Revenue and Growth - Annual revenue reached $202.8 million, representing a 21% increase year-over-year from $167.4 million in 2021[6] - Revenue for the year ended December 31, 2022, increased to $202.84 million, up 21.2% from $167.36 million in 2021[22] - Direct sales amounted to $37.4 million, up 69% from $22.2 million in 2021[6] - Subscription revenue reached $14.5 million, a 54% increase from $9.4 million in 2021, with paid subscribers growing to 262,000, up 19% from 220,000 in 2021[6] Profitability - Gross profit was $63.5 million, a 68% increase from $37.8 million in 2021, with a gross margin of 31.3%, up 870 basis points year-over-year[6][3] - Gross profit for Q4 2022 was $18.1 million, a 32% increase from $13.7 million in Q4 2021, with a gross margin of 33.5%, up 940 basis points year-over-year[17] - Gross margin improved to $63.46 million, representing a gross margin percentage of 31.3%, compared to 22.6% in the previous year[22] Expenses and Losses - Operating expenses rose to $110.80 million, an increase of 29.9% from $85.32 million in 2021[22] - Net loss for the year was $76.83 million, compared to a net loss of $52.05 million in 2021, reflecting a 47.5% increase in losses[22] - The company reported a net cash used in operating activities of $26.64 million, compared to $23.68 million in the previous year[23] Assets and Liabilities - Total current assets decreased to $47.84 million from $59.27 million, a decline of 19.3% year-over-year[21] - Total liabilities reduced significantly to $86.79 million, down 30.7% from $125.01 million in 2021[21] - Shareholders' equity decreased to $254.65 million from $262.77 million, a decline of 3.1% year-over-year[21] - Cash and cash equivalents at year-end decreased to $7.42 million from $22.65 million, a decline of 67.2%[23] Strategic Initiatives - The company launched an in-house talent agency, Storied, to enhance content initiatives and access top talent[17] - The NFL Tuesday Night Gaming collaboration generated approximately 48 million impressions in 2022, with 19 episodes produced[6] - The company achieved record attendance at live events under the Pocket Gamer Connects series in 2022, expanding into new locations[7] Financing - The company secured a $10 million expansion of its credit facility, increasing the total to $20 million, with maturity extended to December 31, 2024[6] Challenges - Goodwill impairment recorded was $31.28 million, indicating significant challenges in asset valuation[22] - Revenue for Q4 2022 was $54.0 million, a decrease of 5% compared to Q4 2021, primarily due to lower CPMs in the digital advertising industry[17]
ENTHUSIAST GAMING HOLDINGS(EGLX) - 2023 Q1 - Quarterly Report