AGAE - Earnings call transcript Q2 2024 | Allied Gaming & Entertainment Inc.

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Operator

Good day, everyone, and welcome to the Allied Gaming & Entertainment, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's call will be recorded [Operator Instructions] It is now my pleasure to turn the conference over to Tyler Drew with Addo Investor Relations. Please go ahead.

Tyler Drew

Thank you, operator. to Conference Gaming Call. welcome Quarter Entertainment and Earnings XXXX afternoon, the and Allied Second Good

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

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

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

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

certain the represents presented financial information non-GAAP of financial in call this measures. addition, In

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

call Allied Gaming to over and that, with the Yinghua pleasure now it's Chen. CEO, turn And Yinghua? to my Entertainment

Yinghua Chen

this for all us you afternoon. thank and joining Tyler, you, Thank

performing We continue trajectory gain strategic to you Z-Tech initiatives. our are of our well. about to thrilled traction speak as we with is business today upward advancing the Notably,

more World highly Tour, the on And Poker that later in WMT successful creation will year, will WMT, just shortly. modeled Our of this morning, high the provide remains I we and demand. HyperX this debut details Tour, World after announced Mahjong the Arena

events. HyperX of posting totaling quarter, wide third-party world-class days, which of XX XX event be activity a of a continues hub events were Arena to Our variety this

were World Tour. Poker invaluable Rock the these May the with Mahjong which the collaborated victory will WPT Choctaw several we table Showdown $X following the Poker of million James at final WPT World May Mackey table, championship. Hard XX, Among held events, was Tour The We World the on day prize claimed XX, hosted in money. on just we Poker at Arena at on Championship and seat as title highlights the secured nearly upcoming the final be reaching WPT where the develop the Seminole

Mobile North events Award. Finale this Licensing Other included the America Boom Bang Bang Sonic Afterparty, Tournament quarter notable Spring Challenger XXXX, Level International Legends the Grand Up Excellence Unofficial the and

The poker HyperX tournaments, that truly esports industry and awards gaming events besides world-class versatility from embodies range ceremony our prestigious posting the event. Arena

Tour, the Mahjong Now, global a Why turn launch exciting series morning's will to events of let is me the of compelling bring announcement, so World that us. the to timeless stage. a for this game groundbreaking of this Mahjong

among especially For Its years, history starters, strategy younger of been a of population. and century. a touch of game luck with generation the has resurging the in skill, is spanning a popularity Mahjong a over recent

beloved now. until game, global a been has market the always it a to While on never it brought or scale been monetized has

experience Poker Tour. required WPT World have the proven sustainable model the and with we be recently has Additionally, and owned, to the partnered having operated

final of For tournaments Arena regional in the events HyperX XXXX. will in the inaugural we series at spring the and season, terminating of host a

fans and and games, off-line. online introduce and a comprehensive expertise players from subsidiaries content brand and both will will and membership Mahjong immersive drive proprietary approach will with model. we a production WMT team's as mobile AGAE unique service our of leverage This X awareness all provide will experience, multisensitive

optimistic that be the for We've us. on are a very changer scenes the game past and behind WMT been endeavor will this diligently we working for year,

we all areas in Entertainment in and Experiential involved expand on of or utilize Asia. its will AEE, it as we company, WMT, opportunities be resources of in business to very Allied progress the with aspects other AEE's While continues will are across from also excited

partner we more Notably, in a in annual forward with as look and future finalized. the in are are Macau, popular festival to close negotiations to we sharing music details negotiations

Moving Entertainment, Allied to Mobile on AME. or

casual new Z-Tech, interactive. had casual of and progressing casual a in second Z-Tech investment busy operator its a strategic [indiscernible], Our very quarter, popular well. game is in released May, Match a mobile release games and the fun Three year. a brand-new is The developer mobile mobile game, having category prominent of

with far, Z-Tech distribution been utilizing are positive. for and from it, platform. on has which games our capabilities distribution its within has are and assessing marketing downloaded have who So currently those very catalog best popular We're game AME the also feedback it suited gamers the and for been

positioned Z-Tech's momentum XXXX of the The revenue growth. rising and is second evident robust is ad business well for QX. a QX with in-game XX% revenue half sustained over

I financials. Anderson, will our call our Roy updates QX the now over to on provide turn CFO, to

Roy Anderson

in from afternoon, the casual XXXX by period. thank million, Unfortunately, $X.X and integrated an up been million were for quarter due Total $X.X was over related Total second million performing them and increase United the meaningfully Z-Tech filed of million has against joining attempt by XX% including $X.X million, our the a from in $X expenses and second XXXX. of $X in costs price. offset primarily to into counterproductive the year from the to gaming million second Pastures, actions Good now quarter approximately is were to content The you prior litigation for expenses well. business the from but discounted decrease production by hostile costs today. driven increase the you, increase a the at XX% in their company arm AGAE branded a take year-over-year quarter $X.X first that of mobile in decline Thank everyone, Yinghua. revenues, down the of us revenues and revenues was revenue quarter, for

million and million quarter was Our loss a loss quarter $X.X a of of net prior XXXX. in XXXX the of to second compared the $X.X second in quarter the loss $X.X of million for

Our of million the loss adjusted in $X.X to and loss million quarter in XXXX. quarter a a second compared the prior million $X.X loss was $X.X EBITDA of of

adjusted income. includes EBITDA nonrecurring adjustments for Our compensation, assets, the amortization and and depreciation intangible interest fixed fees stock-based and of legal

$X million and investments compared December and restricted Now, our moving June XX, on to of million, short-term noninterest-bearing The Bank as short-term XXXX. Stanley cash, June in At cash is working investments $XX.X current company's million XXXX, million primarily to capital Limited. $XX.X our December XXXX. increase Asia compared attributable at to Morgan totaled million to defined loans the surplus proceeds of XX, The XXXX, assets balance XX, sheet. and minus our current for position including was $XX.X cash at $XX.X XX, at low liabilities,

Yinghua. now over back to the turn I call will

Yinghua Chen

Thank you, Roy.

Before forward. excitement right Allied to the reiterate confidence Entertainment Gaming call, our closing are and lead to positive that experiencing skills with the I I'd Board and the company for believe full at and like all say management my have the expertise and momentum we team

gain XXXX. momentum the revenue especially optimistic World catalysts Our We're to in finale up strong the by in near leading the our future. ability X to presented opportunities Mahjong about all spring the of inaugural and Tour subsidiaries, have the

potential we're that game and popular eager Mahjong resurgent on. market vast offers untapped highly capitalize of to The

to look today. again third you time results our in your for we We quarter you with release Thank forward speaking XXXX when November.

Operator

today's program. does participation. conclude your This for Thank you

You evening. wonderful may time, and any disconnect at have a

Allied Gaming & Entertainment (AGAE) 19 Aug 242024 Q2 Earnings call transcript