Motorsport Games Reports Fourth Quarter & Full Year 2024 Financial Results

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].