Core Insights - Super League has faced significant challenges over the past two years but remains committed to seizing opportunities in the gaming industry [2][3] - The company has appointed Matt Edelman as the new CEO, with Ann Hand transitioning to the Executive Chair role [5][6] - Despite recent financial struggles, there are signs of recovery, including revenue diversification and margin improvement [3][4] Financial Performance - For the fiscal year ended December 31, 2024, Super League reported revenue of $16.18 million, down from $25.08 million in 2023, representing a decline of approximately 35.4% [16] - The net loss for 2024 was $16.47 million, compared to a net loss of $30.33 million in 2023, indicating a reduction in losses [17][21] - The company aims to achieve EBITDA positivity by Q4 2025 through aggressive cost management and focusing on higher-margin revenue streams [4][8] Strategic Initiatives - The company is exploring strategic alternatives to enhance its market position, particularly in the playable digital advertising space [7][8] - Bant Breen has been appointed to the Board of Directors, bringing extensive experience in marketing and media, which could positively impact Super League's revenue trajectory [6][8] - The exclusivity period for a deal with Infinite Reality has expired, allowing Super League to pursue other strategic opportunities [7]

Core Viewpoint - Super League is set to announce its fourth quarter and full year 2024 financial results on March 28, 2025, and will host a webinar to discuss these results and provide a corporate update [1][2]. Group 1: Financial Results Announcement - The Company will release its financial results before market open on March 28, 2025 [1]. - A webinar will take place at 8:30 am Eastern Time on the same day to discuss the results [2]. Group 2: Company Overview - Super League is a leader in redefining the gaming industry as a media channel, focusing on immersive content for global brands [3]. - The Company provides a unique suite of tools and services aimed at maximizing user engagement and enhancing brand awareness [3]. - Super League aims to inspire customer loyalty and create new revenue sources through innovative gameplay and creativity [3].

Core Insights - AVID and Super League have launched AVID Creator Planet, an educational platform on Roblox aimed at students aged 13 and above, focusing on developing executive function and durable skills [1][2][3] Group 1: Educational Focus - AVID Creator Planet emphasizes the practice of durable skills such as problem-solving, critical thinking, collaboration, and communication through interactive scenarios [2][3] - The platform is set in Equinova, an extraterrestrial environment where users engage in building challenges and face problem-solving tests through unexpected events [3] Group 2: Resources and Support - AVID has developed a comprehensive suite of free resources for teachers and students, including step-by-step lessons to facilitate the learning experience [2] - Super League's commitment to creating educational and immersive experiences aims to enhance the developmental benefits of time spent in virtual worlds [4] Group 3: Company Backgrounds - AVID is a national nonprofit organization that supports schools and educators, preparing millions of students for success in college and careers [5] - Super League, listed on Nasdaq as SLE, is redefining the gaming industry as a media channel, providing immersive content solutions for global brands [6]

Core Insights - The American Egg Board (AEB) has launched a unique gaming activation called "Tower of Eggs" in Roblox, aimed at engaging gamers with egg recipes and gameplay [1][5] - This initiative is part of AEB's "Meant to be Broken" campaign, targeting Millennial and Gen Z consumers who are avid gamers [3][4] Group 1: Gaming Activation Details - The "Tower of Eggs" pop-up features a four-level obstacle course where players can create recipes like Sausage, Egg and Cheese Roll-Ups and Ramen Carbonara [2] - Players can earn egg-inspired accessories for their Roblox avatars as rewards for completing challenges [2][4] - The activation will be featured in popular Roblox games from December 10, 2024, to February 5, 2025, including "Color or Die" and "Ultimate Easy Obby" [3] Group 2: Strategic Partnerships and Marketing - The AEB partnered with Talmont and Super League to create this gaming experience, marking the first-ever Roblox activation by a national commodity checkoff organization [5][6] - The initiative reflects a broader trend of brands engaging in gaming culture to create experiences and build communities [6] - AEB aims to connect with a new generation of consumers by leveraging the creativity and engagement potential of the Roblox platform [6]

Financial Results - Super League Enterprise, Inc. reported its financial results for the fiscal quarter ended September 30, 2024[2]. - The company has not yet disclosed specific financial figures or performance metrics in the provided documents[2]. - The financial results include key metrics that will be detailed in the attached exhibits[5]. Corporate Communications - The company released an Earnings Press Release and a Letter to Shareholders on November 14, 2024[2]. - The Letter to Shareholders was authored by CEO Ann Hand, discussing operating highlights and financial results[2]. - The press release and shareholder letter are available as Exhibits 99.1 and 99.2, respectively[5]. Regulatory Compliance - The report is filed under Form 8-K with the SEC, indicating compliance with regulatory requirements[1]. - The company is classified as an emerging growth company under the Securities Act of 1933[1]. - The report was signed by CFO Clayton Haynes, confirming its authenticity[6]. Forward-Looking Statements - The report contains forward-looking statements regarding the company's plans and expectations[4].

Revenue Performance - Revenue for Q3 2024 totaled $4.4 million, a decrease of $2.8 million or 38% compared to $7.2 million in Q3 2023[253]. - Revenue for the nine months ended September 30, 2024 totaled $12.8 million, down from $15.6 million in the prior year period[257]. - Total revenue for the three months ended September 30, 2024 decreased by $2.8 million, or 38%, to $4.4 million compared to $7.2 million in the prior year quarter[270]. - Total revenue for the nine months ended September 30, 2024 decreased by $2.8 million, or 18%, to $12.8 million compared to $15.6 million in the prior year period[274]. - Media and advertising revenue decreased by $1.3 million, or 47%, to $1.5 million compared to $2.9 million in the prior year quarter[271]. - Publishing and content studio revenue decreased by $1.3 million, or 33%, to $2.6 million compared to $4.0 million in the prior year quarter[272]. - Direct to consumer revenue decreased by $102,000, or 29%, to $247,000 compared to $349,000 in the prior year quarter[273]. - Media and advertising revenue decreased by $2.3 million, or 33%, to $4.6 million compared to $6.9 million in the prior year period[275]. - Direct to consumer revenue decreased by $387,000, or 35%, to $731,000 compared to $1.1 million in the prior year period[277]. - Publishing and content studio revenue was relatively flat at $7.4 million for the nine months ended September 30, 2024, compared to $7.5 million in the prior year[276]. - Minehut related media sales for the nine months ended September 30, 2023 totaled $716,000[275]. Cost and Expenses - Cost of revenue for Q3 2024 decreased by $1.9 million or 42% to $2.7 million, driven by the 38% decrease in quarterly revenues[254]. - Cost of revenue for the nine months ended September 30, 2024 decreased by $1.9 million or 20% to $7.7 million compared to $9.5 million in the prior year[258]. - Total operating expenses for Q3 2024 decreased by $1.9 million or 26% to $5.2 million compared to $7.0 million in Q3 2023[256]. - Total operating expense for the nine months ended September 30, 2024 decreased by $8.7 million, or 34%, to $17.3 million compared to $26.0 million in the prior year period[259]. - Total operating expense for the three months ended September 30, 2024 was $5.2 million, a decrease of $1.9 million, or 26%, compared to $7.0 million in the prior year quarter[266]. - Noncash stock compensation expense for the three months ended September 30, 2024 decreased by $287,000, or 44%, compared to the same period in 2023[281]. - Selling, marketing and advertising expense decreased by $764,000, or 24%, primarily due to a $335,000 reduction in amortization expense related to the write-down of partner relationship intangible assets[291]. - Total amortization expense decreased by $618,000, or 50%, for the three months ended September 30, 2024 compared to the same period in 2023[289]. - Engineering, technology and development costs decreased by $1.2 million, or 56%, primarily due to a $243,000 (60%) reduction in cloud services and a $662,000 (61%) decrease in product and engineering personnel expenses[294]. - For the nine months ended September 30, 2024, engineering, technology and development costs decreased by $3.9 million, or 53%, driven by a $1.2 million (64%) reduction in cloud services and a $1.5 million (48%) decrease in product and engineering personnel expenses[295]. - General and administrative expenses for the three months ended September 30, 2024, totaled $1.935 million, a decrease of $336,000 (15%) compared to $2.271 million in the same period of 2023[297]. - Personnel costs in general and administrative expenses decreased by $164,000 (30%) for the three months ended September 30, 2024, due to headcount reductions[298]. - Professional fees increased by $45,000 (25%) for the three months ended September 30, 2024, due to additional audit and third-party valuation fees related to complex transactions[298]. - Noncash stock compensation expense in general and administrative expenses decreased by $171,000 (43%) for the three months ended September 30, 2024[299]. Net Loss - Net loss for Q3 2024 was $3.6 million or $(0.54) per share, compared to a net loss of $3.0 million or $(3.19) per share in Q3 2023[256]. - Net loss for the nine months ended September 30, 2024 was $11.3 million, or $(2.00) per share, compared to a net loss of $17.1 million, or $(10.25) per share, in the prior year period[259]. Acquisitions and Investments - The company entered into a binding term sheet with Infinite Reality for an asset acquisition, including a cash component of up to $20 million[241]. - The company acquired Melon, Inc. for a total consideration of $900,000, with potential contingent consideration of up to $2.35 million based on revenue milestones[250]. - The Super Biz Acquisition included a contingent consideration liability of $1.765 million as of September 30, 2024, reflecting the cash portion payable[305]. - The Melon Acquisition has a contingent consideration of up to $2.35 million, with $1 million payable for revenue milestones achieved by December 31, 2023, and $1.35 million for the year ending December 31, 2024[309]. - The fair value of the Melon Contingent Consideration was determined using a Monte Carlo simulation model with a closing stock price of $2.15 and a volatility rate of 70%[310]. - The company completed the Melon Acquisition on May 4, 2023, for a total of $900,000, which included $150,000 in working capital advances and $750,000 in common stock[343]. Cash Flow and Financing - As of September 30, 2024, the company reported an accumulated deficit of $263.7 million and net cash used in operating activities of $8.2 million for the nine months ended September 30, 2024[331]. - Cash and cash equivalents decreased from $7.6 million at December 31, 2023, to $0.3 million at September 30, 2024[330]. - The company anticipates seeking additional capital through future issuances of common stock, preferred stock, or debt financings to fund operations[332]. - The Company entered into a Business Loan and Security Agreement, issuing a secured promissory note for an aggregate value of $1.85 million, with total interest payments of approximately $0.78 million[335]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(8,160) thousand, compared to $(14,090) thousand for the same period in 2023, indicating a 42.5% improvement[339][341]. - Net cash provided by financing activities was $1,297 thousand for the nine months ended September 30, 2024, a significant decrease of 90.3% compared to $13,406 thousand in the same period of 2023[339][345]. - The Company reported a net cash decrease of $(7,320) thousand for the nine months ended September 30, 2024, compared to a decrease of $(1,342) thousand in the same period of 2023[339]. - The company raised approximately $41.98 million in gross proceeds from various preferred stock offerings, with net proceeds totaling $37.56 million after fees[353]. - The company completed a public offering of 778,653 shares of common stock at a price of $2.60 per share, resulting in net proceeds of approximately $1.8 million after deducting underwriting discounts and commissions[357]. Market and Operational Risks - The Company may face challenges in obtaining additional funding due to market volatility, which could adversely impact its financial condition and business strategies[336][338]. - The company is exploring alternatives for raising capital, including strategic partnerships and potential acquisitions, which may require additional equity or debt financing[336][337]. - The company is not currently exposed to market risks from changes in interest rates or foreign currency exchange rates[375]. Other Financial Information - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in its financial statements[363]. - The triggering of the Down Round Feature for the Series AA Preferred Stock resulted in a deemed dividend totaling $6.45 million, impacting retained earnings[353]. - The company issued 5,334 shares of Series AAA-2 Preferred Stock, with a conversion price adjusted to $1.71 as of December 22, 2023[353]. - The company has approximately 3,200 square feet of office space, with 1,650 square feet on a month-to-month basis[362]. - The company granted underwriters a 45-day option to purchase additional shares as part of its common stock offering[355]. - The company has assessed contingent liabilities related to legal proceedings, with potential losses evaluated based on the merits of claims[364]. - The company generates revenue from innovative advertising, content and technology, and direct to consumer offers, including in-game items and digital collectibles[367]. - Revenue is recognized when the company transfers promised goods or services to customers, reflecting the expected consideration[368]. - Management's estimates regarding collectability impact the actual revenue recognized each period, which could materially affect financial results[369]. - The company elected to report as an "emerging growth company," allowing it to take advantage of certain exemptions from rigorous reporting requirements[371]. - The company will remain an "emerging growth company" for up to five years unless the market value of its common stock held by non-affiliates exceeds $700 million[373].

Core Insights - Super League reported a narrowing of net loss per share in Q3 2024, indicating improved operational efficiency through a significant reduction in operating expenses [1][2] - The company entered a transformative agreement with Infinite Reality, which is expected to reshape its business model and enhance its asset portfolio [2][3] Financial Performance - Revenue remained relatively flat in Q3 2024, but the company achieved a 30% reduction in proforma operating expenses compared to the same quarter last year [2] - There was a 27% reduction in proforma net loss for the same period, showcasing progress towards profitability [2] Strategic Developments - The merger with Infinite Reality will provide Super League with a worldwide perpetual license to produce events and sell sponsorships for the Drone Racing League, which has over 100 million young fans globally [3] - The acquisition of Thunder Studios, TalentX, and Fearless Media is expected to enhance Super League's reach and digital marketing capabilities [3] Market Positioning - Super League is experiencing a positive shift in its business model, with blue-chip brands increasingly choosing the company for immersive and interactive solutions [4] - The company is focusing on higher-margin pop-up experiences and a leaner cost structure to drive recurring revenues and profitability [4] Future Outlook - The integration of Infinite Reality's audience assets is anticipated to position Super League as a leading global entertainment network, capitalized for growth [5] - The company aims to redefine gaming as a digital media channel, leveraging its partnerships with global brands to scale market adoption [5]

Core Viewpoint - Super League Enterprise (SLE) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - Super League Enterprise is projected to earn -$1.30 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 90.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Super League Enterprise has increased by 31.6%, indicating a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of Super League Enterprise to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - The company reported flat sequential top-line revenues, with approximately $1.8 million in expected revenues deferred due to delayed advertiser launch dates [8][11] - There was a 25% decrease in Q2 pro forma operating expenses compared to the same quarter last year, and a 23% decrease in operating losses [10][11] - The company aims to achieve its first profitable quarter in Q4 of this year, with a target of 45% to 50% margins on most programs [9][10] Business Line Data and Key Metrics Changes - The company operates with over 10,000 experiences in its Roblox network, reaching approximately 160 million monthly unique players [5][6] - Dedicated build revenues increased by 3x since the acquisition of Melon Studios last year [7] - The current pipeline features 51 repeat customers and 68 new brand entrants, indicating a strong trend towards larger deal sizes and longer-term engagements [12] Market Data and Key Metrics Changes - The company continues to see strong repeat opportunities with brands such as Kraft, iHeart, Samsung, and Universal, while also attracting new brands [11][12] - The average Roblox user spends 156 minutes a day on the platform, compared to 95 minutes on TikTok, highlighting the engagement potential with younger consumers [4] Company Strategy and Development Direction - The company is focused on redefining the gaming industry as a media channel for global brands through innovative technology and immersive experiences [3][4] - A strategic partnership with Meta-Stadiums aims to create dedicated ownable virtual stadiums in the metaverse, enhancing consumer monetization and data opportunities [19][45] - The company emphasizes a productization approach to scale its pipeline and improve margin profiles, aiming for repeatable products to drive profitability [6][9] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic factors such as prolonged inflation affecting consumer spending and ad sales, but expressed optimism about potential interest rate reductions [8][34] - The company is committed to maintaining a laser focus on profitability and cost control, with a proactive approach to managing expenditures [29][30] - Management believes in the ongoing shift towards digital advertising and immersive engagement, which offers significant opportunities for brands to connect with younger consumers [3][4] Other Important Information - The company launched several high-profile immersive experiences, including collaborations with the International Olympic Committee and Visa, showcasing its innovative capabilities [11][15] - The company is increasingly being recognized for its ability to drive real live commerce on behalf of brand partners, indicating a shift towards more integrated marketing solutions [7][11] Q&A Session Summary Question: Has the $1.8 million of deferred revenue started in Q3? - Yes, these programs are now active and have Q3 launch dates, with a total of closer to $2.2 million in deferred revenues [21][22] Question: Can you elaborate on the Meta-Stadiums partnership? - The partnership allows for joint pitching and revenue sharing from consumer monetization within dedicated events, enhancing the company's offerings [23][24][25] Question: How much of the revenue growth in '25 and '26 can the current cost infrastructure support? - The company is focused on productization to reduce costs associated with scaling, aiming for a more efficient cost-to-revenue ratio [27][28][29] Question: What is the scope of the sales force and its expected trend? - The company has around eight active sellers, with efforts to collapse the learning curve for new sellers to enhance sales effectiveness [36][37] Question: What is the growth of repeat customers and their spending? - Repeat customers are expected to spend more over time, with examples of increased engagements from brands like Chipotle and Kraft [38][39][41]

Super League Enterprise (SLE) came out with a quarterly loss of $0.60 per share versus the Zacks Consensus Estimate of a loss of $0.62. This compares to loss of $3.40 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.23%. A quarter ago, it was expected that this company would post a loss of $1.18 per share when it actually produced a loss of $1, delivering a surprise of 15.25%. Over the last four quarters, the company has sur ...