Sports Entertainment Gaming Global Media (SEGG) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $257K, down 61% year-over-year, with a net loss of $6.0M, up 40% from Q2 2023.

• Operating expenses rose 22% to $6.1M, driven by higher professional fees and personnel costs.

• The company is focused on relaunching its B2C platform by fall 2024 and expanding Sports.com globally.

• Ongoing legal and compliance issues, as well as capital constraints, continue to impact operations.

Financial highlights

• Q2 2024 revenue: $257K (down from $655K in Q2 2023); six-month revenue: $516K (down 60% year-over-year).

• Net loss for Q2 2024: $6.0M (vs. $4.3M in Q2 2023); six-month net loss: $11.7M (vs. $7.5M in 2023).

• Gross profit for Q2 2024: $211K (down 62% year-over-year); six-month gross profit: $387K (down 66%).

• Operating expenses for Q2 2024: $6.1M (up 22%); six-month operating expenses: $11.9M (up 39%).

• Cash balance as of report date: $36,799.

Outlook and guidance

• B2C platform relaunch targeted for fall 2024, initially in Texas, with phased expansion planned.

• Sports.com to expand into 40 markets, focusing on North America and Europe, with additional launches in Latin America and Asia Pacific.

• Company expects operational costs to exceed revenues over the next 12 months, with funding needs to be met by equity or debt financing.