Motorsport Games(US:MSGM)2025-05-09 22:00Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $1,800,000, down by $1,300,000 or 41.9% compared to the same period in the prior year [13] - Net income for the quarter was $1,000,000, an improvement of $2,700,000 from a net loss of $1,700,000 in the prior year [14] - Adjusted EBITDA was $600,000 for Q1 2025, compared to an adjusted EBITDA loss of $1,000,000 in the same period last year, reflecting an improvement of $1,600,000 [15] - Cash and cash equivalents increased from $1,100,000 as of March 31, 2025, to $3,100,000 by April 30, 2025, primarily due to $2,350,000 in net proceeds from a private placement [16] Business Line Data and Key Metrics Changes - Net revenues from the Le Mans Ultimate racing title increased by $400,000 in Q1 2025 compared to the same period in 2024, despite Q1 2024 being the release quarter for the game [6] - Total revenues decreased primarily due to a $1,500,000 drop in NASCAR-related revenues, as the company is no longer authorized to sell that title starting in 2025 [13][14] Market Data and Key Metrics Changes - The company noted that shares traded more than 2.5 times higher following the announcement of a $2,500,000 investment, indicating increased market confidence [6] Company Strategy and Development Direction - The company is focusing on building owned infrastructure around its gaming titles, particularly through the Race Control subscription platform [6] - Plans to move Le Mans Ultimate from early access to a full release version 1.0 are underway, which is expected to unlock new sales and marketing tactics [9] - The company is exploring opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions ongoing with potential publishing collaborators [10] - The company aims to diversify its portfolio and generate new revenue streams in the underserved racing game market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved state and the potential for growth following the recent investment [5] - The company is taking measures to reduce costs and expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio [16] Other Important Information - The company is revisiting its esports event output, particularly the 24 Hours of Le Mans virtual event, which historically attracted significant attention and sponsorship revenue [10] - The company has a live licensing agreement with Kindred Concepts, with fees growing alongside their expansion [11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.