The following is a summary of the Enthusiast Gaming Holdings Inc. (EGLXF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Enthusiast Gaming reported Q1 revenue of CAD 23.3 million, a decrease from CAD 42.9 million in the previous year due to prioritizing higher margin revenue.
The company saw an adjusted EBITDA loss of CAD 1.8 million in Q1, a 42% improvement from the previous year.
The company's gross profit was at CAD 14.1 million, a decrease of 16% compared to Q1 of the previous year.
Gross margin increased to 60.3% reflecting the greater contribution of properties, direct sales, and subscription revenue.
Operating expenses decreased by almost 40% to CAD 15.5 million due to cost-saving initiatives.
Net loss improved significantly, with the Q1 2024 loss reported at CAD 1.3 million, down from CAD 8.7 million in Q1 2023.
Business Progress:
The company has engaged in an ad tech partnership with Playwire to increase cost savings and monetize its properties.
A strategic partnership with the National Hockey League (NHL) has been announced for the 2024-2025 season.
The desktop application, U.GG, expanded into a new game title bringing its total to four with over 2.5 million downloads.
Enthusiast Gaming is set to scale up its product offerings, adding more game titles and events to its various platforms.
The company has focused on enriched audience engagement to increase the ratio of direct sales and subscription revenue, reducing its reliance on network revenue.
Five new incremental sellers were added in Q2 2024 which should bolster direct sales.
Cost-saving initiatives have been implemented with additional measures being developed to boost financial performance.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.