Wednesday, July 20, 2022
Engine Gaming and Media (GAME)
Navigating Troubled Waters
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fiscal Q3 results. The company reported Q3 revenue of $9.2 million, which reflected the absence of recently divested businesses. The underlying trends of its existing businesses were strong, with double digit revenue growth and a 5% sequential quarterly revenue improvement from Q2. Adj. EBITDA was a loss of $5.1 million, which did not fully reflect the recent cost cutting initiatives.
Growing SaaS businesses. The company’s SaaS revenue grew 22% YoY to $2 million. Notably, both Stream Hatchet and Sideqik signed extensions to represent major brands during the quarter. Active clients of Stream Hatchet increased 27% in the quarter, while Sideqik’s active client base grew 10%.
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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
