Alex Macdonald CFO of Enthusiast Gaming

Enthusiast Gaming Reports Preliminary Fourth Quarter 2021 Results

Published

3 years ago

February 8, 2022

Q4 2021 Revenue Expected at $56.9 Million, Year-over-Year Increase of 34%
2021 Annual Revenue Expected at $167.4 Million, Year-over-Year Increase of 130%

Enthusiast Gaming Holdings Inc., a media and content platform for video game and esports fans to connect and engage, is providing select preliminary unaudited financial results for the three months ended December 31, 2021 (“Q4 2021”).

The audited annual consolidated financial statements of the Company for the year ended December 31, 2021 (“the Financial Statements”), and related Management Discussion and Analysis (the “MD&A”) are expected to be released on March 24, 2022.

Financial Highlights:

European Gaming Congress 2024 (Warsaw, Poland)

Revenue in Q4 2021 is expected to be $56.9 million, representing a 34% increase from revenue for the three months ended December 31, 2020 (“Q4 2020”), of $42.5 million, resulting in expected annual revenue in 2021 of $167.4 million (2020 – $72.8 million).
Gross profit in Q4 2021 is expected to be $13.7 million, representing a 69% increase from gross profit in Q4 2020 of $8.1 million, resulting in expected annual gross profit in 2021 of $37.8 million (2020 – $18.7 million).
Gross margin in Q4 2021 is expected to be 24.1%, representing a 500 basis point increase from gross margin in Q4 2020 of 19.1%.
Direct sales in Q4 2021 are expected to be $8.8 million, representing a 167% increase from direct sales in Q4 2020 of $3.3 million, resulting in expected annual direct sales in 2021 of $22.2 million (2020 – $5.0 million). Direct sales are included in revenue.
Paid subscribers as at December 31, 2021, are expected to be 220,000, representing an 80% increase from paid subscribers as at December 31, 2020, of 122,000.
Cash balance as at December 31, 2021, is expected to be $22.7 million compared to $4.3 million as at December 31, 2020.

“These preliminary Q4 results again demonstrate the strength of our unique model, and show our momentum heading into 2022,” said Adrian Montgomery, CEO of Enthusiast Gaming. “We expect to have generated record quarterly revenues in the fourth quarter of 2021, led by our continued strength in direct sales, our ability to acquire and integrate assets such as Addicting Games and U.GG, our ability to attract and retain paying subscribers, and ultimately our flywheel of communities, creators, content, and experiences.”

“Q4 2021 revenue growth is expected to be strong at 34% year-over-year, but is outpaced by the expected gross profit growth of 69%. This is resulting in continued gross margin expansion,” said Alex Macdonald, CFO of Enthusiast Gaming. “Higher yield and higher margin revenue is core to our business model, and we continue to invest in operations that drive this type of growth.”

Fourth Quarter Operational Highlights:

Completion of the acquisition of League of Legends community U.GG, and expansion of the U.GG desktop app.
Renewals or additional business with key partners including Proctor & Gamble, HBO Max, TikTok, Disney, and Square Enix.
Record U.S. unique visitor traffic of 51.8 million recorded in December 2021 as measured by Comscore.
Expansion of in-game purchasing opportunities and subscription offerings for multiple Addicting Games titles including Little Big Snake, TypeRacer, ev.io, and mope.io.

The financial and operating results included in this news release are based on preliminary unaudited estimated results which have not yet been finalized or, in the case of annual results, audited, and will be updated and superseded by the Financial Statements and MD&A of the Company which are expected to be released on March 24, 2022. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A will be published under the Company’s profile on SEDAR and EDGAR.

All amounts are in Canadian dollars.

Alex Macdonald CFO of Enthusiast Gaming

Enthusiast Gaming Reports Year-End 2021 Results

Published

3 years ago

March 29, 2022

GamingAmericas.com

Enthusiast Gaming Holdings Inc., an integrated gaming entertainment company, announced financial results for the year ended December 31, 2021.

2021 Financial Highlights

Revenue for 2021 was $167.4 million, representing a 130% increase from revenue for 2020 of $72.8 million
Gross profit for 2021 was $37.8 million, representing a 102% increase from gross profit for 2020 of $18.7 million
Direct sales in 2021 of $22.2 million, representing a 344% increase from direct sales in 2020 of $5.0 million. Direct sales are included in revenue
Paid subscribers as at December 31, 2021, of 220,000, representing an 80% increase from paid subscribers as at December 31, 2020, of 122,000

Q4 2021 Financial Highlights

Revenue for the three months ended December 31, 2021 (“Q4 2021”), of $56.9 million, representing a 34% increase from revenue for the three months ended December 31, 2020 (“Q4 2020”), of $42.5 million
Gross profit in Q4 2021 of $13.7 million, representing a 69% increase from gross profit in Q4 2020 of $8.1 million
Gross margin in Q4 2021 of 24.1%, representing a 500 basis point increase from gross margin in Q4 2020 of 19.1%
Direct sales in Q4 2021 of $8.8 million, representing a 167% increase from direct sales in Q4 2020 of $3.3 million. Direct sales are included in revenue

“Our momentum continues and we are pleased to confirm our record breaking results from Q4 2021,” commented Adrian Montgomery, CEO of Enthusiast Gaming. “We are seeing strong repeat business in direct sales, continued conversions of viewers into paying subscribers, and strength in our product offerings, particularly in Addicting Games and U.GG. We expect this momentum to carry into 2022 and beyond.”

“Our higher yield and higher margin revenue streams are expanding, with noticeable impacts to the income statement,” commented Alex Macdonald, CFO of Enthusiast Gaming. “Direct sales and subscription combined accounted for over 20% of revenue in Q4, helping push quarterly revenue to an all time high and gross margin to over 24%. We maintain a growth oriented position and outlook.”

Q4 Operational Highlights

Expansion of in-game purchasing opportunities and subscription offerings for multiple Addicting Games titles including Little Big Snake, TypeRacer, EV.IO, and mope.IO
Two new event series launched: Pocket Gamer Connects Digital NEXT, and Beyond Games
Record U.S. unique visitor traffic of 51.8 million recorded in December 2021 as measured by Comscore
Acquisition of League of Legends community U.GG, and expansion of the U.GG desktop app
Luminosity Gaming ranked number one esports team on Twitch according to a study conducted with Nielsen
Renewals or additional business with key partners including Proctor & Gamble, HBO Max, TikTok, Disney, ExitLag, G FUEL and Square Enix
New season of Rising Stars announced, co-created with e.l.f. Cosmetics (NYSE: ELF)

Organizational Updates

The Company also announced that due to her recent appointment as Chief Investment Officer of the California Public Employees’ Retirement System (CalPERS), Nicole Musicco was required to resign from the Board of Directors of the Company, effective March 25, 2022.

“I am thankful for my time on the Board of Enthusiast Gaming and am impressed with the trajectory of the Company,” said Nicole Musicco. “Adrian and the management team are highly capable and there is a strong vision in place. I look forward to watching the Company continue to grow.”

The Company wishes to thank Nicole for her service, and congratulates her on the appointment at CalPERS.

The Company also announced that Menashe Kestenbaum has transitioned out of the role of President to focus exclusively on strategy and governance as a member of the Board of Directors. As a continuing member of the Board, his experience will continue to help the Company towards achieving its growth objectives.

Other recent appointments at the Company include:

Scotty Tidwell as Senior Vice President of Talent
Alex Gonzalez as Head of Luminosity Gaming

Certain information provided in this news release is extracted from financial statements and management’s discussion & analysis (“MD&A”) of the Company for the year ended December 31, 2021, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the financial statements and MD&A that an investor can properly analyze this information. The financial statements and MD&A have been published on the Company’s profile on SEDAR and EDGAR.

All amounts are in Canadian dollars.