Gambling.com, a provider of web sites that allow bettors to compare online casinos and sportsbooks, filed for a US initial public offering (IPO).
In a recent Form F-1 filing with the Securities and Exchange Commission (SEC), the company reveals plans to list shares on the Nasdaq Stock Market under the symbol “GAMB.” The regulatory document does not include a listing date or offering size. Investment banks Jefferies, Stifel and Truist are managing the transaction.
The company does not offer wagering services and generates sales by directing gamblers to regulated online betting sites.
We are not a gambling company and do not offer any gambling services ourselves,” according to the F-1 filing. “We can alternatively be described as a lead generation company, an affiliate marketing company, or simply an affiliate. Online gambling operators pay us to refer online gamblers to their services.”
Gambling.com compares itself to an online media company, noting that the primary source of its revenue is internet marketing
Gaming equities, particularly those with dedicated online exposure, have been popular with investors. However, some names in the space are being broadly criticized for rushing IPOs to market and for lack of profitability.
Like its already public brethren, Gambling.com will be viewed as an emerging growth stock, and its revenue is indeed soaring. The company was also net income positive in 2020 after losing $1.90 million in 2019. Additionally, it’s cash flow positive. That’s a rarity among small, young internet companies, and it could be an alluring trait for investors. Gambling.com generated $2.28 million and $10.80 million in free cash flow in the past two calendar years.
“We had revenues of $11.00 million, $19.00 million, $19.27 million, and $27.98 million in 2017, 2018, 2019 and 2020, respectively. We achieved a revenue compound annual growth rate of 35 percent from the period of 2017 to 2020,” according to the F-1.
The company added that on a global basis, none of its competitors — a group including Better Collective and Catena Media — have more than five percent market shares, indicating there’s significant growth potential.
Sports Betting, iGaming IPO Activity Still Hot
With some analysts forecasting the North American online casinos and sports wagering market could reach $42 billion by 2030, it’s not surprising IPO activity in the internet gaming space remains brisk.
Just this week, a social casino developer came to market, while a Spanish iGaming and sports betting operator said it’s merging with a blank-check company to list its shares in the US.
For its part, Gambling.com is eschewing the special purpose acquisition company (SPAC) route that so many upstart gaming companies embraced since early 2020. That could prove to be wise, because shares of many recently de-SPACed iGaming and online sportsbook operators are slumping.