Motorsport Games Inc (MSGM) Q1 2025 earnings sound Highlights: navigate financial challenges …

Appearance date: May 09 May 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Motorsport Games Inc (NASDAQ: MSGM) received an investment of 2.5 million US dollars from the manufacturers of the Virtual Reality Headset manufacturer Pymax and provided considerable financial support.

• The net turnover from the final racing title from Le Mans rose by USD 0.4 million in the first quarter of 2025 compared to the same period in the previous year.

• The company reported an improvement in net income and achieved a net result of 1.0 billion US dollars compared to a net loss of $ 1.7 million in the previous year.

• Motorsport Games Inc (NASDAQ: MSGM) improved the cash flow from business and generated an average positive cash flow of approximately $ 0.1 million per month.

• The company explores new opportunities, including the final game of Le Mans in PlayStation and Xbox Consoles, which could expand its audience.

• The total revenue for the first quarter of 2025 decreased by 41.9% compared to the same period of the previous year, mainly due to a decline in NASCAR-related income.

• The company is no longer authorized to sell NASCAR-related gaming titles from 2025 that affect sources of income.

• Despite improvements, Motorsport Games Inc (Nasdaq: MSGM) expects a net outflow from the company for the foreseeable future, as it further develops its product portfolio.

• The company explores additional financing options to combat liquidity errors, which indicates continuous financial challenges.

• The decline in sales from the title RFACTOR 2 title by USD 0.2 million, which contributes to the total decline in sales.

Q: Can you give more details on the latest investments of 2.5 million US dollars and its effects on the company? A: Stephen Hood, CEO: The investment was directed by the Virtual Reality Headset manufacturers Pymax and has made our business a lot of breathing space available. It enabled us to further develop our products and to evaluate the future potential. This investment has also increased market trust, whereby the shares are more than 2.5 times higher than before the announcement.

Q: What are the most important financial results for Q1 2025? A: Stanley Beckley, CFO: The income for the quarter was $ 1.8 million, which was 41.9% back in the previous year, mainly due to a decline in NASCAR-related earnings. However, net income improved compared to a net loss of $ 1.7 million in the previous year to $ 1.0 million, which is due to reduced operating costs and other operating results.

Q: How does the ultimate racing title Le Mans work? A: Stephen Hood, CEO: The net sales from the final racing title of Le Mans were 0.4 million $ 0.4 million compared to the same period of the previous year, although the quarter of the first quarter of 2024 was the release quarter. This is a positive result and we plan to publish future updates such as team and drivers -WAP functionality, which will improve the gaming experience.