Q1 2024 Motorsport Games Inc Earnings Call Transcript
Key Points
- Revenue increased by 75.2% compared to the same period last year, driven by higher digital game sales and development of simulation platforms for third parties.
- Net loss improved by $3.6 million compared to the same period in the prior year, primarily due to higher gross profit and lower operating expenses.
- Successful launch of 'Lumin Ultimate' game on PC, which exceeded business forecasts and received positive public reception.
- Settlement of previous license dispute liability with ARCTOCA Tokyo Limited for a significantly reduced figure, improving the balance sheet.
- Introduction of new licensing deals and content updates, including a planned subscription service, to enhance the gaming ecosystem and drive future revenue.
- Net cash used in operations for the three months ended March 31, 2024, was approximately $0.5 million, indicating ongoing cash burn.
- The company anticipates needing additional funding to continue operations, exploring options including equity and debt financing or asset sales.
- Despite improvements, the company reported an adjusted EBITDA loss of $0.4 million for the first quarter of 2024.
- The company faces challenges in maintaining liquidity, with only $1.2 million in cash and cash equivalents as of March 31, 2024.
- Dependence on the success of new game launches and updates to drive revenue, with significant investment in marketing and development needed.
Thank you for standing by, and welcome to motorsports game Quarter 2024 earnings call. As a reminder, today's conference is being recorded.
I would now like to turn the conference over to Ben for us at Turner from motor sport games. Please go ahead.
Thank you, and welcome to NEXT book gains First Quarter 2024 Earnings Conference Call and Webcast. On today's call is multiple games, Chief Executive Officer, Stephen Hoge, and Interim Chief Financial Officer, and Stan. Exactly By now, everyone should have access to the company's first quarter 2024 earnings press release filed today after market close. This is available on the Investor Relations section of virtual games website at w. w. w. dot motorsport games.com.
During the course of this call, management may make forward-looking statements within the meaning of US federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could
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