Motorsport Games Inc. Q2 FY2025 earnings call

• Work on Le Mans Ultimate continued with a major update during the 24 hours of Le Mans in June, including support for teams and driver swap races, livery customization and sharing, and plans for a delivery market. - Version 1.0 of the product was delivered on July 22, setting new concurrent and daily active user records. - In late-stage negotiations for console port of Le Mans Ultimate with a third-party studio. - Hired Jon Tibble as Vice President of Revenue and Growth. - Settled the remaining balance of Studio 397 purchase, gaining full ownership of technology and IP. - RaceControl subscription service has shown strong growth with high MRR and ARR figures.

Revenues for the quarter were $2.6 million, up by $0.7 million or 37.7% compared to the same period in the prior year. The increase in revenues was primarily due to a $1.3 million increase in 2025 from sales of Le Mans Ultimate Racing title, particularly DLC sales, a $0.2 million increase from Race Control and a $0.1 million increase in rFactor 2 title compared to 2024, offset by a $0.9 million decrease in NASCAR-related revenues. Le Mans Ultimate game revenues were a driving force in revenue. RaceControl, the Motorsport Games owned platform, has seen rapid growth in its subscription offerings with net monthly recurring revenue (MRR) growth at 296% in June alone, an annual recurring revenue (ARR) of approximately $972,000 at the end of June, and an MRR of approximately $81,000.

Stanley Beckley stated that he won't be offering any forward-looking guidance today and will focus on providing an update on financial results and highlights from the second quarter of 2025.

Q: Are there any questions on the line?

A: And there are no questions on the line at this time, so we will conclude today's program. Thank you for your participation in Motorsport Games' Second Quarter 2025 Earnings Call. You may now disconnect.