Motorsport Games (MSGM) 14 Nov 242024 Q3 Earnings call transcript

Thanks you for standing by, and welcome to the Motorsport Games Inc.

Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, today's conference is being recorded.

I would like to turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead.

to Webcast. Third welcome Conference XXXX and and Call you, Motorsport Quarter Games Earnings Thank

call Motorsport today's Chief On is Financial Hood; Officer; Officer, and Stephen Stanley Beckley. Games Chief Executive

company's should at access release everyone www.motorsportgames.com. today close. Investor on market is after XXXX Motorsport Relations now, By section filed to the of earnings third have press available the This quarter Games' website

are these this its new within information, securities that undertakes call as on course to law, of in this of described risks to call, on statements forward-looking the laws. as a those to result statements of the make involve statements materially statements. management differ expectations the no or update statements, During forward-looking made required could current or company otherwise. whether federal meaning alter U.S. These and results and by update forward-looking based future management's may from Except cause beliefs obligation actual any uncertainties or events forward-looking and

Please company's results risks from including in filings discussion the expressed for certain refer detailed ended report, cause quarterly could forward-looking September any with and materially made XX-Q, quarter Form a the release most recent statements SEC, XX, its on the to XXXX, implied today's differ that actual press to those for or today.

XXXX measures, In will quarter to adjusted results. as such financial as today's EBITDA, we discuss non-GAAP call, third financial conference certain we the refer

Games' which www.motorsportgames.com. as available at directly press related the the find is GAAP will disclosures You reconciliation well today, of Relations non-GAAP section on issued their of a other also earlier Motorsport Investor release comparable to website these measures as measures most in

Stephen Executive the Games. now call of turn over to Motorsport And Hood, like Chief to Stephen? Officer I'd

Thank call you, for conference joining today. this everyone,

has cost to backdrop work at experiences development at our team improved conference Games continued deliver optimization. the of Studio our last ongoing XXX Motorsport and call, player diligently Since against

whilst reducing to game drive expenditure. continue We revenues

to further undertook stronger rightsizing at entire head and commitment This company cash expenditure the and operations. month, last our emerge streamlining success. operation reducing we prepared move for ultimately aimed to count announced can As maintain reductions steadfast necessary that a so the was

this personnel reduction between a knowledge. however. The reduction a carrying retaining saving new team we of and we and have progress, right believe We productivity than not with customers, the clients. in and growth, of or company our continued phase today more in struck A which will capable cost vital have and are technology key meant has balance serve product the shareholders into staff

received feature was Ultimate far with its together or the our update biggest large a a DLC of of spoken delivered, to unique something in I've suits Mans online other play Le feature RaceControl. for a An particularly opportunities improved offering also customer in about make are with racers XXXX regularly for retention. with is and proud gaming that and we not any to of that September, opportunity market co-op seeking This free at pace content, them play-by-mail platform second partnership so innovative clients in In our on the and that packs. friends mode style powered product of by some use updates downloadable alongside expect available our further

world be play is premium. a Players today's of their of now to which hectic a have choosing, the in X where time a chapter benefit to at time story only opportunity a play can at

play. technology, of powered the much being incredibly must recent to that a technology platform our FX as pick-up very technology underlying by and is the deployment high-end gamers. we range of more of gaming be experiences the of and realize online example benefit strong, simulation Whilst proven a our Arcade, powers our is simulation wide

day since a to the resume mode. delivered we ability for it in X, been asking game race save players a Additionally, feature weekend race that and a have

As built technically World XX feature challenging Endurance both suits in the a And hours endurance the requirement. a races be Championship, fulfill and Mans complete FIA of our allow and game way Le to able represent to that to mode this the this users them. simulation product save-and-load co-op must

our and of broaden Next our be to up, in Players turn, XXXX, the sharing we're appeal path to experiencing real-time able their team the new in further product car will real-time play moments level. to on to continue in the driver will races, with expected new which deliver QX game. up swaps year newest will a and shared that friends in take

Hypercar our with Mans the both great for XXXX Pack the support with players X season grid Le Isotta pass manufacturers. the Alpine from LMDh, the of for and Ultimate completed Fraschini

expect We to we packs generate subsequent series greater bring game. the as popular GTX the cars ever our interest to

translate shows of far to another and to into we continue Ultimate from Mans products, popular Data product to real-world changes our class by up-to-date are these the bring our offering this in match we're eager X, rFactor Le the historically vehicle sport. the as see most and

update and that. of our subscription optional service. an are of as enable RaceControl We made services offering, and subscription is plans an a expand part to extension overall commitment part this to major the a platform Part of new to features

pillar provide there never-ending our of Mans Le to are of intend major We across X rFactor our the however, offering subscription and stream and out X titles, Ultimate. value services the for conscious,

deliver live useful With a service value, next this to and month every new should tapping become this stream. game go revenue unbeatable into

FX recently in that technology, and partnership latest I make mention operators the a This of appeal to hugely They and with of game of what we hopeful more do year. venue, fourth D.C. demonstrate together and the is exploring creators to us our a Washington, must also Kindred enables partnership can next we're expanded of successful the Concepts, of Arcade.

as position pinnacle venue opened, to received and players technology the revenue new single-seat our Concepts, experience simulation. our We racing. license additional every get Kindred racing With more per-seat of from we

potential have and studio this company, about will its am you of future hope technology. I As understood, the upbeat I

alternatives this sustainably. the grow business regarding with announcement we Our Board and the strategic and because to financing, will believe, opportunity quickly right I about came the have

In the business progress: a Ultimate. at building, enormous this XX to new time, and debt, a an made spend iconic with months the course, I same steer cultivating reducing mandate in and, Mans launching returned reducing we cash to have Le product since

I quarter Stanley Now talk results Beckley, to for invite the to of the Chief like would financial Financial Officer, our third about XXXX.

you, evening, and everyone. Stephen, Thank good

calls, earnings from be and an the I focus any forward-looking highlights Instead, guidance financial I As of quarter providing offering with results previous on third our on will today. wouldn't update XXXX.

the compared $X.X of the in X.X% increase game due $X.X same when was were year. period February Le for release primarily by to to Revenues PC Ultimate the on million the or sales quarter XXXX. up prior The Mans digital in revenues million, higher from in

the in loss is of Net period The driven is general related loss well $X.X to as a September million due comprised the for in Net a loss income, count than reduction gross other quarter and and net during primarily for same million transactions the improvement compared ended gains the profit. lower $X.X was million head emerging prior in administrative operating year, XX, currency improvement of million months to $X.X a decreased compared million X to net million. dollars. of expenses the U.S. period denominated same $X.X in XXXX, currency as by $X.X an $X.X which the in prior to loss incurred, in reductions expenses also decrease foreign other year

to year. XXXX for the income compared third per prior $X.XX Class a net the A for in $X.XX share common attributable quarter the same Net to of stock loss of was period

discussed reporting the XXXX improvement $X.X same adjusted prior of We year. decrease The loss adjusted compared are in of an million net EBITDA those for are change income in and prior well EBITDA $X.X for the third stock-based year adjusted in to as quarter compared of the the quarter to period in period EBITDA the compensation for the in as million of period. a same comparative as the respect

the to focus be this to it area a continues liquidity, of key As relates for company.

million, $X.X the and monthly was burn X XXXX. an cash ended monthly approximately when for September the operations $X.X million, to September used of cash million X ended months average the in burn operations average cash XX, months $X.X Net million for representing $X.X down of compared XXXX, from net

September cash equivalents of had XX, cash of as million of $X.X XX, to decreased XXXX, and the October company had $X.X As million XXXX. which

that on of order for to average alternatives its this to equity potential actively company arrangements several additional to, is required funding our to and position of there or initiatives. will funding monthly not options, the operations. other the the liquidity to not assets NASCAR but financing sales address additional Based further and strategic and and but cash our recent transactions; in cash of to, shortfall, we and continue or in believe limited our business exploring we are be hand addition including, not order sale licensing burn, In in sufficient year cost license and/or reduction restructuring operations next limited similar Traxion over debt including, on form the do fund cash

Thank now I you to all turn will Stephen for your time. the And closing remarks. for call back

to you today. Stanley, you, Thank joining us everyone thank and

you odds games passionate, organization united a the with focused forward-thinking one and it's individuals the and lead our us could I that leave can confident to transform driving operate. into thought, we together, of If that defy that We've within successful entertainment lasting shown future, we team talented we meant which to will experiences into this. empower segment always a the were genuinely people I'm could our be. racing and disrupt company delivering

ecosystem We XXX,XXXth we passed have amazing as mark control growing platform, user a registration perhaps working race best week, incidentally this just hard possible. as with the our are technology, people, which the

attention. for appreciate I time deeply you your Thank it. all and

questions back fielding Stephen would to closing be Mr. not conference now or for will I the additional to any remarks. We turn Hood today. like

Thank Thank received you is your time. to the would It all like appreciated. that for attention say you evening. for thank much this you. I just we

thank This for does you today's We call. your participation. conclude

You may disconnect at any time.