Gambling.com reveals plans to go public through IPO route
Gambling.com, a popular provider of websites that allow betting enthusiasts to compare online casinos & sportsbooks, has revealed plans to go public through the IPO (initial public offering) route. In a fresh Form F-1 filing with the United States Securities & Exchange Commission (SEC), the company sought the regulator’s permission for listing its shares on the NASDAQ stock market.
If permitted, Gambling.com will offer share by listing them on the NASDAQ under the symbol “GAMB.” The IPO will be managed by investment three banks, viz. Jefferies, Stifel and Truist. The document filed with the regulator doesn’t include a listing date or size of offering.
The company made it clear that it doesn’t offer wagering or betting services. It generates revenue by directing gamblers or bettors to regulated online betting sites.
In its recently filed application, the company stated, “We are not a gambling company and do not offer any gambling services ourselves. 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.”
The company just compares itself to an online media entity, noting that the main source of its revenue and profit is internet/online marketing.
Gaming stocks with online exposure have been becoming more and more popular with investors. But, some such gaming companies are being criticized for launching IPOs even as they lack profitability.
As Gambling.com is considered as a growing business with increasing revenue, its stock is expected to attract a large number of investors. In 2020, the company was net income positive, which was a great improvement from a loss of $1.90 million in 2019. Moreover, it is cash flow positive, which is really quite rare among young internet companies. All these factors are expected to help the company in garnering support from investors. In the past couple of years, the company generated free cash flow of $2.28 million and $10.80 million, respectively.
After generating $11.00 million, $19.00 million, $19.27 million, and $27.98 million in revenue in 2017, 2018, 2019 and 2020, respectively; the company achieved a revenue CAR (compound annual growth) rate of 35% for the period of 2017 to 2020.
With gaming analysts’ average prediction that the North American online gambling market could reach $42 billion by 2030, it is not surprising that IPO activity in the sector remains strong.