GiG Software (GIG) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered 19% quarter-on-quarter and 44% year-on-year underlying revenue growth to €8.6m–€8.8m, driven by new client wins, product launches, and improved execution.

• Returned to positive adjusted EBITDA in Q4, with a €1.2m improvement from Q3 and profitability supported by new agreements and extended partnerships.

• Annual recurring revenue (ARR) reached €33.4m at year-end, up from €24.9m in 2023.

• Sales pipeline expanded to €75m, with seven new commercial agreements and 16 brand launches in 2024; 28 launches targeted for 2025.

• Strategic focus on product development, cash generation, and top-line growth, with strengthened team and expanded sportsbook capabilities.

Financial highlights

• Q4 2024 revenue was €8.8m, down 3% year-on-year but up 19% sequentially; underlying revenue grew 43–44% year-on-year to €8.6m.

• Adjusted EBITDA for Q4 2024 was €0.1m, with over 80% conversion of incremental revenue to EBITDA.

• Gross profit margin remained high at 95% in Q4 2024.

• Cash and cash equivalents at year-end were €6.3m, with €4.5m receivable and €2m revolving credit facility available.

• Monthly cash outflows reduced by over 50% quarter-on-quarter.

Outlook and guidance

• 2025 guidance reiterated: revenue of at least €44m and adjusted EBITDA of at least €10m.

• Targeting 28 brand launches in 2025, a 75% increase year-on-year.

• Expecting to be cash flow positive by end of Q3 2025.

• Focus on consolidating product upgrades, expanding into high-growth regulated markets, and maintaining a stable cost base.

• Q1 2025 revenue expected between €8.8m–€9.2m, with adjusted EBITDA of €0.1m–€0.5m.