Engine Gaming & Media, Inc. Reports First Quarter Fiscal Year 2022 Financial Results
Engine Gaming and Media, Inc. ("Engine" or the "Company"; NASDAQ: GAME; TSX-V: GAME), an esports/sports social gaming, influencer marketing, and next-generation media solutions company, today announced results for its first quarter of fiscal year 2022 ended November 30, 2021. All amounts are stated in US dollars unless otherwise indicated.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220113005894/en/
(Graphic: Business Wire)
Total revenue for FY Q1'2022 was $14.3 million, up from $7.5 million in FY Q1'2021, an increase of 92% YoY, and 22% higher than sequential FY Q4'2021 of $11.8 million.
For the 1st quarter ended November 30, 2021, Net loss was $(1.3) million, a decrease in loss of $4.7 million from FY Q1'2021 Net loss of $(6.0) million.
For the 1st quarter ended November 30, 2021, Adjusted EBITDA was $(5.0) million, an increase in loss of $100 thousand from FY Q1'2021 Adjusted EBITDA of $(4.9) million.
The Company had cash of $9.7 million and $10.1 million in receivables as of November 30, 2021. In addition, the Company had working capital surplus of $3.2 million after excluding non-cash warrant liability and arbitration reserve.
Key segment revenue growth that contributed to the strong revenue performance:
Lou Schwartz, Chief Executive Officer of Engine, stated, "We are extremely gratified by the very significant revenue growth we have created throughout the Company. The continued significant year over year and quarter over quarter revenue growth, almost doubling from a year earlier, and almost all organic, is a real testament to the Engine teams' efforts in driving the business forward on an accelerated basis".
Tom Rogers, Executive Chairman of the Company added, "As social engagement increasingly defines both video game interaction and digital marketing innovation, our collection of assets continues to bring increasing focus of that attribute to the fore. Winview, UMG, Eden, Stream Hatchet and Sideqik all continue to differentiate their offerings relative to social gaming and marketing. With our continued, significant revenue growth, and investment in product enhancements to sustain that growth, in the course of one-year we have begun to show what the Engine assets are capable of representing in terms of substantially enhanced asset value. We believe with our plans for sustainable cash infusion, as the businesses begin to move toward profitability, the market will recognize the substantial opportunity for appreciation as the Engine "revs."
Recent highlights from the Company's operating businesses include:
Additionally, the Company will host a conference call on Thursday January 13, 2022 at 4:30 p.m. Eastern Time to discuss its financial results in further detail. The conference call can be accessed at 877-407-0784 or for international callers at +1-201-689-8560
The Company reports earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA, which are not financial measures calculated and presented in accordance with International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other issuers. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute to net income (loss) or any other financial measures of performance or liquidity calculated and presented in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude certain non-cash charges and other items that we do not believe are reflective of our ongoing operating results. The Company utilizes Adjusted EBITDA internally for purposes of forecasting, determining compensation, and assessing the performance of our business, therefore, we believe this measure provides useful supplemental information that may assist investors in assessing an investment in the Company.
The following unaudited table presents the reconciliation of net loss to Adjusted EBITDA for the three months ended November 30, 2021 and 2020, respectively.
This earnings release should be read in conjunction with the Company's Interim Condensed Consolidated Financial Statements and accompanying notes that will be made available on Engine's investor relations site on January 14, 2022 which can be found at https://ir.enginemediainc.com/.
About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. is traded publicly under the ticker symbol (NASDAQ: GAME) (TSX-V: GAME). Engine provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties while also providing these services to enable its clients and partners. The company's subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; Eden Games, a premium motorsport video game developer and publisher across console and mobile gaming; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; UMG, an end-to-end competitive esports platform powering and broadcasting major esports events, as well as daily community tournaments, matches, and ladders; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer and subscription fees, streaming technology and data SaaS-based offerings, programmatic advertising, and sponsorships.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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