demonstrates both Gambling.com Group’s successful execution on our North American growth initiatives and our success in generating ongoing attractive growth in more established markets.”
First quarter results
The operator’s North American revenue increased by 33% year-on-year to $14.1m.
Cost of sales for the quarter was $991,000, a fall of 19.3% compared to the cost of sales in Q1 2022. This left the gross profit for the year at $25.7m, up by 40.0%.
Sales and marketing expenses were the highest of the quarter, totaling at $8.0m. This was followed by general and administrative expenses at $5.7m, and technology expenses at $2.2m. The remaining expenses were made up from movements in credit losses allowance and fair value movement on contingent consideration.
After expenses were considered, the operating profit for the quarter was $8.1m, 90.7% higher year-on-year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was $8.2m.
Finance income totaled at $100,000, while finance expenses came to $563,000. This lowered the pre-tax profit to $7.6m.
Following an income tax charge of $1.1m, the net profit for the period was $6.5m, an increase of 47.0%.