Allied Gaming & Entertainment (AGAE) 14 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Allied Gaming & Entertainment, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host. Relations. Investor within Drew, Tyler Thank you.

may You begin.

operator. the to you, and Earnings welcome Gaming & afternoon, Allied Entertainment's Call. Thank Conference Good Third XXXX Quarter

Entertainment's Chen; the Executive Roy on call are Gaming Speaking today Anderson. Officer, Chief and & Yinghua Financial Officer, Allied Chief

turn to forward-looking expect, management, and from note factors risk of words Before public forward-looking Commission. targeting, seek, Exchange estimate, intend, to intended identify could prepared company's plan, statements. the differ that Securities the such Words should, variety over are forward-looking those statements discussed expressions and Actual similar materially judgment, these in contain believe, a and factors results may statements. call the including such discussed variations documents in implied anticipate, filed as our to by filings, the I please remarks may, due of goal will, with could,

are assumptions, as that or the believes obligation forward-looking of the expectations reflected undertakes whether company any will no to information, future assurance new such result otherwise. in give no update reasonable forward-looking based statements its attained. The can statements, Although a upon be expectations events company it

reconciliations Chen. measures non-GAAP over now Entertainment's appropriate why useful Yinghua? Yinghua and my such this certain the afternoon call on turn company's financial the addition, company presented financial investors. And represents to website, presents issued information are to Gaming company's to the The measures with non-GAAP the In financial measures, non-GAAP GAAP and an & of such it pleasure explanation measures. to CEO, earnings believes in financial was of which available release, Allied that, call this is of is definitions the

achieved accelerate growth. this was World including thank strategic revenue believe launch for will for XX% which initiatives our Mahjong joining strong afternoon. we forward, growth our and operationally Thank you, quarter you financially continue and Tour, push all as we Tyler, to It and us, both the a us of

world-class hosting events. demand Event, high XX strengthen globe the throughout quarter, returning were Arena Our include from top where third-party HackerOne the Hacking HyperX around Highlights multiyear days, third security. event organizational which XX to collaborated our was hackers in of Live

hosted also the and Hall with gaming's private that games, contest included the an dog appeal. Other event Day, Charlotte Nikki celebrities, On the notable event. Air and fashion Force gathering to actor hot Kobayashi, Riggle together brought Takeru and Rob event, WWE special inaugural entertainment a League’s' Chestnut everybody and Hornets famous by hosted Global Labor team an widespread launch between a a product Southern eating We for outing Gaming celebrate live Garcia. unforgettable we Esports co-hosted world Joey Netflix events competitors, party, Famer featuring Glazer's of

stops Tour, Oman the X scheduled tournament of anticipated Championship quarter EA return kicking College arena hybrid Our off with XX since the mobile Cry on XXXX. of based a Rally its XXXX, experienced busiest in highly Football the

female It use Supergirl events featuring arena diverse to Additionally, California capabilities is make Pro California, the our Esports. exciting unique Netflix global of beyond all most world's conducted Jose, launch mobile [indiscernible] in a Leon San Oceanside, of peripherals CSX very popular some in competitive its tournament like productions brands full teams. production for equipped [indiscernible] fully see major and streaming space, with our and and

further. our are even We market audience about very expanding optimistic and target

World Mahjong we its further into Tour, dive schedule format. WMT, we've as and developed exciting made the let's Now progress the with

Year the up festival's significant to WMT finale will festival of to interest cohosting one will moving global Visitors that Arena develop and in to where our featuring goal a North forward. will music making Entertainment, building announce event October kick finale partnership America. event the coincide Vegas highlight ever largest a satellite be Lunar is X-day off anticipate Authority, AEE, Summer attraction. Allied Vegas. the Las will audiences and feature partnership Mahjong recognized of for $XXX,XXX will spot season HyperX the artists a star This brand landmark to Macau in early world. we expect other the music New festival Winners Las February, will We be from Any Angeles and pool, Convention this thrilled events, the a first of with grand at renowned held this The we is Strawberry coveted finale. Las will the that be the in in festival in X event Experiential an around annual with artists proprietary Sonic Beijing, into event in This one with our music earn Macau, festival with Los price Vegas in this the attracting XX-year as XXXX. the Music and festival WMT Festival, as in RhythmMax in the

Let's Entertainment, move to on Allied AME. Mobile

has casual progress strategic The slightly than mobile games continues gain Our in traction. of investment to anticipated. operator developer leading a slower been Z-Tech, and

this expand quarter, X mobile to portfolio. launched During new casual gaming we games our

on focus and our For which are games, year, on user will the margin the of existing maintaining primary mobile retention. card refining remainder emphasis games and be our with showing a strong

alternative to to thrilled we We Capital, leading Yellow by post we'd exciting also a investments you highly strategic demonstrates agreement our technologies, development-focused quarter an forward. were is a belief their investment firm specializing with as and and have synergistic end new digital telecommunications, October, like the development well. priorities moving announce in speak Global energy in substantial that River private River in to AGAE equity entertainment. Yellow In

resources, that provide be company advances expertise as valuable the us Yellow industry extremely investments, will forward. its to strategic initiatives networking addition In financial with strategic will the and opportunities River

highly different CFO, will on our help call to them of Yellow over received that to now partner us incentivize growth. I River the will Anderson, the investment, our part warrants will financials. turn As that on provide accelerate our Roy to with QX initiatives updates

million, and quarter us for Total joining XXXX. up The from third of was along you were as and the to increase year in retention $X.X in-person and in with XX% thank expenses million, an primarily in related gaming and These at M&A quarter cost for mobile to as due increase $X.X the the revenues an third by from activities. $X.X D&O quarter increase in a year that period. also the tax and professional increase were mobile in payroll as revenues of prior expense Yinghua. the Oman reimbursement a Good of and today. the our arenas. Total you, the prior The HyperX year-over-year were fees into partially revenue Thank investment well driven were was credit million demand employee increases XXXX afternoon, period. everyone, an business offset received expenses third following integrated our both for strong quarter by prior reduction Z-Tech casual costs XXXX, in year with higher recorded revenues Z-tech fourth of in insurance primarily

million Almost reversed $X.X by foreign escrow October the XXXX. in of million foreign loans a currency. as well net a income. was by of transaction XXXX loss in all loss compared unrealized a payable of net LLC, XXXX. loss offset charges the Cumulus a in in receivable interest $X.X third income agreement partially were $X.X These was Our $X quarter on of net recovered for The and million quarter million impacted of to with or currency increase net loss million result unrealized on as third was XXXX a BPR settlement the $X.X our

of adjusted Our was loss in loss quarter and of million from improved the EBITDA $X.X a $X.X third million XXXX.

stock-based intangible EBITDA depreciation transaction amortization assets, adjustments compensation, nonrecurring and of fixed and for interest Our unrealized income. foreign currency and the includes legal fees, adjusted losses

December sheet. balance defined position million as capital our $XX.X cash $XX.X $XX.X was The at liabilities, current September totaled XXXX. XX, million million to short-term and At company's on XX, at our XXXX, assets compared minus surplus, moving to compared September million Now XXXX. XX, XXXX, XX, $XX.X to working December current investments at

$X now were cash were the will million under call aforementioned working by to With remaining the purchase Yinghua. million. I capital the receiving $X BPR and redistributed. AGA funds agreement which positions settlement agreement Our under XXXX BPR escrowed over receiving funds turn of million with share and of $X a back these impacted

Thank you, Roy.

We assets to to continue for the available capitalize on to us. business foundation our lay the significant

year season our starting month, generate see titles the more impacting for forward lines the look next substantial progress top demand both of launch Thank speaking new game up to in when full gear premier HyperX results and Arena Tour you poised of at to we and March. Oman our again Arena, and XXXX today. we As time World growing fourth company. Mahjong and bottom mobile for we're quarter the you We release Mobile our with your

joining Thank us. That conference. concludes today's for you

now disconnect your may You lines.