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

• Warning! GuruFocus has detected 6 Warning Signs with GMGI.

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.

Q: What are the strategic priorities for Golden Matrix Group in 2025? A: Anthony Goodman, CEO, outlined priorities including expansion into new markets like Brazil, optimizing capital structure, enhancing AI-driven personalization, and expanding the product portfolio with high-margin, live betting, and next-gen gaming experiences.

Q: Can you elaborate on the performance of Meridianbet in 2024? A: Zoran Milosevic, CEO of Meridianbet, reported a 14% increase in total revenue to $106 million, with online revenue growing by 18% and retail revenue by 4%. Online casino GGR surged by 24%, and sports betting revenue rose by 8%, driven by improved margins and increased player activity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.