Financial Data and Key Metrics Changes - Super League Gaming reported a record-breaking revenue growth of approximately $20 million for the full year 2022, representing a 70% increase year-over-year despite macroeconomic challenges [3][12] - The company achieved a gross margin of 43% for the year, with expectations to reach mid-60s in gross margins in the coming years [94] Business Line Data and Key Metrics Changes - The company served over 100 brands in 2022, with seven customers spending over $1 million through Super League channels, maintaining a strong 70% repeat customer rate [14][72] - The current pipeline includes 78 deals, with 56 of them being six-figure deals and eight being seven-figure deals, indicating a shift towards larger deal sizes [15][27] Market Data and Key Metrics Changes - The newly launched global sales partner strategy accounted for $3 million of the $20 million in revenue last year, which is about 15% of total revenue [27] - The company is seeing promising indicators from global sales partners, with multiple wins in the pipeline from brands like Lego, Colgate, and Nike [7][10] Company Strategy and Development Direction - The core strategy focuses on monetizing the massive audience reach built within existing virtual game worlds and platforms, with plans to expand into new virtual world engines [9][19] - The company aims to deepen its owned Metaverse game world and IP footprint, targeting a bold revenue goal of $100 million over the next few years [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to execute its vision and drive meaningful growth, emphasizing the importance of innovation in products and sales strategies [18][33] - The management acknowledged the ongoing market headwinds but highlighted the company's resilience and strong product market fit [92] Other Important Information - The company has successfully extinguished all debt after closing on over $12 million with accredited investors in aftermarket transactions [4] - There are pending commitments for an additional $10 million in aftermarket capital, with an announcement expected soon [25] Q&A Session Summary Question: What are Super League's plans to maintain its NASDAQ listing? - Management is aware of the share price being below $1 and is focused on execution to improve performance and potentially raise the share price above $1 [36] Question: Can you provide updates on the Yas Island Metaverse project? - The project is progressing well, with plans to launch two virtual worlds targeting different demographics in May [51][40] Question: How is the company planning to allocate capital raised? - The capital will be invested in organic growth strategies and to support the current pipeline, with a focus on revenue generation [88][89] Question: Is the $100 million revenue target purely organic? - Yes, the target is based on organic growth, although the company remains open to M&A opportunities that align with its strategic goals [90] Question: How likely are six-figure customers to graduate to seven-figure customers? - The company is optimistic about the potential for six-figure customers to increase their spending as they become more familiar with the offerings [107]
Super League Enterprise(SLE) - 2022 Q4 - Earnings Call Transcript