MSGM - Motorsport Games (MSGM) - Moving Forward At A Slightly Slower Speed

Favorable Q1 results. The company reported strong Q1 revenue of $3.3 million, 95% higher than our estimate of $1.7 million. Adj. EBITDA loss of $5.55 million was in line with our forecast. The company benefited from diversified revenue in the quarter, with 27% of total revenue coming from rFactor 2 and esports. The revenue diversification demonstrates the company’s ability to derive value from more than just its NASCAR franchise. Product roadmap changes. Management noted that the company will focus on console and PC games in the near term given strong demand in those areas. Additionally, the company will not release a new NASCAR Ignition title this year, opting to release an expansion pack to the current title instead. Release of the next iteration of the game is planned for mid-2023. Read More >>