Earnings call transcript Q4 2022

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Operator

Greetings. And welcome to Allied Gaming & Entertainment, Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]

conference recorded. this reminder, a is being As It Tyler Drew, my pleasure your host, to introduce with is now Addo Investor Relations. you. Thank

begin. may You

Tyler Drew

Thank quarter And & afternoon. conference you, the Operator. Gaming Allied call. welcome Entertainment full and to fourth year results XXXX Good

the Gaming Entertainment’s Speaking Officer, call Chief Roy Officer, are Chief and Chen; Financial today Anderson. Executive Allied on & Yinghua

seek, Words and Before could, of intend, remarks may prepared note that I our expect, should, targeting, turn the judgment, are statements. these will, forward-looking estimate, call to such statements. anticipate, over plan, variations may, to forward-looking identify believe, similar management, please and intended as contain goal expressions words

public materially a risk factors filings, Actual differ from results with to implied discussed in statements variety documents by could Securities discussed such Commission. filed and factors Exchange due company’s including forward-looking of the the those the in

in attained. the upon will assurance new company be believes result reasonable Although forward-looking update of undertakes or statements, whether it information, any expectations that can assumptions, based as otherwise. the forward-looking no a The obligation no give reflected events statements to future are expectations company its such

company issued The addition, this call measures. measures an non-GAAP investors. such presented to certain such appropriate information release, reconciliations available measures the believes company’s the the and non-GAAP afternoon explanation in GAAP earnings and presents of which financial non-GAAP In definitions of is represents the are of was useful on this website, financial company’s financial to why measures,

it over Yinghua? the Entertainment Yinghua call to is Allied to & that, now CEO, turn With Gaming Chen. pleasure my

Yinghua Chen

like pleasure share at has company’s begin recent in positive restructuring by in touching afternoon. thank announcement our us and momentum we you made would into today which briefly regarding to you to joining Tyler, the this Thank plan. December address It XXXX, forward I great the is with I for upon XXXX. that carried experienced Allied you, everyone

year of the we on acquisition. overseen conducting of know, our company’s with process, advisers Company, a a thorough Benchmark significant the spent review last support which was The portion business strategic Directors, by you As potential financial may of Board

wide the options, the maximize focus expand wider to Esports considering Board restructure business After to concluded and best of and operations variety our way was value include entertainment our a that gaming shareholders’ of products. a to range

our In services. and shift rebrand, the Gaming you new to I website line Entertainment, we with better this visit rebranding, strategy, which also new a products of Allied unveil to To were encourage of alliedgaming.gg. scope view excited Inc., corporate with in our and fits new better gain & our increased at

has trajectory, the grow are XXXX, $XXX With a billion entertainment confident a as XXXX, We primarily largest growth valued at gaming industry, industry staggering the gamers compound of gaming current where global is worldwide very in by projected and fastest-growing XXXX the gaming and emerged within of rate annual was and billion our in at driven markets. especially X.X to and Esports. XX.X% mobile between one

to positioned strategic with five space, than of ideally and more $XXX a in portion years these capture investments of income good and in disposable Esports Allied brands billion Gen help With income. entertainment more the is cohort a of reach disposable Z, than consumers the

HyperX building our Mobile on world-class our have company in At and such Vegas Unique in of a and assets Allied, Europe. we and historically by Arena entertainment advantage the focused arenas U.S. our taking Esports gaming Las global as

and array industry. suited of capturing expand entertainment We projected focus gaming include share believe significant the our this reported now we a are and well of a broader greater to products, growth to in

show formats proprietary drive directly These for include world and on consumers. and and content on rewards consumer from assets, to focused will programs. lifestyle, through entertainment revenue live new products reach tournaments services events, and unique These are products our providing in-person online we of gaming events advertisers the with growing entertainment services. specifically, focused royalty renowned experiences will consumers experiences and gaming engagement, rapidly gamers these and from the looking and More laser and virtual now unique

we about event and test a official QX this particularly undergone our eagerly and series which experiences, And have are live launch of in excited of new are an events we virtual year. anticipating

the objective our have content our original to we towards advancing core strategy. event strides This initiatives, our multi-platform of addition program. also includes significant made strengthening content our In of

successfully renewed Insurance and the discovered is to audiences. to to with up series grow partnership Elevated. through and coming produce Elevated help twitch X have streamers get their and Progressive We designed This break expanded Season our of clutter,

further be Season Elevated will continue X growing to hosted to released. will be million content Each different creator, one has May following XX scheduled a by episodes another episode of reach. alike, entertainment collective people. participants while will with a viewers which Allied’s XX over and premier to shooting in bring

partnership explores journey the have to second WANNABE, our launch YES also with Network. gamers YES are professional the and series, Emmy WANNABE we announce our app. professional appeared the YES to content Winning Furthermore, thrilled on Award of original through Network who athletes,

YES These whom content of offerings. competitive expanding in addition and and such companies partnerships themes new progress our Network with original our their common a Esports passion esteemed between in highlight All and different have and strong to content gaming for our Progressive monetizing the as the careers. series multiplatform

and We further communication. providing forward updates content are our series during working original you currently future to with multiple look on

produced of XX events, are events. XX our fourth to that XXXX, the proprietary to third-party have from events, we respect In the With XX events live and of comprising delighted pandemic. total recovered fully report we a they quarter COVID-XX

third-party Red increase to Fest, XXXX. include to quarter versus name Kart, Tempest compared the fourth a and of PBR-Mario Moves, Ninja recorded impressive events latter just Ultimate Mogul The MrBeast Notable Cross The Splinter Crown: Royale, an XX.X% few. Rescue Awards CYN event,

remained demand thus far. quarter, this X,XXX attracted strong Esports The during hosted The XX tournaments over has XX XXXX and sanctioned which venue attendees. HyperX also in events live VIP events community for

To licenses, Allied grant from expand to aside and user original the above, casual to the to we of exclusive the obtain rights have digital software, would efforts content mentioned the which for data operate initiated IP utilize mobile to full game the acquire proprietary monetization. our ownership gaming

our asset our This build us digital our gaming strengthen library, expand of community. enable offering to growing digital out rapidly loyalty unique will and further the

Our diligent yield beginning the is to work behind scene results.

up and previous Directors November. Board approved XXXX. common stock In and outstanding from increase $XX maintain of million into price XXXX, we a year revenue momentum our a of undervalued, stock stock repurchase carried solid in forward achieved belief of end, XX% our that We our in is the that to have to program

continuously and end, conditions approximately details by announcement $XXX,XXX will we We worth at remarks. XX, XXXX and evaluate his the during market stock further provide December Roy between the of year repurchased

With update for like turn on financial year call to that, I’d fourth to an quarter full and results. Anderson, our the over our CFO, Roy Roy?

Roy Anderson

and Yinghua. joining Good afternoon, us for you, Thank thank everyone, you today.

Our full year the service improve our year services continued and production our XXXX offerings. demand we and throughout as to highlight momentum tournaments further results for expanded our

revenues growth Truck live Insurance an of The primarily U.S. X operations. including with Season from $X.X sponsorship Total at pillar, increase in XXXX. Esports in our and increase million, $X.X by Progressive in XX% Arena million or up agreement and a year in-person Elevated, an driven increase our Foods was events were Tyson our for for the HyperX

for quarter the $X.X primarily million decrease Trovo. the $X.X down partnership XXXX a prior with On of our non-recurring The basis, were driven fourth year. quarterly million, revenues was from the by streaming nature in live

post-pandemic decrease $XX.X million expenses In of related professional expenses. and $XX.X decrease operating sale cash decreases a primarily was and were from higher expense stock-based one-time XX% events. fees or and and were in-person offset of XXXX. live to recovery pillar our XXXX costs a expenses The due decrease XXXX, bonuses in World to in partially to These compensation Poker in depreciation our due the Tour, to the our by Turning amortization million $X.X in down expense. of and million strong

million and corporate to XXXX. our quarter, or operations. from in our primarily a fourth fees the down decrease $X.X Las in was due and expenses total of expense million professional at compensation Arena within $X.X XX% decline The Vegas $X.X were and million For European cost

$XX.X which aforementioned increase from was revenues by the and costs and continuing million was XXXX, from reduction both XXXX, in down Our driven million $XX.X in the expenses. in in operations loss

from For the million million fourth in quarter, improved prior our $X.X the period. $X.X loss from operations continuing of

Our $X.X million XXXX loss $XX.X million loss adjusted of EBITDA was from of down in a XXXX.

million million the in Our improved, of fourth XXXX. $X.X EBITDA fourth loss a quarter loss of quarter adjusted of from down $X.X also

Our adjusted compensation stock-based EBITDA amortization, depreciation, and interest adjustments income. for includes

included also balance at million to of to December on our and $XX.X December restricted million, moving cash investments totaled compared Now our short-term XX, million XXXX, restricted of $XX.X At XXXX, including XX, $X which million position cash, cash. sheet. $X

was December XX, assets XXXX, capital as at liabilities working defined surplus, compared XX, company’s $XX.X December million current The current million to at $XX.X minus XXXX.

capital at XX, our working by recorded $X.X lease a implementation was the liability Our December million ASC new reduced XXX. of with standard connection we in of i.e. leasing XXXX,

of repurchase quarter in acquired common $X.XX at total repurchase stock price a stock cost of by under and an the XXX,XXX fees. during for selling shares the mentioned Also broker $XXX,XXX, we program, excluding average of Yinghua, open our transactions market

conditions, not we other intrinsic believe current stock further repurchases does will to and our company’s that evaluate continue the and market value on price We factors. share reflect based price

our for the as progress substantial environment, made have continue has business pillar and of our to led to proud are in XXXX. we for which expand we in summary, bodes our in-person service and the year well we improve throughout a post-pandemic offerings In growth

Yinghua. will I to call back turn over now the

Yinghua Chen

you, Roy. Thank

forward to companies and expansion strategy The We this massive overall and about Allied entertainment Gaming are moving & and future of is the Entertainment. rapid clear undergoing industry market. have and a excited eager gaming reach are trajectory

virtual and financial our gaming drive Allied’s will that live revenue drivers, while events confident are events tournaments and original building adding such results. future content, positive upon entertainment multi-platform of as, focus new We online

with you look again report you for our your May today. results. time XXXX We quarter we forward when in speaking first to Thank

Operator

for does this and participation. Thank Ladies teleconference. your conclude today’s gentlemen, you

a this You lines may your disconnect at wonderful and time have day.

Allied Gaming & Entertainment (AGAE) 23 Mar 232022 Q4 Earnings call transcript