Enthusiast Gaming Holdings Inc. (EGLX-T)

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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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strong tailwinds from gaming entertainment. Growing high margin revenues. Large audience; proven ability to monetize. Not yet profitable; shares can be volatile. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Although the company has missed estimates in recent quarters, they added more recently. The balance sheet is strong and sales are growing. Insiders own 18%. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The last quarter was disappointing for some. The financing has taken some momentum out of the stock. However, long term potential remains good. It is well positioned and has cash. Cheaper compared to other high growth peers. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The market cap has now exceeded $1B. Momentum is good. Okay for growth investor in a different and growing sector. The company is doing a lot of things right. Unlock Premium - Try 5i Free