Wednesday, November 30, 2022
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q4 results. The company reported quarterly revenue of $11.5 million, ahead of our estimate of $9.5 million. An adj. EBITDA loss of $4.0 million was in line with our expectations, illustrated in Figure #1 Q4 Variance. Q4 punctuated a year in which the company’s Advertising and SaaS businesses grew 29% and 16%, respectively.
Strong advertising revenue. Advertising revenue grew 29% sequentially to $9 million in the quarter, on the back of strong CPMs and RPMs. Management noted that CPM and RPM growth was 30% in 2022. The Advertising revenue growth is particularly noteworthy given the challenging economic environment.
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This 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.