Engine Gaming & Media Inc. Releases Financial Results From First Quarter 2022

Engine Gaming and Media, Inc, an esports/sports social gaming, influencer marketing, and next-generation media solutions company, announced results for its first quarter of fiscal year 2022 ended November 30th, 2021. Total revenue for FY Q1’2022 was $14.3 million, up from $7.5 million in FY Q1’2021, an increase of 92% YoY, and 22% higher than sequential FY Q4’2021 of $11.8 million. For the 1st quarter ended November 30th, 2021, Net loss was $(1.3) million, a decrease in loss of $4.7 million from FY Q1’2021 Net loss of $(6.0) million. For the 1st quarter ended November 30, 2021, Adjusted EBITDA was $(5.0) million, an increase in loss of $100 thousand from FY Q1’2021 Adjusted EBITDA of $(4.9) million. Engine Gaming had cash of $9.7 million and $10.1 million in receivables as of November 30th, 2021. In addition, the company had working capital surplus of $3.2 million after excluding non-cash warrant liability and arbitration reserve.

“As social engagement increasingly defines both video game interaction and digital marketing innovation, our collection of assets continues to bring increasing focus of that attribute to the fore,” said Tom Rogers, Executive Chairman of Engine Gaming & Media Inc. “Winview, UMG, Eden, Stream Hatchet, and Sideqik all continue to differentiate their offerings relative to social gaming and marketing. With our continued, significant revenue growth, and investment in product enhancements to sustain that growth, in the course of one-year we have begun to show what the Engine assets are capable of representing in terms of substantially enhanced asset value. We believe with our plans for sustainable cash infusion, as the businesses begin to move toward profitability, the market will recognize the substantial opportunity for appreciation as the Engine ‘revs.’”

Key segment revenue growth that contributed to the strong revenue performance:

• Software-as-a-Service: SaaS revenue for FY Q1’22 was $2.1 million, up from $1.4 million in FY Q1’21, an increase of 45% YoY and, 7% higher than sequential FY Q4’21 of $2.0 million.
• Advertising: Advertising revenue for FY Q1’22 was $10.0 million. Advertising revenues grew 84% YoY, with FY Q1’21 revenues of $5.5 million and 14% quarter-over-quarter, with FY Q4’21 revenues of $8.8 million.
• Games Development: Game development revenues for FY Q1’22 was $2.1 million. Game development revenues grew 320% YoY, with FY Q1’21 revenues of $0.5M and 157% quarter-over-quarter, with FY Q4’21 revenues of $0.8 million.

(All information was provided by Business Wire)