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Motorsport Games(MSGM) - 2025 Q1 - Earnings Call Transcript
MSGMMotorsport Games(MSGM)2025-05-09 22:00
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Financial Data and Key Metrics Changes - Revenues for Q1 2025 were 1,800,000,downby1,800,000, down by 1,300,000 or 41.9% compared to the same period in the prior year [13] - Net income for the quarter was 1,000,000,animprovementof1,000,000, an improvement of 2,700,000 from a net loss of 1,700,000intheprioryear[14]−AdjustedEBITDAwas1,700,000 in the prior year [14] - Adjusted EBITDA was 600,000 for Q1 2025, compared to an adjusted EBITDA loss of 1,000,000inthesameperiodlastyear,reflectinganimprovementof1,000,000 in the same period last year, reflecting an improvement of 1,600,000 [15] - Cash and cash equivalents increased from 1,100,000asofMarch31,2025,to1,100,000 as of March 31, 2025, to 3,100,000 by April 30, 2025, primarily due to 2,350,000innetproceedsfromaprivateplacement[16]BusinessLineDataandKeyMetricsChanges−NetrevenuesfromtheLeMansUltimateracingtitleincreasedby2,350,000 in net proceeds from a private placement [16] Business Line Data and Key Metrics Changes - Net revenues from the Le Mans Ultimate racing title increased by 400,000 in Q1 2025 compared to the same period in 2024, despite Q1 2024 being the release quarter for the game [6] - Total revenues decreased primarily due to a 1,500,000dropinNASCAR−relatedrevenues,asthecompanyisnolongerauthorizedtosellthattitlestartingin2025[13][14]MarketDataandKeyMetricsChanges−Thecompanynotedthatsharestradedmorethan2.5timeshigherfollowingtheannouncementofa1,500,000 drop in NASCAR-related revenues, as the company is no longer authorized to sell that title starting in 2025 [13][14] Market Data and Key Metrics Changes - The company noted that shares traded more than 2.5 times higher following the announcement of a 2,500,000 investment, indicating increased market confidence [6] Company Strategy and Development Direction - The company is focusing on building owned infrastructure around its gaming titles, particularly through the Race Control subscription platform [6] - Plans to move Le Mans Ultimate from early access to a full release version 1.0 are underway, which is expected to unlock new sales and marketing tactics [9] - The company is exploring opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions ongoing with potential publishing collaborators [10] - The company aims to diversify its portfolio and generate new revenue streams in the underserved racing game market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved state and the potential for growth following the recent investment [5] - The company is taking measures to reduce costs and expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio [16] Other Important Information - The company is revisiting its esports event output, particularly the 24 Hours of Le Mans virtual event, which historically attracted significant attention and sponsorship revenue [10] - The company has a live licensing agreement with Kindred Concepts, with fees growing alongside their expansion [11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.