Golden Matrix Group (GMGI) stands out as one of the most compelling undervalued opportunities in the gaming and technology sectors. With year-to-date revenue growth of 55% to $105.3M, robust gross margins consistently above 55%, and a Price-to-Sales (P/S) ratio of just 1.88, GMGI is trading at a valuation far below its industry peers. For investors seeking growth and value, GMGI represents a rare find in today’s market.

Price-to-Sales Ratio: A Clear Undervaluation

At a market capitalization of ~ $263 million, GMGI’s Price-to-Sales (P/S) ratio stands at 1.88 based on annualized revenue. This is significantly below the industry average of 3-5 for high-growth gaming and technology companies.

This low valuation, combined with GMGI’s strong growth and financial performance, highlights a significant market disconnect, offering a unique opportunity for investors.

$105.3 Million Q1-Q3 Revenue: 55% Year-to-Date Growth

The numbers highlight GMGI’s remarkable performance. For the first nine months of 2024, GMGI recorded $105.3 million in revenue, representing a 55% increase year-over-year. Q3 2024 alone contributed $41 million, an 85% surge compared to Q3 2023. This exceptional growth reflects GMGI’s ability to integrate Meridianbet seamlessly while capturing opportunities in expanding markets.

Profitability remains a cornerstone of GMGI’s operations. With gross margins consistently above 55%, the company achieved $61.8 million in gross profit year-to-date and $22.4 million in Q3 gross profit. These figures demonstrate operational excellence and a focus on high-margin product and service offerings.

Positive Free Cash Flow

Beyond revenue growth, GMGI’s cash flow performance underscores its financial strength. For the nine months ending September 30, 2024:

Operating Cash Flow (OCF): $7.3 million

Capital Expenditures (CapEx): $3.98 million

Free Cash Flow (FCF): $3.34 million

Balance Sheet Strength

As of September 30, 2024, GMGI’s balance sheet remains robust:

Cash and Equivalents: $38.4 million

Short-Term Debt: $17.5 million

Shareholder Equity: Grew 60% year-to-date to $94 million

These metrics provide the company with the flexibility to pursue strategic growth opportunities without compromising financial health.

Brazil and New Jersey: The Next Revenue Drivers

GMGI’s recent entry into Brazil and the pending New Jersey license application adds another layer of growth potential. Brazil’s rapidly maturing gaming market and New Jersey’s established iGaming ecosystem provide lucrative opportunities for the company to expand its revenue base and capture additional market share.

The Verdict: Growth, Value, and Opportunity

Golden Matrix Group is more than a growth story—it’s an undervalued gem in the gaming industry. With 55% revenue growth, a 1.88 P/S ratio, strong cash flow, and transformative market entries on the horizon, GMGI combines financial strength with unmatched growth potential.

For investors seeking value and upside, GMGI is a standout. The only question is: How much longer will it take for the Mr. Market to catch on?

Forward-Looking Statements and Compliance

This editorial is based solely on reported financial data and publicly available information as of the date of publication. All metrics, valuations, and statements presented herein are derived from Golden Matrix Group’s (GMGI) past, reported financial results and regulatory filings, including the Super 8-K, Q2 2024, and Q3 2024 earnings reports.

This document does not contain any projections, forecasts, or forward-looking statements. It is intended for informational purposes only and should not be considered investment advice. Investors are encouraged to review GMGI’s official SEC filings, including 10-K, 10-Q, and other public disclosures, to make informed investment decisions.

This editorial explicitly avoids making any forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Any mention of potential opportunities, such as entry into markets like Brazil and New Jersey, is based on GMGI’s previously reported strategic initiatives and does not constitute a guarantee of future performance.

Market Comparisons and Ratios

All valuation ratios and market comparisons are calculated using publicly reported financial data and reflect historical metrics only. These comparisons do not imply any future stock performance or market valuation.

Readers are strongly advised to:

Review GMGI’s official filings with the U.S. Securities and Exchange Commission (SEC) for complete and accurate information.

Consult with a financial advisor or investment professional before making any investment decisions.

Golden Matrix Group (GMGI) and its representatives bear no responsibility for the interpretations or decisions made by readers based on this editorial.

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