Workflow
Motorsport Games Reports Fourth Quarter & Full Year 2024 Financial Results
MSGMMotorsport Games(MSGM) GlobeNewswire·2025-03-20 20:10

Core Viewpoint - Motorsport Games Inc. reported improved financial results for the fourth quarter and fiscal year ended December 31, 2024, highlighting a revitalization in revenues and a reduction in cash burn, alongside the successful release of the new title Le Mans Ultimate in Early Access [2][5]. Financial Performance - Revenue for Q4 2024 was 2.0million,anincreaseof2.0 million, an increase of 0.3 million or 13% compared to 1.7millioninQ42023[5][6].−Fullyear2024revenuereached1.7 million in Q4 2023 [5][6]. - Full year 2024 revenue reached 8.7 million, up 1.8millionor25.71.8 million or 25.7% from 6.9 million in 2023 [10][11]. - Gross profit for Q4 2024 was 0.9million,downfrom0.9 million, down from 1.1 million in Q4 2023, with a gross profit margin decreasing to 45.8% from 61.4% [5][10]. Net Loss and Adjusted EBITDA - The net loss for Q4 2024 was 2.9million,adecreaseof2.9 million, a decrease of 5.6 million from a net income of 2.7millioninQ42023[7][11].−Forthefullyear2024,thenetlosswas2.7 million in Q4 2023 [7][11]. - For the full year 2024, the net loss was 3.0 million or 0.94pershare,significantlyimprovedfromanetlossof0.94 per share, significantly improved from a net loss of 14.3 million or 5.56persharein2023[11][12].−AdjustedEBITDAlossforQ42024was5.56 per share in 2023 [11][12]. - Adjusted EBITDA loss for Q4 2024 was 2.5 million, compared to an Adjusted EBITDA of 0.4millioninQ42023[8][12].ProductandMarketDevelopments−Thecompanyachievedamilestoneof100,000netunitsalesofLeMansUltimateinQ42024,contributingtoimprovedrevenuefromgreatersalesandnewsubscriptionofferings[6][10].−UpdatestoLeMansUltimateinDecember2024andFebruary2025significantlyincreasedplayernumbersandconsumersentiment,introducingpopularcarcategoriesandnewfeatures[3][6].CashFlowandLiquidity−AsofDecember31,2024,thecompanyhadcashandcashequivalentsofapproximately0.4 million in Q4 2023 [8][12]. Product and Market Developments - The company achieved a milestone of 100,000 net unit sales of Le Mans Ultimate in Q4 2024, contributing to improved revenue from greater sales and new subscription offerings [6][10]. - Updates to Le Mans Ultimate in December 2024 and February 2025 significantly increased player numbers and consumer sentiment, introducing popular car categories and new features [3][6]. Cash Flow and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of approximately 0.9 million, which increased to 1.2millionbyFebruary28,2025[15].−Thecompanyreportednegativecashflowsfromoperationsofapproximately1.2 million by February 28, 2025 [15]. - The company reported negative cash flows from operations of approximately 2.8 million for the year, indicating an average monthly net cash burn of about $0.2 million [15][16]. - The company anticipates needing additional funding to sustain operations over the next year and is exploring various options, including equity and debt financing [16][17].