Motorsport Games (MSGM) Q4 2024 earnings summary

Executive summary

• Achieved strong momentum with Le Mans Ultimate, including successful updates, positive player reception, and 100,000 net unit sales in Q4 2024, despite prior headcount reductions and strategic review.

• Surpassed player engagement and sales expectations without paid marketing, driven by organic growth, influencer support, and new subscription services.

• Launched RaceControl subscription and successful DLC packs in December 2024, expanding revenue streams and player retention.

• Settled legacy legal and ownership issues, improving financial position and clearing barriers to future growth.

Financial highlights

• Q4 2024 revenue was $2.0 million, up 13% year-over-year; full year 2024 revenue reached $8.7 million, up 25.7% from 2023.

• Q4 2024 net loss was $2.9 million, compared to net income of $2.7 million in Q4 2023, due to increased expenses and absence of prior year one-time gains.

• Full year 2024 net loss improved to $3.0 million ($0.94/share) from $14.3 million ($5.56/share) in 2023.

• Adjusted EBITDA loss for 2024 was $3.9 million, a significant improvement from $9.3 million loss in 2023.

• Gross profit margin for 2024 increased to 62.9% from 47.6% in 2023.

Outlook and guidance

• No forward-looking guidance provided; management emphasized the need for additional funding to sustain operations over the next year and is exploring strategic alternatives and cost reductions.