Motorsport Games (NASDAQ:MSGM) Announces Quarterly Earnings Results

by · The Cerbat Gem

Motorsport Games (NASDAQ:MSGM – Get Free Report) posted its earnings results on Friday. The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.17, FiscalAI reports. Motorsport Games had a return on equity of 87.43% and a net margin of 45.70%.

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

  • First-half revenue rose 74% year over year to $7.6 million, while gross margin expanded to 84.7% from 78.8%; the company also reported its sixth consecutive quarter of positive GAAP net income.
  • RaceControl continued its rapid growth, with first-half subscription revenue increasing nearly 349% to approximately $1.4 million, annual recurring revenue reaching $2.9 million, and paid subscribers exceeding 40,500.
  • Le Mans Ultimate surpassed 500,000 base-game sales and 1.2 million DLC sales, with player engagement accelerating; the US Track Pass featuring Daytona and Laguna Seca reportedly launched above management’s expectations.
  • Development of PlayStation and Xbox versions of Le Mans Ultimate remains on plan, but management emphasized that bringing the high-fidelity simulation to consoles is complex and did not provide a launch date.
  • Cash was $3.9 million at quarter-end after the company spent $3.7 million repurchasing Class A shares and had drawn $1.2 million of a $3 million revolving credit facility, limiting near-term financial flexibility despite positive operating cash flow.

Motorsport Games Trading Down 0.9%

Motorsport Games stock traded down $0.04 during mid-day trading on Friday, hitting $4.44. The company had a trading volume of 93,675 shares, compared to its average volume of 37,088. Motorsport Games has a 12 month low of $2.11 and a 12 month high of $5.56. The company has a market capitalization of $18.51 million, a PE ratio of 3.79, a price-to-earnings-growth ratio of 0.78 and a beta of 1.71. The stock’s 50 day moving average price is $4.30 and its two-hundred day moving average price is $4.17.

Insider Buying and Selling

In other news, major shareholder Red Oak Partners, Llc acquired 12,737 shares of Motorsport Games stock in a transaction on Thursday, July 2nd. The stock was acquired at an average cost of $4.14 per share, for a total transaction of $52,731.18. Following the purchase, the insider owned 295,881 shares in the company, valued at $1,224,947.34. This trade represents a 4.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders have bought 43,681 shares of company stock worth $175,344. Corporate insiders own 4.59% of the company’s stock.

Hedge Funds Weigh In On Motorsport Games

A number of hedge funds have recently added to or reduced their stakes in MSGM. Dimensional Fund Advisors LP purchased a new position in Motorsport Games in the 3rd quarter worth approximately $46,000. State Street Corp purchased a new stake in Motorsport Games during the 4th quarter valued at $39,000. HRT Financial LP bought a new stake in shares of Motorsport Games in the 4th quarter worth $37,000. Finally, XTX Topco Ltd bought a new stake in shares of Motorsport Games in the 4th quarter worth $34,000. 1.66% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Weiss Ratings raised shares of Motorsport Games from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, July 10th. Wall Street Zen cut shares of Motorsport Games from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 7th. Finally, Zacks Research upgraded shares of Motorsport Games to a “hold” rating in a report on Wednesday, July 1st. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock has a consensus rating of “Hold”.

Get Our Latest Analysis on Motorsport Games

Motorsport Games Company Profile

(Get Free Report)

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).

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