Motorsport Games(US:MSGM) Newsfilter·2025-03-20 20:10Core 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]