Allied Gaming & Entertainment Inc. Q4 FY2022 earnings call

• Announced restructuring plan in December 2022, rebranded to Allied Gaming & Entertainment, Inc., new website at alliedgaming.gg.
• Global gaming industry growth: 3.1 billion gamers in 2021, industry valued at $202B in 2021, projected to grow CAGR 10.2% 2022-2030.
• Laser focused on providing new and unique experiences for gamers, including live and virtual entertainment events, tournaments, proprietary content, royalty rewards programs; Q3 2023 official launch of live and virtual event experiences.
• Core multi-platform content strategy progress: renewed and expanded partnership with Progressive Insurance for Elevated Season 2, premiering in May 2023 with 10 episodes, hosted by creators with over 50M followers; partnered with YES Network to launch WANNABE series on YES app.
• 2022 fourth quarter: 89 events (45 proprietary, 44 third-party), third-party events up 25.3% y-o-y; 20 VIP events and 55 HyperX sanctioned community Esports tournaments, attracted over 2,400 attendees.
• Initiated efforts to acquire proprietary casual mobile gaming licenses to expand digital IP.

Total revenues for 2022 were $6.4 million, up $1.4 million or 28% from 2021. Quarterly, fourth quarter revenues were $1.2 million, down from $1.9 million in prior year due to non-recurring 2021 live streaming partnership with Trovo. Operating costs and expenses in 2022 were $18.1 million, down $2.6 million or 13% from 2021. Fourth quarter total cost and expenses were $3.8 million, down $1.9 million or 33% from 2021. Loss from continuing operations in 2022 was $10.8 million, down from $15.1 million in 2021; fourth quarter loss from continuing operations was $1.7 million, improved from $3.8 million prior period. 2022 adjusted EBITDA loss was $8.6 million, down from $10.5 million in 2021; fourth quarter adjusted EBITDA loss was $1.7 million, down from $2.1 million in fourth quarter 2021. Cash and short-term investments at December 31, 2022 totaled $86.8 million including $5 million restricted cash; working capital surplus was $79.1 million at December 31, 2022, reduced by $1.2 million lease liability from ASC 842 implementation; repurchased 581,746 shares at average price $1.02 for total cost ~$593,110.

• Believes current share price is undervalued, Board approved stock repurchase program up to $10M, repurchased ~$600k worth of stock by Dec 31, 2022, will evaluate further repurchases based on market conditions, stock price, etc.
• Confident building on original focus of live events and multi-platform content, adding new revenue drivers like virtual entertainment events and online gaming tournaments will drive future positive financial results.

Q: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

A: Operator's closing statement