The following is a summary of the Enthusiast Gaming Holdings Inc. (EGLXF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Enthusiast Gaming reported Q4 revenue of $47.1 million, showing a 13% decrease compared to the previous year.
The company's gross profit was $18.9 million in Q4, an increase of 5% compared to Q4 2022, with a gross margin expansion of 40.2% from 33.5%.
Operating expenses were reduced by 8% to end at $27.8 million.
The adjusted EBITDA loss was somewhat mitigated to $13 million from a previous loss of $15.1 million.
A net loss of $39.7 million was reported, primarily due to goodwill and intangible assets.
Business Progress:
During Q4, Enthusiast Gaming implemented restructuring initiatives, resulting in a 25% decrease in headcount and a focus on more profitable revenue streams.
The partnership with Playwire, a global leader in monetizing sites, is set to increase yield and drive beneficial growth to the company's bottom-line.
Non-core gaming site assets were sold off, generating more than $4 million.
The company achieved success with NFL Tuesday Night Gaming, brought on by the strategic partnership with the National Football League.
The Q4 2023 adjusted EBITDA loss was reported at negative $3 million, according to a new calculation that includes two add backs, severance, and NASDAQ delisting fees.
Going forward, the company plans to rely more on direct sales and owned and operated sites for the majority of its revenue, and intends to reduce its investment in low-margin businesses.
More details: Enthusiast Gaming Holdings Inc IR
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