Latest Motorsport Games Earnings Report Reveals Grim Outlook

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Latest Motorsport Games Earnings Report Reveals Grim

This is the hidden content, please

• Sign In
• or
• Sign Up

Motorsport Games’ latest earnings report has revealed a grim

This is the hidden content, please

• Sign In
• or
• Sign Up

for the future of the company. Despite reducing costs and increasing general revenue for the third quarter of 2024, the company is still facing a significant uphill climb to continue.

According to its

This is the hidden content, please

• Sign In
• or
• Sign Up

, Motorsport Games saw a slight increase in revenue of $1.8 million. That’s a $0.1M increase in year-over-year revenue. The company did have a net loss of $0.6 million for Q3 2024, which is an improvement compared to the $3.5M net loss from Q3 2024. That said, despite some improvements, there is a concern from the company regarding its ability to continue forward.

As of October 31, 2024, Motorsport Games has just $0.5M in cash with “no assurances” that they can find the liquidity and investments needed to continue.

HELP INSIDER GAMING: 

This is the hidden content, please

• Sign In
• or
• Sign Up

“We have incurred significant losses since our inception, and we expect to continue to incur losses for the foreseeable future,” the company said in its report. “Accordingly, our financial condition raises substantial doubt regarding our ability to continue as a going concern.”

The company’s current deficit sits at $86.3M as of September 30, 2024, and they still owe $0.6M for the 2021 purchase of Studio 397. They are set to lose the ability to sell their NASCAR video games on December 31, 2024 as part of the deal that sold the NASCAR license to iRacing. It was also said that the company expects to receive a letter of deficiency from the NASDAQ regarding its compliance for a continued listing.

Even with the concerns, CEO Stephen Hood said that the company will continue the work towards turning things around.

“We are pleased to see an improvement in several key financial performance indicators, highlighting that the business is now in a stable position for the next phase of growth,” Hood said.

This is the latest development for a company that has seen its share of turmoil and issues over the last couple of years. Most recently, they ***** off more staff while announcing its plans to consider “strategic alternatives” for the company.

“[The] Motorsport Games board of directors and I are in the process of reviewing the options available to us with a view to improve our long-term funding needs in order to produce the great game experiences we have proved that we can offer under our new business structure,” Hood said. “The number of expressions of interest received serves to reinforce our belief in the opportunities ahead.”

Should the company not be able to gain additional investment, they have listed a number of potential alternatives ranging from selling assets and reducing staff further to “discontinuing operations” entirely.

Motorsport Games is currently operating on a reported $100,000 monthly ***** rate after multiple cost-cutting measures. For the year, they are sitting at a negative cash flow of $0.7M.

For now, the company continues to work on updates to its simulation racing title Le Mans Ultimate. The latest update in September saw the introduction of a new co-op mod, stave states, and more. There is also a new update coming in December that will add GT3 cars to the game.

What do you think the future holds for Motorsport Games? Let us know below, or join the discussion in the official Insider Gaming forums.

---

For more Insider Gaming, read about the latest mass layoffs taking place at Thunderful. And don’t forget to sign up for our weekly newsletter.

Subscribe to our newsletter to receive the latest news and exclusive leaks every week! No Spam.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Latest #Motorsport #Games #Earnings #Report #Reveals #Grim #

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up