The company is still posting losses and is burning cash, but its recent release has stemmed the flow somewhat.
Revenues for Motorsport Games jumped 76% to $3.0 million in the first quarter of 2024, compared to $1.7m this time last year.
The main progenitor of the swing came from the release, in early access form, of Le Mans Ultimate – the official simulation of the FIA World Endurance Championship.
It also received a follow-up payment from iRacing for the NASCAR game licencing agreement this quarter of $500,000.
“Higher digital game sales were primary drivers for this increase, primarily as a result of the result of the Le Mans Ultimate game for PC in February 2024,” said Stanley Beckley, interim Chief Financial Officer at Motorsport Games.
Despite this, the embattled racing game developer still posted a net loss of $1,683,398. While still in the red, the results pale in comparison to the $5,259,192 posted (a 67.99% change) in same period last year. It’s also the smallest loss it has reported since 2020.
Similarly, it reported an average monthly cash burn of $1.1m per month in 2023 and $1.9m in that Q1. Whereas, so far in 2024 that is down to $0.3m.
As of 31st March, it has cash and cash equivalents of approximately $1.3 million remaining. Of note, a month later (30th April), its cash equivalents remained valued at $1.3 million.
Its total accumulated deficit to date is a staggering $88,665,020. It has not reported any net debt.
Shares rose 32 per cent during trading on Tuesday.
While these are the most optimistic figures reported by the Miami-headquartered outfit in several years, it remains circumspect.
“The Company does not believe it has sufficient cash on hand to fund its operations over the next year and that additional funding will be required in order to continue operations,” reads the report – as Motorsport Games reports have done now for quite some time.
“We’ve worked hard over the last 12 months and the result is an upturn in our Q1 results," said Motorsport Games CEO Stephen Hood.
“We still have some way to go but I hope you agree we have turned the page and have positive momentum.
“We’re excited about the remainder of this year and in particular the upcoming Le Mans event in June.”
“We are feeling very positive about this Q1, we see it as a stepping stone.”
Le Mans Ultimate is set to expand across the year, with a notable update expected next month to time with the real-world 24 Hours of Le Mans race.
Revenues for Motorsport Games jumped 76% to $3.0 million in the first quarter of 2024, compared to $1.7m this time last year.
The main progenitor of the swing came from the release, in early access form, of Le Mans Ultimate – the official simulation of the FIA World Endurance Championship.
It also received a follow-up payment from iRacing for the NASCAR game licencing agreement this quarter of $500,000.
“Higher digital game sales were primary drivers for this increase, primarily as a result of the result of the Le Mans Ultimate game for PC in February 2024,” said Stanley Beckley, interim Chief Financial Officer at Motorsport Games.
Despite this, the embattled racing game developer still posted a net loss of $1,683,398. While still in the red, the results pale in comparison to the $5,259,192 posted (a 67.99% change) in same period last year. It’s also the smallest loss it has reported since 2020.
Similarly, it reported an average monthly cash burn of $1.1m per month in 2023 and $1.9m in that Q1. Whereas, so far in 2024 that is down to $0.3m.
As of 31st March, it has cash and cash equivalents of approximately $1.3 million remaining. Of note, a month later (30th April), its cash equivalents remained valued at $1.3 million.
Its total accumulated deficit to date is a staggering $88,665,020. It has not reported any net debt.
Shares rose 32 per cent during trading on Tuesday.
While these are the most optimistic figures reported by the Miami-headquartered outfit in several years, it remains circumspect.
“The Company does not believe it has sufficient cash on hand to fund its operations over the next year and that additional funding will be required in order to continue operations,” reads the report – as Motorsport Games reports have done now for quite some time.
“We’ve worked hard over the last 12 months and the result is an upturn in our Q1 results," said Motorsport Games CEO Stephen Hood.
“We still have some way to go but I hope you agree we have turned the page and have positive momentum.
“We’re excited about the remainder of this year and in particular the upcoming Le Mans event in June.”
“We are feeling very positive about this Q1, we see it as a stepping stone.”
Le Mans Ultimate is set to expand across the year, with a notable update expected next month to time with the real-world 24 Hours of Le Mans race.
