Motorsport Games (NASDAQ:MSGM) Posts Earnings Results

Motorsport Games (NASDAQ:MSGM) posted its quarterly earnings data on Wednesday. The company reported $0.07 EPS for the quarter, Zacks reports. The company had revenue of $4.03 million for the quarter. Motorsport Games had a return on equity of 93.70% and a net margin of 45.70%.

Here are the key takeaways from Motorsport Games’ conference call:

• Revenue jumped 129% year over year to $4.0 million, driven mainly by stronger sales of Le Mans Ultimate and higher RaceControl subscription revenue. Management also said the company generated positive operating income and improved adjusted EBITDA.
• Le Mans Ultimate continues to gain traction, with a new all-time Steam peak of more than 8,800 concurrent players after version 1.3 launched. The company emphasized that average concurrent users are also rising sharply, suggesting players are sticking with the game.
• RaceControl is becoming a meaningful recurring revenue stream, with monthly recurring revenue now above $0.2 million and Q1 subscription revenue of $0.8 million, or 19% of total company revenue. Management described it as a high-margin platform business with room for further expansion.
• The company completed a major corporate restructuring, including repurchasing 904,395 Class A shares from Driven Lifestyle Group and retiring all Class B super-voting shares. Shareholders also approved an expansion of the employee equity plan, and management said these moves improve governance and flexibility.
• Motorsport Games said development of Le Mans Ultimate for PlayStation and Xbox is progressing, but exact timing is still uncertain and more details are expected in 2027. The company is also preparing a new long-term project that will build on its existing simulation technology, live-service platform, and community.

Motorsport Games Price Performance

Shares of Motorsport Games stock traded up $0.01 on Friday, hitting $4.51. 60,604 shares of the company’s stock traded hands, compared to its average volume of 95,844. The company has a fifty day moving average of $4.23 and a two-hundred day moving average of $3.55. Motorsport Games has a one year low of $2.11 and a one year high of $5.56. The company has a market capitalization of $26.03 million, a price-to-earnings ratio of 3.85 and a beta of 1.73.

Insider Transactions at Motorsport Games

In other Motorsport Games news, major shareholder Mike Zoi sold 904,395 shares of the stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $4.11, for a total transaction of $3,717,063.45. Following the transaction, the insider directly owned 254,453 shares in the company, valued at approximately $1,045,801.83. This represents a 78.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders sold 1,225,932 shares of company stock valued at $5,065,568 over the last quarter. 4.59% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Motorsport Games

A number of large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP acquired a new position in shares of Motorsport Games during the third quarter valued at about $46,000. HRT Financial LP bought a new stake in Motorsport Games in the 4th quarter valued at about $37,000. State Street Corp acquired a new position in Motorsport Games during the 4th quarter worth approximately $39,000. Finally, XTX Topco Ltd acquired a new position in Motorsport Games during the 4th quarter worth approximately $34,000. 1.66% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Separately, Wall Street Zen upgraded shares of Motorsport Games from a “buy” rating to a “strong-buy” rating in a report on Saturday, March 14th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company has a consensus rating of “Hold”.

Motorsport Games Company Profile

Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.

The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).