Gambling.com reveals plans to go public in the United States
Posted: Jun 26, 2021, 2:11 p.m.
Last update on: June 26, 2021, 02:11 p.m.
Gambling.com, a provider of websites that allow bettors to compare online casinos and sports betting, has filed an initial public offer (IPO) request in the United States.
In a recent filing of Form F-1 with the Securities and Exchange Commission (SEC), the company reveals its intention to list its 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 handling the transaction.
The company does not offer betting services and generates sales by directing players to regulated online betting sites.
We are not a gambling company and do not offer any gambling services ourselves, ”according to the F-1 file. “We can alternatively be described as a lead generation company, an affiliate marketing company, or just an affiliate. Online gaming operators pay us to refer online gamers to their services.
Gambling.com compares itself to an online media company, noting that the main source of its revenue is internet marketing.
Gaming stocks, especially those with dedicated online exposure, have been popular with investors. However, some names in the space are widely criticized for rushing IPOs into the market and lacking in profitability.
Like its already public brethren, Gambling.com will be seen as an emerging growth stock and its revenues skyrocket. The company also recorded positive net income in 2020 after losing $ 1.90 million in 2019. In addition, its cash flow is positive. It is a rarity among small and young Internet companies and it could be a tempting trait for investors. Gambling.com has generated $ 2.28 million and $ 10.80 million in free cash flow over 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 compound annual revenue growth rate of 35% between 2017 and 2020, ”according to the F-1.
The company added that globally none of its competitors – a group including Better Collective and Catena Media – had more than a five percent market share, indicating that there is significant growth potential. .
Sports betting, iGaming’s IPO activity still relevant today
While some analysts predict that the North American online casino and sports betting market could reach $ 42 billion by 2030, it’s no surprise that IPO activity in the space of Internet gambling remains supported.
Just this week, a social casino developer hit the market as a Spanish video game and sports betting operator announced it was merging with a blank check company to list its shares in the United States.
For its part, Gambling.com is eschewing the Special Purpose Acquisition Company (SPAC) route that so many newbie gaming companies have embraced since the start of 2020. This could prove to be wise as the actions of many iGaming and operators of recently deleted online sportsbooks are collapsing. .