Core Insights - Motorsport Games Inc. reported a revitalizing year in 2024 with improved revenues, reduced cash burn, and the successful release of "Le Mans Ultimate" in Early Access [2][3] Financial Performance - Revenue for Q4 2024 was $2.0 million, a 13% increase from $1.7 million in Q4 2023 [6][9] - Full year 2024 revenue reached $8.7 million, up 25.7% from $6.9 million in 2023 [11] - Gross profit for Q4 2024 was $0.9 million, down from $1.1 million in the same period last year, with a gross profit margin decrease to 45.8% from 61.4% [6][11] - The net loss for Q4 2024 was $2.9 million, compared to a net income of $2.7 million in Q4 2023, marking a decrease of $5.6 million [7][12] - Adjusted EBITDA loss for Q4 2024 was $2.5 million, compared to an Adjusted EBITDA of $0.4 million in Q4 2023 [8][13] Product and Market Developments - The company achieved a milestone of 100,000 net unit sales of "Le Mans Ultimate" in Q4 2024 [9] - The introduction of a new subscription service in December 2024 exceeded internal expectations, creating a new revenue stream [3][9] - Recent updates to "Le Mans Ultimate" in December 2024 and February 2025 significantly increased player numbers and consumer sentiment [3][5] Cash Flow and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of approximately $0.9 million, which increased to $1.2 million by February 28, 2025 [17] - The company reported negative cash flows from operations of approximately $2.8 million for the year ended December 31, 2024, averaging a monthly net cash burn of $0.2 million [17] - The company anticipates needing additional funding to continue operations, exploring options such as equity and debt financing [18]

Core Viewpoint - Motorsport Games Inc. reported improved financial results for the fourth quarter and fiscal year ended December 31, 2024, highlighting a revitalization in revenues and a reduction in cash burn, alongside the successful release of the new title Le Mans Ultimate in Early Access [2][5]. Financial Performance - Revenue for Q4 2024 was $2.0 million, an increase of $0.3 million or 13% compared to $1.7 million in Q4 2023 [5][6]. - Full year 2024 revenue reached $8.7 million, up $1.8 million or 25.7% from $6.9 million in 2023 [10][11]. - Gross profit for Q4 2024 was $0.9 million, down from $1.1 million in Q4 2023, with a gross profit margin decreasing to 45.8% from 61.4% [5][10]. Net Loss and Adjusted EBITDA - The net loss for Q4 2024 was $2.9 million, a decrease of $5.6 million from a net income of $2.7 million in Q4 2023 [7][11]. - For the full year 2024, the net loss was $3.0 million or $0.94 per share, significantly improved from a net loss of $14.3 million or $5.56 per share in 2023 [11][12]. - Adjusted EBITDA loss for Q4 2024 was $2.5 million, compared to an Adjusted EBITDA of $0.4 million in Q4 2023 [8][12]. Product and Market Developments - The company achieved a milestone of 100,000 net unit sales of Le Mans Ultimate in Q4 2024, contributing to improved revenue from greater sales and new subscription offerings [6][10]. - Updates to Le Mans Ultimate in December 2024 and February 2025 significantly increased player numbers and consumer sentiment, introducing popular car categories and new features [3][6]. Cash Flow and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of approximately $0.9 million, which increased to $1.2 million by February 28, 2025 [15]. - The company reported negative cash flows from operations of approximately $2.8 million for the year, indicating an average monthly net cash burn of about $0.2 million [15][16]. - The company anticipates needing additional funding to sustain operations over the next year and is exploring various options, including equity and debt financing [16][17].

Core Viewpoint - Motorsport Games Inc. is set to report its financial results for the fourth quarter and full year of the 2024 fiscal year on March 20, 2025, after market close, with a conference call scheduled for the same day to discuss the results [1]. Company Overview - Motorsport Games is a developer and publisher of racing games and an esports ecosystem provider, focusing on official motorsport racing series [3]. - The company is the officially licensed developer for notable racing series such as the 24 Hours of Le Mans and the FIA World Endurance Championship, with recent releases including Le Mans Ultimate in Early Access [3]. - Motorsport Games owns leading simulation platforms like rFactor 2 and KartKraft, and powers F1® Arcade through a partnership with Kindred Concepts [3]. - The company is recognized as an award-winning esports partner for the 24 Hours of Le Mans, creating the Le Mans Virtual Series [3]. - Motorsport Games aims to build a virtual racing ecosystem that enhances excitement and engagement for racing fans and gamers [3]. Financial Reporting - The financial results announcement will be accessible via the company's investor relations website, and a live conference call will be available for participants [2][6].

Core Viewpoint - Motorsport Games Inc. has received a favorable summary judgment from the U.S. District Court for the District of Delaware, resolving a legal dispute with Innovate 2 Corp. and allowing the company to focus on its core business of developing racing games [1][2][3]. Group 1: Legal Outcome - The U.S. District Court granted summary judgment in favor of Motorsport Games and other defendants, including former executives, on all counts related to the case against Innovate 2 Corp. [1][2] - The judgment specifically addressed a breach of the stock purchase agreement, ruling in favor of Motorsport Games [2]. Group 2: Company Statements - Stephen Hood, President and CEO of Motorsport Games, expressed satisfaction with the court's ruling, emphasizing that the company and its former representatives acted in good faith [3]. - The company aims to move forward and concentrate on creating engaging racing game experiences, such as "Le Mans Ultimate" [3]. Group 3: Company Overview - Motorsport Games is a developer and publisher of racing games, providing an esports ecosystem for official motorsport racing series [4]. - The company is known for its licensed video games for prestigious racing series, including the 24 Hours of Le Mans and the FIA World Endurance Championship, and has recently released "Le Mans Ultimate" in Early Access [4]. - Motorsport Games also owns the rFactor 2 and KartKraft simulation platforms, with rFactor 2 serving as the official sim racing platform for Formula E [4].

Core Viewpoint - Motorsport Games Inc. is enhancing "Le Mans Ultimate" with the release of new LMGT3 cars and quality of life improvements, aiming to increase player engagement and satisfaction [1][6]. Content Update - The latest update introduces three new LMGT3 cars: the Aston Martin Vantage AMR LMGT3, the Porsche 911 GT3 R LMGT3, and a free Ford Mustang LMGT3 for Early Access players [2][3]. - The update also includes significant improvements to the LMGT3 tyre model, enhancing realism and stability based on real-world data [4]. Pricing and Access - "2024 Pack 4" is available for an early access price of £5.99 / €6.49 / $6.99, with a Season Pass priced at £39.99 / €46.99 / $48.99, which includes five packs in total [5]. - The next update, "2025 Pack 5," is expected in May 2025, featuring an additional circuit and two more LMGT3 cars [5]. Company Strategy - The CEO of Motorsport Games expressed confidence that the new content and improvements will delight fans and keep them engaged, following a previous update that significantly increased player numbers and playtime [6]. - The company aims to create a virtual racing ecosystem that combines engaging video games with esports competitions [7].

Sales Performance - Motorsport Games Inc. achieved a milestone of 100,000 net unit sales of Le Mans Ultimate, the official game of the FIA World Endurance Championship[8]. Revenue Projections - The company anticipates fourth quarter 2024 revenues between $1.8 million and $2.1 million, compared to $1.7 million in the fourth quarter of 2023, representing an increase of approximately 5.9% to 23.5%[8]. - For the full year 2024, the expected revenues are between $8.5 million and $8.8 million, up from $6.9 million in 2023, indicating a growth of approximately 23.2% to 27.7%[8]. Operating Expenses - Total operating expenses for the fourth quarter of 2024 are projected to be between $2.0 million and $2.4 million, down from $3.8 million in the same quarter of 2023, reflecting a decrease of approximately 36.8% to 47.4%[8]. - For the full year 2024, total operating expenses are expected to range from $11.1 million to $11.5 million, a reduction from $22.7 million in 2023, indicating a decrease of approximately 51.1% to 51.0%[8]. Net Loss Expectations - The company expects a net loss of between $2.5 million and $2.9 million for the fourth quarter of 2024, compared to a net income of $2.7 million in the fourth quarter of 2023[8]. - For the full year 2024, the anticipated net loss is between $2.6 million and $3.0 million, a significant improvement from a net loss of $14.3 million in 2023[8]. Financial Reporting - The financial information provided is preliminary and has not been audited, indicating potential changes in the final audited results[10]. - The company is classified as an emerging growth company, which may affect its financial reporting and compliance requirements[5]. - Forward-looking statements regarding future performance are subject to various risks and uncertainties, which may lead to actual results differing materially from expectations[9].

Core Viewpoint - Motorsport Games Inc. reported strong momentum and player enthusiasm for its title Le Mans Ultimate, driven by new content and features released in December 2024, while focusing on streamlining business costs and exploring strategic partnerships to maximize shareholder value [3][16]. Financial Performance - The company expects fourth quarter 2024 revenues to range from $1.8 million to $2.1 million, and full year 2024 revenues to be between $8.5 million and $8.8 million, compared to $1.7 million and $6.9 million for the same periods in 2023 [4][16]. - Total operating expenses are anticipated to be between $2.0 million and $2.4 million for the fourth quarter of 2024, and from $11.1 million to $11.5 million for the full year 2024, down from $3.8 million and $22.7 million in the previous year [5][16]. - The expected net loss for the fourth quarter of 2024 is projected to be between $2.5 million and $2.9 million, with a full year net loss ranging from $2.6 million to $3.0 million, contrasting with a net income of $2.7 million and a net loss of $14.3 million in 2023 [6][16]. Business Developments - The company launched a new subscription option within its RaceControl platform, which exceeded internal forecasts in cash generation, indicating strong user engagement [16]. - Le Mans Ultimate has surpassed 100,000 net unit sales and is expected to continue expanding through at least 2025 due to positive market reception and strong demand for additional content [16].

MIAMI, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”) today reported financial results for its third quarter ended September 30, 2024. The Company has also posted the third quarter 2024 earnings slides highlighting key milestones that occurred during and subsequent to the period, which are accessible on the Company’s investor relations website. “The business has continued to take useful strides in Q3 2024 with further product updates, business st ...

MIAMI, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”), a racing game developer, publisher and esports ecosystem provider of official motorsport racing series, will report its financial results for the third quarter of 2024 on Thursday, November 14, 2024 after market close. Management will host a conference call and webcast on the same day at 5:00 p.m. ET to discuss the results. Participants may access the webcast on the Company’s investor relatio ...

MIAMI, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) ("Motorsport Games" or "the Company") is announcing that the Board of Directors has authorized management to consider strategic alternatives to maximize shareholder value, including a potential sale or merger of the Company. Management is also seeking funding that would allow it to deliver on viable opportunities including bringing Le Mans Ultimate to Sony PlayStation and Microsoft Xbox gaming consoles. Le Mans Ultimate is the off ...