Earnings Labs

Golden Matrix Group, Inc. (MRDN)

Q3 2024 Earnings Call· Tue, Nov 12, 2024

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Transcript

Operator

Operator

Thank you and good morning, everyone. Welcome to Golden Matrix Group's Third Quarter 2024 Earnings Call. We appreciate you joining us today. On today's call are Brian Goodman, CEO and Co-Founder of Golden Matrix Group; Zoran Milošević, CEO of Merdianbet. Brian and Zoran will provide an overview of Golden Matrix's Q3 financial and operational results. At the conclusion of this call, the recording and supporting resources will be available at the Golden Matrix Group's website. As a reminder, today's call will contain forward-looking statements. Certain statements made on this conference call, including our responses to questions, may constitute forward-looking information within the meaning of applicable securities laws. These statements are based on various assumptions about future events, including market and economic conditions, business prospects, technological developments, and regulatory changes. While we believe these assumptions are reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. For a complete discussion of these factors, please refer to our most recent 10-Q filing and other public disclosures. Non-GAAP measures will be discussed, and reconciliation of these numbers can also be found in our recently filed 10-Q and earnings press release available on our website. Please note this event is being recorded. [Operator Instructions]. I will now hand over to Brian Goodman, CEO and Co-Founder of Golden Matrix Group.

Unidentified Company Representative

Analyst

Thank you and good morning everyone. Welcome to Golden Matrix Group’s Q3 2024 earnings call. We appreciate you joining us today. On today's call are Brian Goodman, CEO and Co-Founder of Golden Matrix Group and Zoran Milošević, CEO of Merdianbet. Brian and Zoran will provide an overview of Golden Matrix's Q3 financial and operational results. At the conclusion of this call, the recording and supporting resources will be available at the Golden Matrix Group's website. As a reminder, today's call will contain forward-looking statements. Certain statements made on this conference call, including our responses to questions, may constitute forward-looking information within the meaning of applicable securities laws. These statements are based on various assumptions about future events, including market and economic conditions, business prospects, technological developments, and regulatory changes. While we believe these assumptions are reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. For a complete discussion of these factors, please refer to our most recent 10-Q filing and other public disclosures. Non-GAAP measures will be discussed, and reconciliation of these numbers can also be found in our recently filed 10-Q and earnings press release available on our website. I will now hand the call over to Brian Goodman, CEO and Co-Founder of Golden Matrix Group. Brian?

Brian Goodman

Analyst

Welcome everyone, and thank you for joining Golden Matrix' third quarter earnings call. Joining me today is Zoran Milošević, CEO of Merdianbet to update you on the progress across our business. On this call, we will cover operational highlights, financial performance, divisional performance, and the overall outlook for the company as we look towards the close of 2024. Starting with operational performance, I'm happy to report on the company's continued operational progress. The third quarter reflects our continued resilience and commitment to long-term growth, strengthening our industry position and executing on our business goals. In Q3, we continued our strategy of scaling the business, delivering broad based growth with strong contributions across our key markets, and also finalizing the Classics for a Cause acquisition, which will no doubt deliver solid revenues and added profits to Golden Matrix. Additionally, our recent performance in October of 2024 has clearly demonstrated and supported our bullish outlook for strong ongoing growth and sustainable results. Onto our financial highlights. The entire iGaming industry is booming and we are very proud to be part of this rapidly evolving segment of the market. We have yet again posted strong financial performance across the business. Third quarter consolidated revenues grew 85% to $41 million, a continuation of the strong trend shown in the last quarter. Year-to-date revenue grew by 55% to $105 million. Third quarter consolidated gross profit increased by 39% to $22.4 million and year-to-date gross profit also increased by 24% to $61.8 million. Third quarter consolidated adjusted EBITDA was $4.3. During Q3, we did encounter residual one off costs due to the completion and implementation of the Merdianbet acquisition and also the recent acquisition of Classics for a Cause. The company has continued to maintain a healthy balance sheet. As of September 30th, the company had…

Brian Goodman

Analyst

Thank you, Zoran. I will now finish up with the outlook for Golden Matrix. Whilst we have achieved top line revenue growth and strong increase in gross margin in the third quarter and encountered some trailing one off costs incurred in the Merdianbet consolidation and the integration of the newly acquired Classics for a Cause, this is now behind us and we are operating the business more efficiently with a focus on reduced costs and improved profitability. We are laser focused on implementing cost efficiencies and cost rationalization across the company. This is primarily being achieved by reducing overall costs in terms of product synergies and removing redundancies. On the operational front, we are improving sales and marketing through broader distribution, increased sales and marketing, and we are also identifying products and distribution synergies to maximize efficiency and build higher sales with improved margins. We are optimizing our operations across the globe and implementing tighter cost controls. We are excited about what the future holds for the business and we see a large number of opportunities ahead of us. As mentioned, we have started the fourth quarter strongly and we are on track to set new records. We have a clear strategy, a strong balance sheet, and a world class team behind us, and we remain confident in the company's future prospects. We are well positioned to settle debts as needed, pursue accretive acquisitions, and continue to support our expansive growth strategy. Thank you everyone for joining the call. End of Q&A : The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.