Latest news with #StanleyBeckley
Yahoo
12-05-2025
- Automotive
- Yahoo
Motorsport Games Inc (MSGM) Q1 2025 Earnings Call Highlights: Navigating Financial Challenges ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motorsport Games Inc (NASDAQ:MSGM) received a $2.5 million investment from virtual reality headset manufacturers Pymax, providing significant financial support. Net revenues from the Le Mans Ultimate Racing title increased by $0.4 million in Q1 2025 compared to the same period in the prior year. The company reported an improvement in net income, achieving a net income of $1.0 billion compared to a net loss of $1.7 million in the prior year. Motorsport Games Inc (NASDAQ:MSGM) has improved cash flow from operations, generating an average positive cash flow of approximately $0.1 million per month. The company is exploring new opportunities, including bringing the Le Mans Ultimate game to PlayStation and Xbox consoles, which could expand its audience. Total revenues for Q1 2025 were down by 41.9% compared to the same period in the prior year, primarily due to a decrease in NASCAR-related revenues. The company is no longer authorized to sell NASCAR-related gaming titles starting in 2025, impacting revenue streams. Despite improvements, Motorsport Games Inc (NASDAQ:MSGM) expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio. The company is exploring additional funding options to address liquidity shortfalls, indicating ongoing financial challenges. There is a decrease in revenues from the rFactor 2 title by $0.2 million, contributing to the overall revenue decline. Warning! GuruFocus has detected 5 Warning Signs with MSGM. Q: Can you provide more details on the recent $2.5 million investment and its impact on the company? A: Stephen Hood, CEO: The investment was led by virtual reality headset manufacturers Pymax and has provided significant additional breathing room for our business. It has allowed us to further develop our products and assess future potential. This investment has also increased market confidence, with shares trading more than 2.5 times higher than before the announcement. Q: What are the key financial results for Q1 2025? A: Stanley Beckley, CFO: Revenues for the quarter were $1.8 million, down 41.9% from the prior year, primarily due to a decrease in NASCAR-related revenues. However, net income improved to $1.0 million compared to a net loss of $1.7 million in the prior year, driven by reduced operating expenses and other operating income. Q: How is the Le Mans Ultimate Racing title performing? A: Stephen Hood, CEO: Net revenues from the Le Mans Ultimate Racing title were $0.4 million higher in Q1 2025 compared to the same period last year, despite Q1 2024 being the release quarter. This is a positive result, and we plan to release future updates, including team and driver swap functionality, which will enhance the gaming experience. Q: What are the company's plans for expanding the Le Mans Ultimate audience? A: Stephen Hood, CEO: We expect the game to move from early access to a full release this year, unlocking new sales and marketing tactics. We are also exploring console opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions underway with potential collaborators. Q: How is the company's liquidity position? A: Stanley Beckley, CFO: As of March 31, 2025, we had cash and cash equivalents of $1.1 million, which increased to $3.1 million by April 30, 2025, due to net proceeds from a private placement. We continue to explore options to address liquidity shortfalls, including potential equity and debt financing arrangements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
12-05-2025
- Automotive
- Yahoo
Motorsport Games Inc (MSGM) Q1 2025 Earnings Call Highlights: Navigating Financial Challenges ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motorsport Games Inc (NASDAQ:MSGM) received a $2.5 million investment from virtual reality headset manufacturers Pymax, providing significant financial support. Net revenues from the Le Mans Ultimate Racing title increased by $0.4 million in Q1 2025 compared to the same period in the prior year. The company reported an improvement in net income, achieving a net income of $1.0 billion compared to a net loss of $1.7 million in the prior year. Motorsport Games Inc (NASDAQ:MSGM) has improved cash flow from operations, generating an average positive cash flow of approximately $0.1 million per month. The company is exploring new opportunities, including bringing the Le Mans Ultimate game to PlayStation and Xbox consoles, which could expand its audience. Total revenues for Q1 2025 were down by 41.9% compared to the same period in the prior year, primarily due to a decrease in NASCAR-related revenues. The company is no longer authorized to sell NASCAR-related gaming titles starting in 2025, impacting revenue streams. Despite improvements, Motorsport Games Inc (NASDAQ:MSGM) expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio. The company is exploring additional funding options to address liquidity shortfalls, indicating ongoing financial challenges. There is a decrease in revenues from the rFactor 2 title by $0.2 million, contributing to the overall revenue decline. Warning! GuruFocus has detected 5 Warning Signs with MSGM. Q: Can you provide more details on the recent $2.5 million investment and its impact on the company? A: Stephen Hood, CEO: The investment was led by virtual reality headset manufacturers Pymax and has provided significant additional breathing room for our business. It has allowed us to further develop our products and assess future potential. This investment has also increased market confidence, with shares trading more than 2.5 times higher than before the announcement. Q: What are the key financial results for Q1 2025? A: Stanley Beckley, CFO: Revenues for the quarter were $1.8 million, down 41.9% from the prior year, primarily due to a decrease in NASCAR-related revenues. However, net income improved to $1.0 million compared to a net loss of $1.7 million in the prior year, driven by reduced operating expenses and other operating income. Q: How is the Le Mans Ultimate Racing title performing? A: Stephen Hood, CEO: Net revenues from the Le Mans Ultimate Racing title were $0.4 million higher in Q1 2025 compared to the same period last year, despite Q1 2024 being the release quarter. This is a positive result, and we plan to release future updates, including team and driver swap functionality, which will enhance the gaming experience. Q: What are the company's plans for expanding the Le Mans Ultimate audience? A: Stephen Hood, CEO: We expect the game to move from early access to a full release this year, unlocking new sales and marketing tactics. We are also exploring console opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions underway with potential collaborators. Q: How is the company's liquidity position? A: Stanley Beckley, CFO: As of March 31, 2025, we had cash and cash equivalents of $1.1 million, which increased to $3.1 million by April 30, 2025, due to net proceeds from a private placement. We continue to explore options to address liquidity shortfalls, including potential equity and debt financing arrangements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
21-03-2025
- Business
- Yahoo
Motorsport Games Inc (MSGM) Q4 2024 Earnings Call Highlights: Revenue Growth Amidst Financial ...
Revenue (Q4 2024): $2.0 million, up 13% from the same period in the prior year. Net Loss (Q4 2024): $2.9 million, compared to net income of $2.7 million in the prior year. Adjusted EBITDA Loss (Q4 2024): $2.5 million, compared to an adjusted EBITDA of $0.4 million in the prior year. Full Year Revenue (2024): $8.7 million, up $1.8 million from the prior year. Full Year Net Loss (2024): $3.0 million, compared to $14.3 million in 2023. Adjusted EBITDA Loss (2024): $3.9 million, improved from $9.3 million in 2023. Net Cash Used in Operations (2024): Approximately $3.2 million, with an average monthly net cash burn of $0.3 million. Cash and Cash Equivalents (Dec 31, 2024): $0.9 million, increased to $1.2 million by February 28, 2025. Subscription Service Revenue (First 21 Days): Over $120,000 in gross revenues. Active Subscribers: Nearly 6,000 as of the latest update. Warning! GuruFocus has detected 3 Warning Signs with MSGM. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Le Mans Ultimate launched with strong potential and received positive feedback from consumers and industry influencers. Significant update to Le Mans Ultimate in December led to a surge in player numbers and positive reception. Organic growth achieved without investment in paid marketing, demonstrating strong word-of-mouth influence. Introduction of a subscription service via generated over $120,000 in gross revenues in the first 21 days. Settlement with Luminous improved financial position by $180,000 and resolved a long-standing issue. Net loss for the fourth quarter of 2024 was $2.9 million, a significant decrease compared to the prior year's net income. Adjusted EBITDA loss for the fourth quarter of 2024 was $2.5 million, compared to a positive adjusted EBITDA in the prior year. Cash position remains a concern with only $1.2 million as of February 28, 2025, insufficient to fund operations over the next year. Exploration of additional funding options indicates ongoing liquidity challenges. Net cash used in operations for 2024 was approximately $3.2 million, highlighting continued financial strain. Q: Can you provide an update on the financial performance for the fourth quarter and full year 2024? A: Stanley Beckley, Chief Financial Officer, reported that revenues for the fourth quarter were $2.0 million, a 13% increase compared to the same period last year, driven by higher digital game sales from the release of Le Mans Ultimate. However, the net loss for the quarter was $2.9 million, compared to a net income of $2.7 million in the prior year, primarily due to increased other expenses and the absence of a $3.0 million gain from a NASCAR license sale in 2023. Q: How has the launch of Le Mans Ultimate impacted the company's performance? A: Stephen Hood, Chief Executive Officer, highlighted that Le Mans Ultimate has been positively received, with significant updates leading to increased player numbers and sales. The game has gained traction without paid marketing, relying on organic word of mouth. This success has improved the company's financial health and opened new opportunities for partnerships and potential console ports. Q: What are the company's plans for future growth and development? A: Stephen Hood mentioned that Motorsport Games is exploring strategic alternatives, including potential equity and debt financing, as well as the sale or licensing of assets. The company is also focused on expanding its subscription service and exploring console ports for Le Mans Ultimate, driven by strong player demand. Q: Can you elaborate on the company's liquidity position and cash flow management? A: Stanley Beckley stated that as of December 31, 2024, the company had $0.9 million in cash, which increased to $1.2 million by February 28, 2025. Despite a reduced average monthly cash burn, additional funding will be required to sustain operations over the next year. The company is actively exploring funding options to address this liquidity shortfall. Q: What strategic initiatives have been implemented to improve the company's financial position? A: Stephen Hood noted that the company has undertaken cost reductions and restructuring initiatives, including headcount reductions and strategic licensing deals. Additionally, the recent settlement with Luminous and a favorable legal ruling have improved the financial position, reducing liabilities and enhancing stockholders' equity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
