In This Article:
Release Date: March 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Golden Matrix Group Inc (NASDAQ:GMGI) achieved a 63% revenue growth in fiscal 2024, reaching $151 million.
-
The company's gross profit increased by 30% year over year to $89 million, supported by higher margin gaming products and AI-driven customer engagement.
-
The acquisition of Meridianbet and Classics for a Cause has expanded GMGI's revenue base and reinforced its competitive positioning in high-growth iGaming markets.
-
RKings Competitions delivered record-breaking performance with organic revenue surging 30% to $36 million.
-
GMAG, the B2B gaming platform, saw wagering volume grow by 84% over 2023, reflecting strong demand and scalable infrastructure.
Negative Points
-
Net income declined 111% year over year to a net loss of $1.5 million, primarily due to amortization of acquisition-related intangible assets and other expenses.
-
The fourth quarter saw a net income decline of 207% year over year to a net loss of $2 million, impacted by acquisition-related interest expense and restructuring costs.
-
Despite strong revenue growth, the company faced significant stock-based compensation expenses totaling $4.7 million.
-
Interest expenses amounted to $3.5 million, contributing to the overall net loss for the year.
-
The company incurred restructuring expenses of $2.2 million, affecting overall profitability.
Q & A Highlights
Q: Can you provide an overview of Golden Matrix Group's financial performance for fiscal 2024? A: Richard Christensen, CFO, reported that revenue grew by 63% to $151 million, with organic revenue growth at 17%. Gross profit increased by 30% to $89 million. However, net income declined by 111% to a net loss of $1.5 million due to amortization, stock-based compensation, interest expense, and restructuring costs. Adjusted EBITDA rose 4% to $22.2 million.
Q: What were the key drivers behind the fourth-quarter financial results? A: Richard Christensen, CFO, highlighted that fourth-quarter revenue grew by 81% to $46 million, with organic revenue growth at 20%. Gross profit increased by 45% to $26.8 million. Despite a net loss of $2 million, adjusted EBITDA grew 69% to $6.5 million, indicating strong operating leverage.
Q: How did the RKings Competitions division perform in 2024? A: Anthony Goodman, CEO, stated that RKings achieved record-breaking growth, with organic revenue surging 30% to $36 million. The division awarded $22 million in prizes and generated $665,000 in revenue from a single tournament, showcasing strong engagement and scalability.