Friday, November 05, 2021

Motorsport Games (MSGM)
3Q21 Earnings Update

Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including NASCAR, 24 Hours of Le Mans and the British Touring Car Championship ("BTCC"). Motorsport Games is an award-winning esports partner of choice for NASCAR, 24 Hours of Le Mans, Formula E, BTCC and the FIA World Rallycross Championship, among others. For more information about Motorsport Games visit: www.motorsportgames.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Results. The company’s Q3 2021 revenue of $2.1 million topped our estimate of $1.4 million by 52.7%. Adj. EBITDA, however, fell short of our estimates, coming in at a loss of $5.45 million, 9% lower than the $5 million loss we had forecasted. The adj. EBITDA miss is largely attributable to developmental costs in the quarter.

Maintaining revenue estimates.  We believe the company is positioned to meet our 2021 full year revenue guidance on the back of its Q4 launch of NASCAR21: Ignition. Looking ahead, management reiterated the company’s goal to release a new INDYCAR game in 2023. As such, we are maintaining our 2022 and 2023 revenue estimates of $29.7 million and $41.1 million, respectively. The company is expected to ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.