Opinions
Robert McWhirter
Enthusiast Gaming Holdings Inc.
EGLX-T
COMMENT
Sep 03, 2021
Stock price when the opinion was issued
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EGLX is building the largest media platform for video game and esports fans to connect and engage with its approximately 300 million gaming enthusiasts worldwide.
Central to its ability to create valuable advertising space (referred to as “Inventory”) is the ability to both develop content-rich digital media and foster the interaction and contributions of its users to its digital media properties.
To this end, it maintains a network of full and part-time content developers.
Results posted November 14, 2022, for the 3rd quarter ended September 30th were a record: Revenue at $50.6 million was up 17% over the comparable prior period; Gross profit at $16.6 million was up 64%; Operating expenses at $26.6 million were up 24.3%.
However, the net loss was $37.9 million (after taking a $31.3 million non-cash loss on impairment of goodwill) compared to a loss of $12.4 million in the prior period. Long-term debt increased YTD by $8.2 million and cash on hand closed at $15.8 million, down $6.8 million. These results appear to have given the stock price a nudge, but the announcement on December 1st that EGLX had entered into a content partnership account with Google seems to have provided the principal lift.
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