Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Allied Gaming & Entertainment Second Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tyler Drew, with Investor Relations. ahead. go Please

Tyler Drew

Good & operator. welcome the to Thank XXXX afternoon, second Gaming Entertainment call. quarter Allied you, and earnings conference

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

and intended forward-looking call statements. from should, Actual to could of I those Commission. forward-looking documents discussed filings, seek, please results implied of note may in such could, with due discussed public expressions in plan, filed anticipate, variety believe, Exchange to as variations may, statements similar estimate, to including the statements. that Before identify over factors words management, and targeting, prepared differ goal the the our and these company's by materially such the a risk factors remarks forward-looking intend, judgment, turn Securities Words contain are will, expect,

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

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

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

Yinghua Chen

today becoming thank update the gaming and and name a on entertainment in Good us our Tyler. you, you share all towards afternoon, latest industry. for and trusted the leading journey we Thank as joining

highlight that and Today, continued milestones growth delighted to present success. significant our we're

and year-over-year. The foremost, sponsorship. which been to driven revenue increase quarterly a XXX% our mobile $X.X is of continued increase our instrumental up sponsorship success million, to new performance thrilled These side, are revenue propelling growth. our by announce arena the and we have in in up First our financial and content pillars on substantial our was original truck

highly Additionally, reduction significant year-over-year remarkable EBITDA. to our our contributed by million we It XX%, the to adjusted growth, revenue reduce maintaining be diligent while efforts to managed Despite achieving a have to our have our fruitful. responsibility fiscal proven improvement expense G&A in speaks commitment to which in growth. $X.X

proprietary of we Awards event, Party deliver to Elder engaging Legends Champions Appreciation, Online, comprising events Golden presents and ELEVATED of the Customer Community Watch Tour show, Event. XX EStars continued XX third-party Scrolls World audience. events. TL events Notable XX League to Licensing Reception, Video Rift and captivating Poker of Ross the events experiences a produced our During and total quarter, We include Knights

This continued resounding Esports potent blend unique a the the production demonstrates content event our competitive of capabilities. arena a ELEVATED and In revolutionized has appeal viewers minutes world been assets growth XX.XX adjacent viewership our series, a the our reached face of five-week unique XX.X watched total live total period. merging with into over ELEVATED, and further has of million, and reality The X, entertainment, and of particular, Season original arts gaming, the creativity. creative million TV million success. of show XX.X truck

reach X.X of homes WANNABE original X, bigger Season over also even will channels. production has Yankees the YES YES a this network. our bring from and players of content App We've million Impressively, series series, which continued distribution through other and stars the the

advanced and our gaming like HyperX uniquely partnership online merchandise HP/HyperX, retail merchandise key be offering Arena our connecting community that players PCs, variety our our is successful handy with with through One gaming and lifestyle peripherals, positioned to gamers' the expanding equipment, through by Allied's more exciting development gadgets will and to of shop. most a we update longstanding our fans

Also, taken several a two that of the to line range aggressively to wide wholly-owned Allied in efforts. with new Experiential this Entertainment steps our have including coverage, and Allied we strategic strategic opportunities, pursue gaming spearhead broaden and Mobile establishment plan our of will subsidiaries, Entertainment entertainment

are Allied various massive acquisition. to the of having process Mobile currently mobile launching potential in testing and potential to services as We're exploring prepublic businesses the partners, complementary start well a pursuing and growing market. number off as for reviewing targets Entertainment, products AME, identified as games, casual strong opportunities is dedicated a and and games and and of mobile in partnerships

Experiential AEE, AME, Like partners. venue partnerships. currently entertainment foundation organizing a laid consultation. operation, management potential on with events, focuses general AEE opportunities and promising entertainment We're live various business Allied Entertainment, already pursuing solid with has experiential

we and We that for more growth initiatives will success share will the believe AGAE. about events drive and further

will revenue financial it new us additional break months. enable creating We XX into will and when updates within and next provided expect Entertainment Experiential appropriate. be enhancing streams Mobile to markets, the Allied Further that is our performance Allied

very that made lie remarkable the In about and the conclusion, ahead. opportunities we're excited progress have we

the that share end AGAE of between plan approximately we in of to have plan, turning stock Roy, that call to continue I'd and and announcement of now also undervalued. Before the note $X.X believe our end our to price repurchased Through the stock November QX. like is repurchase we million under the

QX to call you to CFO, With give Roy turn the now that, like on our I'd our updates to financials. Anderson,

Roy Anderson

of up Thank good you, afternoon, period. the with from million, perspective, From year a prior Yinghua, it strong a everyone. and XXX.X% was revenues quarter P&L second $X.X

release to, Las the Allied episodes. in the our XX consisted an the content of and primarily season also attributable of Esports improvement original our of on sponsorship successful world-class is Arena Mobile includes ELEVATED, Esports series, at to which improvement in year-over-year second Vegas The revenues our alluded Yinghua Truck. increase As

categories, impressive XXXX. additional expenses other expense, X.X% consisting million depreciation declined general $X.X of second were principally expenses, to of by including when million, ELEVATED. stock-based which of net period. of more decrease compared expenses costs for than year offset which the XX.X%; of a quarter the particularly of and the $XXX,XXX which expenses loss and quarter amortization second during the compensation, XXXX were and event production declined by production of the compared cash and quarter XXXX by Total considering for XX.X%; live by expense in Net The prior quarter is incurred X improved and costs, related to decreases a in additional to improvement to declined the the administrative of second season $X.X XX.X%. The loss

XXXX income investments. interest earned on include Our results $XXX,XXX of for short-term QX approximately

of our loss revenues, second loss gross significantly on a in of in EBITDA of the in coupled $X.X improvement adjusted and XXXX, was million The million content Our our improving expenses. event recognized arena consists reduction and with administrative principally $X.X quarter XXXX. margin sponsorship the general productions in from the QX and increase a

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

to on balance moving sheet. Now our

of of which at $X As short-term compared investments million also totaled including our XX, December to XXXX, $XX.X and $X million million, included position restricted $XX.X cash. million XX, of XXXX, cash June restricted cash

portion capital of XX, of June ASC that in $XX.X position leasing standard, was connection current the XXXX, the As the was million including working of XXX, $X.X company's on liability XXXX. recorded the with an December implementation of XX, operating lease new million,

$X.X our stock stock fees. in our under of and quarter total a average million the common an XXX,XXX shares total open at to of market repurchase program, during acquired $XXX,XXX, brings selling $X.XX us we commencement repurchase of This cost broker plan. in since price the of Also repurchases the for transactions excluding

of and an and will to price timing evaluation market manner, based be Moving forward, other continue any conditions, the amount purchases of stock factors. on

trending as half our Allied, of we head positive quarter In year. is was conclusion, the well back into business it a at and the

I will for the turn closing remarks. to over call Yinghua now back

Yinghua Chen

so a far continue It as has & plan. Allied our you, at Entertainment been implementing Thank we certainly Gaming Roy. XXXX strategic busy

While up we do on have the vision we plenty to progress moving of still and edge have company, encouraging of full we're to build believe the the seen for right next level. to our work

as November. support. and as us today with We joining our forward in for on quarter updates providing look again business you and speaking to well Thank third results you your

Operator

teleconference. This today's concludes

time. disconnect may this for you your lines at participation. You your Thank

Allied Gaming & Entertainment (AGAE) 10 Aug 232023 Q2 Earnings call transcript